Auro Laboratories Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

The members of Auro Laboratories Limited

Report on the Audit of IND-AS Financial Statements

Opinion

We have audited the accompanying IND-AS financial statements of AURO LABORATORIES LIMITED ("the Company"), which comprise the balance sheet as at 31^st March 2025, the statement of profit and loss (Including Other Comprehensive Income), statement of changes in equity, 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 (hereinafter referred to as "the IND-AS Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, its profit, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing specified under section 143(10) of the 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 (ICAI) 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 there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

S No.	Key Audit matters	Auditors'' response
1	Evaluation of tax position	Obtained details of completed income tax assessment and demand till AY 2025-25 which are not significant and estimated provision has been made for the year ended 31st March,2025
2	Indirect tax Recoverability	We have used our knowledge to gain an understanding in current status of

	As at 31st March, 2025 short terms loans and advances includes Exports Incentive Rs. 23.54 lakhs, and GST credit Rs.438.10 lakhs. Refer Note no.8 to the financial statement	recoverability to review the nature of amounts recoverable, the sustainability and the likelihood of recoverability upon final resolution.
3	Provisions and Contingencies As at 31st March 2025 a demand notice received from MPCB and TEPS amount of Rs. 1.92 Crore. Refer note no 23 (iv) to the financial statements.	The company has filed appeal in the Supreme court of India through (TIMA) and already deposited 30% of this amount.

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

The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the management discussion and analysis, Board of Director''s Report including Annexure to Director''s Report, Business responsibility report, corporate governance and shareholder''s Information, but does not include the financial statements and our auditor''s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance 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 as records available to us and upon reading, if we conclude that there is material misstatement thereon, we are required and shall communicate the matter to those charged with governance. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the IND-AS Financial Statements

The Company''s Board of Directors are 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, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 (IND-AS) 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 IND-AS financial statements, the Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

That Board of Directors is also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the IND-AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the IND-AS 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 IND-AS financial statements.

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

We also:

a) Identify and assess the risks of material misstatements of the Ind AS 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 controls.

b) Obtain an understanding of internal controls 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.

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

d) 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.

e) 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 financial 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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid IND-AS 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 the written representations received from the directors as on 31st March, 2025 and taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2025 from being appointed as a director in terms of Section 164(2) of the Act.

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

g) In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197(16) of the Act.

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

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.

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

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

iv. a) The management has represented that, to the best of its knowledge and belief, no funds 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 persons or entities, 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 persons or entities, 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 performed 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 (a) and (b) contain

any material misstatement.

2. 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.

For Kothari Jain & Associates.

Chartered Accountants Firm Regn. No. 113041W

CA SUNIL KUMAR KOTHARI

Proprietor

M.NO. 043842

Place: Mumbai

Date: 30^th May, 2025

UDIN: 25043842BMJKBX3311

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Mar 31, 2024

We have audited the accompanying IND-AS financial statements of AURO LABORATORIES LIMITED ("the Company"), which comprise the balance sheet as at 31st March 2024, the statement of profit and loss (Including Other Comprehensive Income), statement of changes in equity, 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 (hereinafter referred to as “the IND-AS Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, its profit, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Financial Statements in accordance with the Standards on Auditing specified under section 143(10) of the 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 (ICAI) 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 there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

SNo.	Key Audit matters	Auditors'' response
1	Evaluation of tax position	Obtained details of completed income tax assessment and demand till AY 2023-24 which are not significant and estimated provision has been made for the year ended 31st March,2024
2	Indirect tax Recoverability As at 31st March, 2024 short terms loans and advances includes Exports Incentive Rs. 14.11 lakhs, and GST credit Rs.402.86 lakhs. Refer Note no.8 to the financial statement	We have used our knowledge to gain an understanding in current status of recoverability to review the nature of amounts recoverable, the sustainability and the likelihood of recoverability upon final resolution.
3	Provisions and Contingencies As at 31st March 2024 a demand notice received from MPCB and TEPS amount of Rs. 1.92 Crore. Refer note no 23 (iv) to the financial statements.	The company has filed appeal in the Supreme court of India through (TIMA) and already deposited 30% of this amount.

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

The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the management discussion and analysis, Board of Director''s Report including Annexure to Director''s Report, Business responsibility report, corporate governance and shareholder''s Information, but does not include the financial statements and our auditor''s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance 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 as records available to us and upon reading, if we conclude that there is material misstatement thereon, we are required and shall communicate the matter to those charged with governance. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the IND-AS Financial Statements

The Company''s Board of Directors are 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, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the accounting Standards specified under section 133 (IND-AS) 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 IND-AS financial statements, the Board of Directors 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

That Board of Directors is also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the IND-AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the IND-AS 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 IND-AS financial statements.

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

We also:

a) Identify and assess the risks of material misstatements of the Ind AS 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 controls.

b) Obtain an understanding of internal controls 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.

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

d) 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

e) 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.

f) 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.

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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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, the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid IND-AS 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 the written representations received from the directors as on 31st March, 2024 and taken on record by the Board of Directors, none of the directors is disqualified as on 31^st 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B". Our report expresses

an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.

g) In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197(16) of the Act.

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

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements.

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

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

iv.

a) The management has represented that, to the best of its knowledge and belief, no funds 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 persons or entities, 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 persons or entities, 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 performed 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 (a) and (b) contain any material misstatement.

v. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023. However, the Company has not implemented the same.

2. 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.

For Kothari Jain & Associates.

