Auditor Report of Akar Auto Industries Ltd.

Mar 31, 2025

We have audited the accompanying Standalone
Ind AS financial statements of Akar Auto Industries
Limited ("the Company") which comprises the
Balance Sheet as at March 31, 2025, the Statement
of Profit and Loss (including the Statement of Other
Comprehensive Income), the Statement of Cash
Flows and the Statement of Changes in Equity, for
the year then ended and notes to the Standalone
Ind AS financial statements, including a summary
of significant accounting policies and other
explanatory information.

In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid standalone Ind AS financial statements
give the information required by The Companies
Act, 2013 (''the Act") in the manner so required
and give a true and fair view in conformity with
the Indian Accounting Standards prescribed under
section 133 of the Act and other accounting
principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2025, and
its profit (including other comprehensive income),
its cash flows and the changes in equity for the year
ended on that date.

2 Basis for Opinion

We conducted our audit of the Standalone Ind
AS financial statements in accordance with the
Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013.
Our responsibilities under those Standards are
further described in the Auditor''s Responsibilities
for the Audit of the Standalone Ind AS Financial
Statements section of our report. We are
independent of the Company in accordance
with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the
ethical requirements that are relevant to our audit

of the Standalone Ind AS financial statements under
the provisions of the Companies Act, 2013 and the
Rules made thereunder, and we have fulfilled our
other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our opinion on the Standalone Ind AS financial
statements.

3 Key Audit Matter

Key audit matters are those matters that, in our
professional judgement, were of most significant in
our audit of the Standalone Financial Statements of
the current period. These matters were addressed in
the context of our audit of the Standalone Financial
Statements as a whole and in forming our opinion
thereon; and we do not provide a separate opinion
on these matters. We have determined the matters
described below to be the key audit matters to be
communicated in our report;

Foreign exchange fluctuation and export policies of
the Government of India and other countries are
considered to be Key Audit Matters. A significant
portion of revenue is generated through export of
products of the company. Any change in the duty
structure, import and export policy has significant
bearing on revenue realisation of the Company.
Fluctuation in exchange rate of Indian currency has
significant bearing on profitability of the company.

How our audit addressed the audit matter:

Our audit approach includes verification of balances
outstanding (Debits and Credits) on account of
foreign currencies; as at the end of the year and to
assure that the same is adjusted to a value at the
exchange rate that is prevailing at the close of last
day of the current year.

4 Information Other than the Financial
Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible
for the other information. The other information
comprises the information included in the
Management Discussion and Analysis, Board''s
Report including Annexures to Board''s Report,
Business Responsibility and Sustainability Report,
Corporate Governance and Shareholder''s
Information, but does not include the consolidated
financial statements, Standalone Ind AS financial
statements and our auditor''s report thereon.

Our opinion on the Standalone Ind AS financial
statements does not cover the other information
and we do not express any form of assurance or
conclusion thereon.

In connection with our audit of the Standalone
Ind AS financial statements, our responsibility is
to read the other information and, in doing so,
consider whether the other information is materially
inconsistent with the Standalone Ind AS financial
statements or our knowledge obtained during the
course of our audit or otherwise appears to be
materially misstated.

If, based on the work we have performed, we
conclude that there is a material misstatement of
this other information, we are required to report
that fact. We have nothing to report in this regard.

5 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 Standalone Ind AS financial
statements that give a true and fair view of the
financial position, financial performance, including
other comprehensive income, changes in equity
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. This responsibility
also includes maintenance of adequate accounting
records in accordance with the provisions of the
Act for safeguarding of the assets of the Company
and for preventing and detecting frauds and
other irregularities; selection and application of

appropriate implementation and maintenance
of 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 Standalone
Ind AS financial statement that give a true and
fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the Standalone Ind AS financial
statements, management and Board of Directors
are responsible for assessing the Company''s
ability to continue as a going concern, disclosing,
as applicable, matters related to going concern
and using the going concern basis of accounting
unless management either intends to liquidate the
Company or to cease operations, or has no realistic
alternative but to do so.

Those Board of Directors are also responsible for
overseeing the company''s financial reporting
process.

6 Auditor''s Responsibilities for the Audit of the
Financial Statements

Our objectives are to obtain reasonable assurance
about whether the Standalone Ind AS financial
statements as a whole are free from material
misstatement, whether due to fraud or error, and to
issue an auditor''s report that includes our opinion.
Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material
misstatement when it exists. Misstatements can
arise from fraud or error and are considered
material if, individually or in the aggregate, they
could reasonably be expected to influence the
economic decisions of users taken on the basis of
these Standalone Ind AS financial statements.

As part of an audit in accordance with SAs, we
exercise professional judgment and maintain
professional scepticism throughout the audit. We
also:

a Identify and assess the risks of material
misstatement of the Standalone Ind AS
financial statements, whether due to fraud or

error, design and perform audit procedures
responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not
detecting a material misstatement resulting
from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or
the override of internal control.

b Obtain an understanding of internal financial
control relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the
Act, we are also responsible for expressing
our opinion on whether the Company has
adequate internal financial controls system in
place and the operating effectiveness of such
controls.

c Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by the management.

d Conclude on the appropriateness of
management''s use of the going concern basis
of accounting and, based on the audit evidence
obtained, whether a material uncertainty
exists related to events or conditions that
may cast significant doubt on the Company''s
ability to continue as a going concern. If we
conclude that a material uncertainty exists,
we are required to draw attention in our
auditor''s report to the related disclosures in
the Standalone Ind AS financial statements or,
if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our
auditor''s report. However, future events or
conditions may cause the Company to cease
to continue as a going concern.

e Evaluate the overall presentation, structure
and content of the Standalone Ind AS financial
statements, including the disclosures, and
whether the Standalone Ind AS financial
statements represent the underlying
transactions and events in a manner that
achieves fair presentation.

Materiality is the magnitude of misstatements
in the Standalone Ind AS financial statements
that, individually or in aggregate, makes it
probable that the economic decisions of
a reasonably knowledgeable user of the
Standalone Ind AS financial statements may
be influenced. We consider quantitative
materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating
the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the
Standalone Ind AS financial statements.

We communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit
and significant audit findings, including any
significant deficiencies in internal financial
control that we identify during our audit.

