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Auditor Report of VTM Ltd.

Mar 31, 2015

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of VTM 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 Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters, which are required to be included in the audit, report under the provisions of the Act and the Rules made 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.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements together with the notes thereon give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India,

a) In case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015,

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

c) in 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, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we state that:

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

(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.

(ii) (a) The stocks of finished goods, stores and spare parts and raw material have

been physically verified by the management at reasonable periods.

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

(c) No discrepancies have been noticed on such verification of stock of finished goods and raw materials. The discrepancies noticed on such verification of stores and spare parts were not material compared to Book stock and the same have been properly dealt within the books of account.

(iii) The Company has not granted loans to bodies corporate, firms or other parties as listed in the register maintained under section 189 of the Companies Act, 2013 (''the Act'').

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of raw materials, stores, plant and machinery, equipment and other assets, and for sale of goods. We have not observed any major weakness in the internal control system during the course of the audit.

(v) The Company has not accepted any deposits during the year ended March 31, 2015.

(vi) The Company is not required to maintain cost records for the financial year 2014-2015 in terms of section 148(1) of the Act and the rules made thereon. However the company is maintaining cost records.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities in arrears as at March 31,2015 for a period of more than six months from the date they became payable.

(b) The company has disputed tax demands as at March 31, 2015 as per Note 2 to Financial Statements.

(c) According to the information and explanations given to us the amounts which were required to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956(1 of 195 6) and rules there under has been transferred to such fund within time.

(viii) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

(ix) The Company did not have any outstanding dues to financial institutions, banks during the year.

(x) In our opinion and according to the information and the explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xi) According to the information and explanations given to us, The Company had applied Term loans for the purpose for which such loans were obtained.

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

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

(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

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

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

(e) In our Opinion, the Directors have prepared the aforesaid standalone financial statements on a going concern basis.

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

(g) with respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in as per Note 2 to the financial statements;

ii. the Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any.

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

Madurai, For Peri Thiagraj & Co., April 30, 2015. Chartered Accountants Firm Registration No.002636S T. Kalairaj Partner Membership No.023840


Mar 31, 2014

We have audited [he accompanying financial statements of VTM Limited, which comprise the Balance Sheet as at March 31, 2014, and (he Statement Of Profit and Loss and Cash Flow Statement For the year ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility Tor the financial statements:

Management i) responsible for the preparation of these financial statements (hat give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13d'' September, 2013 of the Ministry of Corporate Affairs in respect or Section 133 of the Companies Act, 2013 (referred to m sub - section f3Cl of Section 211 of the Companies Act, 1956)- This dispensability includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the Financial Statement that give a true and field 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 un our audit. We conducted our audit in accordance with (he Standard* on Auditing issued by the Insoluble of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to 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 judgement, including the assessment of the risks of materials misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor consider internal edition relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing as opinion on the effectiveness of the company''s internal central. 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

Report of Other Legal and Regulatory Requirements:

As require by Section 227(3) of the Act, we report that;

1) We have obtained all the Information and explanations which, of the best of our knowledge and belief. were necessary for die purpose of our audit.

2) As required by the Companies (Auditors Report) Order, 2013 and on the basis of such checks of the books and records of the Company as we considered appropriate and die information and explanations given to us, we stale that:

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) According to the information and explanations given to us. the Fixed Assets have been physically verified by the Management during the year and no serious discrepancies between the book records and physical inventory have been noticed

c) The Company has not disposed of a substantial part of the Fixed Assets during the year.

ii) a) The Stocks of finished goods, stores and spare pans and raw materials have been physically verified by the Management at reasonable periods.

b) In our opinion, the procedures of physical verification of the aforesaid stocks lb J lowed by the Management are reasonable and adequate in relation to die size or the Company and nature of its business.

c) No discrepancies have been noticed on such verification of stock of finished goods and raw materials. The discrepancies noticed on such verification of stores and spare parts were not material as compared to Book Stock and the same have been properly dealt within the books of account.

iii) a) The Company has not granted any loans secured or unsecured to Companies, Firms or other putties as listed in the Register maintained under Section 30 J of the Companies Act, 1956 and or the Companies under the same management as defined under Sub-Section (1B) of Section 370 of die Companies Act, 1956.

b) The Company has accepted deposit for leased land from Company as listed in the Register maintained under Section 301 of the Companies Act, 1956.

vi) In our opinion and according to the information and explanations given to us, during the course or the audit, there are adequate lemma control procedures commensurate with the size of the Company and the nature of its business for the purchase of raw materials, stores, plant and machinery, equipment and other assets, and tor sale of goods In our opinion and according to the information and explanations given to us. there is no continuing failure to correct major weaknesses in internal control.

