Auditor Report of Beryl Drugs Ltd.

Mar 31, 2015

We have audited the accompanying stand alone financial statements of Beryl Drugs Limited ('the Company'), which comprise the balance sheet as at 31 March 2015, the statement of profit and loss and the cash flow statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

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

We conducted our audit in accordance with Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amount 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 financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements 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

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

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

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

(b) In our opinion, the Company has kept Proper books of account as required by the law so far as it appears form our examination of those books.

(c) The balance sheet, the statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of accounts.

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

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

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

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 34 to the financial statements.

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

(iii) there were no amount which were required to be transferred to the investor education & protection fund by the company.

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

The Annexure referred to in our Independent Auditor' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2015, 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 programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.

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

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

c) The Company is maintaining proper records of inventories. The discrepancies noticed on verification between the physical stock and the books records have been properly dealt within the books of accounts.

(III) The Company has not granted any loans secured or unsecured to firm other person or bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013('the Act').Therefore the provision of clause 3(iii) (ii) (a) and (iii) (b) of the said order are not applicable to the company.

(IV) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and sale of Goods. We have neither came across nor have been informed if any major weakness in the internal control system during the course of our audit.

(V) . The Company has not accepted any deposits from the public. The provision of clause V of the order are not applicable to company

(VI) . According to the Information and explanation given to us. the central government has not specified the maintenance of the cost records under Section 148(1) of the companies act 2013 for any of the product of the company.

(VII) . a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities except wealth tax amounting to Rs. 112368.90/- . As explained to us, the Company did not have any dues on account of employees' state insurance and duty of excise.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of customs, value added tax, cess and other material statutory dues were in arrears as at 31 March 2015 for a period of more than six months from the date they become payable except wealth tax Rs.114284.40/-

b) According to the information and explanations given to us, there are no material dues of wealth tax, duty of customs and cess which have not deposited with the appropriate authorities on account of any dispute. except following on account of disputes:

(c) No amount required to be transferred to investor education and protection fund, due to no such obligation of the company.

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

(IX) . The Company did not have any outstanding dues to financial institutions, banks or debenture holders during the year. Based on our audit procedure and As per the information & explanation given by the management. We are of the opinion that the company has not defaulted in repayment of dues to a Bank or Financial Institution.

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

(XI) . The company has availed the term loan & applied for the purpose for which the loan was obtained.

(XII) . Based upon the audit procedure performed for the purpose of reporting the True & Fair view of the Financial

Statement obtained as per the information and explanations given to us, We report that no material fraud on or by the Company has been noticed or reported during the course of our audit.

For SUBHASH CHAND JAIN ANURAG & ASSOCIATES Chartered Accountants, FRN No. : 004733C Sd/-

(AKANKSHA SHRIVASTAVA) Date : 24.07.2015 PARTNER place : Indore (M.P.) M.NO.: 425205

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Mar 31, 2014

We have audited the accompanying financial statements of Beryl Drugs Ltd., 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''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statement that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified u/s (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13th Sept.,2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013 and in accordance with the accounting principle generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. 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 statement in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of entity''s internal control. 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 statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

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

(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 statement of Profit and Loss, of the Profit for the year ended on that date; and

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

Emphasis of Matter

Without qualifying our report and as more fully described in annexed notes, we also draw your Attention to following Notes to the financial statements:

1. Note No. 2.1:- During the year Company has issued Forfeiture notice in respect of call money in arrears and have only received Rs. 342750/- as against the call money. But company could not receive the remaining unpaid call money of 59300 no. of equity shares even given final reminder. Thus after passing board resolution dated 25th Jan 2014 company has forfeited 59300 no. of Equity Shares (against which amount paid up was Rs. 219750/-) during the year due to non payment of their arrears.

2. Note No. 12.1:- The company has given advances amounting to Rs.9719535/- (P.Y. Rs. 10253054/-) including interest free loan of Rs.21,07,794/- out of their spare funds to firm, companies and parties without obtaining registration under section 45I of the RBI Act, however same is not applied for because advances of said fund is 15.10% (Approx.) of the total funds (Share capital and Reserve and Surplus) of the company.

