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Auditor Report of SVC Resources Ltd.

Mar 31, 2015

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

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the preparation of these financial statements in terms of the requirements of the Companies Act, 2013 ('the Act') 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. The respective Board of Directors of the Company are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the respective assets of the Company and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and the 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, which have been used for the purpose of preparation of these financial statements by the Board of Directors of the Company.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

While conducting the 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 thereunder.

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. Page 37 of 51

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 and presentation 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 control 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 Board of Directors, as well as evaluating the overall presentation of the financial statements.

Basis for Disclaimer of Opinion

So far as information and explanations given to us, the Old Management of the Company was removed in an Extraordinary General Meeting held on January 11, 2014 and supported by the an order of the Company Law Board, Delhi dated April 4, 2014.

Thereafter, the Old Management did not hand over books of accounts, statutory records, minutes books, bank statements, subsidiary details and any other records/documents to the New Management. Since then, the New Management of the Company is engaged in a legal battle with the Old Management. As such, the Company does not have books of accounts or any other records.

In this regard, the Company had filed petition with the Company Law Board, Delhi. The case was decided in favour of the New Management on June 4, 2015. However, the New Management are yet to receive the books of accounts and other records of the company from the Old Management.

We have not been able to access the books of accounts and other records of the company; the elements making up the Balance Sheet and the Statement of Profit and Loss and Cash Flow.

Disclaimer of Opinion

Because of the significance of the matters described in the Basis of Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements.

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 Section 143 (11) of the Act, based on the comments in the auditors' report of the Company, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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

a. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we have sought but not obtained any of the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the financial statements.

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether proper books of account as required by law relating to preparation of the financial statements have been kept.

c. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we are able to opine on whether the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the financial statements.

d. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the 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 of the Company as on March 31, 2015, taken on record by the Board of Directors of the Company, none of the Directors of the Company 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 Auditors' Report in accordance with Rule 11 of the Companies (Audit and Auditor's) Rules, 2014:

i. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has disclosed the impact of pending litigations on the financial position in its financial statements as of March 31, 2015.

ii. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has made provisions in its financial statements, as required under the applicable law or accounting standards, for material foreseeable losses on long term contracts.

iii. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether there has been any delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

Annexure to Independent Auditors' Report

(Referred to in paragraph 1 under "Report on Other Legal and Statutory Requirements" section of our report of even date)

1. In respect of the fixed assets of the Company:

a. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the respective entities have maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the fixed assets were physically verified during the year by the Management of the respective entities in accordance with a regular programme of verification which provides for physical verification of the fixed assets at reasonable intervals.

2. In respect of the inventories of the Company:

a. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the inventories were physically verified during the year by the Management of the Company at reasonable intervals.

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the procedures of physical verification of inventories followed by the respective Management were reasonable and adequate in relation to the size of the Company and the nature of their business.

c. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has maintained proper records of its inventories.

3. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has granted any loans, secured or unsecured, to companies, firms or other parties covered in the Registers maintained under Section 189 of the Act by the respective entities.

4. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether there is an adequate internal control system commensurate with the size of the Company and the nature of their business respectively with regard to purchase of inventory and fixed assets and the sale of goods and services.

5. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has accepted deposits during the year and do not have any unclaimed deposits.

6. The provisions of clause 3 (vi) of the Order are not applicable to the Company as the Company is not covered by the Companies (Cost Records and Audit) Rules, 2014.

7. According to the information and explanations given to us, in respect of statutory dues of the Company:

a. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax and Value Added Tax, Wealth Tax, Service Tax, duty of Customs, duty of Excise, Cess and other material statutory dues applicable to it with the appropriate authorities.page 40 0f 51

b. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether there were no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income Tax, Sales Tax and Value Added Tax, Wealth Tax, Service Tax, duty of Customs, duty of Excise, Cess and other material statutory dues in arrears as at March 31, 2015 for a period of more than six months from the date they became payable.

c. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether there were no dues of Income Tax, Sales Tax, Value Added Tax, Service Tax, Wealth Tax, duty of Customs, duty of Excise and Cess which have not been deposited as at March 31, 2015 on account of dispute.

d. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has been regular in transferring amounts to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 and Rules made thereunder within time.

8. The Company has accumulated losses. The Company has incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

9. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has defaulted in repayment of dues to a bank during the year and did not have any amount outstanding to financial institutions or debenture holders.

10. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has given guarantees for loans taken by others from banks and financial institutions. Therefore, the provisions of the clause 3 (x) of the Order are not applicable to the Company.

11. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether the Company has availed any term loan during the year.

12. Due to the effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we do not express an opinion on whether any fraud on or by the Company has been noticed or reported during the year.

However, suspected frauds were detected in the previous year's audit of the Company which, when confirmed, can have significant effect on the financial statements of the Company. We reproduce the observations made in the previous year's Audit Report;

"The order of the Company Law Board dated June 4, 2015 has created doubts over the genuineness of the balances of loans and advances taken and given, creditors, debtors and cash. We suspect that the Old Management conducted fraudulent activities against the Company. The Company has already filed a complaint against the Old Management with the Economic Offences Wing (EOW). The exact nature of the frauds is not ascertainable because of the significance of the matters described in the Basis of Disclaimer of Opinion Paragraph."

For D N Khatri & Associates Chartered Accountants Firm Registration No. 133251W

Place Mumbai Deepesh Khatri Proprietor Date September 2, 2015 Membership No. 143579






Mar 31, 2014

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

Management's Responsibility for the Financial Statements

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 fair presentation of the financial statements that are free from material misstatements, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Because of the matters described in the Basis for Disclaimer of Opinion Paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Basis for Disclaimer of Opinion

We were appointed auditors of the Company on January 23th, 2015. So far as information and explanations given to us, the Old Management of the Company was removed in an Extraordinary General Meeting held on January 11th, 2014 and supported by the an order of the Company Law Board, Delhi dated April 4th, 2014.

Thereafter, the Old Management did not hand over books of accounts, statutory records, minutes books, bank statements, subsidiary details and any other records/documents to the New Management. Since then, the New Management of the Company is engaged in a legal battle with the Old Management. As such, the Company does not have books of accounts or any other records.

In this regard, the Company had filed petition with the Company Law Board, Delhi. The case was decided in favour of the New Management on June 4th, 2015. However, the New Management are yet to receive the books of accounts and other records of the company from the Old Management.

We have not been able to access the books of accounts and other records of the company; the elements making up the Balance Sheet and the Statement of Profit and Loss and Cash Flow.

Disclaimer of Opinion

Because of the significance of the matters described in the Basis of Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on the financial statements.

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. The order of the Company Law Board dated June 4th, 2015 has created doubts over the genuineness of the balances of loans and advances taken and given, creditor and debtors. The Company has already filed a complaint against the Old Management with the Economic Offences Wing (EOW).

3. As required by section 227(3) of the Companies Act, 1956, we report that;

a. As described in the Basis of Disclaimer Opinion paragraph, we were unable to obtain all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. Due to the possible effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we are unable to state whether proper books of accounts as required by law have been kept by the Company.

c. Due to the possible effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we are unable to state whether the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.

d. Due to the possible effects of the matter described in the Basis for Disclaimer of Opinion paragraph, we are unable to state whether 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.

e. On the basis of written representations received from the New Management as on January 23, 2015, all the directors as on March 31, 2014 are disqualified, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act. All directors of the Company as on March 31, 2014 were superseded by the directors appointed in an Extraordinary General Meeting and confirmed by the Company Law Board, Delhi by an order dated April 4, 2014.

f. Since the Central Government has not issued any notification as to the rate at which cess is to be paid under section 441A of the Companies Act, 1956 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 Auditor's Report

Referred to in Point No. 1 of the Paragraph "Report on Other Legal and Statutory Requirements" of our report of even date

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that;

Particulars Auditor's Remarks

(i) a) Whether the company is maintaining proper See Note records showing full particulars, including (1) quantitative details and situation of fixed assets;

(b) Whether these fixed assets have been See Note physically verified by the management at (1) reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of accounts;

(c) If a substantial part of fixed assets have See Note been disposed of during the year, whether (2) it has affected the going concern;

(ii) (a) Whether physical verification of See Note inventory has been conducted at (1) reasonable intervals by the management;

(b) Are the procedures of physical verification See Note of inventory followed by the management (1) reasonable and adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported;

(c) Whether the company is maintaining proper See Note records of inventory and whether any (1) material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of accounts;

(iii)(a) Has the company granted any loans, See Note secured or unsecured to companies, firms (1) or other parties covered in the register maintained under section 301 of the Act. If so, give the number of parties and amount involved in the transactions; and

(b) Whether the rate of interest and other See Note terms and conditions of loans (1) given by the company, secured or unsecured, are prima facie prejudicial to the interest of the company; and

(c) Whether receipt of the principal amount and See Note interest are also regular; (1) and

(d) If overdue amount is more than rupees one See Note lakh, whether reasonable steps have been (1) taken by the company for recovery of the principal and interest;

(e) Has the company taken any loans, secured See Note or unsecured from companies, firms or other (1) parties covered in the register maintained under section 301 of the Act. If so, give the number of parties and amount involved in the transactions; and

(f) Whether the rate of interest and other See Note terms and conditions of loans (1) taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company; and

(g) Whether payment of the principal amount See Note and interest are also regular. (1)

(iv) Is there an adequate internal control See Note system commensurate with the size of (1) the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system.

