Auditor Report of PH Trading Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of PH TRADING LIMITED, which comprise the Balance Sheet as at 31st march 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s responsibility for the Financial Statements .

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. 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,but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements. ''

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

Basis of qualified opinion

a) The company has granted unsecured loan to one of the company where two directors of the company are interested. However, the company has charged interest more than rate prescribed as bank rate by RBI and it is informed to us that the refund of loan is being mode {Refer Note 26(12)(F)}.

Qualified opinion

In our opinion and to the best of our information and according to the explanations given to us, except for possible effect of the matters stated in para (a) above, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

b. In the case of the Statement of Profit and Loss, of the Profit for the year ended on that date, and

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

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditor''s Report) Order, 2003, issued by the Cenrtral 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 Sec 227(3) of the Act, we report that:

(i) 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;

(ii) The report on the accountsof the branch offices audited under section 228 by a person other than the company''s auditor has been forwarded to us as required by clause ( c) of sub-section (3) of sec- tion 228 and have been dealt with in preparing our report in the manner considered necessary by us.

(iii) 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;

(iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement comply . with the Accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

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

ANNEXXURE TO THE AUDITOR''S REPORT

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

(b) As explained to us, fixed assets, according to the practice of the Company,are physically verified by the management at reasonable intervals, in a phased verification programe, which, in our opinion, is reasonable, looking to the size of the Company and the nature of its business.According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) As explained to us, the Company has not disposed off any substantial pari of its fixed assets so as to affect its Going Concern.

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

(b) The procedures explained to us, which are followed by the management for physical verification of inventories are in our opinion reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) On the basis of our examination of the Inventory records of the Company, we are of the opinion that the Company is maintaining proper records of its Inventory. Discrepancies, which were noticed on physical verification of-inventory as compared to book records, have been properly dealt with-in the books of account However, it is not material in nature.

3. (a) The Company has granted unsecured loan to one Company, covered in the register maintained U/s.301 of the Company Act 1956, the maximum balance outstanding at any time during the year and closing balance of such loan as on 31.03.2014 were Rs.5035137 and 5035137 respectively.

(b) In our opiniion, the rates of interest and terms and conditions on which loan have been given to the company listed in Register maintainned U/s. 301 of the Companies Act 1956 are not prima fade prejudicial to the interest of the company.

(c) The refund of principal amount of the loan and interest thereon as per the terms and conditions.

(d) There was no overdue amount of more than Rs. 1 Lakhs in respect of the above loan granted by the Company.

(e) The company has taken unsecured loans from Companies or Other Parties covered under the register maintained under Section 301 of the Act, viz.

Name of the Party Closing Maximum Balance Balance Outstanding as at 31.03.2014 during the year Rs. Rs.

Abhishek Chemicals Pvt. Ltd. 15,706,538 15,891,500

Abhishek Himatsingka 2,679,990 2,679,990

Himatsingka Chemicals Pvt. Ltd. 3,991,610 16,611,622

Prakash Himatsingka 13,879,315 13,879,315

Swan Silverwares Pvt. Ltd. 4,272,969 11,201,682

Variable Plaza Pvt. Ltd. 11,758,401 19,663,300

AH Chemicals Pvt. Ltd. 292,541 3,000,000

Welcome Suppliers Pvt. Ltd. 7,558,703 9,787,000

Jamuna Commodities Pvt. Ltd. 11,524,117 13,589,797

Davesh Developers Pvt. Ltd. 0 494,092

Devashree Himatsingka 0 4,925

Vikram Himatsingka (HUF) 0 15,493

Binayak Prasad Prakash Chandra 0 14,868

Nirmal Himatsingka Rice & Saw Mills 0 4,520

Avisek Himatsingka (HUF) 0 6,201

(f) In our opinion, the rates of interest and terms and conditions on which loan have been taken are not prima facie prejudicial to the interest of the company.

(g) The Company is regular in the payment of principal and interestas stipulated and there are no overdue amounts of loans taken from parties listed in the registers maintained under section301 of the Companies Act 1956.

4. In our opinion and according to the information and explanatios given to us, there is generally an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of Inventory and Fixed Assets and for the sale of goods and services. During the course of our previous assessment, no weakness in internal contrl system had come to our notice.

5. ( a) On the basis of the audit procedures performed by us andaccording to the information, explanations and representations given to us,we are of the opinion that the particulars of contracts or arrangements which were required to be entered in the register maintained under Section 301 of the Said Act,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 exceeding the value of rupees five lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at that time.

