Auditor Report of Turner Industries Ltd.

Mar 31, 2024

We have audited the financial statements of TURNER INDUSTRIES LIMITED (“the Company”),
which comprise the balance sheet as at 31st March 2024, and the statement of Profit and Loss and
statement of cash flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Act in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as at 31st March, 2024, its loss and its cash flows for the
year ended on that date,

a) In the case of the balance sheet, of the state of affairs of the company as at March 31,2024

b) In the case of the Profit and Loss Account, of the loss for the period ended on that date and

c) In the case of cash flow statement, for the cash flows for the year ended on that date

d) And the changes in equity for the year ended on that date

Basis for Opinion

We conducted our audit in accordance with the Accounting Standards (AS) specified under section
143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further
described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Companies Act, 2013 and the
Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the standalone financial statements of the current period. These matters were
addressed in the context of our audit of the standalone financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters to be communicated in our
report.

Information other than the financial statements and auditors'' report thereon

The Company''s board of directors is responsible for the preparation of the other information. The
other information comprises the information included in the Board''s Report including Annexures
to Board''s Report but does not include the financial statements and our auditor''s report thereon.

Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation 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 (AS) specified under section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company''s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company''s financial reporting
process.

Auditor''s Responsibilities for the Audit of the Financial Statements

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

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

We also:

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

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies
Act, 2013, we are also responsible for expressing our opinion on whether the company has
adequate internal financial controls system in place and the operating effectiveness of such
controls.

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

Conclude on the appropriateness of management''s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company''s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor''s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor''s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that,
individually or in aggregate, makes it probable that the economic decisions of a reasonably
knowledgeable user of the standalone financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in
evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in
the standalone financial statements.

We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.

1.As required by the Companies (Auditor''s Report) Order, 2020 (“the Order”), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies Act,
2013, we give in the Annexure “A”, a statement on the matters specified in paragraphs 3 and 4
of the Order, to the extent applicable.

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

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

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

c) The Balance Sheet, the Statement of Profit and Loss and the 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 (AS) specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31st
March, 2024 taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2024 from being appointed as a director in terms of
Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference to
financial statements of the Company and the operating effectiveness of such controls,
is not applicable to the Company.

g) With respect to the matter to be included in the Auditor''s Report under section
197(16), In our opinion and according to the information and explanations given to us,
the remuneration paid by the Company to its directors during the current year is in
accordance with the provisions of section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under section 197 of the Act. The Ministry
of Corporate Affairs has not prescribed other details under section 197(16) which are
required to be commented upon by us.

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

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

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

iii. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.

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

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

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

v. No dividend have been declared or paid during the year by the company.

For A John Moris & Co.,

_{Date: 29}/₀₅/₂₀₂₄ Chartered Accountants

Place: Chennai ^{FRN: 007220 S}

Sd-

CA Chittaranjan Soundarapandian

Partner
M.No. 200815
UDIN: 24200815BKLSYK9815

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Mar 31, 2014

1. I have audited the attached balance sheet of LASER DIAMONDS LTD as at 31 st March 2014, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company''s management. My responsibility is to express an opinion on these financial statements based on my audit.

2. I have conducted my 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. I believe that my audit provides a reasonable basis for my opinion.

3. As required by the Companies (Auditor''s 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 my comments in the Annexure referred to above, I report that:

4. i) I have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of my audit.

ii) In my opinion, proper books of account as required by law have been kept by the company so far as appears from my examination of those books.

III) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

IV) In my 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 representation received from the directors, as on 31 st March 2014 and taken on record by the Board of Directors, I report that none of the directors are disqualified as on 31 st March 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of Companies Act, 1956;

VI) In my opinion and to the best of my information and according to the explanations given to me, 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 31 st March 2014.

b) I n the case of profit and loss account, of the loss for the year ended on that date; and I n the case of the Cash Flow Statement of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

Referred to in paragraph 3 of our report of even date.

1) (a) On the basis of examination of the records of the company, I report that the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The Company has maintained proper records showing full particulars, including quantitative details and situation off fixed assets. All fixed assets have not been physically verified by the management during the year but there is a regular programme.of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification. The Company has disposed off building used as Registered office.However,in our opinion,this will not affect going concern concept.

2) a) Inventory as on 31.03.2014 is Rs.70,51,350.00 [P Y. 70,51,350.00], Physical verification of Inventories has taken, during the year by management.

b) In my opinion and according to the information and explanation given to me, 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 business.

c) On the basis of examination of the records of the inventory and according to information and explanations given to me, the company is maintaining proper records of inventory.

3) The company has taken loans, being unsecured, to the tune of Rs.6.35 Lakhs from one Party during the year and the total loans outstanding as at 31.03.2014 is Rs.6.35 Lakhs from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

4) In my opinion and according to the information and explanations given to me, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and with regard to the sale of goods. During the course of our audit, I have not observed any continuing failure to correct major weaknesses in internal controls.

