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Auditor Report of Vishvjyoti Trading Ltd.

Mar 31, 2014

(Referred to in our report of even date)

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

b) As explained to us, the fixed assets have been verified by the management during the year in accordance with a phased programme of verification formulated by the company, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) In our opinion, and according to the information and explanations given to us,a substantial part of fixed assets has been disposed off by the Company during the year and the going concern status of the company is not affected.

2. In respect of shares held as stock in trade:

a) As explained to us, the shares were physically verified by the management at reasonable intervals during the year.

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

c) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its shares and the discrepancies noticed on such physical verification between physical stock and book records are not material and have been adequately dealt within the books of accounts.

3. a) The company has granted unsecured interest free loan to a company as listed in the register maintained under section 301 of the Companies Act 1956 amounting to Rs. 68,95,000/- (Maximum amount involved during the year was Rs 68,95,000/-)ln our opinion, terms and conditions of such loan are prima facie not prejudicial to the interest of the Company. The receipt of interest free principal amount is also regular.

b) In our opinion and according to the information and explanations given to us ,the company has not taken any loans secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly paragraphs 4(iii) (e) ,(f) and (g) of the order are not applicable.

4. In our opinion, and according to the information and explanation given to us, we are of the opinion that there are adequate internal control commensurate with the size of the company and nature of its business. We have not noted any continuing failure to correct major weaknesses in the internal control.

5. a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered in the register on pursuance of section 301 of the Act have been so entered.

b) The transactions have been made at prices which are reasonable with regard to the prevailing market prices at the relevant time.

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014:

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

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

Report on Other Legal and Regulatory Requirements

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

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

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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. 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 and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act. 1956 read with the General Circular 15 /2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,2013.; and

(e) On the basis of the written representations received from the directors as on 31st March. 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (I) of section 274 of the Act.

Independent Auditor''s Report To the Members of Vishvjyoti Trading Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Vishvjyoti Trading Limited ("the Company"j.which comprise the Balance Sheet as at 31st March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year ended, and a summary of the 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 21 1 of the Companies Act. 1956 ("the Act") read with the General Circular 15/2013. dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act.2013, This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that, give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 the 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 overa 1 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 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:

Auditor''s Report On Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Clause 41 of the Listing Agreement

Board of Directors of Vishvjyoti Trading Limited

We have audited the quarterly financial results of Vishvjyoti Trading Limited for the quarter ended 31st March, 2014 and the year to date results for the period 1st April, 2013 to 31st March, 2014 attached herewith, being submitted by the company pursuant to the requirement of clause 41 of the Listing Agreement except for the disclosures regarding ''Public Shareholding, and ''Promoter and Promoter Group Shareholding, which have been traced from disclosures made by the management. These quarterly financial results as well as the year to date financial results have been prepared on the basis of the interim financial statements, which are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial results based on our audit of such interim financial statements, which have been prepared in accordance with the recognition and measurement principles laid down in Accounting Standard (AS) 25, interim Financial Reporting, issued pursuant to the Companies (Accounting Standards) Rules, 2306 as per Section 211(3c) of the Companies Act, 1956 or by the Institute of Chartered Accountants of India and Other accounting principles generally accepted in India.

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 results are free of material misstatement (s). An audit includes examining, on a test basis, evidence supporting the amounts disclosed as financial results. An audit also includes assessing the accounting principles used and significant estimates made by management. We believe that our audit provides a reasonable basis for our opinion.

In our opinion and to the best of our information and according to the explanations given to us these quarterly financial results as well as the year to date results:

(i) Are presented in accordance with the requirements of clause 41 of the Listing Agreement in this regard: and

(ii) Give a true and fair view of the net profit/loss and other financial information for the quarter ended 31s'' march 2014 as well as the year to date results for the period from 1st April,2013 to 31st March 2014.

Further we also report that we have, on the basis of the books of account and other records and information and explanations given to us by the management, also verified the number of shares as well as percentage of shareholdings in respect of aggregate amount of public shareholdings, as furnished by the company in terms of clause 35 of the listing Agreement and found the same to be correct.

For, Jain & Co., Chartered Accountants FRN:302023E

Ashok Kumar Jain Partner (Membership No.51771)

Place: New Delhi Dated: 30th May 2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Vishvjyoti Trading Limited which comprise the balance sheet as at 31 March 2013, the Statement of Profit And Loss and the Cash Flow Statement for the year 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 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2013;

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

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; and

e. on the basis of written representations received from the directors as on 31 March 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to the Auditors Report

(Referred to in our report of even date)

1. a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets.

b) The fixed assets of the Company have been physically verified by the management at reasonable intervals during the year and this revealed no material discrepancies.

c) No fixed assets have been disposed off during the year.

2. In respect of shares held as stock in trade:

a)As explained to us, the shares were physically verified by the management at reasonable intervals during the year.

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

c).In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its shares and the discrepancies noticed on such physical verification between the physical stock and book records are not material and have been adequately dealt within the books of accounts.

