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Auditor Report of White Diamond Industries Ltd.

Mar 31, 2015

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

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision 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.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material mis-statement.

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015 and its profit and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015, ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013 and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanation given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 & 4 of the Order, to the extent applicable.

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

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

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

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

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

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

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

i. The Company does not have any pending litigations which would impact its financial position.

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

iii. There has been delay in transferring unpaid dividends amounting to Rs, 45,669/- to Investor Education and Protection Fund by the company, which fall due for transfer in FY 2002-03 but has not been transferred till 31st March, 2015. The management of the Company was changed during FY 2010-11 and new management is in the process of transferring the unpaid dividend to Investor Education & Protection Fund.

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

(i) In respect of its fixed assets:

(a) The company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets. However no separate fixed asset register is maintained.

(b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

(ii) In respect of its inventories:

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

(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of company and nature of business.

(c) On the basis of our examination of the inventory records, in our opinion, the company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

(iii) During the year the Company has granted loan to one party covered in the register maintained under Section 189 of the Companies Act, 2013.

(a) The loan has been granted to company's wholly owned subsidiary with a long term view. No interest has been charged in respect of said loan.

(b) In our opinion and according to the information and explanations given to us, there is no overdue amount in respect of the said loan. Therefore the provisions of sub clause (b) of clause (iii) of paragraph 3 of the Order are not applicable to the Company.

(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 for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(v) The company has not accepted any deposits from the public of the nature which attracts the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules made there under. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.

(vi) As per the information and explanations given to us, in respect of the class of industry in which the Company falls, the maintenance of cost records has not been prescribed by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013. Therefore, the provisions of clause (vi) of paragraph 3 of the Order are not applicable to the Company.

(vii) In respect of statutory dues:

(a) The company is regular in depositing with appropriate authority undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues applicable to it with the appropriate authorities except in certain cases where there were delays in deduction and deposit of TDS. According to the information and explanations given to us, no undisputed amounts payable in respect of above dues were in arrears, except FBT of Rs, 2,416/- (excluding interest), as at 31st March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of sales tax, custom duty, income tax, wealth tax, excise duty or cess, which have not been deposited on account of any dispute.

(c) In our opinion and according to the information and explanations given to us, there has been delay in transferring unpaid dividends amounting to Rs, 45,669/- to Investor Education and Protection Fund by the company, which fall due for transfer in FY 2002-03 but has not been transferred till 31st March, 2015. The management of the Company was changed during FY 2010-11 and new management is in the process of transferring the unpaid dividend to Investor Education & Protection Fund.

(viii) The company is registered for a period of more than 5 years and there are no accumulated losses at the end of the financial year. The company has not incurred cash losses during the financial year and in the immediately preceding financial year.

(ix) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank / financial institutions.

(x) In our opinion and according to the information and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions. Therefore, the provisions of clause (x) paragraph 3 of the Order are not applicable to the Company.

(xi) The company has not availed any term loan during the year. Therefore, the provisions of clause (xi) of paragraph 3 of the order are not applicable to the Company.

(xii)To the best of our knowledge and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year.

FOR N.K.JALAN & CO.

CHARTERED ACCOUNTANTS

FIRMNO.104019W

PLACE:MUMBAI (N.K. JALAN) PROPRIETOR

DATED: 30/05/2015 Membership No.011878


Mar 31, 2014

We have audited the accompanying financial statements of WHITE DIAMOND INDUSTRIES LIMITED (the "Company"), which comprise the Balance sheet as at 31st March, 2014, 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 Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 of India ("the Act") and in accordance with the accounting principles generally accepted in India. These responsibilities includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that give a true and fair view and are free from material misstatements, 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 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 misstatements.

An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedure selected depends on the auditors'' judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors'' internal control relevant to the company''s preparation and fair representation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimate made by the Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give 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, 2014.

(b) In the case of the statement of Profit and Loss, of the Profit for the year ended on that date; and

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

Report on other Legal and Regulatory Requirement

1. As required by ''the Companies (Auditor''s Report) Order, 2003, as amended by the Companies (Auditor''s Report) (Amended) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (hereinafter referred as to the "order"), and on the basis of such checks of the books and record of the Company as we considered appropriate and according to the information and explanation given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the order.

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

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

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

(c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the Books of Accounts.

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Act.

(e) On the basis of written representations received from the directors, as on 31st March, 2014 and taken on record by the Board of Directors, we report that none of the director is disqualified as on 31st March 2014, from being appointed as a director in terms of clause (g) of Sub-section (1) of section 274 of the Act.

