Auditor Report of Jumbo Bag Ltd.

Mar 31, 2025

TO THE MEMBERS OF JUMBO BAG LIMITED Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Jumbo Bag Limited ("the Company"), which comprise the Balance Sheet as at March 31, 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 a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act 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, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). 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 (ICAI) together with the independence requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

S.No

Key Audit Matter

Auditor''s Response

Revenue Recognition - Sale of goods

Revenue from sale of goods is recognized when the control of goods is transferred to the customers. In terms of the application of the revenue accounting standard Ind AS 115 (Revenue from Contracts with Customers),^ some contracts, control is transferred either when the product is delivered to the customer''s premises or when the product is shipped, depending on the applicable terms. The Management has exercised judgement in applying the revenue accounting policy while recognising revenue.

Our audit procedures include:

â¢ Assessing the Company''s revenue recognition policy for compliance with Ind AS .

â¢ Testing the design and implementation, and operating effectiveness of internal controls relating to revenue recognition.

â¢ Performing testing on selected statistical samples of revenue transactions recorded throughout the year and at the year end and checking delivery documents.

â¢ We carried out procedures involving enquiry, observation and inspection of evidence in respect of operation of these controls.

â¢ Tested the releva nt information technology, general controls, automated controls, and the related information used in recording and disclosing revenue.

â¢ Assessing and testing the adequacy of presentation and disclosures

Property, Plant and Equipment Management judgement is utilized for determining the carrying value of property, plant and equipment, intangible assets and their respective depreciation/ amortization rates. These include the decision to capitalize or expense costs; the annual asset life review; the timelines of the capitalization of assets and the measurement and recognition criteria for assets retired from active use. The accounting policy has been detailed in Notes.

We have performed verification of controls in place over the fixed assets cycle, evaluated the appropriateness of capitalization process, performed tests to verify the capitalized costs, assessed the timelines of the capitalization of the assets and assessed the derecognition criteria for assets retired from active use. Useful life review of assets has been assessed by the management. In performing these procedures, we reviewed the judgements made by management including the nature of underlying costs capitalized; determination of realizable value of the assets retired from active use; the appropriateness of asset lives applied in the calculation of depreciation/ amortization; and the useful lives of assets prescribed in Schedule II of the Companies Act, 2013.

3	Provisions and Contingent Li-	Our audit procedure in response to includes,
	abilities	among others,
	The Company is involved in cer-	â¢ Assessment of the process to identify
	tain legal and tax disputes and	legal and tax litigations, and pending
	the assessment of the risks asso-	administrative proceedings.
	ciated with the litigations is based	â¢ Assessment of assumptions used in the
	on Management assumptions,	evaluation of potential legal and tax risks
	which require the use of judge-	performed by the legal and tax department
	ment and such judgement relates	of the Company considering the legal
	primarily to the assessment of	precedence and other rulings/judgement
	the uncertainties connected to	in similar cases.
	the prediction of the outcome of	â¢ Review of the adequacy of the disclosures
	the proceedings.	in the notes to the financial statements.

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

The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the 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 or 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 during the course of our audit or otherwise appears to be materially misstated. Therefore we have nothing to report in this regard.

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 Act with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with IND AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.

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.

The Board of Directors are 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 SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

â¢ 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.

â¢ 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 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 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.

Report on Other Legal and Regulatory Requirements

1. 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 accounts as required by law have been kept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, the aforesaid financial statements comply with the Ind AS 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 March 31, 2025 taken on record by the Board of Directors, none of the directors are disqualified as on March 31,2025 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial control over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.

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

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

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements (Refer Note No.13 of the Audited Financial Statements)

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

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

iv. (a) The Management has represented that, to the best of its

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

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

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

v. The Company has not declared or paid any dividend during the year Hence we have no comments on the compliance with section 123 of the Companies Act, 2013.

vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from 1 April 2023. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31,2025 which have a feature of recording audit trail(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with and the audit trail has been preserved by the company as per the statutory requirements for record retention.