We also provide those charged with
governance with a statement that we have
complied with relevant ethical requirements
regarding independence, and to communicate
with them all relationships and other matters
that may reasonably be thought to bear on our
independence, and where applicable, related
safeguards.

From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in
the audit of the Standalone Ind AS financial
statements of the current period and are
therefore the key audit matters. We describe
these matters in our auditor''s report unless
law or regulation precludes public disclosure
about the matter or when, in extremely
rare circumstances, we determine that a
matter should not be communicated in our
report because the adverse consequences of
doing so would reasonably be expected to
outweigh the public interest benefits of such
communication.

7 Report on Other Legal and

Regulatory Requirements

01) As required by the Companies (Auditor''s
Report) Order, 2020 (the "Order") issued by
the Central Government in terms of Section
143(11) of the Act, we give in "Annexure-Aâ

a statement on the matters specified in

paragraphs 3 and 4 of the Order.

02) 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 appears from our
examination of those books.

c) The Balance Sheet, the Statement of Profit
and Loss including Other Comprehensive
Income, the Statement of Changes in
Equity and the Statement of Cash Flows
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 Ind
AS specified under Section 133 of the
Act.

e) On the basis of written representations
received from the directors as on March
31, 2025, and taken on record by the
Board of Directors, none of the directors
are disqualified as on March 31, 2025,
from being appointed as a director in
terms of section 164(2) of the Companies
Act, 2013.

f) With respect to the adequacy of
the internal financial controls over
financial reporting of the Company
and the operating effectiveness of such
controls, refer to our separate report in
''Annexure-B''; and

g) With respect to the other matters to
be included in the Auditor''s Report in
accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of
our information and according to
the explanations given to us, the
remuneration paid by the Company to its

directors during the year is in accordance
with the provisions of section 197 of the
Act"

h) 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
pending litigations in Note No. 33
of its Standalone Ind AS financial
statements.

ii) The Company did not have any longÂ¬
term contracts including derivative
contracts for which there were any
material foreseeable losses.

iii) There are no such amounts which
are required to be transferred to
Investor Education and Protection
Fund in accordance with the relevant
provisions of the Companies Act,
2013 and rules made there under.

iv) (a) The Management has

represented that, to the best
of its knowledge and belief, no
funds (which are material either
individually or in the aggregate)
have been advanced or loaned
or invested (either from
borrowed funds or share
premium or any other sources or
kind of funds) by the Company
to or in any other person
or entity, including foreign
entity ("Intermediaries"),
with the understanding,
whether recorded in writing or
otherwise, that the Intermediary
shall, whether, directly or
indirectly lend or invest in other
persons or entities identified
in any manner whatsoever by
or on behalf of the Company
("Ultimate Beneficiaries") or

provide any guarantee, security
or the like on behalf of the
Ultimate Beneficiaries;

(b) The Management has
represented, that, to the best
of its knowledge and belief, no
funds (which are material either
individually or in the aggregate)
have been received by the
Company from any person
or entity, including foreign
entity ("Funding Parties"),
with the understanding,
whether recorded in writing or
otherwise, that the Company
shall, whether, directly or
indirectly, lend or invest in other
persons or entities identified in
any manner whatsoever by or
on behalf of the Funding Party
("Ultimate Beneficiaries") or
provide any guarantee, security
or the like on behalf of the
Ultimate Beneficiaries;

(c) Based on the audit procedures
that have been considered
reasonable and appropriate
in the circumstances, nothing
has come to our notice that
has caused us to believe that
the representations under subÂ¬
clause (i) and (ii) of Rule 11(e),
as provided under (a) and (b)
above, contain any material
misstatement.

v) Dividend has been declared and paid

during the year by the company

vi) a) Based on our examination,
which included test checks, the
Company has used accounting
softwares for maintaining
its books of account for the
financial year ended March
31, 2025 which has a feature
of recording audit trail (edit
log) facility and the same has
operated throughout the year
for all relevant transactions
recorded in the softwares.
Further, during the course of our
audit we did not come across
any instance of the audit trail
feature being tampered with.
b) The Company has complied
with the provisions of Rules
11(g) of the Companies (Audit
and Auditors)Rule, 2014 for
the financial year ended March
31,2025. Specifically, the
audit trail (edit log) generated
by the accounting software
has been duly maintained and
preserved in accordance with
the applicable statutory record
retention requirements."

For GSA & ASSOCIATES LLP

CHARTERED ACCOUNTANTS
Firm Reg. No. 000257N/N500339

(CA. DEEPA JAIN)

PARTNER

Place: Delhi. MEMBERSHIP NO.119681

Dated: 30th May, 2025 UDIN: 25119681BMLIDZ2137

Mar 31, 2024

1. We have audited the accompanying Standalone Financial Statements of Akar Auto Industries Limited, ("the Company"), (CIN L29220MH1989PLC052305) which comprise the Balance Sheet as at 31st March,2024, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information. (Herein after referred to as the "Standalone Financial Statements").

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act,2013 (the "Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended ("IND AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its total comprehensive income (comprising of profit and other comprehensive income), its Cash Flow and Changes In Equity for the year ended on that date.

Basis for opinion:

3. We conducted our audit of the Standalone Financial Statements in accordance with the standards on auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the auditors'' responsibilities for the audit of the Standalone Financial Statements section of our report. We are independent of the

Company in accordance with the code of ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of these Standalone Financial Statements under the provisions of the Act and the Rule made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s code of ethics. We believe that the audit evidence we have obtained were sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.

Key Audit matters:

4. Key audit matters are those matters that, in our professional judgement, were of most significant in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole and in forming our opinion thereon; and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report;

Foreign exchange fluctuation and export policies of the Government of India and other countries are considered to be Key Audit Matters. A significant portion of revenue is generated through export of products of the company. Any change in the duty structure, import and export policy has significant bearing on revenue realisation of the Company. Fluctuation in exchange rate of Indian currency has significant bearing on profitability of the company

How our audit addressed the audit matter:

Our audit approach includes verification of balances outstanding (Debits and Credits) on account of foreign currencies; as at the end of the year and to assure that the same is adjusted to a value at the exchange rate that is prevailing at the close of last day of the current year.