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

1. In respect of its fixed assets

(a) The Company is maintaining proper records showing full particulars including quantitative details and situation of the fixed assets. However no separate fixed asset register is maintained.

(b) The fixed assets are physically verified by the management according to a phased program designed to cover all the items over a period, which in our opinion is reasonable having regard to the size of the company and the nature of its assets. Pursuant to the program, a portion of the fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such physical verification. However no written report is available.

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

2. In respect of its inventories.

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

(b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to size of company and nature of business.

(c) On the basis of our examination of the inventory records, in our opinion, the company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

3. In respect of the loans, secured or unsecured, granted or taken by the Company to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(a) The company has granted loan to one party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding at any time during the year was Rs. 123,454,850/- and the year-end balance of loan given to such party was Rs. 114,664,850/-.

(b) The loan is granted to wholly owned subsidiary and is interest free. In our opinion, the terms and conditions on which loans have been granted are prima facie, not prejudicial to the interest of the Company.

(c) There were receipts and payments transactions observed in the loan account. However there is no repayment schedule decided for the loan and hence provision of sub clause

(d) of Clause (iii) of paragraph 4 of the Order is not applicable to the Company.

(e) The Company has taken loan from one party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 370,000/- and the year-end balance of loan taken from such party was Rs. 370,000/-.

(f) In our opinion, the rate of interest and other terms and conditions of loans taken by the company are prima facie, not prejudicial to the interest of the company.

(g) In our opinion, the company is regular in payment of principal amount. The loan taken is interest free.

4. 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 for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. In our opinion and according to the information and explanations given to us, no transactions have been made in pursuance to contracts or arrangements to which Section 297 or Section 299 of the Companies Act, 1956 applies. Therefore, provisions of sub clause (a) & (b) of Clause (v) of paragraph 4 of the Order are not applicable to the Company.

6. The company has not accepted any deposits from the public of the nature which attracts the provisions of sections 58A and 58AA of the Companies Act, 1956 and the rules made there under. Therefore, the provisions of clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7. There is no internal audit done by external auditor. However the company is maintaining internal control system commensurate with its size & nature of its business.

8. As per the information and explanations given to us, in respect of the class of industry in which the Company falls, the maintenance of cost records has not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956. Therefore, the provisions of clause (viii) of paragraph 4 of the Order are not applicable to the Company.

9. In respect of statutory dues

(a) The company is regular in depositing with appropriate authority undisputed statutory dues including income tax, sales tax, service tax, and other statutory dues applicable to it except i) in certain cases where there were minor delays in payment of TDS. Further, since the Central Government has till date not prescribed the amount of cess payable under section 441A of the companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the company in depositing the same.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, service tax were in arrears as at 31st March 2014, for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of sales tax, custom duty, income tax, wealth tax, excise duty or cess, which have not been deposited on account of any dispute

10. The company is registered for a period of more than 5 years and there are no accumulated losses at the end of the financial year. The company has not incurred cash losses during the financial year under review 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 bank/ financial institutions.

12. The company has not granted any advances in the nature of loans on the basis of Security by way of pledge of shares or other securities. Therefore, the provisions of clause (xii) of paragraph 4 of the Order are not applicable to the Company.

13. The Company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, provisions of sub clause (a), (b), (c) and (d) of clause (xiii) of paragraph 4 of the order are not applicable to the Company.

14. According to the information and explanations given to us, the company has not done dealing in shares, securities and other investments during the year under review. Therefore provisions of clause (xiv) of paragraph 4 of the order are not applicable to the company.

15. In our opinion and according to the information and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions. Therefore, the provisions of clause (xv) paragraph 4 of the Order are not applicable to the Company.

16. The company has not availed any term loan during the year. Therefore, the provisions of clause (xvi) of paragraph 4 of the order are not applicable to the Company.

17. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

18. The company has not made preferential allotment of shares to parties and companies covered in the registered maintained under section 301 of the companies Act, 1956. Therefore, the provisions of clause (xviii) of paragraph 4 of the order are not applicable to Company.

19. The company has not issued any debentures during the year. Therefore, the provisions of clause (xix) of paragraph 4 of the order are not applicable to the Company.

20. The company has not raised any money through a public issue during the year. Therefore, the provisions of clause (xx) of paragraph 4 of the order are not applicable to the company.

