Auditor Report of Mukesh Strips Ltd.

Mar 31, 2014

Report on the Financial Statements We have audited the accompanying financial statements of MUKESH STRIPS LIMITED ("the Company"), Ludhiana, which comprise the Balance Sheet as at 31st March 2014, the Statement of Profit & Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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.

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 evidente 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 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

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

ii) in the case of the Statement of Profit and Loss, of the Loss of the company for the year ended on that date; and

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

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 paragraphs 4 and 5 of the Order.

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

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

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

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

d) In our opinion, the Balance Sheet, the Statement of Profit & Loss & Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act;

e) On the basis of written representations received from the directors as on 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 term of Clause (g) of Sub-Section (1) of Section 274 of the Act.

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

ANNEXURE TO AUDITORS'' REPORT

REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

1. 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 explained to us, the fixed assets have been physically verified by the management during the year at periodic intervals. In our Opinion, the frequency of physical verification is reasonable having regard to size of the company and nature of its fixed assets. No material discrepancies, which need to be dealt within books of account, have been noticed on such physical verification as compared to the book records.

c) The company has not disposed off substantial part of its fixed assets during the year. In our opinion, going concern status of the company is not affected.

2. a) As explained to us, inventories have been physically verified by the management at regular intervals during the year.

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 has maintained proper records of inventories. As explained to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

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

a) the company has granted loans to ten parties. The maximum amount involved during the year in loans granted was Rs. 275.59 Lacs. The year-end balance of such loans granted was Rs. 114.88 Lacs.

b) the company has taken loans from one party. The maximum amount involved during the year in loans taken was Rs. 350.00 lacs. The year-end balance of such loans taken was Rs. NIL.

c) in our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other terms and conditions are not prima facie prejudicial to the interests of the company.

d) in respect of loans granted by company, the principal and interest, wherever applicable, is being received regularly by the company.

e) in respect of loans taken by the company, the interest payments, wherever applicable, are regular and the principal amount is repayable on demand.

f) there is no overdue amount in respect of loans granted by the company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature of its business for the purchase of inventory, fixed assets and also for the sale of goods and services. During the course of our audit, we have not observed any major weaknesses in internal control.

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

In our opinion and according to the information and explanations given to us, 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 so entered, b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5.00 lacs in respect of each party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The company has not accepted deposits from the public during the year. In our opinion and according to information and explanations given to us, the company has complied with the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other, relevant provisions of the Companies Act, 1956 and Rules framed there under with regard to deposits accepted from the public.

7. In our opinion, the internal audit system of the company is commensurate with the size and nature of its business.

8. We have broadly reviewed the cost records maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(l)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determine whether they are accurate and complete.

9. a) According to the records of the company, undisputed statutory dues including Proirident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2014 for a period of more than six months from the date of becoming payable.

b) According to the information and explanations given to us, there are no dues of Value Added Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty or Cess outstanding on account of any dispute except'' for interest on differential excise duty for which an appeal has been filed before CEGAT.

10. The company does not have accumulated losses and the company has incurred cash losses during the financial year covered by our audit but not in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

12. In our opinion and according to the information and explanations given to us, no loans and 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 or a nidhi/mutual benefit fund/society. Therefore clause 4(xiii) of the Companies (Auditors'' Report) Order, 2003 is not applicable to the company.

14. In our opinion and according to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments.

15. According to the information and explanations given to us and the records examined by us, the company has not given any guarantee for loans taken by others from bank or financial institutions during the year.

16. According to the information and explanations given to us and the records examined by us, the company has not obtained any term loan during the year.

17. According to the information and explanations given to us and on the basis of overall examination of the Balance Sheet of the company, we report that the funds raised on short term basis have prima facie not been used during the year for long term investments.

18. During the year under review, the company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The company did not issue any debentures during the year.

20. The company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanations given to us, we report that no fraud on or by the company has been noticed or reported during the year.

PLACE : LUDHIANA DATED : This 30th Day of May, 2014 For Gupta Vinod Kumar &Associates Chartered Accountants (Firm Reg.no 006904N) Membership no: 085489

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Mar 31, 2010

1. We have audited the attached Balance Sheet of MUKESH STRIPS LIMITED, Ludhiana, as at 31st March 2010, the Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of 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 misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act 1956, we annex hereto a Statement on the matters specified in paragraph 4 & 5 of the said Order.