Information other than the Standalone Financial

Statements and Auditor''s Report:

5. The company''s management and Board of Directors are responsible for the preparation of other information. The other information comprises the information included in the management discussion and analysis, Board''s Report including Annexures thereto. Business Responsibility Report, Corporate Governance and Share Holders'' Information, but does not include the Standalone Financial Statements and our auditor''s report there on.

6. Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

7. In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Management''s Responsibility for the Standalone

Financial Statements:

8. The Company''s management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements, that gives a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with IND AS and other accounting principles generally accepted in India, This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; for safeguarding of 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 Standalone

Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

9. In preparing the Standalone Financial Statements, management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

10. The Board of directors is also responsible for overseeing the company''s financial reporting process.

Auditor''s Responsibility for the Audit of the

Standalone Financial Statements:

11. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exits. Misstatement can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

12. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also;

â¢ Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under sec-143(3)(i) of the Act. We are also responsible for expressing our opinion on whether the company has adequate internal financial control with reference to financial statements in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

â¢ Conclude on appropriateness of management''s use of the going concern basis of accounting and base on the audit evidence obtained, whether a material uncertainty exists related to events or commissions that may caste significant doubt on the company''s ability to continue as a going concern. If we conclude that a material uncertainty exists; we are required to draw attention in our auditors'' report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modified our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the company to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

â¢ Materiality is the magnitude of misstatement in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of

our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatement in the Standalone Financial Statements.

Communication with those charged with the governance:

â¢ We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in the internal control that we identify during our audit.

â¢ We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence; and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

â¢ From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of financial statements of the current year and are therefore the key audit matters. We described these matters in our auditors'' report unless law or regulations precludes public disclosure about the matter or when, in extremely rare circumstances, we determined that the matter should not be communicated in our report because the adverse consequences of doing so would reasonably we expected to overweight the public interest benefits of such communications.

Report on Other Legal and Regulatory Requirements:

13. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, and the basis of such checks of books and records of the company as we considered appropriate and according to the information and explanations give to us, we give in the "Annexure 1" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

14. 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; except the confirmations from debtors and creditors.

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 & Loss including Other Comprehensive Income, the statement of Cash Flow and the statement of Change in Equity dealt with by this report are in agreement with the books of accounts;

d. in our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended); save and except to the extent as stated in note no. 24 regarding AS 15 for employees'' benefits to the Standalone Financial Statements.

e. on the basis of written representations received from the directors as on 31 March, 2024 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2024 from being appointed as a director in terms of Section 164(2) of the Act; and

f. with respect to the adequacy of internal financial controls over financial reporting of the Company with reference to financial

statements of the company and the operative effectiveness of such controls, refer to our separate report in "Annexure 2" of this report.

g. with respect to the other matters to be included in the Auditors'' 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 as at 31.03.2024 on its financial position in its standalone IND-AS financial statements- refer Note 20 to the standalone IND AS financial statements;

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

iii. A sum of Rs. 0.97 Lakhs relating to Financial Year 2015-16 is transferred to the credit of Investors'' Protection Fund and there is no due and outstanding for transfer to the credit of the Investors'' Protection Fund as on 31.03.2024 (Previous Year Rs. 0.55 Lakhs).

For GSA & ASSOCIATES LLP

CHARTERED ACCOUNTANTS (FRN 000257N)

(DEEPA JAIN)

PARTNER

Place: Delhi. MEMBERSHIP NO.119681

Dated: 30th May, 2024 UDIN : 24119681BKBHKP7784

Mar 31, 2023

1. We have audited the accompanying Standalone Financial Statements of Akar Auto Industries Limited, ("the Company"), (CIN L29220MH1989PLC052305) which comprise the Balance Sheet as at 31st March,2023, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and notes to the Standalone Financial Statements , including a summary of significant accounting policies and other explanatory information. (Herein after referred to as the "Standalone Financial Statements").

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act,2013 (the "Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended ("IND AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and its total comprehensive income (comprising of profit and other comprehensive income), its Cash Flow and Changes In Equity for the year ended on that date.

Basis for opinion:

Key Audit matters:

Foreign exchange fluctuation and export policies of the Government of India and other countries are considered to be Key Audit Matters. A significant portion of revenue is generated through export of products of the company. Any change in the duty structure, import and export policy has significant bearing on revenue realisation of the Company. Fluctuation in exchange rate of Indian currency has significant bearing on profitability of the company.

How our audit addressed the audit matter:

Our audit approach includes verification of balances outstanding (Debits and Credits) on account of foreign currencies; as at the end of the year and to assure that the same is adjusted to a value at the exchange rate that is prevailing at the close of last day of the current year.

Information other than the Standalone Financial

Statements and Auditor''s Report:

6. Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Management''s Responsibility for the Standalone

Financial statements:

Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

10. The Board of directors is also responsible for overseeing the company''s financial reporting process.

Auditor''s Responsibility for the Audit of the

standalone financial statements:

12. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also;

â¢ Identify and assess the risks of material

misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

of our work; and (ii) to evaluate the effect of any identified misstatement in the Standalone Financial Statements.

Communication with those charged with the governance.

Report on Other Legal and Regulatory Requirements:

14. As required by Section 143(3) of the Act, we report

that:

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;

e. on the basis of written representations received from the directors as on 31 March, 2023 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2023 from being appointed as a director in terms of Section 164(2) of the Act; and

f. with respect to the adequacy of internal financial controls over financial reporting of the Company with reference to financial statements of the company and the operative

effectiveness of such controls, refer to our separate report in "Annexure 2" of this report.

i. The Company has disclosed the impact of pending litigations as at 31.03.2023 on its financial position in its standalone IND-AS financial statements- refer Note 20 to the standalone IND AS financial statements;

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

iii. A sum of H 0.55 Lakhs relating to Financial Year 2014-15 is transferred to the credit of Investors'' Protection Fund and there is no due and outstanding for transfer to the credit of the Investors'' Protection Fund as on 31.03.2023 (Previous Year H 0.57 Lakhs).