Chartered Accountants Firm Regn. No. 113041W

CA Sunil Kothari

Proprietor

M.NO. 043842

Place: Mumbai

Date: 25th May, 2024

UDIN:24043842BKCOLT3151

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Mar 31, 2018

1. Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of AURO LABORATORIES LIMITED (“the Company”), which comprises the Balance Sheet as at 31^st March 2018, the statement of Profit and Loss Account (including other Comprehensive Income), the Cash Flow statement and the statement of changes in equity for the year then ended and a summary of significant accounting policies and other explanatory information.

2. Management’s Responsibility for the Financial Statements

The Company’s Board of Director is responsible for the matter stated in section 134(5) of the companies act 2013(the Act”) with respect to the preparation and presentation of these Ind As financial statement 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 Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies ( Accounts) Rules, 2014. This responsibility also includes Maintenance of adequate accounting records with the provision of Acts for the safeguard of the assets of the company and for preventing and detecting frauds and other irregularities selection and application of appropriate accounting policies making judgment and estimates that are reasonable and prudent and design, implementation and maintenance of internal control relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements based on our audit. We conducted our audit of the Ind AS financial statement 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 Ind AS financial statements are free of material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risk of material misstatement of the Ind AS 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 Ind AS financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS Financial Statements.

4. Opinion

In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid subject to the Notes regarding Doubtful loans and advances of Rs. 7,49,633/-, resulting to overstatement of profit amounting to Rs. 7,49,633/- for the year, the aforesaid Ind AS 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 Including Ind AS of the state of affairs (financial positions) of the Company as at 31^st March 2018 :

a) In the case of the balance sheet, of the state of affairs of the Company as at 31st March 2018.

b) In the case of the Profit & Loss Account, of the “Profit” for the year ended on that date.

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

5. Report on other legal and Regulatory Requirements

1. As required by the companies (Auditor’s Report) Order 2016 (“the Order”) issued by the Central Government of India in terms of sub 11 of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 4 and 5 of the order.

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

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

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

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement of changes in equity dealt with by this report are in agreement with the books of accounts.

d) In our opinion the Balance Sheet, the Statement of Profit and Loss and the Cash Flow statement comply with the accounting standards referred to in section 133 of the Act, read with rule 7 of the Companies (Accounts) Rule 2014.

e) On the basis of the written representations received from the directors as on March 31, 2018, taken on record by the Board of director, None of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of section 164 (2) of the Act

f) With respect to the other matter to be included in the auditor’s report in accordance with rule 11 of the companies (Audit and Auditors) Rule, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanation given to us:

i. The company has disclosed the impact of pending litigations as at 31^st March 2018 on its financial position in its Ind AS financial statements.

ii. The company is not required to transfer any amount to the investor education and protection fund.

iii. The Company did not have any long term contracts including derivates contracts for which there were any material foreseeable losses; and

g) With respect to the adequacy of the internal financial control over financial reporting of the company and the operating of the company and the operating effectiveness of such control, refer to our separate report in Annexure B.

ANNEXURE “A” TO THE AUDITORS REPORT

(Referred to in our Report of even date)

We have prepared this annexure on the basis of the Books of Account examined, and information and explanations obtained by us during the course of our Audit. Further, in our opinion and to the best of our knowledge we report that -

i) a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) As explained to us, the fixed assets are being physically verified under a phased programme of verification, which in our opinion, is reasonable and no material discrepancies have been noticed on such verification.

c) The company has not disposed off substantial part of fixed assets, during the year under review, to affect its going concern.

ii) a) Inventories have been physically verified during the year by management at reasonable intervals.

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

c) The company is maintaining proper records of its inventories as required in the normal course of business. The discrepancies noticed on verification between physical stocks and book records were not material.

iii) a) The company has not granted any loan secured or unsecured to Companies, firms or other parties covered in the register maintained under section 189 of the Act..

b) The company has accepted loan secured or unsecured from Companies, firms or other parties covered in the register maintained under section 189 of the Act. In our opinion, the rate of interest and other term and condition on which the unsecured loans have been taken are not prima-facie prejudicial to the interest of the company.

c) The terms of repayment of the principal amount is not specified.

d) In our opinion, according to the information and explanation given to us, reasonable steps have been taken by the company for the payment of the principal amount and no amount is overdue for more than rupee one Lakhs.

iv) The company has not given any loans or made investments or issued any gurantee or provide any security covered under section 185 and 186 of the Act.

v) In our opinion and according to the information and explanation given to us, the company has not accepted deposits from public within the meaning of section 73 and 76 of the Act and the rules framed there under to the extent notified.

vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for maintenance of cost records prescribed under Sub- Section (1) of section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determining whether they are accurate or complete.

vii) a) According to the information and explanations given to us and on the basis of examination of the records of the Company, we are of the opinion that the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investors Education and protection fund, Employees’ State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Cess and Other material statutory dues with the appropriate authorities and there are no outstanding unpaid amounts as at the balance sheet date for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no undisputed dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess.

viii) In our opinion, the Accumulated losses of the company at the end of the financial year are not more than fifty per cent of its net worth. The company has not incurred cash losses during the financial year covered by our audit as well as in the immediately preceding financial year.

ix) In our opinion, according to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

x) According to the records of the company examined by us and the information and explanation given to us, managerial remuneration has been paid/ provided by the company in accordance with the requisite approval mandated by the provisions of section 197 read with schedule V to the companies Act .

xi) According to the information and explanation given to us and on overall examination of the balance sheet of the company, the Company has applied the term loans for the purpose for which the loans were obtained.

xii) According to the information and explanation given to us no fraud on or by the Company has been noticed or reported during the course of our audit.

xiii) The Company is not required to be registered under section 45-lA of the Reserve Bank of India 1934.

xiv) According to information and explanation given to us and based on our examination of the records of the company, the company has not entered into non-cash transaction with directors or person connected with him

xv) According to information and explanation given to us and based on our examination of the records of the company the company has not made any preferential allotment or private placement of share or fully or partly convertible debenture during the year.

xv) The companies is not a nidhi / chit fund company hence our comment as required under clause 3(xii) of the order not given.