3. Note No. 15.1:- Due from customer Rs. 36414.00 (PY Rs. 848327.00) considered doubtful but no provision for doubtful debt has been made in pursuance of follow up with said customer(s).

4. Note No. 38:- The Company has not appointed Whole Time Company Secretary as per requirement of Sec. 383A of the Companies Act, 1956 in during the current year. However company has appointed a whole time company secretary w.e.f. 01.05.2014.

5. Note No. 42:- Company has given Inter corporate advances to Malwa real estate development Pvt. Ltd. of Rs. 53,00,000/- and to Radheshwari Developers Pvt. Ltd. of Rs. 10,00,000/

- which are pertaing to earlier years and a fresh loan of Rs 4,15,741/- to Dabang Duniya Publications (P) ltd. during the current year. Moreover out of above advances, Company has not charged any interest from Radheshwari Developers Pvt. Ltd. thus company has contravened the provisions of Sec. 372A of Companies Act,1956 Further company has also given fresh loan to Dabang Duniya Publications (P) ltd. @ 13.11% which is less than its borrowing cost because company is availing credit facilities from bank @ 14.25%.

6. Note No. 44 :-Company has credited a sum of Rs. 22630/-.( P.Y Rs 106606/)- under the head "Receipt from Government Authority pending for reconciliation" which is received against sale to government authorities (given under the head- Advance Received from Customer) but the same amount is pending since earlier years for allocation & reconciliation for want of their information.

7. Note No 49 :- The company has given advances aggregating to Rs. 69,96,761/- to the directors and relatives during the current year and the year balance is NIL but such advances required prior approval of Central Government u/s 295 of the act however in the opinion of the company said advances does not required such approval due to advances was given for some business commitments.

Report on Other Legal and Regulatory Requirements

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 paragraph 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 & Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13th Sept.,2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

(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 Section 274(1) (g) of the Companies Act, 1956.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT

Annexure referred to in independent auditor''s report of Beryl Drugs Ltd. In Paragraph 1 under the heading of "report on other legal and regulatory requirements" of our report of even date

1. In respect of its fixed assets:

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

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

c) Since no fixed asset has been disposed off during the year hence there is no question of any effect on the going concern concept of the company.

2. In respect of its Inventories:

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

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

c) The Company is maintaining proper records inventories. The discrepancies noticed on verification between the physical stock and the books records have been properly dealt within the books of accounts.

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

a) As per information and explanation given to us and the records produced to us for our verification the Company has granted unsecured interest free loan to the parties covered in the register maintained u/ s 301 of the companies act 1956. The number of such parties are four. The maximum outstanding at any time during the period is Rs. 3825000/- and year end balance is Nil.

b) According to the information and explanations given to us, all said advance & loan was given as interest free, thus except said interest free condition, all other terms and conditions of the loans given by the Company, are not prima facie prejudicial to the interest of the Company.

c) As informed to us the said loan recoverable on demand and duly repaid during the year Hence the question of overdue amount does not arises.

d) The Company has not taken any secured/ unsecured loan in during the year from any persons and company except old loan continued of the Company under the same management, (i.e. Beryl Securities Limited), which is covered in the Register maintained under section 301 of the Companies Act, 1956 and whose maximum outstanding balance at any time during the year was Rs. 33000/- and year end balance is Rs.33,000/- (Previous year Rs.33,000). Besides this, company has also taken advances Rs.22,32,293/- from said company towards business obligations and same was duly repaid before end of the accounting year.

e) In our opinion and according to the information and explanations given to us, said loan was taken as interest free loan thus other terms and conditions of the loans taken by the Company, are not prima facie prejudicial to the interest of the Company.

f) As informed to us no Terms & Condition is fixed for repayment of the loan obtained because same is repayable on demand, in view of the above no amount is over due.