21. To the best of our knowledge and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year.



FOR N.K. JALAN & CO. CHARTERED ACCOUNTANTS FIRM NO. 104019W

PLACE: MUMBAI DATED: 30.05.2014 (N.K. JALAN) PROPRIETOR Membership No. 011878


Mar 31, 2013

Report on the Financial Statements

1. We have audited the accompanying financial statements of WHITE DIAMOND INDUSTRIES LIMITED (the ''Company''), which comprise the Balance sheet as at 31st March, 2013. The statement of Profit and Loss and also Cash Flow for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management Responsibility for the Financial Statement''s

2. 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 flow of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 of India (the *Act*). These responsibilities includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of financial statements that gives a true and fair view and are free from material misstatements, whether due to fraud or error.

Auditors'' Responsibility

3. 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 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 misstatements.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedure selected depends on the auditors'' judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors'' internal control relevant to the company''s preparation and fair representation 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 accounting estimate made by the Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the information required by the Act in the manner so required and give 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, 2013;

(b) In the case of the statement of Profit and Loss, of the Profit for the year ended on that date; and

(c) In the case of the Cash Flow Statements, of the cash flow for the year ended on that date.

Report on other Legal and Regulatory Requirement

7. As required by "˜the Companies (Auditor''s Report) Order, 2003, as amended by the Companies (Auditor''s Report) (Amended) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (hereinafter referred as to the "order" ), and on the basis of such checks of the books and record of the Company as we considered appropriate and according to the information and explanation given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the order.

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

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

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

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

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Act;

(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 director 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 Act;

ANNEXURE TO AUDITORS'' REPORT

REFERRED TO IN PARAGRAPH-3 OF OUR REPORT OF EVEN DATE

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

(b) All the assets have been physically verified by the management during the year, and as informed by management there is a regular program of verification. In our opinion the procedure followed for physical verification are adequate in relation to size of company and nature of its business. No material discrepancies were noticed during the year.

(c) During the year, the company has not disposed off any fixed assets.

(ii) (a) The physical verification of inventory has been conducted at reasonable intervals by the management.

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

(c) The company is maintaining proper records of inventory and as per information and explanations given to us no material discrepancies were noticed during physical verification done by management. We have not conducted any physical verification of inventory during the year.

(iii) (a) During the year Company has granted a loan of Rs. 8,81,72,350/- to one of the party covered in the register maintained under section 301 of the Companies Act, 1956. The above loan is unsecured and interest free.

(a) In our opinion, the terms and conditions of loans given by the company are prima facie, not prejudicial to the interest of the company.

(b) During the year the Company has taken an unsecured loan of Rs.5, 00,000/- and Rs.86, 000/- from two parties covered in the register maintained under section 301 of the Companies Act, 1956. The above loan is interest free.

(c) During the year the company has made the payment of loan of Rs.5, 00,000.

(iv) According to the information and explanation given to us, there is adequate internal control procedure commensurate with the size of Company and nature of business, for the purchase of inventory and fixed assets and for sale of goods and services.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year are reasonable having regards to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any public deposits. Hence Provision of this clause is not applicable.

(vii) There is no internal audit done by external auditor. However the company is maintaining internal control commensurate with its size & nature of its business.

(viii) The Company is not required to maintain cost records u/s. 209(1) (d) of the Companies Act, 1956.

Hence Provisions of this clause is not applicable.

(ix) (a) The company is regular in depositing with appropriate authority undisputed statutory dues including provident fund, employees'' state insurance, sales tax, wealth tax, custom duty, excise duty and other statutory dues as applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of, wealth tax, sales tax, customs duty, excise duty were in arrears as at 31st March, 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of sales tax, custom duty, income tax, wealth tax, excise duty and cess, which have not been deposited on account of any dispute.

(x) The company has not accumulated losses as at 31st March,2013 and has not incurred any cash losses in the current and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank.

(xii) The company has not granted any advances in the nature of loans on the basis of security by way of pledge of shares or other securities. Hence Provisions of this clause is not applicable.

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Hence provisions of this clause is not applicable.

(xiv) The company is not dealing in shares or any other securities. Hence provisions of this clause are not applicable.

(xv) The company has not given any guarantees for loans taken by others from banks or financial institutions. Hence, provisions of this clause are not applicable.

(xvi) The Company has not raised any term loan and hence provision of this clause is not applicable

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

(xviii) The Company has not made any preferential allotment of shares during the year to parties covered in the register maintained under section 301of the act.Hence, provision of this clause are not applicable.

(xix) During the period covered by our audit, the company has not issued any debentures. Hence, provisions of this clause are not applicable.

(xx) The Company has not raised any money by public issue during the period covered by our audit.

Hence provisions of this clause are not applicable.

(xxi) According to the information and explanation given to us, no fraud on or by the company has been noticed during the course of our audit.