(v) (a) Whether the particulars of contracts or See Note arrangements referred to in section 301 (1) of the Act have been entered in the register required to be maintained under that section; and

(b) Whether the transactions made in pursuance See Note of such contracts or arrangements have (1) been made at prices which are reasonable having regard to the prevailing market prices at the relevant time; (This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one financial year).

(vi) In case the company has accepted deposits See Note from the public, whether the directives (1) issued by the Reserve Bank of India and the provisions of section 58A, 58AA or any other relevant provisions of the Act and the rules framed there under, where applicable, have been complied with. If not, the nature of contraventions should be stated. If an order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court of any other Tribunal whether the same has been complied with or not?

(vii) In the case of listed companies and/or See Note other companies having paid-up capital (1) and reserves exceeding Rs. 50 lakhs as at the commencement of the financial year concerned, or having an average turnover exceeding five crore rupees for a period of three consecutive financial years immediately preceding the financial year concerned, whether the company has an internal audit system commensurate with its size and nature of its business;

(viii) Where maintenance of cost records has See Note been prescribed by the Central (3) Government under clause (d) of sub-section (1) of section 209 of the Act, whether such accounts and records have been made and maintained;

(ix)(a) Is the company regular in depositing See Note undisputed dues including Provident Fund, (4) Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.

(b) In case of dues of Income-tax/Sales-tax/ See Note Wealth Tax/Service Tax/Custom (1) Duty/Excise Duty/cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the Department shall not constitute a dispute)

(x) Whether in case of a company which has See Note been registered for a period not less (5) than five years, its accumulated losses at the end of the financial year are not less than fifty percent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year;

(xi) Whether the company has defaulted in See Note repayment of dues to a financial (1) institution or bank or debenture holders? If yes, the period and amount of default to be reported;

(xii) Whether adequate documents and records See Note are maintained in cases where the (1) company has granted loans and advances on the basis of security by the way of pledge of shares, debentures and other securities. If not, the deficiencies to be pointed out.

(xiii) Whether the provisions of any special See Note statute applicable to chit fund have (1) been duly complied with? In respect of nidhi/mutual benefit fund/societies;

(a) Whether the net-owned funds to deposit See Note liability ratio is more than (1) 1:20 as on the date of balance sheet;

(b) Whether the company has complied with See Note the prudential norms on (1) income recognition and provisioning against sub- standard/doubtful/loss assets;

(c) Whether the company has adequate See Note procedures for appraisal of credit (1) proposals/requests, assessment of credit needs and repayment capacity of the borrower;

(d) Whether the repayment schedule of See Note various loans granted by the nidhi (1) is based on the repayment capacity of the borrower;

(xiv) If the company is dealing or trading See Note in shares, securities, debentures and (1) other investments, whether proper records have been maintained of the transactions and contracts and whether timely entries have been made therein; also whether the shares, securities, debentures and other investments have been held by the company, in its own name except to the extent exemption, if any, granted under section 49 of the Act;

(xv) Whether the company has given any See Note guarantee for loans taken by others (1) from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;

(xvi) Whether term loans were applied for See Note the purpose for which loans were (1) obtained;

(xvii) Whether the funds raised on short-term See Note basis have been used for long term (1) investment. If yes, the nature and amount to be indicated;

(xviii) Whether the company has made any See Note preferential allotment of shares to (1) parties and companies covered in the Register maintained under section 301 of the Act and if so whether the price at which shares have been issued is prejudicial to the interest of the company;

(xix) Whether security or charge has been See Note created in respect of debentures issued; (1)

(xx) Whether the management has disclosed See Note on the end use of money raised by (1) public issue and the same has been verified;

(xxi) Whether any fraud on or by the company See Note has been noticed or reported during (1)



Notes:

1. Because of the significance of the matters described in the Basis of Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on this matter.