4. Further to our comments in the annexure referred to above, we report: -

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 appear from our examination of the books;

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

d) In our opinion, the Balance Sheet and the Profit & Loss Account & Cash Flow Statement dealt with by this report comply with the mandatory 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 on 31-03-2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31-03-2010 from being appointed as a director in term of Clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956;

f) Subject to above, In our opinion, and to the best of our information and according to explanation given to us, the said accounts read-together with the Notes on Accounts (as per Schedule XXI), give the information required by the Companies Act, 1956, in the manner so required and give true and fair, view in conformity with the accounting principles generally accepted in India :-

i) in the case of the Balance She,et, of the state of affairs of the company as at 31 st March, 2010;

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

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



ANKEXURE TO AUDITORS REPORT

REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN PATE

1. (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 explained to us, the fixed assets have been physically verified by the management during the year at periodic intervals. In our Opinion, the frequency of physical verification is reasonable having regard to size of the company and nature of its fixed assets. No material discrepancies, which need to be dealt within books of account, have been noticed on such physical verification as compared to the book records.

(c) The company has not disposed off substantial part of its fixed assets during the year. In our opinion, going concern status of the company is not affected.

2. (a) As explained to us, inventories have been physically verified by the management at regular intervals during the year.

(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 has maintained proper records of inventories. As explained to us, there was no material discrepancies noticed on physical verification of inventory as compared to the book records.

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

a) the company has granted loans to three parties. The maximum amount involved during the year in loans granted was Rs. 175.00 Lacs. The year-end balance of such loans granted was Rs. 75.00 Lacs.

b) the company has taken loans from Five parties. The maximum amount involved during the year in loans taken was Rs. 219.76 lacs. The yea-end balance of such loans taken was Rs. 0.76 Lacs.

c) in our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other terms and conditions are not prima facie prejudicial to the interests of the company.

d) in respect of loans granted by company, the principal and interest, wherever applicable, is being received regularly by the company.

e) in respect of loans taken by the company, the interest payments, wherever applicable, are regular and the principal amount is repayable on demand.

f) there is no overdue amount in respect of loans granted by the company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and nature 6f its business for the purchase of inventory, fixed assets and also for the sale of goods and services. During the course of our audit, we have not observed any major weaknesses in internal control.

5. a) Based on the audit procedures applied by us and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

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

6. The company has not accepted deposits during the year from public. In our opinion and according to information and explanations given to us, the provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules framed there under have been complied with.

7. In our opinion, the internal audit system of the company is commensurate with its size and nature of its business.

8. We have broadly reviewed the cost records maintained by the company pursuant to the order made by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima

facie the records have been mads and maintained but no examination of such records has been carried out by us.

9. a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2010 for a period of more than six months from the date of becoming payable.

b) According to the information and explanations given to us, there are no dues of Value Added Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty or Cess outstanding on account of any dispute except for interest on differential excise duty for which an appeal has been filed before CEGAT.

10. The company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

12. In our opinion and according to the information and explanations given to us, no loans and 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 or a nidhi/mutual benefit fund/society. Therefore, clause 4(xiii) of the Companies (Auditors Report) Order, 2003 is not applicable to the company.

14. In our opinion and according to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments.

15. According to the information and explanations given to us and the records examined by us, the company has not given any guarantee for loans taken by others from bank or financial institutions during the year.

16. According to the information and explanations given to us and the records examined by us, the company has not obtained any term loan during the year.

17. According to the information and explanations given to us and on the basis of overall examination of the Balance Sheet, we report that the company has not utilised the funds raised on short-term basis for long- term investments.

18. During the year under review, the company has.not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The company did not issue any debentures during the year.

20. The company has not raised any money by way of public issue duringthe year.

21. In our opinion and according to the information and explanations given to us, we report that no fraud on or by the company has been noticed or reported during the year.

For GUPTA VINOD KUMAR & ASSOCIATES

Chartered Accountants

(VINOD K. GUPTA)

PLACE : LUDHIANA Prop.

DATED : THIS 24th Day of August, 2010 Membership No.: 085489