For GSA & ASSOCIATES LLP

CHARTERED ACCOUNTANTS (FRN 000257N)

(DEEPA JAIN)

Place : Delhi. PARTNER

Dated : 30th May, 2023. MEMBERSHIP NO. 119681

Mar 31, 2018

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of AKAR AUTO INDUSTRIES LTD., AKAR AUTO INDUSTRIES LTD. (Formerly known as AKAR TOOLS LTD.) ("the Company"), which comprise the Balance Sheet as at 31st March 2018, the Statement of Profit and Loss (including other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity 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 of these Standalone IND AS financial statements, that give a true and fair view of the financial position, financial performance (including other Comprehensive Income), cash flow and Changes in Equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. 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 Standalone IND AS 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 IND AS 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 of the Standalone IND AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone IND AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Standalone IND AS financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the Standalone IND AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Company''s preparation of the standalone IND AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 standalone IND AS 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 IND AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone IND AS 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 31 March 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and Changes in Equity for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub section(11) of section 143 the Act, and the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit except for confirmation from debtors and creditors.

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 (including other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

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

e. On the basis of written representations received from the directors as on 31st March 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B" to this report.

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 knowledge and belief and according to the information and explanations given to us:

i The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements -Refer Note31 to the standalone IND AS financial statements.

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

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company- Refer Note 40 to the standalone IND AS financial statements.

iv. The reporting on disclosure relating to specified bank notes is not applicable to the company for the year ended 31st March 2018.

Annexure "A"

To the Independent Auditors'' Report of even date on the Standalone Ind As Financial Statements of AKAR AUTO INDUSTRIES LTD.

The Annexure referred to in Independent Auditors'' Report to the members of the Company on the Company''s Standalone IND AS Financial Statement as of and for the year ended March 31, 2018.

We report that:

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

(b) The Company has a regular program of physical verification of its fixed assets under which fixed assets are verified in a phased manner during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its business. No material discrepancies were noticed on such verification.

(c) Based on our audit procedure performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company except in case of merged unit''s lease hold land costing Rs. 0.32 Lakhs which is yet not transferred in the name of the company in the records of M.I.D.C. for which the Company is in the process of getting it registered in its name.

(ii) The management has conducted physical verification of inventory at reasonable intervals, except material in transit and stocks lying with third parties and in bonded warehouses, which are verified with reference to the certification obtained and/or subsequent clearing of goods. In our opinion, the frequency of physical verification is reasonable. No material discrepancies were noticed on physical verification between the physical stock and book records.

(iii) In our opinion, and according to information and explanation given to us, the Company has granted loan, secured or unsecured to companies, firms, or other parties covered in the register maintained under Section 189 of the Act.

a. The terms and conditions of the grant of such loans are not prejudicial to the company''s interest.

b. The schedule of repayment of principal and payment of interest has been stipulated and the repayment or receipts are regular.

c. In respect of the aforesaid loans, there is no amount which is overdue for more than 90 days.

(iv) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, and advances given, making investments and providing guarantees, and securities provided by it, as applicable.

(v) The Company has not accepted any deposits during the year from the public within the meaning of the provisions of Section 73 to 76 or any other provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014 to the extent notified, with regard to deposits accepted from the public.

(vi) The maintenance of cost record has been specified by the Central Government under Section 148 (1) of the Act. We have broadly reviewed the cost records maintained by the company pursuant to the companies (Cost Record and Audit)Rules, 2014, as amended and prescribed by the Central Government under sub-section(1) of Section 148 of the Act, and are of the opinion that, prima facie, that prescribed cost record have been made and maintained. We have, however, not mode a detailed examination of the cost record with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and the records of the company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investors'' Education And Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax including Value Added Tax, Wealth Tax, Service Tax, Goods and Service Tax, Entry tax, Duty Of Customs, Duty Of Excise, Cess and other material statutory dues as applicable to each of them respectively, with the appropriate authorities ,there were no arrears of undisputed outstanding statutory dues as at the year-end for a period of more than six months from the date they become payable.

(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, Service tax, duty of customs, duty of excise, value added tax and cess on account of any dispute, the amount involved and the forum where disputes are as follows :-

Name of Statute	Nature of Dues	Forum where Dispute is Pending	Period to which the Amount Relates	Amount Unpaid (Rs. in Lacs)
Income Tax Act 1961	Income Tax	Chief Commissioner of Income Tax	A.Y.1999-2000 A.Y.2000-2001 A.Y.2001-2002 A.Y.2002-2003 A.Y.2003-2004 A.Y.2004-2005	0.44 5.35 10.72 3.26 13.65 4.16
	Income Tax	Assessing officer for	A.Y.2005-2006	9.99
		rectification	A.Y.2006-2007	0.50
			A.Y.2007-2008	1.81
			A.Y.2008-2009	2.63
			A.Y.2011-2012	14.38
			A.Y.2012-2013	13.48
	Income Tax	TRIBUNAL	A.Y.2010-2011	2.00
	Income Tax	Commissioner of Income	A.Y.2014-2015	83.00
		Tax (Appeals)
	Income Tax (TCS)	Commissioner of Income	A.Y. 2012-13 to	8.46*
		Tax (Appeals)	A.Y. 2018-19
	Income Tax	Income Tax officer (TDS)	A.Y.2008-2009	3.71
	(TDS)		A.Y.2009-2010	7.85
			A.Y.2011-2012	0.26
			A.Y.2012-2013	0.48
			A.Y.2013-2014	2.34
			A.Y.2014-2015	2.20
			A.Y.2015-2016	4.31
			A.Y.2016-2017	1.40
			A.Y.2017-2018	0.62
			A.Y.2018-2019	2.55
Finance Act, 1994/	Service Tax	Commissioner of Appeals,	Aug-2012 to	23.61
Central Goods &		Central Goods & Service	June -2017
Service Tax Act,		Tax,(Formerly Central
2017		Excise, Customs and
		Service Tax)

*Above amounts is Net of H 1.5 Lac paid under deposits against the TCS matter.

(viii) According to the records of the Company examined by us and information and explanations given to us, the Company has not defaulted in repayment of dues to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.

(ix) The company did not raise money by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.

(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.

(xi) In our opinion and according to the information and explanations given to us, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 of the Act read with Schedule V to the Act.

(xii) In our opinion, the Company is not a Nidhi Company; accordingly, provisions of Clause 3 (xii) of Companies (Auditor''s Report) Order, 2016 are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures, during the year.

(xv) According to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with term. Therefore, the provisions of Clause 3(xv) of Companies (Auditor''s Report) Order, 2016 are not applicable to the Company.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Annexure "B"

To the Independent Auditor''s Report of even date on the Standalone IND AS Financial Statements of AKAR AUTO INDUSTRIES LTD.