FOR N. K. JALAN & CO.,

CHARTERED ACCOUNTANTS.

Firm No.104019W





PLACE : MUMBAI.

DATED: 27.05.2013 (N.K. JALAN) PROPRIETOR

Mem No. 11878.


Mar 31, 2012

We have audited the attached Balance Sheet of M/S. WHITE DIAMOND INDUSTRIES LTD. for the year ended 31st March, 2012 and also the Profit and Loss Account 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 amount and disclosures in the financial statements. An audit 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 (Auditors Report) order, 2003 issued by the Central Government Of 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 paragraphs 4 & 5 of the said order.

We report that: -

(i) 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;

(ii) In our opinion, proper Books of Accounts as required by the law have been kept by the Company so far as appears from our examination of those books.

(iii) The Balance Sheet and the Profit & Loss Account dealt with by this report are in agreement with the Books of Accounts;

(iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 220 of the Companies Act, 1956; and actuarial valuation of defined contribution plan in respect of gratuity as per AS - 15 (Revised) is done on cash basis.

(v) 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;

(vi) Subject to the above, 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 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 Profit & Loss Account of the Profit for the year ended on that date.

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

ANNEXURE TO AUDITORS' REPORT

REFERRED TO IN PARAGRAPH-3 OF OUR REPORT OF EVEN DATE

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

(b) All the assets have been physically verified by the management during the year, and as informed by management there is a regular program of verification. In our opinion the procedure followed for physical verification are adequate in relation to size of company and nature of its business. No material discrepancies were noticed during the year.

(c) During the year, the company has not disposed off any fixed assets.

(ii) (a) The physical verification of inventory has been conducted at reasonable intervals by the management.

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

(c) The company is maintaining proper records of inventory and as per information and explanations given no material discrepancies were noticed during physical verification done by management. We have not conducted any physical verification during the year.

(iii) (a) During the year Company has granted a loan of Rs. 7,40,00,000 to Sapna Infraventure Pvt. Ltd. the party covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion, the terms and conditions of loans given by the company are prima facie, not prejudicial to the interest of the company.

(c) During the year the Company has not taken any loan from party covered in the register maintained under section 301 of the Companies Act, 1956.

(iv) According to the information and explanation given to us, there is adequate internal control procedure commensurate with the size of Company and nature of business, for the purchase of inventory and fixed assets and for sale of goods and services.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year are reasonable having regards to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any public deposits. Hence Provision of this clause is not applicable.

(vii) There is no internal audit done by external auditor. However the company is maintaining internal control commensurate with its size & nature of its business.

(viii) The Company is not required to maintain cost records u/s. 209(1) (d) of the Companies Act, 1956. Hence Provisions of this clause is not applicable.

(ix) (a) The company is regular in depositing with appropriate authority undisputed statutory dues including provident fund, employees' state insurance, sales tax, wealth tax, custom duty, excise duty and other statutory as applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of, wealth tax, sales tax, customs duty, excise duty were in arrears as at 31st March, 2012 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of sales tax, custom duty, income tax, wealth tax, excise duty and cess, which have not been deposited on account of any dispute.

(x) The company has not accumulated losses as at 31st March, 2012 and has not incurred any cash losses in the current and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to bank.

(xii) The company has not granted any advances in the nature of loans on the basis of security by way of pledge of shares or other securities. Hence Provisions of this clause is not applicable.

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Hence provisions of this clause is not applicable.

(xiv) The company is not dealing in shares or any other securities. Hence provisions of this clause are not applicable.

(xv) The company has not given any guarantees for loans taken by others from banks or financial institutions. Hence, provisions of this clause are not applicable.

(xvi) The Company has not raised any term loan and hence provision of this clause is not applicable.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

(xviii) The Company has made preferential allotment of 7,00,000 equity shares of Rs. 10 each during the year to parties covered in the register maintained under section 301 of the act. The price at which these shares have been issued is prima facie not prejudicial to the interests of the company.

(xix) During the period covered by our audit, the company has not issued any debentures. Hence, provisions of this clause are not applicable.

(xx) The Company has not raised any money by public issue during the period covered by our audit. Hence provisions of this clause are not applicable.

(xxi) Accordingly to the information and explanations given to us, no fraud on or by the company has been noticed during the course of our audit.

FOR N. K. JALAN & CO., CHARTERED ACCOUNTANTS. Firm: No. 104019W

(N.K. JALAN) PROPRIETOR Mem. No 11878.

PLACE: MUMBAI. DATED: 30.07.2012

 
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