4. In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in such internal control system.

5. In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanations given to us, the transaction made in pursuance of contracts or arrangements 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 transactions made in pursuance of contracts/ arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs.5,00,000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

6. According to the information and explanations given to us, the company has not accepted and deposit from the public. Therefore, the provisions of clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7. In our opinion, the internal audit function carried out during the year by a firm of Chartered Accountant appointed by the management should be strengthen with the size and nature of its business.

8. We have broadly reviewed the cost records maintained in pursuance to the Companies (cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. In respect of statutory dues:

a) According to the records of the Company, The Company has been generally regularly deposited with the appropriate authorities, undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it. According to the information and explanation given to us no undisputed amount payable in respect of aforesaid dues were outstanding as at 31st march 2014 for a period of more than six month from the date they become payable except professional tax Rs. 5000 /- of F.Y. 2010-11 & F.Y. 2012-13 ; remaining amount of advance tax out of income tax liability Rs. 1599351/- and wealth tax of Rs.164206/- of F.Y2012-2013.

b) On the basis of our examination of documents and records of the company and information & explanation given to us, the disputed amounts payable in respect of VAT, and Entry tax not deposited with the authority are as under:

S. Name of the Nature of Amount Period to which Forum where No. statute Dues (Rs.) the amount dispute relates. pending

1. M.P Entry Tax Entry Tax 82865.00 98-99 Revision filed before Addl. Commissioner of Commercial Tax, Indore.

2. M.P. VAT Act VAT 229617.0 2011-12 Appeal filed before Appellate Deputy Commiss ioner of Commercial Tax.

10. The Company does not have accumulated losses at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by the audit and in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions, banks and debenture holders.

12. In our opinion and according to the explanations given to us and based on the information available, no

loans & advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund / Nidhi/ mutual benefit fund/ society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

14. In our opinion The Company is not dealing in or trading share securities, debentures and others, accordingly to the provision of (xiv) of para 4(a) of the said order are not applicable to the company.

15. According to the information & explanation given to us the Company has not given any guarantees in respect of loans taken by others from banks and financial institutions.

16. The Company has not taken any term loan during the year hence comments regarding utilization of term loan does not applicable

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long-term investment.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act,1956.

19. The company has not issued any debenture hence requirement of disclosure regarding creation of securities in respect of debentures issued does not arise.

20. The Company has not raised any monies by way of public issues during the year.

21. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given to us, by the management we report that no material fraud on or by the Company has been noticed or reported during the year.

For SUBHASH CHAND JAIN ANURAG & ASSOCIATES Chartered Accountants,

FRN No. : 004733C

Sd/- (AKANKSHA SHRIVASTAVA) Date : 25.07.2014 PARTNER Place : Indore (M.P.) M.NO.: 425205

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Mar 31, 2013

Report on the Financial Statement

We have audited the accompanying financial statements of Beryl Drugs Ltd.(" the Company "), which comprise the Balance Sheet as at March 31, 2013, and the statement of Profit and loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statement that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with accounting principles generally accepted in India, including 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. 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 statement 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 statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanation 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, 2013.

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

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

Emphasis of Matter

Without qualifying our report. We draw attention to

Note No. 28 :- Company has not made the provision as per AS-13 for Rs.712320/- an account of diminution in value of share of Beryl Securities Ltd, a company in which director are director due to in temporary nature. However, to that extent profit and investment for the year has been over stated

Note No. 29 :- Company has credited a sum of Rs. 106606/- under the head "Receipt from Govt. Authority pending for reconciliation" which is received against sale to Govt. Authorities (given under the head sundry creditors) but the same amount has not been reconcilied from respective ledger accounts of said authorities. Therefore such amount is subject to confirmation & reconciliation from Govt. Authorities.

Note No. 30 :- The company has given advances amounting to Rs. 10253054/- (P.Y. Rs. 4800103/- ) out of their spare funds to firm, companies and parties without obtaining registration under section 45I of the RBI Act, due to non liable because advances of said fund is 16.10%(Approx.) of the total funds (Share capital and Reserve and Surplus) of the company further company has been given loans & advances of Rs. 3657775/- on interest free loan in during the year.