Annexure B to The Independent Auditors Report

Report on the Internal Financial Control under Clause (i) of Sub section 3 of section 143 of the companies Act 2013 (the Act)

We have audited the internal financial control over financial reporting of Auro laboratories Limited (“ the company”) as of 31^st March 2018 in conjunction with our audit of the financial statement of the company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial control based on the internal control over financial reporting criteria establish by the Company considering the essential components of the internal control stated in the guidance note on Audit of Internal financial control over financial reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial control that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the company’s policies the safeguarding of its assets the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and timely preparation of reliable financial information, as required under the Companies Act 2013.

Auditors’ Responsibility

Our Responsibility is to express an opinion on the company’s Internal Financial control over financial reporting based on our audit. We conducted our audit in accordance with the guidance note on audit of Internal Financial control over financial reposting ( the Guidance Note”) and the standards on auditing issued by ICAI and deemed to be prescribed under section 143 (10) of the companies act 2013 to the extent applicable to an audit of internal financial control both applicable to an audit of internal financial control and both issued by the institute of chartered accountant of India. That standard and the guidance note required that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial reporting was establish and maintained and if such controls operated effectively in all matters respect.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control systems over financial reporting and their operating effectiveness. Our audit of internal financial control over financial reporting included obtaining an understanding of internal financial control over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment including the assessment of risk of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for my/our audit opinion on the company internal financial control systems over financial reporting.

Meaning of Internal Financial controls over financial reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purpose in accordance with generally accepted accounting principal. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transaction and dispositions of the assets of the company; (2) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial statement in accordance with generally accepted accounting principles, and that receipts and expenditure of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisitions, use or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitation of Internal Financial Control over financial reporting

Because of the inherent limitation of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also projection of any evaluation of the internal financial control over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute Of Chartered Accountants Of India.

For KHURDIA JAIN & CO

CHARTERED ACCOUNTANTS

FIRM REGN. NO. 120263 W

[SAMPAT KHURDIA]

PARTNER

M.NO. 033615

Place: Mumbai

Date: 29^th MAY 2018

---

Mar 31, 2015

We have audited the attached financial statements of AURO LABORATORIES LIMITED ("the Company"), which comprises the Balance Sheet as at 31s1 March 2015, the statement of Profit and Loss Account and the Cash Flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2. Management's Responsibility for the Financial 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 principles generally accepted in India including Accounting Standards specified under section 133 of the Act, read with rule 7 of the Companies ( Accounts) Rules, 2014. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements.

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 judgement, including the assessment of the risk 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 management, as well as evaluating the overall presentation of the financial statements.

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

4. Opinion

In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid subject to the Notes regarding non provision for gratuity, non provision for diminution in the value of the investments and regarding Doubtful loans and advances of Rs. 7,49,633/-, resulting to understatement of Loss amounting to Rs. 7,49,633/- for the year, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the balance sheet, of the state of affairs of the Company as at 31st March 2015.

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

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

5. 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 11 of section 143 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 143(3) of the Act, we report that:

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

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

d) In our opinion the Balance Sheet, the Statement of Profit and Loss and the Cash Flow statement comply with the accounting standards referred to in section 133 of the Act, read with rule 7 of the Companies (Accounts) Rule 2014, except Accounting for Retirements Benefits (AS15).

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

f) With respect to the other matter to be included in the auditor's report in accordance with rule 11 of the companies (Audit and Auditors) Rule, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanation given to us:

i. The company has disclosed the impact of pending litigations as at 31st March 2015 on its financial position in its financial statements.

ii. The Company has made provision as at 31st March 2015, as required under applicable law or accounting standard for material foreseeable losses.

ANNEXURE TO THE AUDITORS REPORT

(Referred to in our Report of even date)

We have prepared this annexure on the basis of the Books of Account examined, and information and explanations obtained by us during the course of our Audit. Further, in our opinion and to the best of our knowledge we report that

i)

a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) As explained to us, the fixed assets are being physically verified under a phased programme of verification, which in our opinion, is reasonable and no material discrepancies have been noticed on such verification.

c) The company has not disposed off substantial part of fixed assets, during the year under review, to affect its going concern.

ii)

a) Inventories have been physically verified during the year by management at reasonable intervals.

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

c) The company is maintaining proper records of its inventories as required in the normal course of business. The discrepancies noticed on verification between physical stocks and book records were not material.

iii)

a) The company has not granted any loan secured or unsecured to Companies, firms or other parties covered in the register maintained under section 189 of the Act. The Company has not taken any unsecured loan during the year from the parties covered in the register maintained under section 189 of the Act, and the yearend balance of loans taken is Rs. 751.82 lacs.

b) In our opinion, the rate of interest and other term and condition on which the unsecured loans have been taken by the company listed in the register maintained under section 189 of the Act are not prima-facie prejudicial to the interest of the company.

c) The terms of repayment of the principal amount is not specified.

d) In our opinion, according to the information and explanation given to us, reasonable steps have been taken by the company for the payment of the principal amount and no amount is overdue for more than rupee one lacs.

iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for sale of goods. We have not observed any major weakness in the internal control system during the course of our audit. The Company is continuously correcting weakness detected in internal control.

v)

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

b) According to the information and explanation given to us, transactions made in pursuance of contract or arrangements entered into the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rs. 5.00 lacs 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 the information and explanation given to us, the company has not accepted deposits from public within the meaning of section 73 and 74 of the Act and the rules framed there under to the extent notified.

vii) In our opinion the company has formal internal audit system commensurate with size and nature of business.