2. The Washery Plant at Jabalpur does not exist in its location and has been written off. Hence a significant part of fixed assets has been disposed off during the year. Its effect on the going concern assumption cannot be ascertained.

3. The Company is engaged in trading of minerals. As per section 209(1)(d) of the Act, maintenance of cost records has not been prescribed for the same.

4. Because of the significance of the matters described in the Basis of Disclaimer of Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on this matter. However, the Balance Sheet of the Company shows outstanding Income Tax Provision of Rs. 107,57,718/- and Tax Deducted at Source liability of Rs. 1,92,000/-.

5. The accumulated losses of the Company as on 31st March, 2014 are more than its net worth. The company has incurred cash losses in financial year 2013-14 as well as financial year 2012-13.

6. The order of the Company Law Board dated June 4th, 2015 has created doubts over the genuineness of the balances of loans and advances taken and given, creditors, debtors and cash. We suspect that the Old Management conducted fraudulent activities against the Company. The Company has already filed a complaint against the Old Management with the Economic Offences Wing (EOW). The exact nature of the frauds is not ascertainable because of the significance of the matters described in the Basis of Disclaimer of Opinion Paragraph. However, fraudulent activities are suspected in the following cases;

Particulars Amount of Suspected Fraud (Rs.)

Unsecured Loans (Liabilities) 32,466,553.00

Washery Plant (Asset) 10,825,216.00

Cash Balance (Asset) 582,147.00

For D N Khatri & Associates Chartered Accountants Firm Registration No. 133251W

Place Mumbai Deepesh Khatri Proprietor Date July 29, 2015 Membership No. 143579


Mar 31, 2013

We have audited the attached Balance Sheet of SVC Resources Limited as at 31st March 2013 and also the Profit & Loss Account for the year ended on that day annexed hereto. These financial statements are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards required that we plan & 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 included 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.

a. As required by the Companies (Auditors'' Report) Order, 2003 issued by the Department of the Company Affairs in terms of section 227 (4A) of the Companies Act 1956, we enclose in the Annexure, a statement on the matter specified in the said order to the extent applicable;- b. Further to our comments in the annexure referred to in paragraph 1 above –

(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 are not available since they are not available but our audit is based upon available records in so far as it appears from our examination of those books.

(c). The Balance Sheet, Profit & 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, Profit & Loss Account and Cash Flow Statement together with notes of accounts 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 written representations received from the directors, as on 31st March 2013, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2013 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956.

(f). In our opinion and to the best of our information and according to the explanations given to us, the said accounts, give the information required by the Companies Act 1956, and give a true and fair view inconformity with the accounting principles generally accepted in India :- 1. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2013;

2. in the case of the Profit and Loss Account, of the loss for the year ended on that date;

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

ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph 1 of our report of even date)

1. (a) The Company has maintained proper books of records showing full particulars of assets on the basis of previous balance sheet data and the same are written off.

(b) None of the fixed assets have been revalued during the year.

2. (a) As per the information and explanations given to us, the company has no inventories as on the 31st March, 2013.

3. (a) According to the information and explanation given to us and on the basis of records furnished before us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies (Auditors Report) Order, 2003 are not applicable.

(c) According to the information and explanation given to us and on the basis of records furnished before us for verification, the Company has taken loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

4. In our opinion and according the information & explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of business with regard to purchase and sales. During the course of Audit, we have not observed any continuing failure to correct major weakness of internal audit.

5. (a) In our opinion and according to the information and explanations given to us, the particulars of contract or arrangements that were required to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered in the said register.

(b) In respect of transactions entered exceeding the value of five lacs in the register maintained in pursuance of section 301 of the Companies Act 1956, according to information and explanation given to us, the transactions made pursuance of such contracts or arrangements have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time.

6. The company has not accepted any deposits from the public hence clause 4(vi) of Companies (Auditors Report) Order 2003 is not applicable.

7. The company has adequate Internal Control System, on broadly reviewing the same and information and explanation given to us by the management, we are of the opinion that the internal audit is commensurate with the size of the Company and the nature of business.

8. We are informed that the Central Government has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act 1956 in respect to products dealt with by the company.

9. (a) In our opinion and according to the information and explanations given to us, undisputed statutory dues including Provident Fund, Investors Education & Protection Fund, Employees State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and any other statutory dues have been regularly deposited in time during the year with appropriate authorities and there are no undisputed statutory dues payable for a period of six months from the date they became payable as at 31st March 2013.