v) According to m formation and explanations given to us, the trans actions or purchase and sale of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act. 1956 aggregating during I he year to Rs.5,00,000/- or more in respect of each party, have been made at prices which are reasonable having regard to prevailing market prices for such goods and materials or the prices at which transactions for similar goods have been made with other parties,

vi) The Company has not accepted any deposits from me Public.

vii) In our opinion, the Company has an Internal audit system commensurate with the size and nature of its business.

viii) The cost records and accounts prescribed by the Central Government under Section 209(1 ){d) of the Companies Act. 1956 have been made and maintained by the Company,

ix) a) According to the information and explanations given to us, the Company is regular in depositing undisputed statutory dues payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance. Income-Tax, Sales -Tax, Wealth-Tax, Customs Duty, Excise Duty, Cess. Service Tax and there were no amounts outstanding as at March 31, 2014 for a period of more than six months from the dale they became payable.

b) The Company has disputed Tax and outer liabilities as at March 1L 2014 as stated in Note No.2,

x) The Company has no accumulated losses. The Company has not incurred cash kisses in the Financial Year under report and in die immediately preceding Financial Year.

xi) According to the information and explanations gives to us, the Company has not defaulted in repayment of dues to a Financial Institution or Bank or Debenture Holder.

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

xiv) Clause (xiii) of the Order is not applicable to the Company as ''he Company is not a Chit Fund Company. Nidhi or Mutual Benefit Society

xiv) According to the information and explanations given to us, proper records have been maintained m respect of transactions and contracts in shares, urines. debentures and other investments and timely entries have been made therein. The shares, securities, debentures and other investments have been held by tile Company in lis own name.

xv) according to the information and explain ions given to us, the Company has not given any guarantee for loans taken by others from Bank or Financial Institutions,

xvi) According to the information and explanations given to us. Term Loans were applied for the purpose for which the loans were obtained.

xvii) According to the information and explanations given to us. funds raised on Short -term basis have not been used for long-term investment. Similarly, no funds raised on long-term basis have been used for short-term investments.

xviii) The Company has not issued Shares and hence requirements of reporting in respect of Shares issued does not arise.

xix) The Company has not issued Debentures and hence requirement Of reporting regarding creation or securities in respect of Debenture issued does not arise

xx) According td the records of the Company and information and explanations given to us, the Company has not raised any money through public issue during the year.

xxi} According to the information and explanations given to us. a fraud on or by the Company has not been noticed or reported during the year.

Opinion:

3) In our opinion and to the best of our information and according to date explanations given to us the financial statements together with date Bots thereon give die 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 the Balance Sheet, of the State of affairs of the Company as at March 31. 2014.

b) In the case of die 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 for the year ended on that date.

4) We are of the opinion based on the information and explanations furnished to us that none of die Directors is disqualified from being appointed as a Director of [he Company in terms of Section 274(I)(g) of the Companies Act, 1956.

5) 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.

6) In our opinion, die Statement of Profile and Loss and Balance Sheet and Cash Flow Statement complies with the accounting standards notified under the Companies Act, 1956 ("The Act") read with the General Circular 15/ 2013 dated Li* September. 2013 of the Ministry of Corporate Affairs respect of Section 133 of die Companies Act, 2013 [referred to in sub - section (3C) of Section 311 of the Companies Act, 1956).

7) 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

8) Since the Central Government has not issued any notification as to the rate at which cost is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing die manner in which such cess is to be paid, no cess is due and payable by the Company.

For PERI THIAGRAJ & Co..

Chartered Accountants Firm Registration No.002636S

T. KALAIRAJ

Madurai. Partner

April 35. 2014 Membership No.023840


Mar 31, 2013

We have audited the accompanying financial statements of VTM Limited, which comprise the Balance Sheet as at March 31, 2013, 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 is responsible for the preparation of these financial statement 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. 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.

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.

1) 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.

2) As required by the Companies (Auditors'' Report) Order, 2003 as amended by the Companies (Auditors'' Report) Amendment Order 2004 issued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us, we state that:

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) According to the information and explanations given to us, the Fixed Assets have been physically verified by the Management during the year and no serious discrepancies between the book records and physical inventory have been noticed.

c) The Company has not disposed of a substantial part of the Fixed Assets during the year and therefore does not affect the going concern assumption.

ii) a) The Company has maintained proper records and the Stocks of finished goods, stores and spare parts and raw materials have been physically verified by the Management at reasonable periods.