2. 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 B" a statement on the matters specified in paragraphs 3 and 4 of the Order.

For DPV & Associates

Chartered Accountants FRN.011688S

S/D

CA Vairamutthu K

Partner

M.No : 218791 Date: 10th May 2025 Place: Chennai ICAI UDIN:

Mar 31, 2024

JUMBO BAG LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Jumbo Bag Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2024, 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 a summary of the 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 statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act 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, 2024, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Key Audit Matters

S.No

Key Audit Matter

Auditor''s Response

Revenue Recognition - Sale of goods

Revenue from sale of goods is recognized when the control of goods is transferred to the customers. In terms of the application of the new revenue accounting standard Ind AS 115 (Revenue from Contracts with Customers),for some contracts, control is transferred either when the product is delivered to the customer''s site or when the product is shipped, depending on the applicable terms. The Management has exercised judgement in applying the revenue accounting policy while recognising revenue.

Our audit procedures include:

> Assessing the Company''s revenue recognition policy for compliance with Ind AS .

> Testing the design and implementation, and operating effectiveness of internal controls relating to revenue recognition.

> Performing testing on selected statistical samples of revenue transactions recorded throughout the year and at the year end and checking delivery documents.

> We carried out of procedures involving enquiry, observation and inspection of evidence in respect of operation of these controls.

> Tested the relevant information technology general controls, automated controls, and the related information used in recording and disclosing revenue.

> Assessing and testing the adequacy of presentation and disclosures

Property, Plant and Equipment

Management judgement is utilised for determining the carrying value of property, plant and equipment, intangible assets and their respective depreciation/ amortization rates. These include the decision to capitalise or expense costs; the annual asset life review; the timelines of the capitalisation of assets and the measurement and recognition criteria for assets retired from active use. The accounting policy has been detailed in Notes.

We have done verification of controls in place over the fixed assets cycle, evaluated the appropriateness of capitalisation process, performed tests to verify the capitalised costs, assessed the timelines of the capitalisation of the assets and assessed the derecognition criteria for assets retired from active use. Useful life review of assets has been assessed by the management. In performing these procedures, we reviewed the judgements made by management including the nature of underlying costs capitalised; determination of realizable value of the assets retired from active use; the appropriateness of asset lives applied in the calculation of depreciation/ amortization; and the useful lives of assets prescribed in Schedule II of the Companies Act, 2013.

Provisions and Contingent Liabilities

The Company is involved in certain legal and tax disputes and the assessment of the risks associated with the litigations is based on Management assumptions, which require the use of judgement and such judgement relates primarily to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings.

Our audit procedure in response to includes, among

others,

> Assessment of the process to identify legal and tax litigations, and pending administrative proceedings.

> Assessment of assumptions used in the evaluation of potential legal and tax risks performed by the legal and tax department of the Company considering the legal precedence and other rulings/ judgement in similar cases.

> Review of the adequacy of the disclosures in the notes to the financial statements.

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

The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, 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 or conclusion thereon.

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 Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the IND AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

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

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

â¢ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone 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.

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 standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements

Report on Other Legal and Regulatory Requirements

1. 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.

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS 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 March 31, 2024 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements (Refer Note No.13 of the Audited Financial Statements)

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

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

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

v. The Company has not declared or paid any dividend during the year Hence we have no comments on the compliance with section 123 of the Companies Act, 2013.

vi. The reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is applicable from 1 April 2023. Based on our examination, which included test checks, the Company has used accounting softwares for maintaining its books of account for the financial year ended March 31,2024 which have a feature of recording audit trail(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

For Venkatesh & Co

Chartered Accountants FRN 004636S

CA Dasaraty V

Partner M. No : 026336 UDIN : 24026336BKCZJG178

Place : Chennai

Date : 29^th April 2024

Mar 31, 2015

We have audited the accompanying financial statements of Jumbo Bag Limited ("the company"), which comprise the Balance Sheet as at 31 March 2015, 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 Statement

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and 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 true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

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

b) In the case of the Statement 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.