Note No. 34 :- Loans & Advances including Rs.1605911.00 (P.Y. Rs. 17, 79, 838.00) over due from other parties on account of advance against capital assets. And no provision for doubtful advances has been made due to parties are discharging their contractual obligations and is hopeful of acquiring the goods or its settlement through full recovery thereof, in due course.

Note 37:- All balances of sundry debtors, sundry creditors and loans and advances are subject to analysis and confirmation by the parties.

Note No. 58:- Company has given Inter corporate advances to Malwa real estate development pvt. Ltd. of Rs. 5793471/-, and to Radheshwari Developers Pvt. Ltd. of Rs. 10,00000/- but same advances are subject to obtained Specified Approval as prescribed u/s 372A of the companies act.

Note No. 60:- (a) Company has written off Rs. 1842672/- trade dues including health department of government of MP without denial of such debtors of the company.

(b) Company has not made any provision for doubtful debt, Rs. 848327/- (P.Y. 2287263/-) due to continue follow up.

Report on Other Legal and Regulatory Requirements

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

ANNEXURE TO THE AUDITOR''S REPORT

Annexure as referred to in paragraph 1 under the heading of "Report on other legal and regulatory requirements" of our Report of even date to the members of Beryl Drugs Limited on the accounts for the year ended 31st March, 2013.

(i) Fixed Assets

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

(b) As informed and explained to us that, the management has physically verified item of fixed assets of the company during the year at reasonable intervals and no significant discrepancies were noticed on such physical verification.

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

(ii) Inventories

(a) According to the information and explaination given to us, physical verification of inventories has been conducted at reasonable interval in during the year by the management, in our opinion the frequency of verification is reasonable.

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

(c) In our opinion the Company has maintained proper records of its inventories the discrepancies between the physical stock and the books records are not material and have been properly dealt with the books of accounts.

(iii) Loan Granted or Taken

(a) The Company has not given any secured or unsecured loan to any other companies or other parties covered in the register maintained under section 301 of the Companies Act, 1956 in during the year.

(b) As the Company has not given any loan in during the year, hence the sub clause (b) (c) and (d) of clause (III) of para of the order are not applicable to the company

(c) As per information and explanations given to us, the company has not taken any Unsecured Loan in during the year however old loan is continued of one company which is covered in the register maintained under Section 301 of the Companies Act, 1956. The Balance out standing in year end is Rs.33,000/- (Previous year Rs.33,000)

(d) In our opinion and according to the information and explanation given to us the Term & condition of such loan & advance have been taken are not prima facie prejudicial to interest of the company.

(e) As informed to us no Terms & Condition is fixed for repayment of the loan obtained because same is repayable on demand, in view of the above no amount is over due.

(iv) Internal Control Procedure

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 the purchase of fixed assets , inventory and for sales of goods. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control.

(v) Transaction with Parties u/s 301

a) In our opinion and according to the information and explanation given to us, based on the disclosure of interest made by the director of the company, contract or arrangement that need to be entered into the register maintained under sec. 301 of the Companies Act, 1956 have been so entered.

b) Based on the audit procedures applied by us, in our opinion and according to information and explanation provided by the management, the transaction exceeding the value of Rs.5 Lacs in respect of any party during the year have been made of prices which are prima facie reasonable having regard to prevailing market prices at the relevant time when such prices are available.

(vi) Public Deposit

In our opinion and according to the information and explanations given to us, the Company neither accepted nor invited any deposits from Public within the provisions of section 58A of Companies Act, 1956 and rules made there under.

(vii) Internal Audit System

In our opinion the internal audit function carried out during the year by M/s. Abhay Bhandari & Associates Chartered Accountants, Indore (M.P) appointed by the management but same needs to be strengthen with the size and nature of the company''s business.

(viii) Cost Record

In our opinion and according to the information and explanation given by the management the maintenance of cost record has been prescribed by the central government under section 209(1)(d) of the Companies Act, 1956 and such accounts and records have been maintained by the company during the year under review.

