Auditor Report of Shri Aster Silicates Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of SHRI ASTER SILICATES LIMITED, which comprise the Balance Sheet as at 31st March , 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters 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.

Auditors' 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 the 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 the 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 the 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 the 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.

Opinion

The company did not get the information regarding MSME status of its creditors. There is hence no disclosure in presentation of financial statements regarding payments to MSME creditors.

Subject to above, 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 31st March, 2015;

(b) in the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date, and

(c) in the case of the 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, 2015("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 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 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 and to our best of our information and according to the explanations given to us :

* The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 2 : Notes to the financial statements;

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

Shri Aster Silicates Limited Annexure to the Auditors' Report

The Annexure referred to in our report to the members of Shri Aster Silicates Limited for the yeai Ended on 31-Mar-2015. We report that:

S. Particulars Auditors No. Remark

(i) (a) whether the company is maintaining proper Yes records showing full particulars, including quantitative details and situation of fixed assets;

(b) whether these fixed assets have been Yes physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account;

(ii) (a) whether physical verification of inventory Yes has been conducted at reasonable intervals by the management;

(b) are the procedures of physical verification Yes followed by the management reasonable and adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported;

(c) whether the company is maintaining proper Yes records of inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account;

(iii)(iii) whether the company has granted any loans, No secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. If so,

(a) whether receipt of the principal amount and NA interest are also regular

(b) if overdue amount is more than rupees One NA Lakh, whether reasonable steps have been taken by the company for recovery of the principal and interest;

(iv) is there an adequate internal control system Yes 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. Whether there is a continuing failure to correct major weaknesses in internal control system.

(v) in case the company has accepted deposits, NA whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under, where applicable, have been complied with? If not, the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, whether the same has been complied with or not?

(vi) whether maintenance of cost records has been No specified by the Central Government under sub-section (1) of section 148 of the Companies Act, whether such accounts and records have been made and maintained;

(vii) (a) is the company regular in depositing As per undisputed statutory dues including provident Annex-1 fund, employees' state insurance, income-tax, below. sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.

(b) in case dues of income tax or sales tax or NA wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute).

(c) whether the 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 has been transferred to such fund within time.

(viii) whether in case of a company which has been No registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year;

(ix) whether the company has defaulted in repayment No of dues to a financial institution or bank or debenture holders? If yes, the period and amount of default to be reported;

(x) whether the company has given any guarantee No for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;

(xi) whether term loans were applied for the Yes purpose for which the loans were obtained;

(xii) whether any fraud on or by the company has No been noticed or eported during the year; If yes, the nature and the amount involved is to be indicated.

Annex-1 to Companies (Auditor's Report) Order, 2015:

Sr. No. Nature of Dues Pertaining Amount Rs. Financial Year

1 Income Tax AY 2008-09 10,29,920/-

2 Income Tax AY 2010-11 1,81,43,229/-

3 Income Tax AY 2011-12 1,36,95,580/-

Place : Ahmadabad FOR B P S D & ASSOCIATES Chartered Accountants FRN: 118251W

Date : 25 May, 2015 (CA SACHIN PACHKHEDE) Partner Membership No. 104660

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Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial 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.

Auditors'' 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 the 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 the 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 the 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 the 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.

Opinion

The company did not get the information regarding MSME status of its creditors. There is hence no disclosure in presentation of financial statements regarding payments to MSME creditors.

Subject to above, 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 31st March, 2014;

(b) in the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date, and

(c) in the case of the 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 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 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, Statement of Profit and Loss, and the 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 the 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 the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

Annexure Refer to paragraph 1 of our report of even date.

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

(b) All the fixed assets have not regularly been physically verified by the management during the year, but in our opinion management has reasonable control over them having regard to the size of company and nature of its assets.

(c) There is no disposal of fixed assets during the year and hence according to the information and explanation given to us; we are of the opinion that there is no effect on the going concern status of the company.

(ii) (a) The inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable.

(b) The procedure of physical verification inventories followed by the management is reasonable and adequate in relation to size of the company and nature of its business.

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stock and book stocks were not material.

(iii) (a) According to information and explanation given to us and on the basis of our examination of books of accounts, the Company has not granted loans, secured and unsecured, during the year to parties listed in the register maintained under Sec. 301 of Companies Act 1956, and the erstwhile section 370(1-B) of the Companies Act, 1956.

(b) As company has not granted secured or unsecured loans during the year from parties listed in the register maintained under Sec. 301 of Companies Act 1956, and the erstwhile section 370(1-B) of the Companies Act, 1956, said clause along with clause (c) & (d) are not applicable.

(c) According to information and explanation given to us and on the basis of our examination of books of accounts, the Company has taken unsecured loans during the year from parties listed in the register maintained under Sec. 301 of Companies Act 1956, and the erstwhile section 370(1-B) of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 53.00 lacs and balance as at year end in NIL.