Emphasis of Matters:

We draw attention to Note No.12 of Schedule 1 forming part of the financial statements in respect of the status of Insurance Claim which is self explanatory. Our opinion is not modified in respect of this matter.

Report on the other Legal and regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act 2013, We give in the Annexure 1 on the matters specified in paragraph 3 & 4 of the order.

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

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

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

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

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

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

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

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

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

iii. No amount is required to be transferred to the Investor Education and Protection Fund by the Company as on 31 March, 2015.

ANNEXURE TO INDEPENDENT AUDITORSÂ REPORT

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Jumbo Bag Limited on the accounts of the company for the year ended 31st March, 2015.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

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

(b) As explained to us, fixed assets have been physically verified by the management reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no substantial part of fixed asset has been disposed off during the year and therefore does not affect the going concern assumption.

(ii) (a) As explained to us, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.

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

(c) The Company has maintained proper records of inventory. As explained to us, there was no material discrepancies noticed on physical verification of stocks, as compared to book records.

(iii) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Consequently, the provisions of clauses iii (a) and iii (b) of the order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and for the sale of goods and services. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

(v) In our opinion, and according to the information and explanation given to us, the company has not accepted any deposits; hence, clause (v) is not applicable to the company. Accordingly, directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under are not applicable.

(vi) The Company is not required to maintain cost records pursuant to the Rules made by the Central Government for maintenance of cost records under sub-section (1) of section 148 of the Act.

(vii) (a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Duty of Custom, Duty of Excise, Value added tax, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of sales tax including value added tax and duty of excise as at 31st March of 2015 which have not deposited on account of a dispute, are as follows:

1. EXCISE DUTY/ SERVICE TAX:

Demand Amount Sl.No. Description (inculding not Present status penalty) provided Rs.in.Lakhs

1.1 Whether Value of Deemed 12.69 12.69 Appeal No:1130/ Export shall be considered 03 Appeal filed for Arriving At DTA Sale with Supreme Eligibility(Difference Court. Of Duty For Disallowed Deemed Export Portion (Appeal Admitted)

1.2 Advance release order 26.55 26.55 Matter remanded (ARO)-non-payment of to Original CVD. Authority (Commissioner), By CESTAT

1.3 Service Tax on Technical 3.71 3.71 Appeal filed Know How Fee with The Commissioner (Appeals).

1.4 Third Party Export On 2.77 2.77 Appeal filed in Payment Of Duty Refund the High Court Sanctioned & Duty at Chennai on Demanded 6/7/2011

1.5 Cenvat Credit Of Service 0.18 0.18 Appeal filed with Tax Of Fumigation the Commissioner services-Unit-1 (Appeal), Chennai - 34

1.6 Cenvat Credit Of Service 0.06 0.06 Appeal filed with Tax Of Fumigation the Commissioner services-Unit-1 (Appeal), Chennai - 34

1.7 Rebate Claim Original Docs 3.55 3.55 Appeal to be Missed-Unit-2 filed with the commissioner (Appeal), Chennai -34

1.8 Cenvat Credit of Service 0.12 0.12 Appeal to be Tax Of Fumigation filed with the services-Unit-2 commissioner (Appeal) Chennai-34 Appeal Filed on 09.05.14

1.9 Cenvat Credit of Service 0.11 0.11 Appeal to be Tax of Fumigation filed with the services-Unit-1 commissioner (Appeal)Chennai -34 Appeal Filed on 09.05.14

TOTAL 53.45 53.45

2. INCOME TAX:

Demand Sl No Description AY (inculding Present Status Penalty Rs. in lakhs)

2.1 Penalty levied u/s 271(1) 2005-2006 6.92 Have requested the Assistant Commissioner of IT to adjust the penalty against amount to be received on account of refund due from IT dept. on block assessment.