6. According to the information and explanations given to us, the Company has not accepted any deposits from public.

7. On the basis of the internal audit Reports broadly reviewed by us, we are of the opinion that, the coverage of internal audit functions carried out by firms of Chartered Accountants appointed by the management is commensurate with the size of the Company and the nature of its business.

8. The clause (viii) of paragraphs 4 of order is not applicable in respect of cost records.

9. ( a) The Company is regular in depositing undisputed statutory dues including Income Tax, Sales Tax,Wealth Tax,Custom Duty, Excise Duty, Cess and any other statutory dues,except slight delay noticed in payment of service tax liability.

(b) No undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2014 for a period pf more than six months.

(c) According .to the information and explanation given to us, there are no dues of Income Tax,Sales Tax, wealth Tax,Service Tax. Custom Duty,Excise Duty and Cess which have not been deposited on account of any dispute.

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

11. On the basis of records examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to Banks or to a Financial Institution.

12. The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities and hence, the question of maintainance of adequate documents and records does not arise.

13. The company is not Chit Fund, Nidhi / Mutual Benefit Fund or Societies. Therefore, the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

14. The company is dealing in shares, securities, debentures and other investments and proper records have been maintained of the transactions and timely entries have been made therein and the company in its own name has held such shares, securities debentures and other investments but certain shares held as stock in trade subject to physical verification .

15 As per management, the company has not given any guarantee for loans taken by others from banks or financial institutions.

16. The company has not taken any term loan, so the question about its applicability for the required purpose does not arise.

17. There are no funds raised on Short Term basis that have been used for Long Term investment.

18. No Share issues have been made during the year, so there could not have been any preferential allotment of shares to parties covered in the register maintained u/s. 301 of the Act.

19. The company did not have any outstanding Debentures during the Year.

20. No Public issues were made in this period, so end use of money utilization relating to the same does not arise.

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

7, Chittaranjan Avenue, FOR SALARPURIA& PARTNERS Kolkata - 700 072 Chartered Accountants The 30th day of May, 2014 SARVESH KUMAR SINGH MEMBERSHIP NO. : 069367 Partner ICAIReg. No. 302113E

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Mar 31, 2011

We have Audited the attached Balance Sheet of PH TRADING LTD. as at 31st March, 2011 and also the Profit and Loss Account for the year ended on that date annexed thereto and the cash flow statement for the period ended on that date. 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.

We have conducted our audit in accordance with the 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.

As required by the Companies (Auditors Report) order, 2003 issued by the Central Government of India 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 above, we report that:

(i) 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.

(ii) 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 and proper returns adequate for the purposes of our audit have been received from the branch not visited by us. The Branch Auditors Reports have been forwarded to us and have been appropriately dealt with.

(iii) The Balance Sheet, Profit & Loss Account and cash flow statement dealt with by this report are in agreement with the books of account and with the audited returns from the branches.

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

(v) On the basis of written representations received from the Directors, as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

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

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

(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 cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

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

b) These fixed assets are physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

c) Substantial part of fixed assets has not been disposed off during the year and the going concern status of the company is not affected.

ii) a) Physical verification of inventory has been conducted at reasonable intervals by the Management In our opinion, the frequency of verification is reasonable.

b) The procedures for verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The company has maintained proper records of inventory and no material discrepancies were noticed on physical verification of the same.

iii) a) The company has not granted any loans, secured or unsecured to Companies, Firms or other Parties covered in the register maintained U/s. 301 of the Act and as such clauses iii(a) to iii(d) of the order are not applicable.

e) The company has taken unsecured loans from Companies, Firms or other Parties covered under the register maintained under Section 301 of the Act viz.



Name of the Party Opening Amt taken Amount Balance together with refunded as at 1.4.10 Interest during the Year