(b) According to the information and explanation given to us there are no disputes pending before the authorities in respect of Sales Tax, Income Tax, Custom Duty and CESS.

10. The Company has accumulated losses as at the end of financial year and has incurred cash losses in the current financial year and in the immediate preceding financial year.

11. According to the records made available to us and the information and explanation given to us by the management, the Company has not defaulted in repayment of any dues to financial institutions or banks but there has been a default in repayment of principal and payment of interest to a on Non Banking Financial Company.

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

13. In our opinion, the Company is not chit fund, nidhi, mutual fund and societies and accordingly clause 4 (xiii) of companies (Auditors Report) order, 2003 is not applicable.

14. In our opinion and according to the information and explanation given to us, the Company has kept adequate records of its transactions and contracts in shares, securities, debentures and other investments are held in the name of the company.

15. In our opinion and according to the information and explanation given to us, the Company has not given guarantees for loans taken by others from banks & financial institutions. Accordingly clause 4 (xv) of the Companies (Auditors'' Report) Order, 2003 is not applicable.

16. In our opinion and according to the information and explanation given to us, the Company has not obtained any term loan, accordingly clause 4 (xvi) of Companies (Auditors'' Report) Order, 2003 is not applicable.

17. According to the information and explanation given to us and on the basis of and overall examination of the Balance Sheet of the Company, no funds raised on short term basis have been utilized for long term investment and vice versa.

18. During the period, the company has not issued any debentures. Accordingly clause 4 (xix) of Companies (Auditors'' Report) Order, 2003 is not applicable.

19. The Company has not raised any money through a Public Issue during the year under audit. Accordingly clause 4 (xx) of Companies (Auditors'' Report) Order, 2003 is not applicable.

20. During the course of examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India, and according to the information and explanation given to us, we have come across any instance of fraud on the Company noticed or reported during the period which have been informed by the management.

For D P Agarwal & Co

Chartered Accountants

sd/-

Place: Mumbai D P Agarwal

Date: 5th August, 2013 Membership No.035500


Mar 31, 2012

We have audited the attached Balance Sheet of SVC Resources Limited as at 31st March 2012 and also the Profit & Loss Account for the year ended on that day annexed hereto. These financial statements are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards required that we plan & 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 included 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.

a. As required by the Companies (Auditors'' Report) Order, 2003 issued by the Department of the Company Affairs in terms of section 227 (4A) of the Companies Act 1956, we enclose in the Annexure, a statement on the matter specified in the said order to the extent applicable;-

b. Further to our comments in the annexure referred to in paragraph 1 above -

(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, Profit & 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, Profit & Loss Account and Cash Flow Statement together with notes of accounts 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 written representations received from the directors, as on 31st March 2012, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956.

(f). In our opinion and to the best of our information and according to the explanations given to us, the said accounts, give the information required by the Companies Act 1956, and give a true and fair view inconformity with the accounting principles generally accepted in India:-

1. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012;

2. in the case of the Profit and Loss Account, of the profit for the year ended on that date;

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

ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph 1 of our report of even date)

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

(b) As per the information and explanations given to us, the Company has carried out physical verification of fixed assets during the year. In our opinion, the frequency of such verification is reasonable.

(c) None of the fixed assets have been revalued during the year.

2. (a) As per the information and explanations given to us, the company has carried out physical verification of Inventories during the year. In our opinion, the frequency of such verification is reasonable.

(b) In our opinion, and according to the information and explanation given to us, the procedure of physical verification of stock followed by the management is reasonable and adequate in relation to the size of the company and nature of its business.

(c) As per information and explanation given to us, no material discrepancies have been noticed on physical verification of stock as compared to the records.

(d) In our opinion and on the basis of our examination, the valuation of the stock is fair and proper in accordance with the normally accepted accounting principles.

3. (a) According to the information and explanation given to us and on the basis of records furnished before us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies (Auditors Report) Order, 2003 are not applicable.

(c) According to the information and explanation given to us and on the basis of records furnished before us for verification, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(d) In the view of above, clause 4(iii)(e), (f) and (g) of Companies (Auditors Report) Order, 2003 are not applicable.

4. In our opinion and according the information & explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of business with regard to purchase and sales. During the course of Audit, we have not observed any continuing failure to correct major weakness of internal audit.

5. (a) In our opinion and according to the information and explanations given to us, the particulars of contract or arrangements that were required to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered in the said register.