3. a)The company has granted unsecured interest free loan to a company as listed in the register maintained under section 301 of the Companies Act 1956 amounting to Rs. 6275000/- (Maximum amount involved during the year was Rs. 10755000/-)In our opinion, terms and conditions of such loan are prima facie not prejudicial to the interest of the Company. The receipt of interest free principal amount is also regular.

b) In our opinion and according to the information and explanations given to us ,the company has not taken any loans secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act,1956.Accordingly paragraphs 4(iii) (c) ,(f) and (g) of the order are not applicable.

4. In our opinion, and according to the information and explanation given to us, we are of the opinion that there is adequate internal control commensurate with the size of the company and nature of its business.

We have not noted any continuing failure to correct major weaknesses in the internal control.

5. a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered in the register on pursuance of section 301 of the Act have been so entered.

b) The transactions have been made at prices which are reasonable with regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A and 58AA of the Companies Act, 1956, and rules framed there under are not applicable. No order has been passed by the Company Law Board. The provisions of RBI Act, 1934 regarding registration of non- banking financial Company are stated yet to be complied with.

7. In our opinion, the company has an internal audit system commensurate with its size and nature of its business.

8. According to the information and explanation given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956.

9. a) According to the records of the company examined by us and the information and explanations given to us, no undisputed amounts payable in respect of income tax, and other statutory dues applicable to it were outstanding, as at 31st March, 2013 for a period of more than six months from the date they became payable.

b) According to the records of the company examined by us and the information and explanations given to us, there are no dues of income tax and other statutory liabilities, which have not been deposited on account of any dispute.

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

11 In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

14 In our opinion, proper records have been maintained in respect of transactions and contracts in shares, and timely entries have been made therin. The shares and other investment have been held by the company in its own name.

15. In our opinion, the company has not given any guarantee for loans taken by others from banks of financial institutions

16. The company has not obtained any term loans.

17. According to the information and explanations given to us and on the basis of an overall examination of the balance sheet of the Company, in our opinion, generally, there are no funds raised by the Company on short-term basis, which have been used for long-term investment.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. During the course of examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For, JAIN & CO.

CHARTERED ACCOUNTANTS FRN: 302023E

SD/-

(CA A.K.JAIN)

PARTNER

MEMBERSHIP NO. 051771 PLACE : NEW DELHI.

DATED : 30th May, 2013


Mar 31, 2012

We have audited the annexed Balance sheet of M/s. VISHVJYOTI TRADING LIMITED as at 31st March, 2012 and also the Statement of Profit & Loss and the Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

As required by the Companies (Auditor's Report) order, 2003, as amended by the Companies (Auditor's 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 enclose in the Annexure a statement on the matter specified in paragraph 4 and 5 of the said order to the extent applicable." Further to our comments in the annexure referred to above, we report that:

1 In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with 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.

a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012, and

b) In the case of the Statement of Profit & Loss of the loss of the Company for the year ended on the date.

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

2. 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.

3. 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.

4. The Balance Sheet and Statement of Profit & Loss and the Cash Flow Statement, dealt with by this report are in agreement with the books of accounts.

5. In our opinion the Balance Sheet and Statement of Profit & Loss and the Cash Flow Statement complies with accounting standard as prescribed under sub section (3-C) of section 211 of the Companies Act, 1956.

6. On the basis of written representation 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.

Annexure to the Auditors Report

(Referred to in our report of even date)

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

b) As explained to us, the fixed assets have been verified by the management during the year in accordance with a phased programme of verification formulated by the company, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) No fixed assets have been disposed off during the year.

2. As there was no stock of finished goods and stores etc. at the end of the year, the question of physical verification and the valuation of stocks does not arise.

3. a) The company has granted unsecured interest free loan to a company as listed in the register

maintained under section 301 of the Companies Act 1956 amounting to Rs. 10635000/- (Maximum amount involved during the year was Rs1063500/-)In our opinion, terms and conditions of such loan are prima facie not prejudicial to the interest of the Company. The receipt of interest free principal amount is also regular. b) In our opinion and according to the information and explanations given to us ,the company has not taken any loans secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act,1956.Accordingly paragraphs 4(iii) (c) ,(f) and (g) of the order are not applicable.

4. In our opinion, and according to the information and explanation given to us, we are of the opinion that there is adequate internal control commensurate with the size of the company and nature of its business,. We have not noted any continuing failure to correct major weaknesses in the internal control.

5. a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered in the register on pursuance of section 301 of the Act have been so entered. b) The transactions have been made at prices which are reasonable with regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A and 58AA of the Companies Act, 1956, and rules framed there under are not applicable. No order has been passed by the Company Law Board. The provisions of RBI Act, 1934 regarding registration of non- banking financial Company are stated yet to be complied with.