Abhishek Chemicals Pvt. Ltd. 15,754,978 107,501,657 111,450,644

Abishek Himatsingka 4,697,923 2,739,247 2,893,748

Himatsingka Chemicals Pvt. Ltd. 6,990,716 124,566,067 118,917,823

Prakash Himatstingka 9,347,699 4,212,835 4,296,883

Swan Silverwares Pvt Ltd. 9,751,996 51,388,241 46,450,820

variable Plaza Pvt Ltd. 4,993,695 37,266,021 24,970,797

AH Chemicals Pvt. Ltd. 1,204,916 310,066,745 310,839,675

Welcome Suppliers Pvt Ltd. 6,567,533 11,248,933 15,490,428

Jamuna Commodies Pvt Ltd 3,509,985 52,263,437 40,287,344

Davesh Developers Pvt Ltd. 381,258 124,020 107,660

Name of the Parly Closing Maximum Balance Balance as at during the 31.03.11 Year



Abhishek Chemicals Pvt Ltd. 11,805,991 27,944,976

Abhishek Himatsingka 4,743,422 5,034,283

Himatsingka Chemicals Pvt Ltd. 12,638,960 32,196,000

Prakash Himatsingka 9,263,651 9,371,835

Swan Silverwares Pvt Ltd. 14,689,417 26,592,500

Variable Plaza Pvt Ltd. 17,288,919 18,073,000

AH Chemicals Pvt Ltd. 431,986 2,826,916

Welcome Suppliers Pvt Ltd. 2,326,040 11,707,533

Jamuna Commodities pvt Ltd 15,486,078 31,359,985

Davesh Developers Pvt Ltd 3,976,178 404,020

f) In our opinion, the rates of interest and Terms & Conditions on which loan have been taken are not prima facie prejudicial to the interest of the Company.

g) The Company is regular in the payment of Principal and interest as stipulated and there is no overdue amounts of loans taken from parties listed in the registers maintained under Section 301 of the Companies Act.

iv) There is an adequate internal control system commensurate with the size and the nature of its business or the purchase of inventory and fixed assets and for the sale of goods and service.

v) a) The contract or arrangement that need to be entered into a register in pursuance of sec. 301 have been so entered.

b) Transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted deposits from the public.

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

viii) The maintenance of cost records has not been prescribed by the Central Government U/s 209 (1)(d) of the Companies Act, 1956(1 of 1956). Therefore the Clause (viii) of paragraphs 4 of the aforesaid order is not applicable.

ix) a) The Company is regular in depositing undisputed statutory dues including Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other Statutory dues.

b) No undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2011 for a period of more than six months.

c) According to the information and explanation given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess which have not been deposited on account of any dispute.

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

xi) The company has not defaulted in repayment of dues to any financial institution or banks during the year.

xii) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities and hence the question of maintenance of adequate documents and records does not arise.

xiii) The company is not Chit Fund, Nidhi / Mutual Benefit Fund or Societies. Therefore, the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

xiv) The company is dealing in shares, securities, debentures and other investments and proper records have been maintained of the transactions and timely entries have been made therein and the company in its own name has held such shares, securities debentures and other investments.

xv) As per management the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi) The company has not taken any term loan, so the question about its applicability for the required purpose does hot arise.

xvii) There are no funds raised on Short Term basis that have been used for Long Term investment.

xviii) No Share issues have been made during the year, so there could not have been any preferential allotment of shares to parties covered in the register maintained u/s. 301 of the Act

xix) The company did not have any outstanding Debentures during the Year.

xx) No Public issues were made in this period, so end use money utilization relating to the same does not arise.

xxi) No fraud on or by the company has been noticed or reported during the year.



FOR SALARPURIA & PARTNERS

7, Chittaranjan Avenue Chartered Accountants

Kolkata-700 072 NIHAR RANJAN NAYAK

The 30th day of May, 2011 MEMBERSHIP NO : 057076

Partner

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Mar 31, 2010

We have Audited the attached Balance Sheet of PH TRADING LTD. as at 31st March, 2010 and also the Profit and Loss Account for the year ended on that date annexed thereto and the cash flow statement for the period ended on that date. 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.

We have conducted our audit in accordance with the 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.

As required by the Companies (Auditors Report) order, 2003 issued by the Central Government of India 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 above, we report that:

(i) 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.

(ii) 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 and proper returns adequate for the purposes of our audit have been received from the branch not visited by us. The Branch Auditors Reports have been forwarded to us and have been appropriately dealt with.

(iii) The Balance Sheet, Profit & Loss Account and cash flow statement dealt with by this report are in agreement with the books of account and with the audited returns from the branches.

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

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

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

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 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 cash flow statement, of the cash flows for the year ended on that date.



ANNEXURE TO THE AUDITORS REPORT

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

b) These fixed assets are physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

c) Substantial part of fixed assets has not been disposed off during the year and the going concern status of the company is not affected.

ii) a) Physical verification of inventory has been conducted at reasonable intervals by the Management In our opinion, the frequency of verification is reasonable.

b) The procedures for verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The company has maintained proper records of inventory and no material discrepancies were noticed on physical verification of the same.

iii) a) The company has not granted any loans, secured or unsecured to Companies, Firms or other Parties covered in the register maintained U/s. 301 of the Act and as such clauses iii(a) to iii(d) of the order are not applicable.

e) The company has taken unsecured loans from Companies, Firms or other Parties covered under the register maintained under Section 301 of the Act viz.

