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Auditor Report of SV Global Mill Ltd.

Mar 31, 2016

We have audited the accompanying standalone financial statements of M/s. S V Global Mill Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, 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 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. 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 the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 31st March, 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, 2016 (''the Order'') issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in Annexure - I a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

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 written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164 of the Act.

f) With respect to the adequacy of internal financial control systems and the operating effectiveness of such controls, we give our Report in Annexure - II

g) 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 Item No. 6 of Note 17 to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

1) Fixed Assets

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

b) As per the information and explanation given to us, all the fixed assets have been physically verified by the management at regular intervals, which in our opinion, is reasonable. According to the information and explanations given to us, no material discrepancies were noticed on such verification

c) The Company has title deeds of immovable properties and the same are held in the name of the Company.

2) Inventory

According to the information and explanations given to us, inventory has been physically verified during the year by the Management and no material discrepancies were noticed.

3) Transactions with parties covered by register referred to in Section 189

The Company has not granted loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013

4) Compliance with Section 185 & 186 in respect of Loans and Investments

The company has not advanced loans, given guarantees or security or made any investment in contravention of Section 185 and/or Section 186 of the Companies Act, 2013

5) Public Deposits

In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public and hence the provisions of Sections 73 to 76 or any other provisions of the Companies Act, 2013 and the rules made there under are not applicable to the Company.

6) Maintenance of Cost Records

Maintenance of cost records specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013 is not applicable to the company

7) Statutory Dues

a) The Company has generally been regular in depositing Income-tax, Sales-tax, and Service Tax, duty of customs, duty of Excise, Value Added Tax, Cess and any other statutory dues to the appropriate authorities. Based on information and explanation given to us, no undisputed amounts payable in respect of Income Tax, Sales-tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and any other statutory dues were outstanding as at 31st March 2016 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no dues of Income Tax, Sales-tax, Customs Duty, Excise Duty, Value Added Tax and Cess which have not been deposited by the Company.

8) Repayment of Loans

The Company has not taken loans from any Financial Institution, Bank or Government, and has not issued debentures and therefore the question of default does not arise.

9) Raising of monies through Public Offer and/or Term Loans

The company has not raised monies by way of initial public offer or further public offer (including debt instruments) during the relevant financial year. Also the Company has not taken any term loans during the relevant financial year.

10) Frauds

According to the information and explanations given to us no fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year

11) Managerial Remuneration

According to the information and explanations provided to us, the total Managerial remuneration paid/provided by the Company is within the overall maximum limit as specified under Section 197 read with Schedule V to the Companies Act, 2013 and accordingly requirements as to obtaining requisite approval this section does not arise

12) Compliance with Net Owned Funds Ratio & Unencumbered Term Deposits

The Company is not a Nidhi Company and hence the provisions para 3(xii) of the order referred to in Companies (Auditor''s Report) Order, 2016 issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act does not apply to the Company

13) Transaction with Related Parties

There were no transactions as referred to in Section 188 entered into with related parties during the relevant financial year.

14) Preferential Allotment or Private Placement

The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review as referred to in Section 42 of the Companies Act, 2013

15) Non-cash Transactions

The company has not entered into any non-cash transactions with directors or persons connected with him as referred to in Section 192 of the Companies Act, 2013

16) Registration with Reserve Bank of India

The Company is not carrying any activities which require registration under Section 45-IA of the Reserve Bank of India Act, 1934

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of S V Global Mill Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that tarn sections are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

P. B. Vijayaraghavan & Co., Chartered Accountants FRN: 004721S

Place: Chennai P. B. SRINIVASAN

Date: 25.05.2016 Partner

M. No. 203774


Mar 31, 2015

We have audited the accompanying financial statements of S V Global Mill Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 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 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 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 financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give 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 financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its profits 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, 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 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 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 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 31st March, 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 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 litigation on its financial position in its financial statements (where ascertainable) - Refer Note 18 (9) to the financial statements.

II. There are no material foreseeable losses requiring provision under law or accounting standards with respect to long-term contracts including derivative contracts.

III. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the Company.

ANNEXURE TO THE AUDITOR'S REPORT

Annexure referred to in our report of even date to the members of S V GLOBAL MILL LIMITED on the accounts for the year ended March 31, 2015

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

(b) The Fixed assets have been physically verified by the Management during the year in accordance with a program of verification, which in our opinion provides for physical verification of the Fixed Assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(ii) (a) The inventories have been physically verified by the management during the year in accordance with a program of verification, which in our opinion provides for such physical verification at reasonable intervals.

(b) The procedures of physical verification of inventory carried out by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) The company has not granted any loans, secured or unsecured, to any companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. However the company has placed a Deposit with a company covered in the register maintained under section 189 of the Companies Act, 2013. The receipt of the principal and interest are regular and there are no overdue amounts.

(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 nature of its business with regard to purchase of inventory and fixed assets. The company's operations during the year did not involve any sale of goods and services. During the course of audit, we have not observed any continuing failure to correct major weaknesses in the internal control systems.

(v) According to the information and explanations given to us, the company has not accepted any deposits from the public. Therefore, the provisions of clause 3(v) of the Order are not applicable to the company.

(vi) The Company has no manufacturing activity. Accordingly, in our opinion clause 4 (vi) of the Order is not applicable.

(vii) a) The Company has been generally regular in depositing undisputed statutory dues, wherever applicable, including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, and Municipal Profession Tax with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above statutory dues is outstanding as at 31st March 2015 for a period of more than six months from the date they became payable.

b) According to the information and explanation given to us, there are no dues of income tax, sale tax, wealth tax, service tax, customs duty, excise duty, value added tax and cess which have not been deposited on account of disputes.

c) According to the information and explanations given to us, there are no amounts required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 and the rules made thereunder.

(viii) There are no accumulated losses at the end of the current financial year. The company has not incurred cash losses during the current financial year, but incurred cash losses in the immediately preceding year.

(ix) In our opinion and according to the information and explanations given to us, the company did not have any dues to financial institutions / banks or debenture holders. Accordingly, clause 4 (ix) of the Order is not applicable.

(x) In our opinion and according to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions. Accordingly, clause 4 (x) of the Order is not applicable.

(xi) According to the information and explanations given to us no term loans have been obtained during the year. Accordingly, clause 4 (xi) of the Order is not applicable.

(xii) Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanations given to us, no fraud on or by the company has been noticed or reported during year.

For M Kuppuswamy PSG & CO LLP Chartered Accountants Firm Regn. No. 001616S

(S/d.) Date : May 27, 2015 M. K. KRISHNAN Place : Chennai Partner M. No.020116


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of M/s. SV GLOBAL MILL LIMITED (the Company), which comprises the Balance Sheet as at March, 31 2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosure in the financial statements. The procedures selected depend on the auditor''s judgement, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessment, 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 the 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 aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the State of Affairs of the Company as at March, 31, 2013;

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

c) In the case of Cash Flow Statement, of the Cash Flows of the Company 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 accounts 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 the 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 or Loss, and Cash Flow statement comply with the accounting standards referred to sub-section (3C) of Section 211 of the Act;

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

f. since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Act, nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO THE AUDITORS'' REPORT (Referred to in our Report of even date)

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

b) The fixed assets have not been verified by the management during this year. The discrepancies (between physical verification and book records) and accounting for such discrepancies does not arise.

c) There was no sale of fixed assets during the year.

2. There is no inventory during the year and hence reporting under clause 4(ii) of the order does not arise.

3. In our opinion, and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to the companies, firms or individual parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the reporting under clause 4(iii) of the order does not arise.

4. a) In our opinion and according to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register maintained under that section.

b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of such contracts or arrangements and hence reporting under this clause does not arise.

5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public. Hence reporting under this clause does not arise.

6. The Company does not have any internal audit system to commensurate with the size of the company and the nature of its business and services.

7. There are accumulated losses as at the year end. The company has incurred cash losses during the financial year covered by our audit and incurred cash loss in the immediately preceding financial year.