(b) In respect of transactions entered exceeding the value of five lacs in the register maintained in pursuance of section 301 of the Companies Act 1956, according to information and explanation given to us, the transactions made pursuance of such contracts or arrangements have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time.

6. The company has not accepted any deposits from the public hence clause 4(vi) of Companies (Auditors Report) Order 2003 is not applicable.

7. The company has adequate Internal Control System, on broadly reviewing the same and information and explanation given to us by the management, we are of the opinion that the internal audit is commensurate with the size of the Company and the nature of business.

8. We are informed that the Central Government has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act 1956 in respect to products dealt with by the company.

9. (a) In our opinion and according to the information and explanations given to us, undisputed statutory dues including Provident Fund, Investors Education & Protection Fund, Employees State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and any other statutory dues have been regularly deposited in time during the year with appropriate authorities and there are no undisputed statutory dues payable for a period of six months from the date they became payable as at 31st March 2012.

(b) According to the information and explanation given to us there are no disputes pending before the authorities in respect of Sales Tax, Income Tax, Custom Duty and CESS.

10. The Company does not have any accumulated losses as at the end of financial year and has not incurred cash losses in the current financial year and in the immediate preceding financial year.

11. According to the records made available to us and the information and explanation given to us by the management, the Company has not defaulted in repayment of any dues to financial institutions or banks.

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

13. In our opinion, the Company is not chit fund, nidhi, mutual fund and societies and accordingly clause 4 (xiii) of companies (Auditors Report) order, 2003 is not applicable.

14. In our opinion and according to the information and explanation given to us, the Company has kept adequate records of its transactions and contracts in shares, securities, debentures and other investments are held in the name of the company.

15. In our opinion and according to the information and explanation given to us, the Company has not given guarantees for loans taken by others from banks & financial institutions. Accordingly clause 4 (xv) of the Companies (Auditors'' Report) Order, 2003 is not applicable.

16. In our opinion and according to the information and explanation given to us, the Company has not obtained any term loan, accordingly clause 4 (xvi) of Companies (Auditors'' Report) Order, 2003 is not applicable.

17. According to the information and explanation given to us and on the basis of and overall examination of the Balance Sheet of the Company, no funds raised on short term basis have been utilized for long term investment and vice versa.

18. During the period, the company has not issued any debentures. Accordingly clause 4 (xix) of Companies (Auditors'' Report) Order, 2003 is not applicable.

19. The Company has not raised any money through a Public Issue during the year under audit. Accordingly clause 4 (xx) of Companies (Auditors'' Report) Order, 2003 is not applicable.

20. During the course of examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the period nor we have been informed of any such instances by the management.

For D P Agarwal & Co

Chartered Accountants

Place: Mumbai Sd/-

D P Agarwal

Date: December 1, 2012 Membership No.035500


Mar 31, 2011

We have audited the attached Balance Sheet of SVC Resources Limited as at 31st March 2011 and also the Profit & Loss Account for the year ended on that day annexed hereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards required that we plan & 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 included 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.

a. As required by the Companies (Auditors' Report) Order, 2003 issued by the Department of the Company Affairs in terms of section 227 (4A) of the Companies Act 1956, we enclose in the Annexure, a statement on the matter specified in the said order to the extent applicable;

b. Further to our comments in the annexure referred to in paragraph 1 above -

(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, Profit & 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, Profit & Loss Account and Cash Flow Statement together with notes of accounts 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 written representations received from the directors, as on 31st March 2011, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 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). In our opinion and to the best of our information and according to the explanations given to us, the said accounts, give the information required by the Companies Act 1956, and give a true and fair view in conformity with the accounting principles generally accepted in India :-

1. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2011;

2. in the case of the Profit and Loss Account, of the profit for the year ended on that date;

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

For Prem Mishra & Co

Chartered Accountants

Prem Lata Mishra

Place: Mumbai Partner

Date: September 2, 2011 Membership No.92733







ANNEXURE TO THE AUDITOR'S REPORT

(Referred to in paragraph 1 of our report of even date)

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

(b) As per the information and explanations given to us, the Company has carried out physical verification of fixed assets during the year. In our opinion, the frequency of such verification is reasonable.

(c) None of the fixed assets have been revalued during the year.

2. (a) As per the information and explanations given to us, the company has carried out physical verification of Inventories during the year. In our opinion, the frequency of such verification is reasonable.

(b) In our opinion, and according to the information and explanation given to us, the procedure of physical verification of stock followed by the management is reasonable and adequate in relation to the size of the company and nature of its business.