7. In our opinion, the company has an internal audit system commensurate with its size and nature of its business.

8. According to the information and explanation given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956.

9. a) According to the records of the company examined by us and the information and explanations given to us, no undisputed amounts payable in respect of income tax, and other statutory dues applicable to it were outstanding, as at 31st March, 2012 for a period of more than six months from the date they became payable. b) According to the records of the company examined by us and the information and explanations given to us, there are no dues of income tax and other statutory liabilities, which have not been deposited on account of any dispute.

10 The Company have accumulated losses at the end of the financial year. The Company has incurred cash losses in the financial year but has not incurred any cash losses in the financial year immediately preceding financial year.

11 In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

14 As the company is not dealing or trading in shares, securities, debentures and other investments, the provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

15. In our opinion, the company has not given any guarantee for loans taken by others from banks of financial institutions.

16. The company has not obtained any term loans.

17. According to the information and explanations given to us and on the basis of an overall examination of the balance sheet of the Company, in our opinion, generally, there are no funds raised by the Company on short-term basis, which have been used for long-term investment.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. During the course of examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For JAIN & CO., CHARTERED ACCOUNTANTS

Sd/- (A.K.JAIN)

PARTNER (MEMBERSHIP NO. 51771)

PLACE : NEW DELHI. DATED : 01-9-2012


Mar 31, 2011

We have audited the attached Balance Sheet of VISHVJYOTI TRADING LIMITED, as at 31st March, 2011 and also the Profit & Loss Account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 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.

As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditor's 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 enclose in the annexure a statement on the matters specified in paragraph 4 and 5 of the said order the extent applicable.

Further to our comments in the annexure referred to above, we report that:

1. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with notes on accounts appearing in Schedule I 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.

a) In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

b) In the case of the Profit & Loss Account of the Profit of the Company for the year ended on the date ; and

c) In the case of cash flow statement, of cash flow for the year ended on that date.

2. 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.

3. 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.

4. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of accounts.

5. In our opinion the Balance Sheet and Profit & Loss Account complies with accounting standard as prescribed under sub section (3-C) of section 211 of the Companies Act, 1956.

6. On the basis of written representation 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.

Annexure to the Auditors Report (Referred to in our report of even date)

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

b) As explained to us, the fixed assets have been verified by the management during the year in accordance with a phased programme of verification formulated by the company, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) No fixed assets have been disposed off during the year.

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

b) The procedures of physical verification of inventories followed 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 inventories. The discrepancies noticed on verification between the physical stocks and the books records were not material and have been properly dealt with in the books of account.

3. a) The company has granted unsecured interest free loan to a company as listed in the register maintained under section 301 of the Companies Act 1956 amounting to Rs. 8,00,000/- (Maximum amount involved during the year was Rs.8,00,000/ -In our opinion, terms and conditions of such loan are prima facie not prejudicial to the interest of the Company. The receipt of interest free principal amount is also regular.

b) In our opinion and according to the information and explanations given to us, the company has not taken any loans secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the companies act, 1956.Accordingly paragraphs 4 (iii) (e),(f) and (g) of the order are not applicable.

4. In our opinion and according to the information and explanations given to us, we are of the opinion that there are adequate internal control procedures commensurate with the size of the Company and nature of its business, for the purchase of inventory and fixed assets.

We have not noted any continuing failure to correct major weaknesses in the internal control.

5. a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered in the register on pursuance of section 301 of the Act have been so entered.

b) The transactions have been made at prices which are reasonable with regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits within the meaning of section 58A and 58AA or any other relevant provision of the Companies Act, 1956 and rules framed there under are not applicable. No order has been passed by the Company law Board. The provisions of RBI Act, 1934 regarding registration of non- banking financial Company are stated yet to be complied with.

7. In our opinion, the company has an internal audit system commensurate with its size and nature of its business.

8. According to the information and explanation given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956.

9. a) According to the records of the company examined by us and the information and explanations given to us, no undisputed amounts payable in respect of income tax, and other statutory dues applicable to it were outstanding, as at 31st March, 2011 for a period of more than six months from the date they became payable.

b) According to the records of the company examined by us and the information and explanations given to us, there are no dues of income tax and other statutory liabilities which have not been deposited on account of any dispute.

10. The company does not have any accumulated losses as at 31 st March 2011. The Company has not incurred cash losses in the financial year and in the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

14. As the company is not dealing or trading in shares, securities, debentures and other investments, the provisions of clause 4 (xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

15. In our opinion, the company has not given any guarantee for loans taken by others from banks of financial institutions.

16. The company has not obtained any term loans.

17. According to the information and explanations given to us and on the basis of an overall examination of the Balance sheet of the Company, in our opinion, generally, there are no funds raised by the Company on short-term basis, which have been used for long-term investment.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by public issue during the year.

21. During the course of examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

For JAIN & CO. CHARTERED ACCOUNTANTS

Sd/- (A.K.JAIN) PARTNER MEMBERSHIP NO. 51771

PLACE : NEW DELHI. DATED : 18-08-2011

 
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