Auditor Report of Axentra Corp Ltd.

Mar 31, 2025

We have audited the accompanying financial statements of Dugar Housing Developments Limited
(“the Company”), which comprise the Balance Sheet as at 31st March 2025, the Statement of Profit and
Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement
of Cash Flows for the year ended on that date, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information (hereinafter referred to
as “the standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid standalone financial statement gives the information required by the Companies Act, 2013
(the “Act”) in the manner so required and give true and fair view in conformity with the Indian
Accounting Standards prescribed 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 March 31, 2025 and its profit, total
comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit 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 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 finan¬
cial statements under the provisions of the Companies Act, 2013 and the Rules there under, 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 Financial Statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the standalone financial statements for the financial year ended March 31, 2025. We have
determined that there are no key audit matters to communicate in our report.

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 Board''s Report including Annexures to Board''s Report,
Management Discussion and Analysis, Corporate Governance and Shareholder''s Information, but does
not include the standalone financial statements and our auditor’s report thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the 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.

Responsibility of Management for 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 financial state¬
ments that give a true and fair view of the state of affairs (financial position), profit or loss (financial
performance including other comprehensive income), changes in equity and cash flows of the Compa¬
ny in accordance with the accounting principles generally accepted in India, including the accounting
Standards specified under section 133 of the Act read with the Companies (Indian Accounting Stan¬
dards) Rules, 2015, as amended.

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

In preparing the financial statements, management is 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.

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

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

As part of an audit in accordance with Standards on Auditing, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the 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 detect¬
ing 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.

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

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

• 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 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.

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

Materiality is the magnitude of misstatements in the standalone financial statements that, individually
or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of
the 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 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 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 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 regula¬
tion precludes public disclosure about the matter or when, in extremely rare circumstances, we deter¬
mine 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 communica¬
tion.

Other Matter

The financial statements of the Company for the year ended March 31, 2024, have been audited by a
firm of Chartered Accountants other than M Sahu & Co, who have expressed an unmodified opinion on
those financial statements vide their report dated May 27th 2024, which has been furnished and has
been relied upon by us for the purpose of our audit of the financial statements.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. 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 A” a statement on the
matters specified in paragraphs 3 and 4 of the Order.

2. (A) As required by Section 143(3) of the Act, based on our audit, we report that:

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

b. In our opinion, proper books of account as required by law have been kept by the Company so far as
it appears from our examination of those books except for the matter stated in the paragraph B(f)
below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

c. The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other
comprehensive income), the Standalone Statement of Changes in Equity and the Standalone
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 read with the Companies (Indian Accounting Standards) Rules, 2015, as
amended

e. On the basis of written representations received from the directors as on 31st March 2025 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st March 2025 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 with reference to standalone financial
statements of the Company and the operating effectiveness of such controls, refer to our separate
Report in “Annexure B”.

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:

(B) 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:

a) The Company does not have any pending litigation which would impact its financial performance.

b) The Company has made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts.

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

d) (i) The management has represented that, to the best of its knowledge and belief, no funds 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 persons or entities, including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that
the Intermediary shall:

• Directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
(“Ultimate Beneficiaries”) by or on behalf of the Funding Party or

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

(iii) Based on such audit procedures as considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub clause
(d) (i) and (d) (ii) contain any material mis- statement.

e) The Company has not declared dividend or paid during the year by the Company.

f) Based on our examination, the company, has used accounting software for maintaining its books of
account which does not has a feature of recording audit trail (edit log) facility except in respect of main¬
tenance of Books of account.

(C) With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration
paid/payable by the Company to its directors during the current year is in accordance with the
provisions of Section 197 of the Act. The remuneration paid/payable to any director is not in excess of
the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed
other details under Section 197(16) of the Act which are required to be commented upon by us.

For M Sahu & Co Chartered Accountants
Firm Registration No: 130001W

Partner (Manojkumar Sahu)

Membership No: 132623 ^{Date: 30th} M^{ay 2025}

UDIN: 25132623BMGYUT8195 ^{Place: Vadodara}

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Mar 31, 2014

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

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

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

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

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

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

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

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

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

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

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

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

e) on the basis of written representations received from the directors as on March 31,2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

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

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Dugar Housing Developments Limited on the accounts 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 the Fixed Assets.

(b) All the assets have not been physically verified by the management during the year but there is a regular program of physical verification, which in our opinion, is reasonable, having regard to the size of the Company and the nature of its assets. No material discrepancies have been noticed on such verification.

(c) During the year, the Company has not disposed off a major part of the plant and machinery.

(ii) (a) The Company does not carry any Inventory in its Books of Account for the year ended 31st March 2014.