Name of the Party Opening Amt taken Amount

Balance together with refunded

as at 1.4.09 Interest during the

Year

Abhishek Chemicals Pvt. Ltd. 19021209 114998864 118265095

Abishek Himatsingka 3766254 2136267 1004598

Davesh Developers Pvt Ltd. 481591 118064 218397

Himatsingka Chemicals Pvt. Ltd. 1105619 71544685 65659588

Prakash Himatstingka 2797728 10263563 3713592

Swan Silverwares Pvt Ltd. 14836741 69048329 74133074

variable Plaza Pvt Ltd. 8683795 11592439 15282539

AH Chemicals Pvt. Ltd. 903873 103097270 102796227

Welcome Suppliers Pvt Ltd. 17161749 39468246 50062462



Name of the Parly Closing Maximum

Balance Balance

as at during the

31.03.10 Year

Abhishek Chemicals Pvt Ltd. 15754978 30243000

Abhishek Himatsingka 4897923 4947050

Davesh Developers Pvt Ltd. 381258 466591

Himatsingka Chemicals Pvt Ltd. 6990716 19256000

Prakash Himatsingka 9347699 9438555

Swan Silverwares Pvt Ltd. 9751996 22236500

Variable Plaza Pvt Ltd. 4993695 10973000

AH Chemicals Pvt Lid. 1204916 2958873

Welcome Suppliers Pvt Lid. 6567533 17111749

f) In our opinion, the rates of interest and Terms & Conditions on which loan have been taken are not prima facie prejudicial to the interest of the Company.

g) The Company is regular in the payment of Principal and interest as stipulated and there is no overdue amounts of loans taken from parties listed in the registers maintained under Section 301 of the Companies Act.

iv) There is an adequate internal control system commensurate with the size and the nature of its business or the purchase of inventory and fixed assets and for the sale of goods and service.

v) a) The contract or arrangement that need to be entered into a register in persuance of sec. 301 have been so entered.

b) Transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted deposits from the public.

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

viii) The maintenance of cost records has not been prescribed by the Central Government U/s 209 (1)(d) of the Companies Act, 1956(1 of 1956). Therefore the Clause (viii) of paragraphs 4 of the aforesaid order is not applicable.

ix) a) The Company is regular in depositing undisputed statutory dues including Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other Statutory dues.

b) No undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2010 for a period of more than six months.

c) According to the information and explanation given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess which have not been deposited on account of any dispute.

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

xi) The company has not defaulted in repayment of dues to any financial institution or banks during the year.

xii) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities and hence the question of maintenance of adequate documents and records does not arise.

xiii) The company is not Chit Fund, Nidhi / Mutual Benefit Fund or Societies. Therefore, the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

xiv) The company is dealing in shares, securities, debentures and other investments and proper records have been maintained of the transactions and timely entries have been made therein and the company in its own name has held such shares, securities debentures and other investments.

xv) As per management the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi) The company has not taken any term loan, so the question about its applicability for the required purpose does hot arise.

xvii) There are no funds raised on Short Term basis that have been used for Long Term investment.

xviii) No Share issues have been made during the year, so there could not have been any preferential allotment of shares to parties covered in the register maintained u/s. 301 of the Act

xix) The company did not have any outstanding Debentures during the Year. xx) No Public issues were made in this period, so end use money utilization relating to the same does not arise.

xxi) No fraud on or by the company has been noticed or reported during the year.

FOR SALARPURIA & PARTNERS

7, Chittaranjan Avenue Chartered Accountants

Kolkata-700 072 NIHAR RANJAN NAYAK

The 31st day of May, 2010 Partner

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Mar 31, 2009

We have Audited the attached Balance Sheet of PH TRADING LTD. as at 31st March, 2009 and also the Profit and Loss Account for the year ended on that date annexed thereto and the cash flow statement for the period ended on that date. 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.

We have conducted our audit in accordance with the 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.

As required by the Companies (Auditors Report) order, 2003 issued by the Central Government of India 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 above, we report that:

(i) 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.

(ii) 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 and proper returns adequate for the purposes of our audit have been received from the branch not visited by us. The Branch Auditors Reports have been forwarded to us and have been appropriately dealt with.

(iii) The Balance Sheet, Profit & Loss Account and cash flow statement dealt with by this report are in agreement with the books of account and with the audited returns from the branches.