2.2 Demand and penalty levied 2006-2007 6.91 Appeal made with CIT

2.3 Penalty levied u/s 271(1) 2007-2008 35.97 Appeal made with CIT

2.4 Notice u/s 148 2005-2006 39.85 Appeal made with CIT

2.5 Notice u/s 148 2006-2007 16.24 Appeal made with CIT

2.6 Notice u/s 143/(3) dt 2011-2012 53.38 Appeal made with 14.03.14 - AY 2011-12 CIT

TOTAL 159.27

According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income tax, wealth tax and service tax which have not been deposited on account of any dispute.

(c) Company does not have any amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under.

(viii) The company does not have accumulated losses at the end of the financial year and it has not incurred cash losses during this financial year and in the immediately preceding financial year.

(ix) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

(x) Based on the information and explanations given by the management, term loans were applied for the purpose for which the loans were obtained.

(xi) Bases upon 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 by the management, we report that no fraud on or by the management has been noticed or reported during the year.

For M.SRINIVASAN & ASSOCIATES Chartered Accountants FRN No-004050S

Place : Chennai Date : 26.05.2015 M. SRINIVASAN Partner, M.No.022959

Mar 31, 2014

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

2. Management''s Responsibility for the Financial Statement

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("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.

3. 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 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.

4. 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 Account, of the loss 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.

5. Emphasis of Matters

We draw attention to Note No.2.19 of the financial statements with regard to the Claims receivables from the Insurance Companies and outstanding of Rs. 1099.58 lakhs on the balance sheet date. The management is confident of recovery of full amount and therefore no further provision is made. Our opinion is not qualified in respect of this matter.

6. Report on Other Legal and Regulatory Requirement

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 account, 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 account, 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 representation received from the directors, as at 31st March 2014 and taken on record by the Board of Directors, we report that none of the directors are disqualified as at 31st March 2014 from being appointed as a director in term of clause (g) of sub section (1) of section 274 of the companies act 1956 on the said date.

ANNEXURE TO INDEPENDENT AUDITOR''S REPORT

Annexure referred to in paragraph 6 of our report of even date.

(i) (a) In our opinion the Company has maintained proper records showing full particulars, including

quantitative details and situation of fixed assets.

(b) The Fixed Assets of the Company have been physically verified at the intervals in a phased manner by the management according to the program of periodical verification which, in our opinion is reasonable having regard to the size of the Company and the nature of its assets. As informed no material discrepancies were noticed on such verification.

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

(ii) (a) In our opinion the inventories have been physical verified during the year by the management at

reasonable intervals.

(b) In our opinion the procedures of physical verification of the inventory 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 and according to explanations given to us, the Company is maintaining proper records of its inventories. The discrepancies noticed on physical verification were not material and properly dealt with in the books of accounts.

(iii) (a) According to information and explanations given to us the Company has not granted any loans,

secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. However, the Company has taken loan from 1 party covered in the register maintained under Section 301 of the Companies Act, 1956, aggregating to Rs.96 lacs (Maximum balance outstanding during the year Rs.96 lacs).

(b) The rate of interest and other terms and conditions on which the loans have been taken by the company are not, prima facie, prejudicial to the interest of the company. The company has not granted any loans during the year.

(c) In respect of such other loans given by the company, where stipulations have been made, they have generally repaid the principal amounts as stipulated and have been regular in payment of interest, wherever applicable.

(d) In respect of such loans given by the company, there are no overdue amounts more than Rs.100000

(iv) (a) In our opinion and according to information and explanations given to us, there is an adequate

internal control procedure commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the company, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedure.

(v) (a) The transactions made pursuance of contracts or arrangement that need to be entered in the

register maintained under Section 301 of the Companies Act, 1956 have been entered in the register.

(b) In our opinion and according to information and explanations given to us, certain transactions made in pursuance of such contracts or arrangements exceeding rupees five lakhs each have been made at prices, which are reasonable having regards to prevailing market prices at relevant time.

(vi) In our opinion, the company has complied with the provision of Section 58A and 58AA or any other

relevant provision of the act and the companies (Acceptance of Deposit) rules, 1975 with regard to

deposits accepted form public.