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for maintenance of cost records prescribed under Sub- Section (1) of section 148 of the Act, and are of the opinion that prima facie, the prescribed accounts have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determining whether they are accurate or complete.

ix)

a) According to the information and explanations given to us and on the basis of examination of the records of the Company, we are of the opinion that the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investors Education and protection fund, Employees' State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Cess and Other material statutory dues with the appropriate authorities and there are no outstanding unpaid amounts as at the balance sheet date for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no undisputed dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess.

x) In our opinion, the Accumulated losses of the company at the end of the financial year are not more than fifty per cent of its net worth. The company has not incurred cash losses during the financial year covered by our audit as well as in the immediately preceding financial year.

xi) In our opinion, according to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances against 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 to which the provisions of any special statue apply: accordingly the provisions of clause 4(xiii) of the Order are not applicable to the company.

xiv) In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments.

xv) In our opinion and as explained to us the company has not given guarantee for loan taken by others from bank or financial institutions.

xvi) According to the information and explanation given to us and on overall examination of the balance sheet of the company, the Company has applied the term loans for the purpose for which the loans were obtained.

xvii) According to the information and explanation given to us and on over all examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long- term investments. No long- term funds have been used to finance short -term assets except Permanent Working Capital.

xviii) In our opinion, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained in pursuance of section 301 of the Companies Act 1956.

xix) In our opinion, the Company has not issued any debentures during the year under audit.

xx) The Company did not raise money through public issue during the year under review.

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

For KOTHARI JAIN & ASSOCIATES CHARTERED ACCOUNTANT FIRM REGN. NO. 113041 W

SUNIL KUMAR KOTHARI PROPRIETOR M. No.043842

Place: Mumbai 28lh MAY 2015

---

Mar 31, 2014

1. Report on the Financial Statements

We have audited the attached financial statements of AURO LABORATORIES LIMITED ("the Company"), which comprises the Balance Sheet as at 31st March 2014, the statement of Profit and Loss Account and the Cash Flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2. Management''s Responsibility for the Financial 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 principles generally accepted in India including Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 ("the Act). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements.

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 judgement, including the assessment of the risk 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 management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4. Opinion

In our opinion, and to the best of our information and according to the explanations given to us, the aforesaid subject to the Notes regarding non provision for gratuity, non provision for diminution in the value of the investments and regarding Doubtful loans and advances of Rs. 7,49,633/-, resulting to understatement of Loss amounting to Rs. 7,49,633/- for the year, 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:

In the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2014.

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

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

5. 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 section 227(4A) of the Act, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the order.

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

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

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

d) In our opinion the Balance Sheet, the Statement of Profit and Loss and the Cash Flow statement comply with the accounting standards referred to in section 211 (3C) of the Act, except Accounting for Fixed Assets (AS 10), Accounting for Investments (AS 13) and Accounting for Retirements Benefits (AS15).

e) On the basic of the written representations received from the directors as on March 31, 2014, taken on record by the Board of director, None of the directors is disqualified as on March 31, 2014 from being appointed as a director in terms of section 274 (1) (g) of the Act.

ANNEXURE TO THE AUDITORS REPORT

(Referred to in our Report of even date)

We have prepared this annexure on the basis of the Books of Account examined, and information and explanations obtained by us during the course of our Audit. Further, in our opinion and to the best of our knowledge we report that -

i) a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) As explained to us, the fixed assets are being physically verified under a phased programme of verification, which in our opinion, is reasonable and no material discrepancies have been noticed on such verification.

c) The company has not disposed off substantial part of fixed assets, during the year under review, to affect its going concern.

ii) a) Inventories have been physically verified during the year by management at reasonable intervals.

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

c) The company is maintaining proper records of its inventories as required in the normal course of business. The discrepancies noticed on verification between physical stocks and book records were not material.

iii) a) The company has not granted any loan secured or unsecured to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956.The Company has not taken any unsecured loan from the parties covered in the register maintained under section 301 of the Companies Act 1956, and the year end balance of loans taken is Rs. 740.18 lacs.

b) In our opinion, the rate of interest and other term and condition on which the unsecured loans have been taken by the company listed in the register maintained under section 301 of the Companies Act are not prima-facie prejudicial to the interest of the company.

c) The terms of repayment of the principal amount is not specified.

d) In our opinion, according to the information and explanation given to us, reasonable steps have been taken by the company for the payment of the principal amount and no amount is overdue for more than rupee one lacs.

iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchases of Inventory and fixed assets and for sale of goods. We have not observed any major weakness in the internal control system during the course of our audit. The Company is continuously correcting weakness detected in internal control.

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

b) According to the information and explanation given to us, transactions made in pursuance of contract or arrangements entered into the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rs. 5.00 lacs 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 the information and explanation given to us, the company has not accepted deposits from public. Therefore, the provisions of clause (vi) of paragraph 4 of the order are not applicable to the company.

vii) In our opinion the company has no formal internal audit system commensurate with size and nature of business.