(c) As per information and explanation given to us, no material discrepancies have been noticed on physical verification of stock as compared to the records.

(d) In our opinion and on the basis of our examination, the valuation of the stock is fair and proper in accordance with the normally accepted accounting principles.

3. (a) According to the information and explanation given to us and on the basis of records furnished before us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies (Auditors Report) Order, 2003 are not applicable.

(c) According to the information and explanation given to us and on the basis of records furnished before us for verification, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(d) In the view of above, clause 4(iii)(e), (f) and (g) of Companies (Auditors Report) Order, 2003 are not applicable.

4. In our opinion and according the information & explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of business with regard to purchase and sales. During the course of Audit, we have not observed any continuing failure to correct major weakness of internal audit.

5. (a) In our opinion and according to the information and explanations given to us, the particulars of contract or arrangements that were required to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered in the said register. (b) In respect of transactions entered exceeding the value of five lacs in the register maintained in pursuance of section 301 of the Companies Act 1956, according to information and explanation given to us, the transactions made pursuance of such contracts or arrangements have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time.

6. The company has not accepted any deposits from the public hence clause 4(vi) of Companies (Auditors Report) Order 2003 is not applicable.

7. The company has adequate Internal Control System, on broadly reviewing the same and information and explanation given to us by the management, we are of the opinion that the internal audit is commensurate with the size of the Company and the nature of business.

8. We are informed that the Central Government has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act 1956 in respect to products dealt with by the company.

9. (a) In our opinion and according to the information and explanations given to us, undisputed statutory dues including Provident Fund, Investors Education & Protection Fund, Employees State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and any other statutory dues have been regularly deposited in time during the year with appropriate authorities and there are no undisputed statutory dues payable for a period of six months from the date they became payable as at 31st March 2011.

(b) According to the information and explanation given to us there are no disputes pending before the authorities in respect of Sales Tax, Income Tax, Custom Duty and CESS.

10. The Company does not have any accumulated losses as at the end of financial year and has not incurred cash losses in the current financial year and in the immediate preceding financial year.

11. According to the records made available to us and the information and explanation given to us by the management, the Company has not defaulted in repayment of any dues to financial institutions or banks.

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

13. In our opinion, the Company is not chit fund, nidhi, mutual fund and societies and accordingly clause 4 (xiii) of companies (Auditors Report) order, 2003 is not applicable.

14. In our opinion and according to the information and explanation given to us, the Company has kept adequate records of its transactions and contracts in shares, securities, debentures and other investments are held in the name of the company.

15. In our opinion and according to the information and explanation given to us, the Company has not given guarantees for loans taken by others from banks & financial institutions. Accordingly clause 4 (xv) of the Companies (Auditors' Report) Order, 2003 is not applicable.

16. In our opinion and according to the information and explanation given to us, the Company has not obtained any term loan, accordingly clause 4 (xvi) of Companies (Auditors' Report) Order, 2003 is not applicable.

17. According to the information and explanation given to us and on the basis of and overall examination of the Balance Sheet of the Company, no funds raised on short term basis have been utilized for long term investment and vice versa.

18. During the period, the company has not issued any debentures. Accordingly clause 4 (xix) of Companies (Auditors' Report) Order, 2003 is not applicable.

19. The Company has not raised any money through a Public Issue during the year under audit. Accordingly clause 4 (xx) of Companies (Auditors' Report) Order, 2003 is not applicable.

20. During the course of examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the period nor we have been informed of any such instances by the management.

For Prem Mishra & Co

Chartered Accountants

Prem Lata Mishra

Place: Mumbai Partner

Date: September 2, 2011 Membership No.92733




Mar 31, 2010

We have audited the attached Balance Sheet of SVC Resources Limited (formerly known as Pace Textiles Limited) as at 31st March 2010 and also the Profit & Loss Account for the year ended on that day annexed hereto. 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.

We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards required that we plan & 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 included 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.

a. As required by the Companies (Auditors Report) Order, 2003 issued by the Department of the Company Affairs in terms of section 227 (4A) of the Companies Act 1956, we enclose in the Annexure, a statement on the matter specified in the said order to the extent applicable;

b. Further to our comments in the annexure referred to in paragraph 1 above -

(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, Profit & 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, Profit & Loss Account and Cash Flow Statement together with notes of accounts 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 written representations received from the directors, as on 31st March 2010, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act 1956.

(f). In our opinion and to the best of our information and according to the explanations given to us, the said accounts, give the information required by the Companies Act 1956, and give a true and fair view in conformity with the accounting principles generally accepted in India :-

1. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2010.