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

We have audited the internal financial controls over financial reporting of AKAR AUTO INDUSTRIES LTD. ("the Company") as of March, 31st 2018 in conjunction with our audit of the standalone IND AS financial statements of the Company for the year ended on that date

Management''s Responsibility for Internal Financial Controls

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

Auditor''s Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI and deemed to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls over financial reporting, and the guidance note on internal financial controls over financial reporting (the guidance Note) issued by the ICAI. Those standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the standalone IND AS financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

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

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion, the company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31,2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of internal Financial controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For JAJU & KABRA

Chartered Accountants

(FRN 140398W)

Sd/-

(RAHUL JAJU)

Place : Aurangabad PARTNER

Dated : 30th May, 2018 Membership No.164021

Mar 31, 2016

Independent Auditor''s Report

TO THE MEMBERS OF AKAR TOOLS LTD.

Report on the Standalone Financial Statements

1. We have audited the accompanying financial statements of Akar Tools Limited, ("the Company"), which comprise the Balance Sheet as at 31st March

2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Standalone

Financial Statements

2. 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 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; 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

3. Our responsibility is to express an opinion on these standalone financial statements based on our Audit.

4. 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.

5. We conducted our audit in accordance with the Standards of Auditing specified under section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.

6. 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 auditors'' 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 controls relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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.

7. 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

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016, and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor''s Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure I, a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

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

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

c. the Standalone Financial Statements 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 (as amended);

e. on the basis of written representations received from the directors as on 31st March 2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164(2) of the Act.

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. as detailed in Note 28 to the standalone financial statements, the Company has disclosed the impact of pending litigations on its financial position;

ii. the Company did not have any long-term contracts including derivatives contract for which there were any material foreseeable losses; and

iii. there has been a delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. [See Annexure 1 (VII) (c) and Note No.37]

Re: AKAR TOOLS LIMITED ("the Company")

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report 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 program of physical verification of its fixed assets under which fixed assets are verified in a phased manner during the year, 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) Based on our audit procedure performed for the purpose of reporting the true and fair view of the financial statements and according to information and explanations given by the management, the title deeds of immovable properties are held in the name of the company except in case of merged unit''s lease hold land costing Rs. 0.32 lacs which is yet not transferred in the name of the company in the records of M.I.D.C. for which the Company is in the process of getting it registered in its name.

(ii) The management has conducted physical verification of inventory at reasonable intervals during the year, Inventories lying with third parties have been confirmed by them as at March 31, 2016 and no material discrepancies were noticed on such physical verification.

(iii) The Company has not granted any loan, secured or unsecured to companies, firms, Limited Liability Partnerships (LLPs) or other parties covered in the register maintained under Section 189 of the Act. Accordingly, the provisions of clauses 3(iii)(a) and 3(iii)(b) and 3(iii)(c) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, the provisions of sections 185 and 186 of the Act in respect of loans and advances given, investments made and guarantees, and securities given to parities covered under the respective sections have been complied with by the company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of company''s products and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing

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 other material statutory dues, as applicable, with the appropriate authorities except Rs. 6.42 Lacs which is outstanding as on 31st March 2016 on account of dividend Distribution Tax. Except as above, there were no arrears of undisputed outstanding statutory dues as at the year-end for a period of more than six months from the date they become payable.

(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess on account of any dispute, the amount involved and the forum where disputes are as follows :-

Statute	Nature of Dues	Amount (Rs. in lakhs)	Amount paid under protest (Rs in Lakhs)	period to which the amount relates	Forum where dispute is pending
Income Tax Act 1961	Income tax and interest	0.44	-	A.Y. 1999-2000	CCIT
	Income tax and interest	5.34	-	A.Y. 2000-2001	CCIT
	Income tax and interest	10.72	-	A.Y. 2001-2002	CCIT
	Income tax and interest	3.26	-	A.Y. 2002-2003	CCIT
	Income tax and interest	13.65	-	A.Y. 2003-2004	CCIT
	Income tax and interest	4.16	-	A.Y. 2004-2005	CCIT
	Income tax and interest	0.50	-	A.Y. 2006-2007	CIT (A)
	Income tax and interest	1.81	-	A.Y. 2007-2008	CIT (A)
	Income tax and interest	2.07	-	A.Y. 2010-2011	CIT (A)
Maharashtra Vat Act	Sales Tax and interest	19.64	^-	A.Y. 2003-2004	Comm. Of ST

31.03.2016 related to FY 2007-08 required to be transferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 2013 and rules made there under within time.

(viii) The Company has not defaulted in repayment of loans or borrowings to any bank or financial institution or government during the year. The Company did not have any outstanding debentures during the year.

(x) No fraud by the Company or on the Company by its officers or employees has been noticed or reported during the period covered by our audit.

(xi) In our opinion, managerial remuneration has been provided in accordance with the requisite approvals mandated by the provisions of section 197 of the Act read with Schedule V to the Act.

(xii) In our opinion, the Company is not a Nidhi Company, Accordingly, Clause 3 (xii) of the order is not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance with sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements as required by the applicable accounting standards.

(xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures.

(xv) The Company has not entered into any non-cash transactions with directors or persons connected with term.

(xvi) The Company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934.

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

Annexure 2 to the Independent Auditor''s Report of even date on the Standalone Financial Statements of Akar Tools Limited

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

TO THE MEMBERS OF AKAR TOOLS LTD.

Management''s Responsibility for Internal Financial Controls

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

Auditor''s Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing as specified under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and, both issued by the institute of Chartered Accountants of India. Those standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Out audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls Over Financial Reporting

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

Inherent Limitations of Internal Financial Controls over Financial Reporting

Opinion

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

For A.K. BAGADIA & CO.

CHARTERED ACCOUNTANTS

(A K BAGADIA)

PROPRIETOR

Place : Aurangabad MEMBERSHIP NO.30520

Dated : 30th May, 2016 (FRN 100846W)

Mar 31, 2015

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

Management's Responsibility for the Financial Statements

2. 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 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act; safeguarding the assets of the Company; 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

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

4. 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.

5. We conducted our audit in accordance with the Standards of Auditing specified

6. 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 materia misstatement.