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for maintenance of cost records prescribed under clause (d) of Sub- Section (1) of section 209 of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determining whether they are accurate or complete.

ix) a) According to the information and explanations given to us and on the basis of examination of the records of the Company, we are of the opinion that the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investors Education and protection fund, Employees'' State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Cess and Other material statutory dues with the appropriate authorities and there are no outstanding unpaid amounts as at the balance sheet date for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no undisputed dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess.

x) In our opinion, the Accumulated losses of the company at the end of the financial year are not more than fifty per cent of its net worth. The company has not incurred cash losses during the financial year covered by our audit as well as in the immediately preceding financial year.

xi) In our opinion, according to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances against 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 to which the provisions of any special statue apply: accordingly the provisions of clause 4(xiii) of the Order are not applicable to the company.

xiv) In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments.

xv) In our opinion and as explained to us the company has not given guarantee for loan taken by others from bank or financial institutions.

xvi) According to the information and explanation given to us and on overall examination of the balance sheet of the company, the Company has applied the term loans for the purpose for which the loans were obtained.

xvii) According to the information and explanation given to us and on over all examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long- term investments. No long- term funds have been used to finance short -term assets except Permanent Working Capital.

xviii) In our opinion, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained in pursuance of section 301 of the Companies Act 1956.

xix) In our opinion, the Company has not issued any debentures during the year under audit.

xx) The Company did not raise money through public issue during the year under review.

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

For KOTHARI JAIN & ASSOCIATES CHARTERED ACCOUNTANT FIRM REGN. NO. 113041 W

SUNIL KUMAR KOTHARI PROPRIETOR M. No. 043842 Place: Mumbai Dated: 30th MAY 2014

---

Mar 31, 2013

1. Report on the Financial Statements

We have audited the attached financial statements of AURO LABORATORIES LIMITED (the Company"), which comprises the Balance Sheet as at 31"March 2013, the statement of Profit and Loss Account and the Cash Flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair viewof the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 (''the Ad). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 judgement, including the assessment of the risk 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 management, as well as evaluating the overall presentation of the financial statements.

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

4. Opinion

In our opinion, and to the best of our Information and according to the explanations given to us, the aforesaid subject to the Notes regarding non provision for gratuity, non provision for diminution In the value of the Investments and regarding Doubtful loans and advances ofRs. 7,49,633/-, resulting to understatement of Loss amounting to Rs. 7,49,633/- for the year, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted In India:

a) In the case of the balance sheet, of the state of affairs of the Company as at 31st March 2013.

b) In the case of the Profit & Loss Account, of the ''Profit" for the year ended on that date.

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

5. 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 section 227(4A) of the Act, we give in the amexure a statement on the matters specified in paragraphs 4 and 5 of the order.

2. AsrequiredtySectJon227(3)oftheAcLwereportthat:

a) We have obtained aH the information and explanations which to the best of our knowledge and belief were necessary forthe purpose of ouraudit;

b) Inouropir^properbooksofatxciuntsasrecpredbylawhavekeptbythecompanysolar as appears from ours 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 accounts.

d) In our opinion the Balance Sheet the Statement of Profit and Loss and the Cash Flow statement comply with the accounting standards referred to in section 211 (X) of the Act, except Accounting for Fixed Assets (AS 10),Accountlngforlnvestments(AS 13) and AccountlngforRetlrementsBeneflts(AS15).

e) On the basic of the written representations received from the directors as on March 31, 2013, taken on record by the Board of director, None of the directors is disqualified as on March 31,2013from being appointed asadirector in terms of section 274(1) (g) of the Ad.

We have prepared this annexure on the basis of the Books of Account examined, and information and explanations obtained by us during the course of our Audit Further, in our opinion and to the bestofourknowledgewereportthat-

I) a) The company has maintained proper records showing full particulars including quantitative details andsituation of Fixed Assets.

b) As explained to us, the fixed assets are being physically verified under a phased programme of verification, which in our opinion, is reasonable and no material discrepancies have been noticed on such verification.

c) The company has not disposed off substantial part of fixed assets, during the year under review, to affect its going concern.

ii) a) Inventories have been physically verified during the year by management at reasonable intervals.

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

c) The company is maintaining proper records of its inventories as required in the normal course of business. The discrepancies noticed on verification between physical stocks and book records were not material.

iii) a) The company has not granted any loan secured or unsecured to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956.The Company has taken unsecured loan from one party amounting to Rs. 110.00 lacs during the year, covered in the register maintained under section 301 of the Companies Act 1956, and the year end balance of loans taken is Rs. 726.07 lacs.

b) In our opinion, the rate of interest and other term and condition on which the unsecured loans have been taken by the company listed in the register maintained under section 301 of the Companies Act are not prima-f acie prejudicial to the interest of the company.

c) The terms of repayment of the principal amount is not specified.

d) In our opinion, according to the information and explanation given to us, reasonable steps have been taken by the company for the payment of the principal amount and no amount is overdue for more than rupee one lacs.

iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for sale of goods. We have not observed any major weakness in the internal control system during the course of our audit. The Company is continuously correcting weakness detected in internal control.

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

b) According to the information and explanation given to us, transactions made in pursuance of contract or arrangements entered into the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rs. 5.00 lacs 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 the information and explanation given to us, the company has not accepted deposits from public. Therefore, the provisions of clause (vi) of paragraph 4 of the order are not applicable to the company.

vii) In our opinion the company has no formal internal audit system commensurate with size and nature of business.