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

3. 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 1 of our report of even date)

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

(b) As per the information and explanations given to us, the Company has carried out physical verification of fixed assets during the year. In our opinion, the frequency of such verification is reasonable.

(c) None of the fixed assets have been revalued during the year.

2. (a) As per the information and explanations given to us, the company has carried out physical verification of Inventories during the year. In our opinion, the frequency of such verification is reasonable.

(b) In our opinion, and according to the information and explanation given to us, the procedure of physical verification of stock followed by the management is reasonable and adequate in relation to the size of the company and nature of its business.

(c) As per information and explanation given to us, no material discrepancies have been noticed on physical verification of stock as compared to the records.

(d) In our opinion and on the basis of our examination, the valuation of the stock is fair and proper in accordance with the normally accepted accounting principles.

3. (a) According to the information and explanation given to us and on the basis of records furnished before us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies (Auditors Report) Order, 2003 are not applicable.

(c) According to the information and explanation given to us and on the basis of records furnished before us for verification, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act.

(d) In the view of above, clause 4(iii)(e), (f) and (g) of Companies (Auditors Report) Order, 2003 are not applicable.

4. In our opinion and according the information & explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of business with regard to purchase and sales. During the course of Audit, we have not observed any continuing failure to correct major weakness of internal audit.

5. (a) In our opinion and according to the information and explanations given to us, the particulars of contract or arrangements that were required to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered in the said register.

(b) In respect of transactions entered exceeding the value of five lacs in the register maintained in pursuance of section 301 of the Companies Act 1956, according to information and explanation given to us, the transactions made pursuance of such contracts or arrangements have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time.

6. The company has not accepted any deposits from the public hence clause 4(vi) of Companies (Auditors Report) Order 2003 is not applicable.

7. The company has appointed a firm of Chartered Accountants, to carry out internal audit functions, on broadly reviewing the Audit Reports furnished before us and information and explanation given to us by the management, we are of the opinion that the internal audit is commensurate with the size of the Company and the nature of business.

8. We are informed that the Central Government has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act 1956 in respect to products dealt with by the company.

9. (a) In our opinion and according to the information and explanations given to us, undisputed statutory dues including Provident Fund, Investors Education & Protection Fund, Employees State Insurance Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and any other statutory dues have been regularly deposited in time during the year with appropriate authorities and there are no undisputed statutory dues payable for a period of six months from the date they became payable as at 31st March 2010.

(b) According to the information and explanation given to us there are no disputes pending before the authorities in respect of Sales Tax, Income Tax, Custom Duty and CESS.

10. The Company does not have any accumulated losses as at the end of financial year and has not incurred cash losses in the current financial year and in the immediate preceding financial year.

11. According to the records made available to us and the information and explanation given to us by the management, the Company has not defaulted in repayment of any dues to financial institutions or banks.

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

13. In our opinion, the Company is not chit fund, nidhi, mutual fund and societies and accordingly clause 4 (xiii) of companies (Auditors Report) order, 2003 is not applicable.

14. In our opinion and according to the information and explanation given to us, the Company has kept adequate records of its transactions and contracts in shares, securities, debentures and other investments are held in the name of the company.

15. In our opinion and according to the information and explanation given to us, the Company has not given guarantees for loans taken by others from banks & financial institutions. Accordingly clause 4 (xv) of the Companies (Auditors Report) Order, 2003 is not applicable.

16. In our opinion and according to the information and explanation given to us, the Company has not obtained any term loan, accordingly clause 4 (xvi) of Companies (Auditors Report) Order, 2003 is not applicable.

17. According to the information and explanation given to us and on the basis of and overall examination of the Balance Sheet of the Company, no funds raised on short term basis have been utilized for long term investment and vice versa.

18. During the period, the company has not issued any debentures. Accordingly clause 4 (xix) of Companies (Auditors Report) Order, 2003 is not applicable.

19. The Company has not raised any money through a Public Issue during the year under audit. Accordingly clause 4 (xx) of Companies (Auditors Report) Order, 2003 is not applicable.

20. During the course of examination of the books and records of the Company, carried out in accordance with generally accepted auditing practices in India, and according to the information and explanation given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the period nor we have been informed of any such instances by the management.



For JAIN ANIL & ASSOCIATES

Chartered Accountants

Sd/-

Place: Mumbai ANIL JAIN

Date: May 29, 2010 Proprietor

 
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