(iii) (a) The Company had not taken any loans from other companies covered in the register maintained under section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

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

b) In our opinion and according to the information and explanations given to us, 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 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 the Public and hence the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

(viii) We have reviewed the rules prescribed by the Central Government for maintenance of Cost records under Section 209 (1) (d) of the Companies Act, in respect of the Turnover of the Company being less than the prescribed limits and are of the opinion that prima facie the said rules are not applicable to this Company.

(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident

Fund, Income Tax, Customs Duty and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of, customs duty, were in arrears, as at 31st March, 2014 for a period of more than six months from the date they became payable except matters that are currently agitated at various Appellate levels.

(c) According to the information and explanations given to us, a sum of Rs.7.00 lakhs (Rs.Nil) has been deposited with the Income Tax Department on account of a dispute pertaining to the A.Y. 1996-97 and A.Y.1997-98 without prejudice to the rights of the Company in agitating the case before the Courts of Law.

(x) The company has not incurred cash loss 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 borrowed monies from any financial institution, banks or debenture holders.

(xii) We are of the opinion that the Company has not granted any loans 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 is not applicable to the Company.

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

(xv) According to the information and explanations given to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) 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. No long-term funds have been used to finance short-term assets except permanent working capital.

(xvii) 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.

(xviii) According to the information and explanations given to us, during the period covered by our audit report, the company has not issued any debentures.

(xix) 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 M.Krishnakumar & Associates, Chartered Accountants

Place : CHENNAI Date : 27.05.2014

M.Krishna Kumar B.Sc FCA Proprietor. M.No.203929

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Mar 31, 2012

1. We have audited the attached balance sheet of Dugar Housing Developments Limited, Chennai, as at 31 st March 2012 and the profit and loss accounts 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 company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the companies (Auditors Report) order, 2003 issued by the Central Government in terms of sub section 4 A of Sec 227 of the companies Act, 1956 (the Act), we enclose in the Annexure of the matters specified in paragraphs 4 and 5 of the said order.

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

i. We have obtained all information and explanations, which best of our knowledge and belief were necessary for the purpose of our Audit.

ii. In our opinion proper books of accounts as required by Law have been kept by the company as for as appears from our examination of those books.

iii. The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of Accounts.

iv. In our opinion, the balance sheet and profit and loss account dealt with by this report comply with the Accounting Standards refer to in sub Section 211 of the Companies Act, 1956.

v. On the basis of the written representations received from the directors as on 31.03.2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31.03.2012 from being appointed as a director in terms of Clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956.

vi. In our opinion and to the best of our information and according to the Explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

A) In the case of the Balance Sheet, of the state of affairs of the Company as on 31.03.2012.

B) In the case of Profit and Loss Account, of the loss for the year ended on that Date.

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

Annexure to the Auditor's Report referred to in Paragraph 3 of our Report of even date

i. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.

ii. None of the fixed assets have been revalued during the year.

iii The stock of finished goods, stores and raw materials and shares have been physically verified by the Management.

iv. The procedure for physical verification of stocks followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

v. No material discrepancies have been noticed on physical verification of stocks as compared to the books records.

vi. In our opinion, the valuation of stock is fair and proper and in accordance with the normally accepted accounting principles, and is on the same basis as in the preceding year.

vii. According the information given, no loans have been granted to Companies, firms and other parties listed in the Register maintained U/S 301 of the Companies Act 1956. There are no Companies under the same management as defined U/S 370(1 B) of the Companies Act 1956.

viii. According the information given, no loans have been taken from companies, firms or other parties listed in the register maintained u/s301 of the Companies Act 1956.

ix. In respect of loans and advances in the nature of the loan given by the Company, the schedule of repayment of principal and interest is not stipulated.

x. In our opinion there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of stocks, Plant & machinery, Equipment, and other assets and with regard to the sale of goods.

xi. In our opinion and according to the information and explanations given to us, the company has not entered into any transactions of purchase of goods and materials and sale of goods, materials and service aggregating to Rs. 500,000/- or more in value to any of the parties listed in register maintained U/S 301 of the Companies Act 1956.

xii. The Company did not have unserviceable or damaged stocks during the year.

xiii. The Company is not a manufacturing, mining or a processing company and therefore does not produce any by products or generate any scrap

xiv. The Company does not have any internal audit system.

xv. There are no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess, which are outstanding as at 31/03/2012 for a period of more than six months from the date they became payable.

xvi. According to the information and explanations given to us, no personal expenses of employees or directors have been charged to revenue account, other than those payments under contractual obligations or in accordance with generally accepted business practice.

xvii. According to the records of the Company, Provident Fund and Employees State Insurance dues have been regularly deposited during the year with the appropriate authorities.

xviii. To the best of our knowledge and belief and according the information given to us, no fraud on or by the company was noticed or reported during the year.

xix. The other items of the above said order are, in our opinion, not applicable in the case of this company.