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for maintenance of cost records prescribed under clause (d) of Sub- Section (1) of section 209 of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determining whether they are accurate or complete.

ix) a) According to the information and explanations given to us and on the basis of examination of the records of the Company, we are of the opinion that the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investors Education and protection fund, Employees'' State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Cess and Other material statutory dues with the appropriate authorities and there are no outstanding unpaid amounts as at the balance sheet date for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no undisputed dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess.

x) In our opinion, the Accumulated losses of the company at the end of the financial year are not more than fifty per cent of its net worth. The company has not incurred cash losses during the financial year covered by our audit as well as in the immediately preceding financial year.

xi) In our opinion, according to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances against 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 to which the provisions of any special statue apply: accordingly the provisions of clause 4(xiii) of the Order are not applicable to the company.

xiv) In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments.

xv) In our opinion and as explained to us the company has not given guarantee for loan taken by others from bank or financial institutions.

xvi) According to the information and explanation given to us and on overall examination of Unbalance sheet of the company, the Company has applied the term loans for the purpose for which the loans were obtained.

xvii) According to the information and explanation given to us and on over all examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long- term investments. No long- term funds have been used to finance short-term assets except Permanent Working Capital.

xviii) In our opinion, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained in pursuance of section 301 of the Companies Act 1956.

xix) lnouropinton,tl»Companynastwtissuedartydeberturesdm

xx) Trie Company did not raise money through public issue during the year under review.

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

For KOTHARIJAIN & ASSOCIATES

CHARTERED ACCOUNTANT

FIRM REGN. NO. 113041W

SUNIL KUMARKOTHARI

PROPRIETOR

M. No. 043842

Place: Mumbai

Dated: 8th MAY 2013

---

Mar 31, 2012

1.We have audited the attached Balance Sheet of AUROLABORATORIE SUMITED as at 31st March 2012 and also the related Profit and Loss Account annexed thereto and the Cash Flow statement for the year ended on the date, which have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order 2003 (the order), as amended, 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.

4. Further to our comments in the Annexure referred to 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 the law have been kept by the company so far as it appears from our examination of the books.

C] The Balance Sheet and Profit & Loss account and Cash Flow statement dealt with by this report are in agreement with the books of accounts.

D] In our opinion, the Balance sheet, Profit and Loss account and cash flow statement dealt with by this report complies with the Accounting Standards issued by the Institute of Chartered Accountants of India, referred to in Section 211 (X) of the Companies Act, 1956, except Accounting for Fixed Assets (AS 10), Accounting for Investments (AS 13) and Accounting for Retirements Benefits (AS15).

E] On the basis of written representation received from the Directors as on 31" March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31" March, 2012 from being appointed as directors of the Company under clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

F] In our opinion, and to the best of our Information and according to the explanations given to us, subject to the Notes regarding non provision for gratuity, non provision for diminution In the value of the Investments and regarding Doubtful loans and advances of Rs. 39,33,684/-, resulting to understatementotLoss amountingto Rs. 39,33,684/- forthe year, the saidaccounts read togetherwith other notes thereon, give the Information required by the Companies Act, 1956 In the manner so required and give a true and fair view In conformity with the 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 2012.

b) In the case of the Profit & Loss Account, of the 'Profit* for the year ended on that date.

c)InthecaseoftheCashFlowStatement.oftheCashFlowfortheyearendedonthatdate.

For KOTHARI JAIN & ASSOCIATES CHARTERED ACCOUNTANTS FIRMREGN.NO.113041W

SUNIL KUMAR KOTHARI PROPRIETOR M.NO. 043842 Place: Mumbai Date: 30* MAY 2012

ANNEXURE TO THE AUDITORS REPORT

(Referred to in our Report of even date)

We have prepared this annexure on the basis of the Books of Account examined, and Information and explanations obtained by us during the course of our Audit Further, in our opinion and to the best of our knowledge we report that-

i) a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) As explained to us, the fixed assets are being physically verified under a phased programme of verification, which in ouropinion, is reasonable and no material discrepancies have been noticed on such verification.

c) The company has not disposed off substantial part of fixed assets, during the year under review, to affect its going concern.

ii) a) Inventories have been physically verified during the year by management at reasonable intervals.

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

c) The company is maintaining proper records of its inventories as required in the normal course of business. The discrepancies noticed on verification between physical stocks and book records were not material.

a)TrwainTpanyrasnotgrantedanyloansecuredorurisecuredloConvanies. misorotherpartiescoveredin the register maintained under section 301 of the Companies Act l956.The Company has taken unsecured loan from one party amounting to Rs. 13.20 lacs during the year, covered in the register maintained under section 301 of the Companies Act 1956, and the year end balance of loans taken is Rs. 684.65 lacs.

b) In our opinion, the rate of interest and other term and condition on which the unsecured loans have been taken by the company listed in the register maintained under section 301 of the Companies Act are not prima-facie prejudicial to the interest of the company.

c) The terms of repayment of the principal amount is not specified.

d) In our opinion, according to the information and explanation given to us, reasonable steps have been taken by the company for the payment of the principal amount and no amount is overdue for more than rupee one lacs.

iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for sale of goods. We have not observed any major weakness in the internal control system during the course of our audit. The Company is continuously correcting weakness detected in internal control.

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

b) According to the information and explanation given to us, transactions made in pursuance of contract or arrangements entered into the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rs. 5.00 lacs 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 the information and explanation given to us, the company has not accepted deposits from public.

vii) In our opinion the company has no formal internal audit system commensurate with size and nature of business.

viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the order made by the Central Government for maintenance of cost records prescribed under clause (d) of Sub- Section (1) of section 209 of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts have been made and maintained. We have, however, not made a detailed examination of the said records with a view to determining whether they are accurate or complete.

ix) a) According to the information and explanations given to us and on the basis of examination of the records of the Company, we are of the opinion that the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investors Education and protection fund, Employees' State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Custom Duty, Excise Duty, Cess and Other material statutory dues with the appropriate authorities and there are no outstanding unpaid amounts as at the balance sheet date for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no undisputed dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess.

x) In our opinion, the Accumulated losses of the company at the end of the financial year are not more than fifty per cent of its net worth. The company has not incurred cash losses during the financial year covered by our audit as well as in the immediately preceding financial year.

xi) In our opinion, according to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances against 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 to which the provisions of any special statue apply: accordingly the provisions of clause 4(xiii) of the Order are not applicable to the company.

xiv) In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments.

xv) In our opinion and as explained to us the company has not given guarantee for loan taken by others from bank or financial institutions.

xvi) According to the information and explanation given to us and on overall examination of the balance sheet of the company, the Company has applied the term loans for the purpose for which the loans were obtained.

xvii) According to the information and explanation given to us and on over all examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long- term investments. No long- term funds have been used to finance short -term assets except Permanent Working Capital.

xviii) In our opinion, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained in pursuance of section 301 of the Companies Act 1956.

xix) In our opinion, the Company has not issued any debentures during the year under audit.

xx) The Company did not raise money through public issue during the year under review.

