Castron Technologies Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2010

We have audited the attached Balance Sheet of CASTRON TECHNOLOGIES LIMITED as at 31st March, 2010, Profit and Loss Account and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government of India in terms of sub-section (4 A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

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

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

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion and subject to note 2(vi) of schedule 17 regarding non compliance with revised AS- 15 on employee benefits the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

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

(vi) In our opinion and to the best of our information and according to the explanations given to "us, the said accounts read together with the Significant Accounting Policies and notes thereon give the information required by the Companies Act, 1956, in the manner so required subject to non provision of employee benefits according to revised AS-15 as referred to in Note 2(vi) of schedule 17, impact of which has not been ascertained on profits of the company, 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; and

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

(c) in the case of Cash Flow statement, of the Cash Flows of the company for the year ended on that date.

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

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

(b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) The company has not disposed of fixed Assests during the year..

(ii) (a) As explained to us the inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) As per the information provided to us the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. <*

(c) The company is maintaining proper records of inventory. No material discrepancies have been noticed on physical verification.

(iii) (a& During the year company has not granted any loans, secured or unsecured to companies, firms d) or other parties covered in the register maintained u/s. 301 of the Act. Consequently the requirement of clause iii(b) to iii(d) of paragraph 4 of the order are not applicable.

(e) The company has taken unsecured loans from 6 parties covered in the register maintained u/s. 301 of the Act. The maximum amount involved during the year was Rs. 47,540,208/- and the year end balance of loan taken from such parties were Rs. 35,096,398/-.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company. •

(g) The company is regular in repaying the principal amounts along with interest as stipulated..

(iv) In our opiniori and according to the information and explanations given to us, there are adequate internal contrbl procedures commensurate with the size of the company and the nature of its business with jregard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in1 internal controls.

(v) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956 :

(a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, that needed to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transaction in pursuance of contracts or arrangements for purchase & sales of goods & supply of services aggregating during the year to Rs. 5,00,000/- or more in respect of any party in the said financial year. Hence this clause is not applicable.

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

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

(viii) Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act.

(ix) (a) In our opinion and according to information given to us the company is generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. However there have been delay in few cases. No statutory dues were in arrears, as at 31.03.2010 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no dues of sale tax, income tax, wealth tax, service tax, customs duty, excise duty and cess which have not been deposited on account of any dispute. (x) The company does not have accumulated losses as at the end of the financial year. It has not incurred cash losses in the current year and also in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution & bank. Company has not issued any debentures. ^

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

(xiii) In our opinion1, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other ; investments, fixpejct in mutual fund units in which temporary surplus fund is invested. According to the information! and explanations given to us proper records have been maintained of transactions and contracts and timely entries have been made therein. All such investments have been held by the company in its owji name.

(xv) In our opinion, the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) Term loans taken by the company have been applied for the purpose for which they have been taken.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The company has not issued any debentures during the year.

(xx) Company has not raised any money by way of public issue during the year.

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

FOR ASHOK KEDIA & COMPANY, CHARTERED ACCOUNTANTS, 4, Gangadhar Banu Lane, Regn. No. 323330E

Calcutta-700 012.

Dated the 3rd Day of September, 2010. CA. A.K. KEDIA

PARTNER M. No. 050510

---

Mar 31, 2009

We have audited the attached Balance Sheet of CASTRON TECHNOLOGIES LIMITED as at 31st March, 2009, Profit and Loss Account and the Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

Further to our comments in the Annexure referred to above, we report that:

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

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

(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion and subject to note 2(vi) of schedule 17 regarding non compliance with revised AS-

15 on employee benefits the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

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

(vi) In our opinion and to the best of our information and according to the explanations given to us, the

said accounts read together with the Significant Accounting Policies and notes thereon give the information required by the Companies Act, 1956, in the manner so required subject to Eton provision of employee benefits according to revised AS-15 as referred to in Note 2(vi) of schedule 17, impact of which has not been ascertained on profits of the company, give a true and fair view in conformity with the accounting principles generally accepted in India.

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

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

(c) in the case of Cash Flow statement, of the Cash Flows of the company for the year ended on that date.

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

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

(b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) The company has disposed of its chemical unit during the year. However it does not affect the going concern status of the company..

(ii) (a) As explained to us the inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) As per the information provided to us the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is maintaining proper records of inventory. No material discrepancies have been noticed on physical verification.

(iii) (a& During the year company has not granted any loans, secured or unsecured to companies, firms d) or other parties covered in the register maintained u/s. 301 of the Act. Consequently the requirement of clause iii(b) to iii(d) of paragraph 4 of the order are not applicable.

(e) The company has taken unsecured loans from 4 parties covered in the register maintained u/s. 301 of the Act. The maximum amount involved during the year was Rs. 37319479/- and the year end balance of loan taken from such parties were Rs. 51,66,585/-.

(f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts along with interest as stipulated..

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

(v) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956 :

(a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements, that needed to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transaction in pursuance of contracts or arrangements for purchase & sales of goods & supply of services aggregating during the year to Rs. 5,00,000/- or more in respect of any party in the said financial year. Hence this clause is not applicable.

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

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

(viii) Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act.

(ix) (a) In our opinion and according to information given to us the company is generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. However there have been delay in few cases. No statutory dues were in arrears, as at 31.03.2009 for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us, there are no dues of sale tax, income tax, wealth tax, service tax, customs duty, excise duty and cess which have not been deposited on account of any dispute. (x) The company does not have accumulated losses as at the end of the financial year. It has not

incurred cash losses in the current year and also in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution & bank. Company has not issued any debentures.

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

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2004 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Expect in mutual fund units in which temporary surplus fund is invested. According to the information and explanations given to us proper records have been maintained of transactions and contracts and timely entries have been made therein. All such investments have been held by the company in its own name.

(xv) In our opinion, the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) Term loans taken by the company have been applied for the purpose for which they have been taken.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The company has not issued any debentures during the year.

(xx) Company has not raised any money by way of public issue during the year.

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



FOR ASHOK KEDIA & COMPANY,

CHARTERED ACCOUNTANTS,

4, Gangadhar Banu Lane,

Calcutta-700 012.

CA.A.K. KEDIA

PARTNER

M. No. 050510