7. 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 auditors' 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 controls 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 accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overal presentation of the financial statements

8. 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

9. 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 31 March 2015, and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

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

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

c. the financial statements 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 (as amended);

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

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. as detailed in Note 28 to the financial statements, the Company has disclosed the impact of pending itigations on its financial position,

ii. the Company did not have any long-term contracts including derivatives contract for which there were any material foreseeable losses; and

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

ANNEHURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF AHAR TOOLS LTD ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015

Based on the audit procedures performed for the purpose of I reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report 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 program of physical verification of its fixed assets under which fixed assets are verified in a phased manner during the year, 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.

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

(b) The procedures of physical verification of inventory 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 inventory and no material Discrepancies between physical inventory and book records were noticed on physical verification.

(iii) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Act.

Accordingly, the provisions of clauses 3(iii)(a) and 3(iii)(b) of the Order are not applicable

(iv) In our opinion, 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, no major weakness has been noticed in the internal control system in respect of these areas

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended), accordingly, the provisions of clause 3(v) of the Order are not applicable.

(vi) To the best of our knowledge and belief, the Centra Government has specified maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of Company's products. Accordingly, the provisions of clause 3(vi) of the Order are applicable.

(vii) (a) The Company is regular in depositing 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 other material statutory dues, as applicable, with the appropriate authorities except Rs.57.58 Lacs which is outstanding as on 31st March 2015. Further, 5.99 of undisputed amount payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they become payable.

(b) The dues outstanding in respect of income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax and cess on account of any dispute, the amount involved and the forum where disputes are as follows :-

Statute Nature of Dues Amount (Rs.in Amount paid lacs) under Protest (Rs in Lacs)

Income Tax Act Income tax and interest 0.44 - 1961 Income tax and interest 5.34 -

Income tax and interest 10.72 -

Income tax and interest 3.26 -

Income tax and interest 13.65 -

Income tax and interest 4.16 -

Income tax and interest 28.42 -

Income tax and interest 1.81 -

Income tax and interest 2.07 -

Maharashtra Sales Tax and interest 19.64 - Vat Act

Statute Period to which Forum where dispute the amount is pending relates

Income Tax Act 1961 A.Y. 1999-2000 CCIT

A.Y. 2000-2001 CCIT

A.Y. 2001-2002 CCIT

A.Y. 2002-2003 CCIT

A.Y. 2003-2004 CCIT

A.Y. 2004-2005 CCIT

A.Y. 2006-2007 CIT (A)

A.Y. 2007-2008 CIT (A)

A.Y. 2010-2011 CIT (A)

Maharashtra Vat Act A.Y. 2003-2004 Comm. Of ST

(c) A Sum of Rs.0.95 lacs related to FY 2006-07 has been transferred to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder within time

(viii) In our opinion, the Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial year.

(ix) In our opinion, the Company has not defaulted in repayment of dues to any financial institution or a bank or to debenture-holders during the year.

(x) The Company has not given any guarantees for loans taken by others from banks or financial institutions Accordingly, the provisions of clause 3(x) of the Order are not Applicable,

(xi) The Company did not have any term loans outstanding during the year. Accordingly, the provisions of clause 3(xi) of the Order are not applicable,

(xii) No fraud on or by the Company has been noticed or reported during the period covered by our audit

For A.K. BAGADIA & CO

CHARTERED ACCOUNTANTS

(AK BAGADIA)

PROPRIETOR

MEMBERSHIP NO. 30520

(FRN 100846W)

Place: Aurangabad

Dated: 30th May, 2015

Mar 31, 2014

1 We have audited the accompanying financial statements of AKAR TOOLS LIMITED (the "Company") which comprise the Balance Sheet as at March 31, 2014 and the Statement of Profit & Loss and Cash Flow Statement 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''s Responsibilities for the Financial Statements:

2 The Company''s Management is responsible for 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 auditing standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 of India (the "Act"), read with the General Circular 15/2013 dated 13th September, 2013 of the Mnistry 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:

3 Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standard 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.

4 An audit involves performing procedures to obtain audit evidence, about the amount and disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditors consider 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.

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

Opinion:

6 In our opinion and to the best of our information and according to the explanation 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 principles generally accepted in India.

i) in the case of the balance sheet of the state of affairs of the Company as at 31st March, 2014.

ii) in the case of the Profit & Loss Account of the profit of the year ended on that date.

iii) in the case of the Cash Flow Statement of the cash flow of the year ended on that date.

Report on Other Legal and Regulatory Requirements:

1. 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 under Sub-section (4A) of section 227 of the Act 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 explanations given to us, we enclosed in the Annexure a statement on the matter specified in paragraphs 4 and 5 and said Order.

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

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

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

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

(d)In our opinion, the Balance Sheet, Profit and Loss Account and 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;

(e)On the basis of the written representation received from directors as on 31st March 2014 and 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 (1) to Section 274 of the Act.

Annexure to auditors'' report

(Referred to in paragraph 7 of Auditors'' Report of even date to the members of AKAR TOOLS LIMITED on the financial statements of the company for the year ended 31st March, 2014.)

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 but there is a regular program of verification 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) During the year, the company has not disposed any substantial part of its fixed assets.

ii. (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 inventory 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 inventory, no material discrepancies were noticed on verification between the physical stocks and the book records.

iii. a) The company has granted unsecured loans to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 78.99 lakhs. The year end balance is Rs. 68.55 lakhs.

(b) In our opinion, the rate of interest wherever applicable, and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the company.

(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the company, wherever payable.

(d) There is no overdue amount in excess of Rs. 1 lakh in respect of loans granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(e) The company has not taken unsecured loan from any party covered in the register maintained under section 301 of the Companies Act, 1956.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest.

iv. In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the company and the nature of its business, with regard to purchase of inventory and fixed assets and with regard to 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 of the company.

v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements 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, the 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 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public within the meaning of sections 58A and 58AA and other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

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

viii. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

ix. (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty and other material statutory dues applicable to it, except Rs. 19.17 Lacs which is outstanding on account of Dividend Distribution Tax.