5) In my opinion and according to the information and explanations given to me, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956.

6) In my opinion and according to the information and explanations given to me, the company has not accepted any deposit from Public.

7) In my opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) The Industry in which Company''s business is involved is not prescribed u/s 210(1) (d) for maintenance of cost records.

9) (a) As per the information and explanations given to me and records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, excise duty, cess and other material statutory dues applicable to it. No wealth tax and custom duty is payable by company.

(b) According to the information and explanations given to me and records of the company, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31.03.14 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to me, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) The company has accumulated losses at the end of the financial year. The Company has incurred Cash Losses during the financial year covered by the audit and in the immediately preceding financial year.

11) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12) As per records of the company, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In my opinion, the company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

14) In my opinon, the company is not dealing in or trading in shares, securities debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor1 Report) Order 2003 are not applicable to the Company.

15) As per the records of the company, the company has not given guarantees for loans taken by other from banks or financial institutions.

16) As per records of the company, the company has not raised any term loan.

17) According to the information and explanations given to me and on an overall examination of the balance sheet of the company, we report that the 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.

18) According to the information and explanations given to me and as per records of the company, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19) According to the information and explanations given to me, during the period covered by my audit report, the company had not issued any debentures during the year.

20) During the course of my examination of books of accounts carried out in accordance with generally accepted practices in India, I have neither come across any incidence of fraud on or by the company nor have we beeninformed of any such case by the management.

Date : 11.08.2014 (BHARAT KUMAR N. JAIN) Place: Chennai Chartered Accountant 376, Mint Street, 2nd Floor Chennai-600 079, [M. No.027891]

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Mar 31, 2013

1. I have audited the attached balance sheet of LASER DIAMONDS LTD as at 31 March 2013, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company''s management. My responsibility is to express an opinion on these financial statements based on my audit.

2. I have conducted my 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. I believe that my audit provides a reasonable basis for my opinion.

3. As required by the Companies (Auditor''s report) order 2003, issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1 956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

Further to my comments in the Annexure referred to above, I report that:

4. i) I have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of my audit.

ii) In my opinion, proper books of account as required bylaw have been kept by the company so far as appears from my examination of those books.

III) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

IV) In my 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 2 1 1 of the Companies Act, 1956.

V) On the basis of written representation received from the directors, as on 31 st March 201 3 and taken on record by the Board of Directors, 1 report that none of the directors are disqualified as on 3 1 st March 201 3 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of Companies Act, 1956;

VI) In my opinion and to the best of my information and according to the explanations given to me, the said accounts give the information required by the Companies Act, 1 956, 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 201 3;

b) In the case of profit and loss account, of the loss for the year ended on that date; and In the case of the Cash Flow Statement of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

Referred to in paragraph 3 of our report of even date.

1) (a) On the basis of examination of the records of the company, I report that the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The Company has maintained proper records showing full'' particulars, including quantitative details and

situation off fixed assets. All fixed assets have not been physically verified by the management during the year but there is a regular programme.of verification which, in our opinion, is reasonable having regard to the si2e of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verification. The Company has disposed off building used as Registered office.However,in our opinion,this will not affect going concern concept.

2) a) Inventory as on 31.03.2013 is Rs.70,51,350.00 [P Y. 57,99,91 1.00], Physical verification of Inventories has taken, during the year by management.

b) In my opinion and according to the information and explanation given to me, 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 business.

c) On the basis of examination of the records of the inventory and according to information and explanations given to me, the company is maintaining proper records of inventory.

3) The company has not entered into any contracts or arrangements attracting the provision of section 297 & 301 of the Companies Act 1956 and hence the Clause (V) of the said Order is not applicable.

4) In my opinion and according to the information and explanations given to me, there are adequate infernal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and with regard to the sale of goods. During the course of our audit, I have not observed any continuing failure to correct major weaknesses in internal controls.

5) In my opinion and according to the information and explanations given to me, there are no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956.

6) In my opinion and according to the information and explanations given to me, the company has not accepted any deposit from Public.

7) In my opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) The Industry in which Company''s business is involved is not prescribed u/s 210(1) (d) for maintenance of cost records.

9) (a) As per the information and explanations given to me and records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, excise duty, cess and other material statutory dues applicable to it. No wealth tax and custom duty is payable by company.

(b) According to the information and explanations given to me and records of the company, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, at at 3 1 03.13 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to me, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) In my opinion, the accumulated losses of the company is Rs. 169.58 Iocs as on 31.03.2013, which is not more than 50% of its net worth.

11) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12) As per records of the company, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In my opinion, the company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

14) In my opinon, the company is not dealing in or trading in shares, securities debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor'' Report) Order 2003 ore not applicable to the Company.