(vii) The Company has an internal audit system commensurate with its size and nature of business.

(viii) We have broadly reviewed the books of accounts maintained by the company pursuant to the rules

prescribed by the Central Government for maintenance of cost records under section 209 (1) (d) of the

Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However we have not made a detailed examination of the records.

(ix) (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 or accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employees state Insurance, Income-tax, Sales tax, Service tax, Customs duty, and other material statutory dues have been generally regularly deposited, during the year by the Company with the appropriate authorities. As explained to us, the company did not have any dues on account of Investor Education and Protection Fund, Employee State Insurance, Excise Duty and Wealth Tax.

(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, service tax , Customs Duty, Sales Tax and other material statutory dues that were in arrears as at 31st March 2014 for the period of more than six months from the date they become payable.

(c) Details of dues towards sales tax, income tax and excise duty that have not been deposited on account of dispute are as stated in Note 13 of notes to accounts and forming part of the financial statement.

(x) The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

(xi) In our opinion, the company has not defaulted in repayment of its dues to bank and the company has not issued any debentures during the year.

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

(xiii) In our opinion the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore the provisions of clause 4(xiii) of the Companies ( Auditor''s Report) Order 2003(as amended) are 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 (Auditors Report) order 2003(as amended) are not applicable to the company.

(xv) In our opinion, the Company has not given any guarantee for loans taken by others from banks or financial institutions. Therefore the provisions of clause 4(XV) of the order are not applicable.

(xvi) In our opinion, term loan availed by the company were prima facie applied for the purpose for which they were obtained, other than temporary deployment pending application.

(xvii) On an overall examination of the financial statements of the company funds raised on short term basis have, prima facie, not been used during the year for long-term investment and vice versa.

(xviii) The Company has not made preferential allotment of shares to parties and companies listed in the register maintained under Section 301 of the Companies Act, 1956.

(xix) Since the Company has not issued any debentures, the provisions of Clause 4(xix) of the companies (Auditors report) order 2003 as amended are not applicable to the company.

(xx) The Company has not raised any money through public issues during the year.

(xxi) In our opinion, considering the size and nature of the company''s operations, no fraud of material significance on or by the Company has been noticed or reported during year.

For M Srinivasan & Associates Chartered Accountants FRN : 004050S

M. Srinivasan Place : Chennai (Partner) Date: 13.08.2014 M No : 022959

Mar 31, 2012

1. We have audited the attached balance sheet of Jumbo Bag Limited ("the Company") as at 31st March 2012, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the CompanyÃs Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the 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 (AuditorÃs Report) Order, 2003, as amended, issued by the Ministry of Corporate Affairs in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to in para 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 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 dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the directors, as at 31st March 2012 and taken on record by the Board of Directors, we report that none of the directors are disqualified

as at 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 on the said date;

f. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements together with the statement of significant accounting policies and notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accountin principles generally accepted in India.

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

ii. In the case of the statement of profit and loss, of the profit of the Company for the year ended on that date; and

iii. In the case of the cash flow statement, of the cash flows of the Company for the year ended on that date.

ANNEXURE TO THE AUDITOR'S REPORT

Annexure referred to in paragraph 3 of our report of even date

(i) a. In our opinion, 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 all fixed assets are annually verified. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

c. The company has not disposed off substantial part of its Fixed Assets during the year.

(ii) a. In our opinion, inventories have been physically verified during the year by the management at reasonable intervals.

b. In our opinion, the procedures of physical verification of the inventory 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 and according to explanations given to us, the Company is maintaining proper records of its inventories. The discrepancies noticed on physical verification were not material and properly dealt with in the books of accounts.

(iii) a. The company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register under 301 Of the Act. However the company has taken loan from one party covered in the register maintained under sec 301 of the Companies Act 1956, aggregating to Rs. 164 Lakhs (Maximum balance outstanding during the year Rs. 164 Lakhs)

b. The rate of interest and other terms and conditions on which the loans have been taken by the company are not, prima facie, prejudicial to the interest of the company. The company has not granted any loans during the year.

c. In respect of such other loans given by the company, where stipulations have been made, they have generally repaid the principal amounts as stipulated and have been regular in payment of interest, wherever applicable.

d. In respect of such loans given by the company, there are no overdue amounts more than Rs. 100000.