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

c) According to the records, no discrepancies have been noticed on such verification of stocks of finished goods and raw materials. The discrepancies noticed on such verification of stores and spare parts were not material as compared to Book Stock and the same have been properly dealt within the books of Account.

iii) a) The Company has not granted any loans secured or unsecured to Companies, Firms or other parties as listed in the Register maintained under Section 301 of the Companies Act, 1956 and/or the Companies under the same management as defined under Sub- section (IB) of Section 370 of the Companies Act, 1956.

b) The Company has accepted deposit for leased land from Company as listed in the Register maintained under Section 301 of the Companies Act, 1956.

iv) In our opinion and according to the information and explanations given to us, during the course of the audit, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of raw materials, stores, plant and machinery, equipment and other assets, for sale of goods and payment of expenses. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal control.

v) According to the information and explanations given to us, the transactions of purchase and sale of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs.5,00,000/- or more in respect of each party, have been made at prices which are reasonable having regard to prevailing market prices for such goods and materials or the prices at which transactions for similar goods have been made with other parties.

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

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) The cost records and accounts prescribed by the Central Government under Section 209(1 )(d) of the Companies Act, 1956 have been made and maintained by the Company.

ix) a) According to the information and explanations given to us, the Company is regular in depositing undisputed statutory dues payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales - Tax, Wealth-Tax, Sevice-Tax, Customs Duty, Excise Duty, Cess and there were no amounts outstanding as at March 31, 2013 for a period of more than six months from the date they became payable.

b) The Company has disputed Tax liability as at March 31, 2013 as stated in Note No.2(b).

x) The Company has no accumulated losses. The Company has not incurred cash losses in the Financial Year under report and in the immediately preceding Financial Year.

xi) According to the information and explanations given to us, the Company has not defaulted in repayment of dues to a Financial Institution or Bank or Debenture Holder.

xii) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities, and in our opinion, adequate documents and records are maintained.

xiii) Clause (xiii) of the Order is not applicable to the Company as the Company is not a Chit Fund Company, Nidhi or Mutual Benefit Society.

xiv) According to the information and explanations given to us, proper records have been maintained in respect of transactions and contracts in shares, securities, debentures and other investments and timely entries have been made therein. The shares, securities, debentures and other investments, have been held by the Company in its own name.

xv) According to the information and explantions given to us, the Company has not given any guarantee for loans taken by others from Bank or Financial Institutions.

xvi) According to the information and explanations given to us, Term Loans were applied for the purpose for which the loans were obtained.

xvii) According to the information and explanations given to us, funds raised on Short-term basis have not been used for long-term investment. Similarly, no funds raised on long term basis have been used for short-term investments.

xviii) According to the information and explanations given to us, no shares has been allotted by the Company during the year.

xix) The Company has not issued Debentures and hence requirement of reporting regarding creation of securities in respect of Debentures issued does not arise.

xx) According to the records of the Company and information and explanations given to us, the Company has not raised any money through public issue during the year.

xxi) According to the information and explanations given to us, a fraud on or by the Company has not been noticed or reported during the year nor have been informed on such case by the Management.

3) In our opinion and to the best of our information and according to the explanations given to us, the financial statements together with the notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view, in conformity with the accounting principles generally accepted in India:

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

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

4) On the basis of written representations received from the Directors, as on March 31, 2013 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2013 from being appointed as a Director of the Company in terms of Section 274(1 )(g) of the Companies Act, 1956 on the said date.

5) 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.

6) In our opinion, the Balance Sheet and Statement of Profit and Loss and Cash Flow Statement complieswith the accounting standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956.

7) The Balance Sheet and Statement of Profit and Loss Account and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

8) 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.

For PERI THIAGRAJ & Co.,

Chartered Accountants

Firm Registration No.002636S

T. KALAIRAJ

Madurai, Partner

April 24, 2013. Membership No.023840


Mar 31, 2012

We have audited the attached Balance Sheet of VTM Limited, as at March 31,2012 and also the Profit and Loss Account for the year ended on that date annexed there to and the Cash Flow statement for the year ended on that date. These financial statement are the responsibility is to express an opinion on these financial statements based on our audit.

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

1. 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.