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

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

(b) In our opinion and according to the information and explanation given to us the transactions made in pursuance of contract or arrangements entered in the register maintained under section 301 of the Companies Act 1956, and exceeding the value of Rs. 500000/- in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to information and explanations given to us, the company has not accepted any deposits from public hence this clause concerning the provisions of section 58A and 58AA of company''s act 1956 and companies (Acceptance of deposits) rules 1975 is not applicable.

(vii) The company is not having formal internal audit system but there is adequate internal control procedure commensurate with the size and nature of its business.

(viii) As per information and explanations given by the management, maintenance of cost records has been prescribed by the Central Government under clause (d) of sub section (1) of section 209 of the act and we are of the opinion that prima facie the accounts and records have been made & maintained.

(ix) (a) According to the information and explanations given to us and as per the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Sales Tax, Service Tax, Customs duty, Excise Duty, Cess to the extent applicable and any other statutory dues have generally been deposited with appropriate revenue authorities.

According to the information & explanation given to us there were outstanding statutory dues as on date of balance sheet for more than six months from the date they became payable. The details are as under:

Nature of Dues Pertaining Financial Year Amount Rs.

Income Tax AY2008-09 10,29,920/

Income Tax AY 2010-11 1,81,43,229/

Income Tax AY 2011-12 1,36,95,580/-

(b) According to information and explanations given to us, there are no amounts payable in respect of Income T ax, Sales T ax, Service T ax, Customs duty, Excise Duty which have not been deposited on account of any deposits. The company has though paid the VAT under protest :

Sr.No. Financial Year Amount Rs.

1 2007-08 26,44,517/-

2 2008-09 2,50,000/-

3 2009-10 8,00,000/-

4 2010-11 9,50,00/-

Total Rs. 46,44,517/-

(x) Since the Company does not have accumulated losses. The company has incurred cash loss during the financial year covered under audit and immediately preceding financial year.

(xi) Based on our audit procedures and according to information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of loans of financial institutions in respect of existing term loan account as appearing in balance sheet as on 31.03.2014.

(xii) The company has not granted 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 order 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. According to provision of the 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 loans taken by others from bank or financial institution.

(xvi) In our opinion, the term loans have been applied for the purpose for which they were raised.

(xvii) According to information and explanation given to us and overall review of the balance sheet of the company, we report that no funds raised on short term basis have been used for long term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

(xviii) According to information and explanations given to us, the company has not made preferential allotment of shares to the parties and companies covered in register maintained under section 301 of the act.

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

(xx) The company has issued 86,65,511 no. of fresh Equity Shares to Sicom Investments & Finance Limited on 1st August, 2013 through an Open Offer @ Rs. 11.54/Share. The said allotment is against the Loan Outstanding of Rs. 10,00,00,000/-.

(xxi) According to information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For B P S D & ASSOCIATES CHARTERED ACCOUNTANTS Firm Registration No:118251W

PLACE: Mumbai CA SACHIN PACHKHEDE Date : 30/05/2014 Partner Membership No: 104660

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Mar 31, 2012

We have audited the attached Balance Sheet of Aster Silicate Ltd. as at 31st March, 2012 and also the Profit and Loss Account of the Company for the year ended on the date annexed hereto. These financial statements are the responsibility of the Company''s managements. Our responsibility is to express an opinion on these financial statement based on our audit.

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 statement. 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 provide a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order 2003 (after incorporating the amendments made by the Companies (Auditor''s Report) (Amendment) Order,2004 dated 25th November,2004), issued by the Central Government of India, in terms of section 227 (4A) of the Companies Act, 1956,we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order.

Further to our comments in the Annexure referred to in paragraph 1 above. We report that:

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

b) In our opinion proper books of accounts as required by law have been kept by the company so far as appears from our examination of such books.

c) The Balance sheet and Profit and Loss Account dealt with by the report are in agreement with the books of the company.

d) In our opinion the profit and loss account and the Balance Sheet, comply with the mandatory accounting standards referred to in section 211(3c) of the companies Act, 1956, to the extent applicable.

e) According to the information and explanations given to us, in relation to the affairs of the company, none of the directors are disqualified from being appointed as directors under section 274(1)(g) of the companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanation given to us the accounts, subject to notes and Schedules there to gives the information required by companies Act 1956 in the manner as required and presents true and fair view.

i) In the case of the Balance sheet of the state of affairs of the company as at 31st March 2012 and

ii) In the case of the Profit & Loss Account, of the Profit of the company for the year ended on that date.

iii) In the case of Cash Flow Statement of the cash flows of the company for the year ended 31st March 2012.

Referred to in paragrapah 1 of our report of even date.

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

(b) The management has physically verified most of the fixed assets of the company. The discrepancies noticed on comparison between book records and physical inventory were not material and have been properly dealt with in the books of account.

(c) As per information and explanation given by management during the year the company has not disposed major part of fixed assets having effect on going concern.

ii. (a) The stock of finished goods stores spares parts and raw material have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable having regard to the nature of business and particulars circumstance.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of stocks followed by the management are 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 record of inventory we are of the opinion that the company is maintaining proper records of inventory. Discrepancies which were noticed on physical verification of inventory as compared to books records have been properly dealt with in the books of account.

iii. (a) The Company has not granted loans to any party covered in the register maintained under section 301 of the companies Act, 1956.