(iv) 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 inventory and fixed assets and for sale of goods and services. Further, on the basis of our examination of the books and records of the company, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedure.

(v) a. The transactions 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 entered in the register.

b. In our opinion and according to information and explanations given to us, the transactions exceeding rupees five lakh each have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion, the company has complied with the provisions of section 58A and 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) rules, 1975 with regard to deposits accepted from public.

(vii) The company has an internal audit system commensurate with its size and nature of business.

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act 1956, for any of the products manufactured or services rendered by the company.

(ix) 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 or accrued in the books of accounts in respect of undisputed statutory dues including Provident fund, Income tax, Sales Tax, Customs Duty, Service Tax and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Investor Education and Protection Fund, Employees State Insurance, Excise Duty and Wealth Tax.

b. According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Service Tax, Customs Duty, Sales Tax and other material statutory dues that were in arrears as at 31st of March 2012 for a period of more than six months from the date they become payable.

c. Details of dues towards sales tax, income tax and excise duty that have not been deposited on account of dispute are as stated in Note 13 of Notes to the accounts forming part of the financial statements.

(x) The company does not have any accumulated losses as at March 31, 2012 and has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

(xi) In our opinion, the company has not defaulted in repayment of its dues to bank during the year.

(xii) In our opinion the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute applicable to a chit fund, nidhi, mutual benefit fund / societies are 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 (Auditors report) order 2003 are not applicable to the company.

(xv) In our opinion, the company has not given any guarantee for the loans taken by others from banks or financial institutions.

(xvi) In our opinion, the term loans availed by the company during the year were, prima facie, applied for the purpose for which they were obtained, other than temporary deployment pending application.

(xvii) On an overall examination of the financial statements of the company, funds raised on short-term basis have, prima facie, not been used during the year for long-term investment and vice-versa.

(xviii) The company has made preferential allotment of shares to parties and a company listed in the register maintained under Sec 301 of the Companies Act, 1956.

(xix) Since the company has not issued any debentures, the provisions of clause 4(xix) of the Companies (Auditors report) order 2003 are not applicable to the company.

(xx) The company has not raised any money by way of public issues during the year.

(xxi) In our opinion, considering the size and nature of the companyÃs operations, no fraud of material signifcance on or by the company has been noticed or reported during the year.

For M.SRINIVASAN & ASSOCIATES Chartered Accountants FRN No. 004050S

R.MOHAN Partner M. No. 022460

Place : Chennai Date : 29.05.2012

Mar 31, 2010

1. We have audited the attached Balance sheet of JUMBO BAG LIMITED as at March 31, 2010, the Profit and Loss Account and the Cash Flow statement for the year ended on that date, annexed thereto, signed by us under reference to this report. 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 have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the 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.

3.1 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.

3.2 In our opinion, proper books of account, as required by law, have been maintained by the company so far as appears from our examination of those books.

3.3 The financial statements dealt with by this report are in agreement with the books of account.

3.4 In our opinion, the aforesaid financial statements comply in all material respects with the applicable Accounting Standards issued by the Institute of Chartered Accountants of India referred to in section 211(3C)oftheAet.

3.5 On the basis of written representations received from the directors, and taken on record by the Board of Directors, We report that none of the directors is prima facie disqualified as on March 31, 2010 from being appointed as a Director in terms of section 274 (1) (g) of the Act.

3.6 In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements read with the statement on significant Accounting Policies and Notes to the Accounts, give the information required by the Companies Act 1956, (the Act) in the manner so required and also 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 the affairs of the company as at March 31, 2010;

b. In the case of the Profit and Loss Account 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 the date.