2. As required by the company's Auditors Report) Order 2003 as amended by the Companies (Auditors' Report) Amendment Order 2004 issued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us. we state that:

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) According to the information and explanations given to us the Fixed Assets have been physically Verified by the Management during the year and no serious discrepancies between the book records and physical inventory have been noticed.

c) The Company has not disposed of a substantial part of the Fixed Assets during the year.

ii) a) The Company has maintained proper records and the Stocks of finished goods, stores and spare parts anal raw materials have been physically verified by the Management at reasonable periods.

b) In our opinion the records and procedures of physical Verification of the aforesaid stocks followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

c) According to the records, no discrepancies have been noticed on such verification of stocks finished goods and raw materials. The discrepancies noticed an such verification of stores and spare parts were not material as compared to Book Stock and the same have been property dealt within the books of Accounts.

iii) a) The Company has not granted any loans secured or unsecured to Companies Firms or other parties as listed in the Register maintained under Section 301 of the Companies Act, 1956 and/or the companies under the same management as defined under sub-section (IB) of Section 370 of the Companies Act,1956.

b) The company has accepted deposit for leased land from Company as listed in the Register maintained under Section 301 of the Companies Act, 1956,

iv) In our opinion and according to the information and explanations given to us during the course of the audit, there are adequate internal control procedures commensurate with the size of the Company and the nature of Its business for the purchase of raw materials. Stores plain and machinery equipment equipment and other assets and for sale of goods In our opinion and according to their information and explanations given to us. there is no continuing failure to correct major Weaknesses in internal control.

v) According to the information and explanations given to us, the transactions of purchase and sale of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act 1956 aggregating during the year to Rs.5,00,000/- or more in respect of catch party have been made at prices which are measurable having regard to prevailing market prices for such goods and materials or the pries at which transactions for similar goods have been it made with other parties

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

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) The cost records and accounts prescribed by the central Government under Section 209(I) (d) of the Companies Act,1956 have been made and maintained by the Company

ix) a) According to the information and explanations given to us the Company is regular in depositing undisputed statutory dues payable in respect of Provident Fund, investor Education and Protection Fund. Employees State insurance, Income Tax Sales - Tax Wealth Tax Service-Tax Customs Duty Excise Duty Cess and There were no amounts outstanding at March 31,2012 for a period of more than six months from the date they became payable.

b) The company has disputed Tax liability as at March 31,2012 as abated in Note No.2(b).

x) The Company has no accumulated losses. The Company has not incurred cash losses in the Financial Year under report and in the immediately preceding Financial Year.

xi) According to the information and explanations given to us. the Company has not defaulted in repayment of dues to a Financial Institution or Bank or Debenture Holder

xii) The Company has not granted loans and Advances on the basis of security by way of pledge of shares, debenture and other securities, and in our opinion, adequate documents and records are maintained,

xiii) Clause (xiii) of the Order is not applicable to the Company as the Company is not a Chit Fund Company, Nidhi or Mutual Benefit Society.

xiv) According to the information and explanations given to us. proper records have been maintained in respect of transactions and contract in shares, securities, debentures and inhere investments and timely entries have been made therein. The shares, securities, debentures and other investments, have been held by the Company in its own.

xv) According to the information and explanations given to us. the Company has not given any guarantee for loans taken by others from Bank or Financial Institutions.

xvi) According to the information and explanations given to ask. Term Loans were applied for the purpose for which the loans were obtained.

xvii) According to the information and explanations given to us, funds raised on Short-term basis have not been used for long-term investment Similarly, no funds raised on long term basis have been used for short-term investments

xviii) According to the information and explanations given to us. no shares has been allotted by the Company during the year

xix) The Company has not issued Debentures and hence requirement of reporting regarding creation of securities in respect of Debentures issued does not arise.

xx) According to the records of the Company and information and explanations given to us, the Company has not raised any money through public issue during the year.

xxi) According to the information and explanations given to us. a fraud on or by the Company has not been noticed or reported during the year.

3) In our opinion and to the best of our information and according to the explanations given to us. the attached Accounts together with the notes manner, give the information required by the Companies Act. 1956 in the winner so required and give a true and fair view, in Conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the State of affairs of the Company as at March 31, 2012.

b) In the ease of the Profit and Loss Account, 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 for the year ended on that date.

4) On the basis of written representation*; received from the Directors, as on March 31- 2012 and taken on record by the Board of Directors, we report that none of the Directors is. disqualified as on March 31, 2012 from being appointed as a Director of the Company in terms of Section 274 (I) of the Companies Act. 1956 on the said date.

5) 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,

6) In our opinion, the Balance Sheet and Profit and Loss Account complies with the Accounting standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956.

7) The Balance Sheet and Profit and Loss Account dealt with by this Report are in agreement with the books of Account.

For PERI THIAGRAJ & Co.,

Chartered Accountants

Firm Registration No.0026365

T.KALAIRAJ

Madurai Partner

April 25,2012. Membership No.023840

 
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