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

For KOTHARIJAIN4 ASSOCIATES CHARTERED ACCOUNTANT FIRM REGN. NO. 113041W

SUNIL KUMAR KOTHARI PROPRIETOR M. No. 043842

Place: Mumbai Dated: 30th MAY2012

---

Mar 31, 2010

We have audited the attached Balance Sheet of AURO LABORATORIES LIMITED as at 31st March 2010 and also the related Profit and Loss Account annexed thereto and the Cash Flow statement for the year ended on the date, which have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements 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 statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. 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 of India (The Act) and on the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of audit, 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 above, we report that:

I. 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.

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

III. The Balance Sheet and Profit & Loss account and Cash Flow statement dealt with by this report are in agreement with the books of accounts.

IV. In our opinion, the Balance sheet, Profit and Loss account and cash flow statement dealt with by this report complies with the Accounting Standards issued by the Institute of Chartered Accountants of India, referred to in Section 211 (3C) of the Companies Act, 1956, except Accounting for Fixed Assets (AS 10), Accounting for Investments (AS 13) and Accounting for Retirements Benefits (AS15).

V. On the basis of written representation 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 directors of the Company under 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, subject to, Note No. 1 regarding non provision for gratuity, Note no. 3 regarding non provision for diminution in the value of the investments and Note no. 7 regarding Doubtful loans and advances Rs. 39,33,684/- in Schedule" R", resulting to understatement of Loss amounting to Rs. 39,33,684/- for the year, the said accounts read together with other notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the 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 & Loss Account, of the "Profit" for the year ended on that date.

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

ANNEXURE TO THE AUDITORS REPORT(Referred to in our Report of even date)

We have prepared this annexure on the basis of the Books of Account examined, and information and explanations obtained by us during the course of our Audit. Further, in our opinion and to the best of our knowledge we report that -

I) a) The company has maintained Fixed Assets Register and the same is updated.

b) All the 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 regards to the size of the company and nature of its assets. We were informed that no material discrepancies were noticed on such verification.

c) The company has not disposed off substantial part of fixed assets, during the year under review, to affect its going concern.

ii) a) The management, during the year under review, has conducted physical verification of inventory. The Frequency of such verification is reasonable in relation to the company, nature of its business and nature of inventory.

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

c) The company is maintaining proper records of inventory as required in the normal course of business. The discrepancies noticed on verification between physical stocks and book records were not material.

iii) a) The company has not granted any loan secured or unsecured to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956.The Company has taken unsecured loan from four parties amounting to Rs. 111.00 lacs, covered in the register maintained under section 301 of the Companies Act 1956, and the year end balance of loans taken is Rs. 615.30 lacs.

b) In our opinion, the rate of interest and other term and condition on which the unsecured loans have been taken by the company listed in the register maintained under section 301 of the Companies Act are not prima-facie prejudicial to the interest of the company.

c) The terms of repayment of the principal amount is not specified.

d) In our opinion, according to the information and explanation given to us, reasonable steps have been taken by the company for payment of the principal amount and no amount is overdue for more than rupee one lacs.

iv) In our opinion, according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regards to purchases of inventory and fixed assets and for sale of goods. Company is continuously correcting weakness detected in internal control.

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

b) According to the information and explanation given to us, transactions made in pursuance of contract or arrangements entered into the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rs. 5.00 lacs 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 the information and explanation given to us, the company has not accepted deposits from public.

vii) In our opinion the company has no formal internal audit system commensurate with size and nature of business.

viii) According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under clause (d) of Sub- Section (1) of section 209 of the Companies Act 1956 for the nature of industry in which the Company is doing business.

ix) a) According to the information and explanations given to us and according to the records of the company, the company is regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and Other material statutory dues with the appropriate authorities.

b) According to the information and explanations given to us, there are no undisputed dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess.

x) In our opinion, the Accumulated losses of the company at the end of the financial year are not more than fifty per cent of its net worth. The company has not incurred cash losses during the financial year covered by our audit as well as in the immediately preceding financial year.

xi) In our opinion, according to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances against security by way of pledge of shares, debentures and other securities.

xiii) In our opinion, the company is not a chit fund or a NidhiNMutual benefit fundsociety. Therefore, the provisions of clause 4{xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments.

xv) In our opinion and as explained to us the company has not given guarantee for loan taken by others from bank or financial institutions.

xvi) According to the information and explanation given to us and on overall examination of the balance sheet of the company, the Company has applied the term loans for the purpose for which the loans were obtained.

xvii) According to the information and explanation given to us and on over all examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long- term investments. No long- term funds have been used to finance short -term assets except Permanent Working Capital.

xviii) In our opinion, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained in pursuance of section 301 of the Companies Act 1956.

ix) In our opinion, the Company has not issued any debentures during the year under review.

xx) The Company did not raise money through public issue during the year under review.