(ix) Statutory Dues

According to the information and explanations given to us, and on the basis of our examination of the books of accounts, the company is generally regular, in depositing undisputed statutory dues including Provident Fund, Employee State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty and Cess and other material statutory dues with the appropriate authority. except professional tax Rs. 2500/ - of F.Y. 2010-11 and advance tax out of income tax liability Rs. 2189305/-

(x) Accumulated Cash losses

The Company does not have accumulated losses at the end of the current financial year, the company has not incurred cash losses during the current and immediately preceding financial year.

(xi) Default in repayment of dues to Financial Institutions or Bank

Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in the repayment of dues to banks with respect to its borrowings.

(xii) Granting of Loan and Advances

According to the information and explanations given to us, the Company has not given any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Chit Fund/Nidhi/Mutual Benefit Fund/Society Activities

In our opinion, the company is not Chit Fund or a Nidhi/Mutual Benefit Fund Society. Therefore, the said clause is not applicable to the Company.

(xiv) Dealing or Trading in Shares

IIn our opinion the company is not dealing in or trading share securities, debentures and others, accordingly to the provision of (xiv) of para 4(a) of the said order are not applicable to the company.

(xv) Guarantee given by the Company for loan taken by others

As informed and explained to us the Company has not given any guarantee in respect of loans taken by others from any bank or financial institutions.

(xvi) Utilization of Term Loan

As per information and explanation given to us, the company has not taken any term loan during the year hence comments regarding utilization of term loan does not applicable.

(xvii) Application of Short Term Fund for Long Term Investment and vice versa

According to the information and explanations given to us, and on an overall examination of the balance sheet and cash flow statement of the company we reported that fund raised on short term basis have not been used for long term investment.

(xviii)Preferential Allotment of Shares

We are informed that, the Company has not made any preferential allotment of shares to the parties listed in the Register maintained under section 301 of the Act.

(xix) Creation of Securities for Debenture Issue

According to the information and explanations given to us and the records examined by us, the company has not issued any debenture hence requirement of disclosure regarding creation of securities in respect of debentures issued does not arise

(xx) Money raised by Public Issue

The Company has not raised any money by public issue of shares during the year and therefore, the question of disclosing the end use of money does not arise.

(xxi) Fraud noticed or Reported

To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the course of our audit.

For SUBHASH CHAND JAIN ANURAG & ASSOCIATES

Chartered Accountants

FRN No. : 004733C

Place : Indore

Date : 28th May 2013 (S.C. JAIN)

PARTNER

MNO. 72062

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of Beryl Drugs Ltd. as at 31st March 2012 and also the Profit and Loss Account and the Cash Flow statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test check, 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 (Auditor's Report) Order, 2003 [As amended by company (Auditor Report) (Amended order 2004)] issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 purposes of our audit.

(b) in our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of such 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 dealt with by this report comply with the Accounting Standards (except AS-13) referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

(e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

5. In our opinion and to the best of our information and according to the explanations given to us, they said account subject to Note No. 2 (m) & 28 regarding non provision of diminution in value of shares of Rs. 18,38,464/- of investment, give the information so required by the Companies Act, 1956, and subject to above Qualification as well as other comments given in the notes to accounts, give a true and fair view in conformity with the accounting principles generally accepted in India. In the case of:-

(i) The Balance Sheet, of the state of affairs of the Company as at 31st March, 2012.

(ii) The Profit & Loss Account, of the profit for the year ended on that date and,

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

(i) Fixed Assets

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

(b) As informed and explained to us that, the management has physically verified item of fixed assets of the company during the year at reasonable intervals and no significant discrepancies were noticed on such physical verification.

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

(ii) Inventories

(a) As informed and explained to us, physical verification of inventories has been conducted at reasonable interval in during the year by the management, in our opinion the frequency of verification is reasonable.

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

(c) That the Company has maintained proper records of its inventories and no material discrepancies were noticed on verification between the physical stock and the books records.