(iv) In our opinion, the Balance Sheet, Profit and Loss Account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

(v) On the basis of written representations received from the Directors, as on 31st March, 2009, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2009 from being appointed as a director in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

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

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009;

(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 cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

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

b) These fixed assets are physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

c) Substantial part of fixed assets has not been disposed off during the year and the going concern status of the company is not affected.

ii) a) Physical verification of inventory has Deen conduced at reasc/rable intervals by the Management In our opinion, the frequency of verification is reasonable.

b) The procedures for verification of inventory followed by the management are reasonable and adequate in /elation to the size of the company and the nature of its business.

c) The company has maintained proper records of inventory and no material discrepancies were noticed on physical verification of the same.

iii) a) The company has not granted any loans, secured or unsecured to Companies, Firms or other Parties covered in the register maintained U/s. 301 of the Act and as such clauses iii(a) to iii(d) of the order are not applicable.

e) The company has taken unsecured loans from Companies, Firms or other Parties covered under the register maintained under Section 301 of the Act viz.



Name of the Party Opening Amt taken Amount Balance togetherwith paid as at 1.4.08 Interest

Abhishek Chemicals FM. Ltd. 23,664,453 134,813,062 139,456,306

AbishekHimatsingka 1,428,885 5,274,163 2,936,794

Davesh Developers Pvl Ltd. 345,214 490,242 353,865

Himatsingka Chemicals PvtLtd.16,354,088 92,112,242 107,360,711

PrakashHimatsingka 4,337,538 7,075,057 8,614,859

Swan Silverwares PvtLtd. 15,824,442 37,952,634 38,940,335

Variable Plaza PvtLtd. 18,975,536 41,332,650 51,624,391

AH Chemicals PvtLtd. 3,005,682 82,910,835 85.012,644

Welcome Suppliers PvtLtd. - 49,068.372 31,906,623

83,935,838 451,029,257 466,206,528



Name of the Party Closing Balance Balance during as at the year 31.03.09

Abhishek Chemicals FM. Ltd. 19,021,209 31,429,453

AnsnekrlmalsingKa 3,766,254 3,766,254

Davesh Developers PvL Ltd. 481,591 590,000

Himatsingka Chemicals Pvt Ltd. 1,105,619 32,171,000

PrakashHimatsingka 2,797,736 6,285,000

Swan Silverwares PvL Ltd. 14,836.741 19,029,442

Variable Plaza Pvt Ltd. 8,683,795 23,845,536

AH Chemicals Pvt Ltd. 903,873 3,005,682

Welcome Suppliers Pvt Ltd. 17,161.749 30.175.000

68,758,567 150,297,367

f) In our opinion, the rates of interest and Terms & Conditions on which loan have been taken are not prima facie prejudicial to the interest of the Company.

g) The Company is regular in the payment of Principal and interest as stipulated and there is no overdue amounts of loans taken from parties listed in the registers maintained under Section 301 of the Companies Act.

iv) There is an adequate internal control system commensurate with the size and the nature of its business or the purchase of inventory and fixed assets and for the sale of goods and service.

v) a) The contract or arrangement that need to be entered into a register in persuance of sec. 301 have been so entered.

b) Transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted deposits from the public.

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

viii) The maintenance of cost records has not been prescribed by the Central Government U/s 209 (1 )(d) of the Companies Act, 1956 (1 of 1956). Therefore the Clause

(viii) of paragraphs 4 of the aforesaid order is not applicable.

ix) a) The Company is regular in depositing undisputed statutory dues including Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other Statutory dues.

b) No undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31.03.2009 for a period of more than six months.

c) According to the information and explanation given to us, there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess which have not been deposited on account of any dispute.

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

xi) The company has not defaulted in repayment of dues to any financial institution or banks during the year.

xii) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities and hence the question of maintenance of adequate documents and records does not arise.

xiii) The company is not Chit Fund, Nidhi / Mutual Benefit Fund or Societies. Therefore, the provisions of Clause (xiii) of Paragraph 4 of the order are not applicable to the company.

xiv) The company is dealing in shares, securities, debentures and other investments and proper records have been maintained of the transactions and timely entries have been made therein and the company in its own name has held such shares, securities debentures and other investments.

xv) As per management, the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi) The company has not taken any term loan, so the question about its applicability for the required purpose does not arise.

xvii) There are no funds raised on Short-Term basis that have been used for Long Term investment xviii) The Company has not made any preferential allotment of shares to parties covered in the Register maintained U/s. 301 of the Act.

xix) The company did not have any outstanding Debentures during the Year.

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

xxi) No fraud on or by the company has been noticed or reported during the year.

FOR SALARPURIA & PARTNERS

7, Chittaranjan Avenue Chartered Accountants

Kolkata-700 072 ARAB1NDA GHOSH

The 30th day of June, 2009 Partner