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

For KOTHARI JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REGN. NO. 113041 W

SUNIL KUMAR KOTHARI

PROPRIETOR

M.NO. 043842

Piace: Mumbai

Date:31st May 2010

---

Mar 31, 2009

We have audited the attached Balance Sheet of AURO LABORATORIES LIMITED as at 31st March 2009 and also the related Profit and Loss Account annexed thereto and the Cash Flow statement for the year ended on the date, which have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements 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 statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. 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 of India (The Act) and on the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of audit, 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 above, we report that:

I. 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.

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

III. The Balance Sheet and Profit & Loss account and Cash Flow statement dealt with by this report are in agreement with the books of accounts.

IV. In our opinion, the Balance sheet, Profit and Loss account and cash flow statement dealt with by this report complies with the Accounting Standards issued by the Institute of Chartered Accountants of India, referred to in Section 211 (3C) of the Companies Act, 1956, except Accounting for Fixed Assets (AS 10), Accounting for Investments (AS 13) and Accounting for Retirements Benefits (AS15).

V. On the basis of written representation received from the Directors as on 31" March 2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31" March, 2009 from being appointed as directors of the Company under clause (g) of sub-section (1) of Section 274 of the CompaniesAct, 1956.

VI. In our opinion, and to the best of our information and according to the explanations given to us, subject to. Note No. 1 regarding non provision for gratuity, Note no. 3 regarding non provision for diminution in the value of the investments and Note no. 7 regarding Doubtful loans and advances Rs. 39,33,684/- in Schedule " R ", resulting to understatement of Loss amounting to Rs. 39,33,684/- for the year, the said accounts read togetherwith other notes thereon, give the information required by the Companies Act, 1956 in the manner so required andgiveatrueandfairviewin 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) lnthecaseoftheProfit&LossAccount,ofthe"Profit"fortheyearended on that date.

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

ANNEXURE TO THE AUDITORS REPORT (Referred tQ in our Report of even date)

We have prepared this annexure on the basis of the Books of Account examined, and information and explanations obtained by us during the course of our Audit. Further, in our opinion and to the best of our knowledge we report that-

i) a) The company has maintained Fixed Assets Register and the same is not updated.

b) All the 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 regards to the size of the company and nature of its assets. We were informed that no material discrepancies were noticed on such verification.

c) The company has not disposed off substantial part of fixed assets, during the year under review, to affect its going concern.

ii) a) The management, during the year under review, has conducted physical verification of inventory. The Frequency of such verification is reasonable in relation to the company, nature of its business and nature of inventory.

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

c) The company is maintaining proper records of inventory as required in the normal course of business. The discrepancies noticed on verification between physical stocks and book records werenot material.

iii) a)The company has not granted any loan secured or unsecured to Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956.The Company has taken unsecured loan from four parties amounting to Rs.. 182.60 lacs, covered in the register maintained under section 301 of the Compariies Act 1956, and the year end balance of loans taken is Rs.517.80 lacs.

b) In our opinion, the rate of interest and other term and condition on which the unsecured loans have been taken by the company listed in the register maintained under section 301 of the Companies Act are not prima-facie prejudicial to the interest of the company.

c) The terms of repayment of the principal amount is not specified.

d) In our opinion, according to the information and explanation given to us, reasonable steps have been taken by the company for payment of the principal amount and no amount is overdue for more than rupee one lac.

iv) In our opinion, according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regards to purchases of inventory and fixed assets and for sale of goods. Company is continuously correcting weakness detected in internal control.

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

b) According to the information and explanation given to us, transactions made in pursuance of contract or arrangements entered into the register maintained under section 301 of the Companies Act 1956 and exceeding the value of Rs. 5.00 lacs 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 the information and explanation given to us, the company has not accepted deposits from public.

vii) In our opinion the company has no formal internal audit system commensurate with size and nature of business.

viii) According to the information and explanations given to us, the Central Government has not prescribed maintenance of cost records under clause (d) of Sub- Section (1) of section 209 of the Companies Act 1956 for the nature of industry in which the Company is doing business.

ix) a) According to the information and explanations given to us and according to the records of the company, the company is regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance. Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and Other material statutory dues with the appropriate authorities.

b) According to the information and explanations given to us, there are no undisputed dues in respect of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty and Cess.

x) In our opinion, the Accumulated losses of the company at the end of the financial year are not more than fifty per cent of its net worth. The company has not incurred cash losses during the financial year covered by our audit as well as in the immediately preceding financial year.

xi) In our opinion, according to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans or advances against security by way of pledge of shares, debentures and other securities.

xiii) I n our opinion, the company is not a chit fund or a nidhiVnutual benefit fundsociety. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

xiv) In our opinion, the company is not dealing or trading in shares, securities, debentures and other investments.

xv) In our opinion and as explained to us the company has not given guarantee for loan taken by others from bank or financial institutions.

xvi) According to the information and explanation given to us and on overall examination of the balance sheet of the company, we report that the Company has not taken any term loans.

xvii)According to the information and explanation given to us and on over all examination of the balance sheet of the company, we report that no funds raised on short- term basis have been used for long- term investments. No long- term funds have been used to finance short -term assets except Permanent Working Capital.

viii) In our opinion, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained in pursuance of section 301 of the Companies Act 1956.

ix) In our opinion, the Company has not issued any debentures during the year under review.

x) The Company did not raise money through public issue during the year under review.

xi) According to the information and explanation given to us no fraud on or by the Company has been noticed or reported during the course of our audit.

For KOTHARI JAIN & ASSOCIATES CHARTERED ACCOUNTANT

Sd/-

SUNIL KOTHARI

PROPRIETOR

M. No. 043842

Place: Mumbai Dated: 10th June 2009