(iii) Loan Granted or Taken

(a) The Company has not given any secured or unsecured loan to any other companies or other parties covered in the register maintained under section 301 of the Companies Act, 1956 in during the year.

(b) As the Company has not given any loan in during the year, hence the sub clause (b) (c) and (d) of clause (III) of Para of the order are not applicable to the company

(c) As per information and explanations given to us, the company has not taken any Unsecured Loan in during the year however old loan is continued of one company which is covered in the register maintained under Section 301 of the Companies Act, 1956. The Balance out standing in year end is Rs.33,000/- (Previous year Rs.33,000)

(d) In our opinion and according to the information and explanation given to us the Term & condition of such loan & advance have been taken are not prima facie prejudicial to interest of the company.

(e) As informed to us no Terms & Condition is fixed for repayment of the loan obtained because same is repayable on demand, in view of the above no amount is overdue.

(iv) Internal Control Procedure

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 the purchase of fixed assets , inventory and for sales of goods. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control.

(v) Transaction with Parties u/s 301

a) In our opinion and according to the information and explanation given to us, based on the disclosure of interest made by the director of the company, contract or arrangement that need to be entered into the register maintained under sec. 301 of the Companies Act, 1956 have been so entered.

b) Based on the audit procedures applied by us, in our opinion and according to information and explanation provided by the management, the transaction exceeding the value of Rs.5 Lacs in respect of any party during the year have been made of prices which are prima facie reasonable having regard to prevailing market prices at the relevant time when such prices are available.

(vi) Public Deposit

In our opinion and according to the information and explanations given to us, the Company neither accepted nor invited any deposits from Public within the provisions of section 58A of Companies Act, 1956 and rules made there under.

(vii) Internal Audit System

In our opinion the internal audit function carried out during the year by M/s. Abhay Bhandari & Associates Chartered Accountants, Indore (M.P) appointed by the management is commensurate with the size and nature of the business.

(viii) Cost Record

In our opinion and according to the information and explanation given by the management the maintenance of cost record has been prescribed by the central government under section 209(1)(d) of the Companies Act, 1956 and such accounts and records have been made by the company during the year under review.

(ix) Statutory Dues

(a) According to the information and explanations given to us, and on the basis of our examination of the books of accounts, the company is generally regular, in depositing undisputed statutory dues including Provident Fund, Employee State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty and Cess and other material statutory dues with the appropriate authority.

(b) According to the information and explanation given to us, there are no cases of non-deposit with the appropriate authorities of undisputed dues of sales tax / excise duty / wealth tax / service tax except following disputed liability which neither was paid as on date nor provided in the books of accounts for same amount.

S. Name of the statute Nature of Amount Period to which Forum where dispute No. Dues (Rs.) the amount pending relates.

1. M.P Entry Tax Entry Tax 82865.00 98-99 Revision filed before Addl. Commissioner of Commercial Tax, Indore.

2. Central Excise Central 327190.00 00-01 Central Excise & Service Excise

3. Central Excise Central 327190.00 00-01 Appellate Tribunal Excise Penalty

(x) Accumulated Cash losses

The Company has neither any accumulated losses at the end of the current financial year, nor incurred cash losses during the current and immediately preceding financial year.

(xi) Default in repayment of dues to Financial Institutions or Bank Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in the repayment of dues to banks with respect to its borrowings.

(xii) Granting of Loan and Advances

According to the information and explanations given to us, the Company has not given any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Chit Fund/Nidhi/Mutual Benefit Fund/Society Activities

In our opinion, the company is not Chit Fund or a Nidhi/Mutual Benefit Fund Society. Therefore, the said clause is not applicable to the Company.

(xiv) Dealing or Trading in Shares

In our opinion the company is not dealing in or trading share securities, debentures and others, accordingly to the provision of (xiv) of para 4(a) of the said order are not applicable to the company.

(xv) Guarantee given by the Company for loan taken by others

As informed and explained to us the Company has not given any guarantee in respect of loans taken by others from any bank or financial institutions.

(xvi) Utilization of Term Loan

As per information and explanation given to us, the company has not taken any term loan during the year hence comments regarding utilization of term loan does not applicable.