15) As per the records of the company, the company has not given guarantees for loans taken by other from banks or financial institutions.

16) As per records of the company, the company has not raised any term loan.

17) According to the information and explanations given to me and on an overall examination of the balance sheet of the company, we report that the 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.

1 8) According to the information and explanations given to me and as per records of the company, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19) According to the information and explanations given to me, during the period covered by my audit report, the company had not issued any debentures during the year.

20) During the course of my examination of books of accounts carried out in accordance with generally accepted practices in India, I have neither come across any incidence of fraud on or by the company nor have we been informed of any such case by the management.

Date: 12.08.2013

Place: Chennai (BHARAT KUMAR N. JAIN)

Chartered Accountant

376, Mint Street, 2nd Floor

Chennai-600 079, [M. No.027891]

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Mar 31, 2012

I have audited the attached balance sheet of LASER DIAMONDS LTD as at 31 st March 2012, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. My responsibility is to express an opinion on these financial statements based on my audit.

I have conducted my 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. I believe that my audit provides a reasonable basis for any opinion.

As required by the Companies (Auditor's report) order 2003, issued by the Central Government of India in terms of subsection (4A) of section 22 7 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 my comments in the Annexure referred to above, I report that:

I have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of my audit.

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

The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

In my 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.

On the basis of written representation received from the directors, as on 31st March 2012 and taken on record by the Board of Directors, I report that none of the directors are disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 2 74 of Companies Act 1956;

In my opinion and to the best of my information and according to the explanations given to me. 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.

In the case of the balance sheet of the state of affairs of the company as at 31st March 2012;

In the case of profit and loss account of the toss for the year ended on that date; and

In the case of the Cash Flow Statement of the Cash Flows for the year ended on that date.

LASER DIAMONDS LIMITED

Referred to in paragraph 3 of out report of even dale.

1) (a) On the basis of examination of the records of the company . report that the company has maintained proper records showing full particulars including quantitative details and satiation of fixed assets. (b) On the basis of examination of the records of the company report that all the assets have not been physically verified by the management during the year but there is a regular programme of verification which. In my opinion, is reasonable, having regard to the size of the company and the nature of the assets. No material discrepancies were noticed on such verification.

2) a] Inventory as on 31.03.2012 is Rs.57.99,911.00(P.Y. 55.99.205.00) physical verification of inventories has taken during the year by management.

b) In my opinion and according to the information and explanation given to me. 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 business.

c) On the basis of examination of the records of the inventory and according to information and explanations given to me, the company Is maintaining proper records of Inventory.

3) The company has not entered into any contracts or arrangements attracting the provision of section 29 7 & 301 of the Companies Act 1956 and hence the Clause (V) of the said Order is not applicable.

4) In my opinion and according to the Information and explanations given to me. there are adequate internal control procedures commensurate with the size of the company and the nature of Its business with regard to purchase of Inventory and with regard to the sale of goods. During the course of our audit, I have not observed any continuing failure to correct major weaknesses In Internal controls.

5) In my opinion and according to the information and explanations given to me, there are no transactions made In pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956.

6) In my opinion and according to the Information and explanations given to me, the company has not accepted any deposit from Public.

7) In my opinion, the company has an internal audit system commensurate with the size and nature of its business.

8) The Industry in which Company's business is involved is not prescribed u/s 210(1) (d) for maintenance of cost records.

9) (a) As per the Information and explanations given to me and records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues Including income tax, sales tax, excise duty, cess and other material statutory dues applicable to it. No wealth tax and custom duty is payable by company.

(b) According to the information and explanations given to me and records of the company, no undisputed amounts payable In respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31.03.12 for a period of more than six months from the date they became payable.

c) According to the information and explanations given to me, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

10) In my opinion, the accumulated losses of the company is Rs. 168.74 lacs as on 31.03.2012, which is not more than 50% of its net worth.

11) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

12) As per records of the company, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13) In my opinion, the company Is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14) In my opinion, the company Is not dealing in or trading in shares, securities debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor1 Report) Order 2003 are not applicable to the Company.

15) As per records of the company the company has not given guarantees for loans taken by other from banks or financial institutions.

16) As per records of the company, the company has not raised Any term loan.

17) According to the information and explanations given to me and on an overall examination of the balance sheet of the company. we report that the 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.

18) According to the information and explanations given to me and as per records of the company the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

19) According to the information and explanation given to me during the period covered by my audit report the company had not issued any debentures during the year.

20) During the course of my examination of books of accounts carried out accordance with general accepted practices in India. I have neither come across any Incidence of fraud on or by the company nor have we been informed of any such case by the management.

Date : 24.08.2012 (BHARAJ KUMAR N.JAIN)

Place : Chennai 376. Mint Street. 2nd Floor.

Chennai-600 079. [M. No.027891]