4. As required by the Companies (Auditors Report) Order, 2003 issued by the Government of India in terms of section 227(4A) of the companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we further report that:

4.1 a. In our opinion, the company is maintaining proper records showing full Particulars including quantitative details and situation of fixed assets.

b. The fixed assets have been physically verified under a phased programme of verification, which, in our opinion, is reasonable, and no material discrepancies have been noticed on such verification.

c. The company has not disposed off substantial part of its fixed assets during the year.

4.2 a. In our opinion, inventories have been physically verified during the year by the management at reasonable intervals.

b. In our opinion, the procedures of physical verification of the inventory 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, on the basis of examination of inventory records the Company is maintaining proper record of its inventories and no material discrepancies were noticed on physical verification.

4.3 a. The company has neither granted nor taken any loans, secured or unsecured, to and from companies, firms or other parties covered in the register maintained under section 301 of the Act.

b. Since the company has neither granted nor taken any loans, secured or unsecured, to and from companies, firms or other parties covered in the register under 301 Of the Act, reporting under this clause does not arise.

c. In respect of such other loans given by the company, where stipulations have been made, they have generally repaid the principal amounts as stipulated and have been regular in payment of interest, wherever applicable.

d. In respect of such loans given by the company, there are no overdue amounts more than Rs. 100000.

4.4 services. Further, on the basis of our examination of the books and records of the company, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedure.

4.5 a. The transactions 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 entered in the register.

b. In our opinion and according to information and explanations given to us, the transactions exceeding rupees five lakh each have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

4.6 In our opinion, the company has complied with the provisions of section 58A and 58AA or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) rules, 1975 with regard to deposits accepted from public.

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

4.8 The Central Government has not prescribed maintenance of cost records under section 209(l)(d) of the Companies Act 1956,for the products manufactured by the company.

4.9 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 or accrued in the books of accounts in respect of undisputed statutory dues including Provident fund, Income tax, Sales Tax, Customs Duty, Service Tax and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. As explained to us,the Company did not have any dues on account of Investor Education and Protection Fund, Employees State Insurance, Excise Duty, Wealth Tax.

There are no dues on account of Cess under 441A of the Companies Act, 1956 since the date from which the aforesaid said section comes in to Force has not yet been notified by the Central Government of India.

According to the information and explanations given to us, no undisputed Amounts payable in respect of Income Tax, Service Tax, Customs Duty, Sales Tax and other material statutory dues that were in arrears as at 31st of March 2010 for a period of more than six months from the date they become payable.

b. Details of dues towards sales tax, income tax and excise duty that have not been deposited on account of dispute are as stated in Note 15 of Notes to the accounts forming part of the financial statements.

4.10 The company does not have any accumulated losses as at March 31, 2010 and has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

4.11 In our opinion, the company has not defaulted in repayment of its dues to bank during the year.

4.12 In our opinion the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

4.13 The provisions of any special statute applicable to a chit fund, nidhi, mutual benefit fund / societies are not applicable to the company.

4.14 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 (Auditors report) order 2003 are not applicable to the company.

4.15 In our opinion, the company has not given any guarantee for the loans taken by others from banks and financial institutions.

4.16 In our opinion, the term loans availed by the company during the year were, prima facie, applied for the purpose for which they were obtained, other than temporary deployment pending application.

4.17 On an overall examination of the financial statements of the company, funds raised on short-term basis have, prima facie, not been used during the year for long-term investment and vice-versa.

4.18 The company has not made any preferential allotment of shares to parties and companies listed in the register maintained under Sec 301 of the Act.

4.19 Since the company has not issued any debentures, the provisions of clause 4(xix) of the Companies (Auditors report) order 2003 are not applicable to the company.

4.20 The company has not raised any money by way of public issues during the year.

4.21 In our opinion, considering the size and nature of the companys operations, no fraud of material significance on or by the company has been noticed or reported during the year.

For M.SRINIVASAN & ASSOCIATES

Chartered Accountants

FRN: 004050S

R.MOHAN

Place : Chennai Partner

Date : 31.05.2010 M.No.22460

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