(xvii) Application of Short Term Fund for Long Term Investment and vice versa On the basis of examination and information and explanations given to us, the company has not used the funds borrowed on short term basis for long term investment.

(xviii)Preferential Allotment of Shares

We are informed that, the Company has not made any preferential allotment of shares to the parties listed in the Register maintained under section 301 of the Act.

(xix) Creation of Securities for Debenture Issue

According to the information and explanations given to us and the records examined by us, the company has not issued any debenture hence requirement of disclosure regarding creation of securities in respect of debentures issued does not arise.

(xx) Money raised by Public Issue

The Company has not raised any money by public issue of shares during the year and therefore, the question of disclosing the end use of money does not arise.

(xxi) Fraud noticed or Reported

To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the course of our audit.

For SUBHASH CHAND JAIN ANURAG & ASSOCIATES

Chartered Accountants FRN No. : 004733C

Place : Indore

Date : 28th May 2012 (S.C. JAIN)

PARTNER

MNO. 72062

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of Beryl Drugs Ltd. as at 31st March 2010 and also the Profit and Loss Account and the Cash Flow statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test check, 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 [As amended by company (Auditor Report)(Amended order 2004)] issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, 1956 , we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 purposes of our audit.

(b) in our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of such 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 dealt with by this report comply with the Accounting Standards (except AS-13) referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

(e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub section (1) of section 274 of the Companies Act, 1956.

5. In our opinion and to the best of our information and according to the explanations given to us, the said account subject to Note No. 1 of notes to account (Schedule "22" ) regarding non provision of doubtful debts for Rs. 24,05,549.72 and Note No. 2 of notes to account (Schedule "22") regarding non provision of diminution in value of share Rs 61,05,600/- of investment, give the information so required by the Companies Act, 1956, and subject to above Qualification as well as other comments given in the notes to accounts (Schedule "22"), give a true and fair view in conformity with the accounting principles generally accepted in India. In the case of:-

(i) the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010.

(ii) the Profit & Loss Account, of the profit for the year ended on that date and,

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

ANNEXURE TO THE AUDITORS REPORT

Annexure as referred to in paragraph third of our Report of even date to the members of Beryl Drugs Limited on the accounts for the year ended 31st March, 2010.

(i) Fixed Assets

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

(b) As informed and explained to us that, the management has physically verified fixed assets of the company during the year at reasonable intervals and no material discrepancies were noticed on such verification.

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

(ii) Inventories

(a) As informed and explained to us, physical verification of inventories has been conducted during the year by the management, in our opinion the frequency of verification is reasonable.

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

(c) That the Company has maintained proper records of its inventories the discrepancies were noticed on verification between the physical stock and the books of records were not material and have been properly dealt with in the books of account.

(iii) Loan Granted or Taken

(a) The Company has not given any secured or unsecured loan [except advance Rs.2,06,563/- (net) to one of the Director] to companies or other parties covered in the register maintained under section 301 of the Companies Act, 1956 in during the year.

(b) As the Company has not given any loan in during the year, hence the sub clause (b) (c) and (d) of clause (III) of para of the order are not applicable to the company

(c) As per information and explanations given to us, the company has not taken any Unsecured Loan in during the year however old loan is continued of one company which is covered in the register maintained under Section 301 of the Companies Act, 1956. The Balance out standing in year end is Rs.33,000/- (Previous year Rs.33,000)

(d) In our opinion and according to the information and explanation given to us the Term & condition on which loan have been taken are not prima facie prejudicial to interest of the company.

(e) As informed to us no Terms & Condition is fixed for repayment of the loan obtained because same is repayable on demand, in view of the above no amount is over due.

(iv) Internal Control Procedure

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 the purchase of fixed assets inventory and for sales of goods. During the course of audit, we have not observed any continuing failure to correct major weakness in internal control.