8. The reporting under clauses 4(iv) (viii) (ix) (xi) (xii) (xiii) (xiv) (xv) (xvi) (xvii) (xviii) (xix) (xx) and (xxi) does not arise as the same are not applicable to the company.

For TSelvaraj & Co

Chartered Accountants

Firm Registration No:003703S

Place: Chennai TSelvaraj

Date: 29th May 2013 Partner

Membership No.11370


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. S.V.GLOBAL MILL LIMITED as at 31st March, 2012, the Profit and Loss Account of the Company for the year ended on that date annexed thereto and the Cash Flow Statement for the year ended on that date, which we have signed under reference to. this report. 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) (Amendment) Order, 2004 (together the "Order") issued by the Central Government jn terms of sub-section (4A) of section 227 of the Companies Act, 1956 we enclose in the Annexure hereto a statement on the matters specified in the paragraphs 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to in paragraph 3 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 those books;

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

(d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement are in compliance with the Accounting Standards referred to in sub-section (3C) of the section 211 of the Companies Act1, 1956;

(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, none of the Directors is disqualified as on 31-3-2012 from being appointed as a Director under clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 on the said date;

(f) In qur opinion and to the best of our information and according to the explanations given to us, the said accounts 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 the Company as at 31st March, 2012; ii. in the case of the Profit and Loss Account, of the loss for the year ended on that date ; and iii. in the case of the Cash Flow Statement, of the Cash Flow for the year ended on that date .

Referred to in Paragraph 3 of our Report of even date

1. a) In respect of fixed assets, the Company has maintained proper records showing full particulars including quantitative details and situation of fixeti assets.

b) The fixed assets have not been verified by the management during this year. The discrepancies (between physical verification and book records) and accounting for such discrepancies does not arise. N ''

c) There was no sale of fixed assets during the year.

2. There is no inventory during the year and hence reporting under clause 4(ii) of the order does not arise.

3. In our opinion, and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to the companies, firms or individual parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the reporting under clause 4(iii) of the order does not arise. -

4. a) Iri''our opinion and according to the information and explanations given, to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register maintained under that section.

b) In our opinion and according to the information and explanations given to us, there are no- transactions made in pursuance of such contracts or arrangements and hence reporting under this clause does not arise.

5. In our opinion a.nd according to the information and explanations given to us, the Company-has not accepted deposits from public. Hence reporting under this clause does not arise.

6. The-Company does not have any internal audit system to commensurate with the size of the company and the nature of its business and services.

7. There are accumulated losses as at the year end. The company has incurred cash losses during the financial year covered by our audit and incurred cash loss in the immediately preceding financial year.;

8. The reporting untler clauses 4(iv) (viii) (ix) (xi) (xii) (xiii) (xiv) fcv) (xvi) (xvii) (xviii) (xix) (xx) and (xxi) does not arise as the same are not applicable to the company.

For T.Selvaraj & Co Chartered Accountants

Firm Regd No:003703S

Place: Chennai T.Selvaraj

Date: 1st-September 2012 Partner

Membership No.11370


Mar 31, 2011

1. We have audited the attached Balance Sheet of SV GLOBAL MILL LIMITED as at 31st March 2011, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed there to. 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 the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the 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)(Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

a) We have obtained all 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 such books;

c) The Balance Sheet, Profit and Loss Account 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 Profit and Loss Account and the Cash Flow Statement dealt by this report, 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 the Directors, as on 31/03/2011 and taken on records by the Board of Directors, we report that, none of the Directors are disqualified as on 31/03/2011 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) The said accounts, in our opinion and to the best of our information and according to the explanations given to us, 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 the Company as at 31s1 March 2011,

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

ANNEXURE

Referred to in Paragraph 3 of our Report of even date

1. (a) The Company is maintaining proper records showing full Particulars, including quantitative details and situation of fixed assets, which needs to be updated.

(b) The fixed assets have not been verified by the management during this year. The discrepancies (between physical verification and book records) and accounting for such discrepancies does not arise.