As informed, the company has taken loans from one party covered in the register maintained under section 301 of the Companies Act,1956. The maximum amount involved during the year was Rs 77.5 Lacs . The year end balance was Rs 34.45 lacs.

(b) According to the information and explanations given to us, in our opinion, the rate of interest and other terms and conditions of above loan granted by the company, are not prima facie prejudicial to the interest of the company.

(c) According to the information and explanation given to us, the company to whom loan and advance in the nature of loan have been given ,is repaying the principal amount as stipulated and is also regular in payment of interest.

(d) There is no overdue amount of loan granted to the company listed in the register maintained under section 301of the companies act,1956

iv. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls.

v. (a) According to the information and explanations given to us, we are of the opinion that there are no contracts or arrangements, that need to be entered into the register maintained under section 301 of the companies Act,1956.

(b) In our opinion and according to the information and explanations given to us there are no transactions made in pursuance of contracts or arrangement entered in the register maintained under section 301 of the companies Act,1956 and exceeding the value of Rs. 5 lac in respect of any party during the year.

vi. The company has not accepted any deposit from the public with in the meaning of section58A and 58AA or any other relevant provisions of the companies Act 1956, and the rules framed there under.

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

viii. The cost records as prescribed under section 209 (1) (d) of the Companies Act, 1956 for the products of the Company have been properly maintained

ix. (a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund ,Investor Education and Protection Fund, employees state insurance, Income Tax, sales Tax Wealth Tax ,service tax, custom duty, Excise-duty, Cess and other statutory dues applicable to it. Except as under:

Name Of Statue Nature of Dues Amount

Central Excise Act, 1944 Central Excise Duty 425525/-

The Income Tax Act, 1962 Income Tax 1029920/-

The Income Tax Act, 1962 Income Tax 28815330/-

The Income Tax Act, 1962 Income Tax 13695580/-

Name of Statue Period to Due Date Due Date which the Of Amount Relates Payment

Central Excise Act, 1944 30/11/2011 30/11/2011 Not Yet Paid

The Income Tax Act, 1962 A.Y. 2008-09 30/09/2008 Not Yet Paid

The Income Tax Act, 1962 A.Y. 2010-11 30/09/2010 Not Yet Paid

The Income Tax Act, 1962 A.Y. 2011-12 30/09/2011 Not Yet Paid

(b) According to the information and explanations given to us, there are no disputed amounts in respect of Income tax ,wealth tax, Service Tax , cess and other statutory dues. Except as under:

Name Of Statue Nature of Dues Amount

The Income Tax Act, 1962 Income Tax 414832/-

The Income Tax Act, 1962 Income Tax 5141388/-

Name of Statue Period to which Forum Where Dispute is the Amount Pending Relates

The Income Tax Act, 1962 A.Y. 2007-08 Commissioner Of Income Tax Appeals

The Income Tax Act, 1962 A.Y. 2009-10 Commissioner Of Income Tax Appeals

x. The company does not have any 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.

xi. On the basis of the records examined by us and the information and explanations given to us the company has not defaulted in repayment of dues to Financial institution, banks and debenture holders. Except they have made default in repayment of loan of SICOM Limited & SIDBI where restructuring of term loan of SICOM Limited of Rs 14 Crs has been done on dt 12/06/2012 .

xii. The company has not granted loans and advance on the basis of security by way of pledge of shares, debentures and other securities.

xiii. This clause of the order is not applicable to the company as the company is not a chit fund company or a Nidhi/mutual benefit fund/societies.

xiv. In respect of share, securities, debentures and other Investments in which the company has invested/ traded, the company has maintained proper records of all the transactions and contracts, and timely entries have been made for such transactions. Further all such securities have been held by the company in its own name, except to the extent of the exemption granted under section 49 of the Act.

xv. According the information and explanation given to us, and the representation made by the management the company has not given any guarantee for loans taken by others from any bank or institution.

xvi. In our opinion, the term loans have been applied for the purpose for which they were raised.

xvii.According to the information and explanations given to us on over all basis,fund raised on short term basis have,prime facie ,not been used during the year for long term investment.

xvii.According to the information and explanations given to us on over all basis,fund raised on short term basis have,prime, facie not been used during the year for long term investment.,

xviii.The Company has not made any preferntional allotment of shares to parties and companies covered in the register maintained under section 301 of the companies Act,1956.

xix. There are no debenture issed and outstanding during the year.

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

xxi. Based upon the audit procedures performed and imformation and explanations given by the management,we report that no fraud on or by the company has been noticed or reported during the year.

FOR, V.K. MOONDRA & CO.

CHARTERED ACCOUNTANTS

[FRN 106563W]

[Mship.No:. 070431]

Place : Ahmedabad V.K. MOONDRA

Date : 24/08/2012 [Proprietor]