(v) Transaction with Parties u/s 301

a) In our opinion and according to the information and explanation given to us, based on the disclosure of interest made by the director of the company, contract or arrangement that need to be entered into the register maintained under sec. 301 of the Companies Act, 1956 have been so entered.

b) Based on the audit procedures applied by us, in our opinion and according to information and explanation provided by the management, the transaction exceeding the value of Rs.5 Lacs in respect of any party during the year have been made of prices which are prima facie reasonable having regard to prevailing market prices at the relevant time when such prices are available.

(vi) Public Deposit

In our opinion and according to the information and explanations given to us, the Company neither accepted nor invited any deposits from Public within the provisions of section 58A of Companies Act, 1956 and rules made there under.

(vii) Internal Audit System

In our opinion the internal audit function carried out during the year by M/s. Abhay Bhandari & Associates Chartered Accountants, Indore (M.P.) appointed by the management have been commensurate with the size and nature of the business.

(viii) Cost Record

To the best of our knowledge as well as information and explanation given by the management the Central Government has not prescribed the maintenance of cost record under section 209(1)(d) of the Companies Act, 1956 for any of the product of the company during the year under review.

(ix) Statutory Dues

(a) According to the information and explanations given to us, and on the basis of our examination of the books of accounts, the company is regular, in depositing undisputed statutory dues including Provident Fund, Employee State Insurance, Income Tax, Wealth Tax, Custom Duty, Excise Duty and Cess and other material statutory dues with the appropriate authority.

(b) According to the information and explanation given to us, there are no cases of non-deposit with the appropriate authorities of undisputed dues of sales tax / excise duty / wealth tax / service tax except following disputed liability which neither was paid as on date nor provided in the books of accounts for same amount.

S. No. Name of the statute Nature of Amount Period to which Forum where Dues (Rs.) the amount dispute pending relates. 1. M.P. Entry Tax Entry Tax 82865.00 98-99 Revision filed on car before Addl. Commissioner of Commercial Tax Indore.

2. Central Excise Central 327190.00 00-01 Central Excise & Excise Service Tax Appellate Tribunal



(x) Accumulated Cash losses

The Company neither has any accumulated losses at the end of the current financial year, nor incurred cash losses during the current and immediately preceding financial year.

(xi) Default in repayment of dues to Financial Institutions or Bank

Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in the repayment of dues to banks with respect to its borrowings.

(xii) Granting of Loan and Advances

According to the information and explanations given to us, the Company has not given any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) Chit Fund/Nidhi/Mutual Benefit Fund/Society Activities

In our opinion, the company is not Chit Fund or a Nidhi/Mutual Benefit Fund Society. Therefore, the said clause is not applicable to the Company.

(xiv) Dealing or Trading in Shares

According to the information and explanation given to us, the company is not dealing or trading in share securities, debentures and others, accordingly the provision of said clause are not applicable to the company.

(xv) Guarantee given by the Company for loan taken by others

As informed and explained to us the Company has not given any guarantee in respect of loans taken by others from any bank or financial institutions.

(xvi) Utilization of Term Loan

As per information and explanation given to us, the company has not taken any term loan during the year hence comments regarding utilization of term loan does not applicable.

(xvii) Application of Short Term Fund for Long Term Investment and vice versa

On the basis of examination and information and explanations given to us, the company has not used the funds borrowed on short term basis for long term investment.

(xviii)Preferential Allotment of Shares

We are informed that, the Company has not made any preferential allotment of shares to the parties listed in the Register maintained under section 301 of the Act.

(xix) Creation of Securities for Debenture Issue

According to the information and explanations given to us and the records examined by us, the company has not issued any debenture hence requirement of disclosure regarding creation of securities in respect of debentures issued does not arise.

(xx) Money raised by Public Issue

The Company has not raised any money by public issue of shares during the year and therefore, the question of disclosing the end use of money does not arise.

(xxi) Fraud noticed or Reported

To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the course of our audit.

For SUBHASH CHAND JAIN ANURAG & ASSOCIATES

Chartered Accountants,

Place : Indore (M.P.) (S.C. JAIN)

Date : August 18th, 2010 PARTNER

MNO. 72062