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, in cases of disputed demands in respect of income tax, sales tax, wealth tax, service tax, customs duty and excise duty and cess, the amounts involved and the forum where disputes are pending are mentioned in notes of accounts.

x. In our opinion, the company has no accumulated losses. Further, the company has not incurred cash losses during the financial year covered by our audit and 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 a financial institution, bank or debentures holders.

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

xiii. 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.

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

xv. In our opinion, the terms and conditions on which the company has given guarantees for loans taken by others from banks or financial institutions are not prejudicial to the interest of the company.

xvi. In our opinion and according to the information and explanations given to us, the term loans have been applied, on an overall basis, for the purpose for which they were obtained.

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. According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

xix. According to the information and explanations given to us, the company had not issued any debentures during the period covered by our audit report.

xx. The Company had not raised any money by way of public issue, during the year.

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

For A K BAGADIA & CO. CHARTERED ACCOUNTANTS. (FRN 100846W)

Place: Aurangabad (A K BAGADIA) Dated: 30th May, 2014. PROPRIETOR. MEMBERSHIP NO.30520.

Mar 31, 2013

Report on Financial Statement:

1 We have audited the accompanying financial statements of AKAR TOOLS LIMITED (the "Company") which comprise the Balance Sheet as at March 31, 2013 and the Statement of Profit & Loss and Cash Flow Statement 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''s Responsibilities for the Financial Statements:

2 The Company''s Management is responsible for 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 auditing standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 of India (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.

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 Standard 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.

4 An audit involves performing procedures to obtain audit evidence, about the amount and disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditors consider 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.

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

Opinion:

6 In our opinion and to the best of our information and according to the explanation given to us, the accompanying financial statements give the information required by the Companies Act, 1956 in the manner so required and give true and fair view in conformity with the principles generally accepted in India.

i) in the case of the balance sheet of the state of affairs of the Company as at 31st March, 2013.

ii) in the case of the Profit & Loss Account of the profit of the year ended on that date.

iii) in the case of the Cash Flow Statement of the cash flow of the year ended on that date.

Report on Other Legal and Regulatory Requirements:

7 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 under 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 according to the information and explanations given to us, we enclosed in the Annexure a statement on the matter specified in paragraphs 4 and 5 and said Order.

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

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

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

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

(d) The Balance Sheet, Profit and Loss Account and 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 the written representation received from directors as on 31st March 2013 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st march 2013, from being appointed as a director in terms of clause (g) of sub section (1) to Section 274 of the Act.

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

(b) All the assets have not been physically verified by the management during the year but there is a regular program of verification 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) During the year, the company has not disposed any substantial part of its fixed assets.

ii. (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 inventory 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 inventory, no material discrepancies were noticed on verification between the physical stocks and the book records.

iii. (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion, the rate of interest wherever applicable, and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the company.

(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the company, wherever payable.

(d) There is no overdue amount in excess of Rs. 1 lakh in respect of loans granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(e) The company has taken an unsecured 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. 46.35 Lacs and the year-end balance of such loan was Nil.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest.

iv. In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the company and the nature of its business, with regard to purchase of inventory and fixed assets and with regard to 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 of the company.

v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements 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, the 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 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public within the meaning of sections 58A and 58AA and other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

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

viii. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and

we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

ix. (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty and other material statutory dues applicable to it, except Rs. 15.13 Lacs which is outstanding on account of Dividend Distribution Tax.

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, in cases of disputed demands in respect of income tax, sales tax, wealth tax, service tax, customs duty and excise duty and cess, the amounts involved and the forum where disputes are pending are mentioned in notes of accounts.

x. In our opinion, the company has no accumulated losses. Further, the company has not incurred cash losses during the financial year covered by our audit and 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 a financial institution, bank or debentures holders.

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

xiii. 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.

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

xv. In our opinion, the terms and conditions on which the company has given guarantees for loans taken by others from banks or financial institutions are not prejudicial to the interest of the company.

xvi. In our opinion and according to the information and explanations given to us, the term loans have been applied, on an overall basis, for the purpose for which they were obtained.

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.According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

xix. According to the information and explanations given to us, the company had not issued any debentures during the period covered by our audit report.

xx. The Company had not raised any money by way of public issue during the year.

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

For A K BAGADIA & CO.

CHARTERED ACCOUNTANTS.

(FRN 100846W)

Place: Aurangabad (A K BAGADIA)

Dated: 29th May, 2013. PROPRIETOR.

MEMBERSHIP NO.30520.

Mar 31, 2012

We have audited the attached Balance Sheet of AKAR TOOLS LIMITED as at 31st March, 2012 and also the statement of 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 Companies management. Our responsibility is to express an opinion on the financial statements based on our audit.

We have conducted our audit in accordance with the auditing standards generally accepted in India. These 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 managements, as well as evaluating, the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provisions of Section 227 of the Companies Act, 1956, we report that;

(1) As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India under 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 according to the information and explanations given to us, we enclosed in the Annexure a statement on the matter specified in paragraphs 4 and 5 and said Order.

(2) Further to our comments in the Annexure referred to above, we report that;

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

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

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

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the accounting standards referred to in sub-section 3(c) of section 211 of the Companies Act,1956.

e) On the basis of the written representation received from directors as on 31st March 2012 and taken on record by the Board of Directors, we report that the 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) to Section 274 of the Companies Act 1956,and

f) In our opinion and to the best of our information and according to the explanation given to us, the said accounts, read together with the significant accounting policies in schedule '1 & 2' and notes appearing there on, give the information required by the Companies Act, 1956 in the manner so required and give true and fair view in conformity with the principles generally accepted in India.

i) in the case of the balance sheet of the state of affairs of the Company as at 31st March, 2012.

ii) in the case of the Profit & Loss Account of the profit of the year ended on that date.

iii) in the case of the Cash Flow Statement of the cash flow of the year ended on that date.

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

(b) All the assets have not been physically verified by the management during the year but there is a regular program of verification 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) During the year, the company has not disposed of any substantial part of its fixed assets.

ii. (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 inventory 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 inventory, no material discrepancies were noticed on verification between the physical stocks and the book records.

iii. (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion, the rate of interest wherever applicable, and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the company.

(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the company, wherever payable.