For KRISHNAKUMAR & ASSOCIATES

Chartered Accountants,

PLACE: CHENNAI

DATE: 31.07.2012 KRISHNAKUMAR B.Com., FC.A

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Mar 31, 2010

1. We have audited the attached balance sheet of Dugar Housing Developments Limited, Chennai, as at 31st March 2010 and the profit and loss accounts 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 company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the companies (Auditors Report) order, 2003 issued by the Central Government in terms of sub section 4 A of Sec 227 of the companies Act, 1956 (the Act), we enclose in the Annexure of the matters specified in paragraphs 4 and 5 of the said order.

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

i. We have obtained all information and explanations, which best of our knowledge and belief were necessary for the purpose of our Audit.

ii. In our opinion proper books of accounts as required by Law have been kept by the company as for as appears from our examination of those books.

iii. The Balance Sheet and the Profit and Loss Account dealt with by this report are in agreement with the books of Accounts.

iv. In our opinion, the balance sheet and profit and loss account dealt with by this report, subject to Non-provision of liability for gratuity as per actuarial valuation, which is in contravention of Accounting Standard on Provision for Gratuity (AS-15) issued by The Institute of Chartered Accountants of India and the impact of which is unascertainable, comply with the Accounting Standards refer to in sub Section 211 of the Companies Act, 1956, subject to

v. On the basis of the written representations received from the directors as on 31.03.2010 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31.03.2010 from being appointed as a director in terms of Clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956.

vi. In our opinion and to the best of our information and according to the Explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

A) In the case of the Balance Sheet, of the state of affairs of the Company as on 31.03.2010.

B) In the case of Profit and Loss Account, of the profit for the year ended on that Date.

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

Annexure to the Auditor’s Report referred to in Paragraph 3 of our Report of even date

i. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The Fixed Assets have been physically verified by the management during the year at reasonable intervals and no material discrepancies were noticed on such verification.

ii. None of the fixed assets have been revalued during the year.

iii The stock of finished goods, stores and raw materials and shares have been physically verified by the Management.

iv. The procedure for physical verification of stocks followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

v. No material discrepancies have been noticed on physical verification of stocks as compared to the books records.

vi. In our opinion , the valuation of stock is fair and proper and in accordance with the normally accepted accounting principles , and is on the same basis as in the preceding year.

vii. According the information given , no loans have been granted to Companies , firms and other parties listed in the Register maintained U/S 301 of the Companies Act 1956. There are no Companies under the same management as defined U/S 370(1B) of the Companies Act 1956.

viii. According the information given, no loans have been taken from companies, firms or other parties listed in the register maintained u/s301 of the Companies Act 1956.

ix. In respect of loans and advances in the nature of the loan given by the Company, the schedule of repayment of principal and interest is not stipulated.

x. In our opinion there is an adequate internal control procedure commensurate with the size of the Company and the nature of its business for the purchase of stocks, Plant & machinery, Equipment, and other assets and with regard to the sale of goods.

xi. In our opinion and according to the information and explanations given to us, the company has not entered into any transactions of purchase of goods and materials and sale of goods, materials and service aggregating to Rs. 500,000/- or more in value to any of the parties listed in register maintained U/S 301 of the Companies Act 1956.

xii. The Company did not have unserviceable or damaged stocks during the year.

xiii. The Company is not a manufacturing , mining or a processing company and therefore does not produce any by products or generate any scrap.

xiv. The Company does not have any internal audit system. However Adequate Internal Control System is in place.

xv. There are no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess, which are outstanding as at 31/03/2010 for a period of more than six months from the date they became payable other than what is given in Note (k) in the Notes to the Accounts.

xvi. According to the information and explanations given to us, no personal expenses of employees or directors have been charged to revenue account, other than those payments under contractual obligations or in accordance with generally accepted business practice.

xvii. According to the records of the Company, Provident Fund and Employees State Insurance dues have been regularly deposited during the year with the appropriate authorities.

xviii. In our opinion, the accumulated losses of the Company are more than fifty percent of its net worth. The company has not incurred cash loss during the financial year covered by our audit but had incurred a Cash Loss in the immediately preceding financial year.

xix. We are of the opinion that the Company has not granted any loans on the basis of security by way of pledge of shares, debentures and other securities.

xx. 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 is not applicable to the Company.

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

xxii. 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. No long-term funds have been used to finance short-term assets except permanent working capital.

xxiii. 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.

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

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

xxvi. 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 KRISHNAKUMAR&ASSOCIATES

Chartered Accountants,

PLACE: CHENNAI M.KRISHNAKUMAR B.Sc., F.C.A

DATE : 31.07.2010 Proprietor. M.No.203929