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

2. There is no inventory during the year and hence reporting under clause 4(ii) of the order does not arise.

3. According to the information and explanations given to us, the company has not granted any loans, secured or unsecured to the companies, firms or individual parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the reporting under clause 4(iii) of the order does not arise.

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

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of such contracts or arrangements and hence reporting under this clause does not arise.

5. In our opinion and according to the information and explanation given to us, the Company has not accepted deposits from public. Hence reporting under this clause does not arise.

6. The Company does not have any internal audit system to commensurate with the size of the company and the nature of its business and services.

7. There are accumulated losses as at the year end. The company has incurred cash losses during the financial year covered by our audit and incurred cash loss in the immediately preceding financial year.

8. According to the information given to us, the Company has made preferential allotment of preference shares during the year as follows:

(i) 23902516 9% Cumulative Redeemable Preference Shares of Rs.5 each amounting to

Rs.11,95,12,580/- (ii) 39200 9.75 % Cumulative Redeemable Preference Shares of Rs.5 each amounting to Rs.1,96,000/-

The Company has not made any preferential allotment of equity shares during the year.

9. The reporting under clauses 4 (iv) (vii) (viii), (ix), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xvii), (xix), (xx) and (xxi) does not arise as the same are not applicable to the company.

For TSELVARAJ & CO

CHARTERED ACCOUNTANTS

FIRM REGN NO .003703S

TSELVARAJ PARTNER

Place: Chennai MEMBERSHIP No: 11370

Date: 26.08.11


Mar 31, 2010

1. We have audited the attached Balance Sheet of S V GLOBAL MILL LIMITED as at 31st March 2010, the Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors'' Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we give in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

c) The Balance Sheet, Profit & Loss Account 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 Profit & Loss Account 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 Companies Act, 1956;

e) On the basis of the written representations received from the Directors, as on 31/03/2010 and taken on records by the Board of Directors, we report that, none of the Directors are disqualified as on 31/03/2010 from being appointed as a Director in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

f) We draw the attention of members to the following Note: Transfer of assets from the Binny Ltd as per the High Court Sanctioned Scheme of Demerger and consequent accounting of share application pending allotment are stated in the notes on accounts.

g) The said accounts, in our opinion and to the best of our information and according to the explanations given to us, 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 of the Company as at 31st March 2010,

ii. in the case of the Profit SLossAccount, 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 Flow for the year ended on that date.

ANNEXURE

Re: S V GLOBAL MILL LIMITED

Referred to in paragraph 3 of our report of even date

1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets, which needs to be updated.

(b) The fixed assets have been verified by the management during this year. The discrepancies (between physical verification and book records) and accounting for such discrepancies does not arise.

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

2. There is no inventory during the year and hence reporting under clause 4(ii) of the Order does not arise.

3. According to the information and explanations given to us, the company has not granted or taken any loans, secured or unsecured, to or from the companies, firms or individual, parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the reporting under clause 4 (iii) of the Order does not arise.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business, in respect of fixed assets. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems.

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

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of such contracts or arrangements and hence reporting under this clause does not arise.

6. In our opinion and according to the information and explanations given to us, the company has not accepted deposits from public. Hence reporting under this clause does not arise.

7. The Company does not have any internal audit system to commensurate with the size of the company and the nature of its business and services.

8. There are accumulated losses as at the year end. The company has incurred cash losses during the financial year covered by our audit and incurred cash loss in the immediately preceding financial year.

9. According to the information given to us, the company has not made any preferential allotment of shares during the year. The amount of share capital pending allotment is as per the high court sanctioned scheme of demerger, as stated in the notes on accounts".

10. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

11. The reporting under clauses 4(viii), (ix), (xi), (xii), (xiii), (xiv), (xv), (xvi), (xvii), (xix) and (xx) does not arise as the same are not applicable to the company.

ForT.SELVARAJ & CO

CHARTERED ACCOUNTANTS

Firm Regn.No:003703S

Place: Chennai.

Date: 25.08.2010 T.SELVARAJ

Partner

Membership No.11370

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