(d) There is no overdue amount in excess of Rs. 1 lakh in respect of loans granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(e) The company has taken an unsecured 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. 55.47Lacs and the year-end balance of such loan was Nil.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest.

iv. In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the company and the nature of its business, with regard to purchase of inventory and fixed assets and with regard to 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 of the company.

v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements 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, the 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 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public within the meaning of sections 58A and 58AA and other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

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

viii. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

ix. (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty and other material statutory dues applicable to it, except Rs. 10.75Lacs which is outstanding on account of Dividend Distribution Tax.

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, in cases of disputed demands in respect of income tax, sales tax, wealth tax, service tax, customs duty and excise duty and cess, the amounts involved and the forum where disputes are pending are mentioned in notes of accounts.

x. In our opinion, the company has no accumulated losses. Further, the company has not incurred cash losses during the financial year covered by our audit and 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 a financial institution, bank or debentures holders.

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

xiii. 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.

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

xv. In our opinion, the terms and conditions on which the company has given guarantees for loans taken by others from banks or financial institutions are not prejudicial to the interest of the company.

xvi. In our opinion, the term loans have been applied for the purpose for which they were obtained.

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. According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

xix. According to the information and explanations given to us, the company had not issued any debentures during the period covered by our audit report,.

xx. The Company had not raised any money by way of public issue, during the year.

xxi. 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.

For A K Bagadia & Co.

Chartered Accountants

FRN 100846W

A K Bagadia

Place : Mumbai Proprietor

Dated : 30th August, 2012 Membership No. 30520

Mar 31, 2010

We have audited the attached Balance Sheet of AKAR TOOLS LIMITED as at March 31, 2010 and also the Profit & Loss Account for the year ended on that date annexed thereto, both of which we have signed under reference to this report. These Financial statements are the responsibility of the Companies management .Our responsibility is to express an opinion on the financial statements based on our audit.

We have conducted our audit in accordance with the auditing standards generally accepted in India. These 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 managements, as well as evaluating, the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provisions of Section 227 of the Companies Act, 1956, we report that;

1. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India under 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 according to the information and explanations given to us, we enclosed in the Annexure a statement on the matter specified in paragraphs 4 and 5 and said Order.

2. Further to our comments in the Annexure referred to above, we report that;

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

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

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

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the accounting standards referred to in sub-section 3(c) of section 211 of the Companies Act, 1956.

e) On the basis of the written representation received from Directors as on March 31, 2010 and taken on record by the Board of Directors, we report that the none of the Directors is disqualified as on March 31, 2010, from being appointed as a Director in terms of clause (g)of sub section (1) to Section 274 of the Companies Act 1956,and

f) In our opinion and to the best of our information and according to the explanation given to us, the said accounts, read together with the significant accounting policies in schedule 18 and notes appearing there on, give the information required by the Companies Act, 1956 in the manner so required and give true and fair view in conformity with the principles generally accepted in India.

i) in the case of the balance sheet of the state of affairs of the Company as at March 31, 2010.

ii) in the case of Profit & Loss Account, of the profit for the year ended on that date;

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

Annexure to the Auditors Report

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

b) We are informed that the company has formulated a program, of physical verification of all the fixed assets over a period of three years which, in our opinion, is reasonable having regards to size of the Company and nature of its assets. Accordingly, the physical verification of the fixed assets has been carried out by management during the year and no material discrepancies were noticed on such verification.

c) During the year the Company has not disposed off major part of its fixed assets.

ii) a) As explained to us, inventories have been physically verified by the management at reasonable intervals during the year, the frequency of such verification is reasonable.

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

c) The Company is maintaining proper records of inventory. The discrepancies notices on verification between the physical stocks and the book records were not material.

iii) a) According to the information and explanation given to us, the Company granted and taken unsecured loans, to/from companies, firms and other parties covered in the register maintained under Section 301 of the companies Act, 1956.

b) The rate of interest and other terms and conditions of loans or by the Company, secured or unsecured, are prima facie not prejudicial to the interest of the Company.

c) The payment of the principal and interest amount, wherever applicable is regular.

d) The reasonable steps has been taken by the Company for recovery/payment of the principal and interest in case of overdue amount is more than one lac.

iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchases of inventory, fixed assets and for sale of goods. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come cross nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedures.

v) a) According to the information and explanation given to us, we are of the opinion that the transactions that need to be entered in 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 explanation given to us, the transaction made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 exceeding the values of Rs. 5 lacs in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices.

vi) The Company has not accepted any deposits from public during the year as defined under Section 58A /and 58AA of the Companies Act, 1956 read with the provisions of the Companies (Acceptance of Deposit) Rule, 1975.

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

viii) We are informed that the maintenance of cost record has not been prescribed by the Central Government under Section 209 (1) (d) of Companies Act, 1956 in respect of this Company.

ix) a) According to the information and explanations given to us and records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. According to the information and explanations given to us, there were no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other statutory dues as at March 31, 2010 for a period of more than six months from the date they become payable.

b) According to the information and explanations given to us and records of the Company, examined by us, the particulars of sales tax, excise duty and income tax dues as at March 31, 2010 which have not been deposited on account of disputes pending, are mentioned in "Schedule 18-Notes on Accounts".

x) The Company has no accumulated loss at March 31, 2010 and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

xi) According to the records of the Company examined by us and the information given to us, the Company has not default in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date.

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

xiii) The provision of any special statute applicable to chit fund/nidhi/mutual benefit fund/ societies are not applicable to the Company.

xiv) The Company is not dealing/ trading in shares, securities, debentures and other investments.

xv) In our opinion and according to the information and explanation given to us, the terms & conditions of guarantee given by the Company for loans taken by others from banks and/ or financial institutions are not prima facie prejudicial to the interest of the Company.

xvi) In our opinion and according to the information and explanation given to us, on an overall basis, the term loans have been applied for the purpose for which they were obtained.

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 no funds raised on short term basis have been used for long terms investments and no long term funds have been used to finance short term assets except ÃÂ¦ permanent working capital.

xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the registered maintained under Section 301 of the Companies Act, 1956 during the year.

xix) The Company has not issued any debentures.

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

xxi) During the courses of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instances of material fraud on or by the Company, noticed or reported during the year, nor we have been informed of any such case by management.

For Hemant J. Vora & Co.

Chartered Accountants Firm Registration No. 113079W

CA. H. J. Vora

Proprietor

Membership No.: 46326

Place: Aurangabad Dated: August 21, 2010

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