Goldwon Textiles Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2015

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

Management's responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of financial statements that give true and fair view 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 Company's Directors, 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 on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015; and

ii. in the case of Statement of Profit & Loss, of the Loss for the year ended on that date.

iii. in the case of Cash Flow Statement, of the cash flow for the year ended on that date.

Emphasis of Matter

Since there are no operations during the current year the going concern assumption is being affected. Our opinion is not qualified in this matter.

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 section 143(11) of the act, we give in annexure a statement on the matters specified in paragraphs3 of the order.

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

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

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

c) the Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

0 With respect to the other matters included in the Auditor's Report and to our best of our information and according to the explanations given to us:

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

1 There is no such amount required to be transferred, to the Investor Education and Protection Fund by the Company

Annexure referred to in paragraph 1 of report on Other Legal and Regulatory Requirements of Gold won Textiles Limited on the financial statements for the year ended March 31, 2015

1. There are no fixed assets in the company.

2. No inventory since the company has no operations.

3. The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained U/s.189 of the Companies Act, 2013.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system 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 system.

5. The Company has not accepted any deposits from the public within the meaning of Section 73 or any other relevant provision of the Companies Act 2013 and the rules framed there under.

6. We are informed that the central government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the company. Hence clause (vi) of Companies (Auditor's Report) Order, 2015 is not applicable

7. a.)There are no statutory dues pending during the year.

b. )There are no dues in respect of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess.

c. )There is no such amount required to be transferred, to the Investor Education and Protection Fund by the Company in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time.

8. In our opinion, the accumulated losses of the company are more than its net worth. The Company has incurred cash losses during the financial year covered by audit and in the immediately preceding financial year.

9. The company has not defaulted in repayment of dues to a financial institution or bank or debenture holders

10. The company has not given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;

11. The Company has not raised any new term loans during the year.

12. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statement to be materially misstated.

For C.RAMACHANDRAM & CO., Chartered Accountants FRN: 002864S

C.RAMACHANDRAM Partner Membership No.025834

Place: Hyderabad. Date: 17.08.2015

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Mar 31, 2014

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

Management''s responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in subsection (3c) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014; and

ii. in the case of Statement of Profit & Loss, of the Loss for the year ended on that date.

iii. in the case of Cash Flow Statement, of the cash flow for the year ended on that date. Emphasis of Matter We draw attention to Note no:2 to the financial statement dealing with the sale of the assets and liquidation of the secured loans and the consequent absence of operations, which does not justify the going concern assumption. Our opinion is not qualified in this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

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

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

c. The Balance Sheet and statement of accounts dealt with by this report are in agreement with the books of account;

d. In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the accounting standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013

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

ANNEXURE TO THE AUDITORS'' REPORT

Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements of our report of even date to the members of GOLDWON TEXTILES LIMITED on the financial statements for the year ended 31st March, 2014

1. a) The Company has maintained fixed assets register.

b) As explained to us, the fixed assets have not been physically verified by the management.

c) In our opinion, the company has disposed off the entire fixed assets during the year and the going concern status of the company is affected.

2. Since the company is not in operation during financial year 2013-14, there is no Inventory.

3. a) The Company has not granted any loans, secured or unsecured to the companies, firms or other parties covered in the register maintained U/s.189 of the Companies Act, 2013.

Clauses (b), (c) & (d) are not applicable to the Company.

b) The Company has taken unsecured loan from one party covered in the register maintained under section under Section 189 of the Companies Act, 2013. The maximum amount involved during the year was Rs. 2,215,285 and the year ended balance of loan taken from such party was Rs. 185, 285/-

c) In our opinion, the rate of interest and other terms and conditions of such loans are not prima-facie prejudicial to the interest of the company.

d) The loan is repayable on demand.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system 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 system.

5. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements referred to in section 189 of the Companies Act 2013 that need to be entered in the register required to be maintained under that section.

6. The Company has not accepted any deposits from the public within the meaning of Section 73 or any other relevant provision of the Companies Act 2013 and the rules framed there under.

7. Since the company is not in operation there is no internal audit system.

8. We are informed that the Central Government has not prescribed the maintenance of the cost records under section 209 I (d) of the companies act, 1956 for the products of the company.

9. There are no statutory dues pending during the year.

10. In our opinion, the accumulated losses of the company are more than its net worth. The Company has incurred cash losses during the financial year covered by audit and for the immediately preceding financial year.

11. The company has not defaulted any repayment of dues to financial institution or bank or debenture holders during the year.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

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

15. In our opinion and according to the information and explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16. The Company has not raised any new term loans during the year.

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

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statement to be materially misstated.

For C.RAMACHANDRAM & CO., Chartered Accountants FRN: 002864S

C.RAMACHANDRAM Partner Membership No.025834

Place: Hyderabad. Date: 14.08.2014

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Mar 31, 2012

We have audited the attached Balance Sheet of GOLDWON TEXTILES LIMITED as at March 31, 2012, the Statement of Profit and Loss for the year ended on the date annexed thereto and cash flow statement for the year ended on that date. These financial statements are the responsibility of the management Company. 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 (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

Further to our comments in the annexure referred to in paragraph 3 above, we state 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 Account as required by Law have been kept by the Company so far as appears from our examination of those Books:

c. The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the Books of Account of the company:

d. In our opinion, the Balance Sheet and the Profit and Loss account dealt with by this report comply with the Accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956:

e. Based on the representations made by all the Directors of the company as on March 31, 2012 and taken on record by the Board of Director's of the company and in accordance with the information and explanations as made available, the directors of the company do not prima face, have disqualification as referred to in 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, the said accounts give the information required by the companies Act, 1956, in the manner so required subject to:

a. The company has not provided depreciation on fixed assets during the year under review. Due to such non provision, loss for the current financial year has been understated by Rs. 70,62,355/- and the accumulated losses of the company are lower by that amount consequently the value of the net block of the fixed assets has been overstated by an amount of Rs. 70,62,355/- as on the date of the balance sheet [Refer Note No. 8 of note on accounts].

b. The company is not providing interest on secured creditors loans from 01.04.2005 to 31.03.2012 since reached One time settlement with them. [Refer Note No. 5 of Note on Accounts].

c. The accounts have been prepared on the assumption of going concern basis. [Refer Note No. 2 of note on accounts] and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of Balance Sheet, of the State of affairs of the company as at March 31, 2012;

ii. in the case of statement of Profit and Loss of the Loss for the year ended on that date and;

iii. in the case of Cash Flow Statement, of the cash flow for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph 3 of our report of even date to the members of GOLDWON TEXTILES LIMITED on the financial statements for the year ended 31st March, 2012

1. a) The Company has maintained fixed assets register.

b) As explained to us, the fixed assets have not been physically verified by the management.

c) In our opinion, the company has not disposed off substantial part of fixed assets during the year and the going concern status of the company is not affected.

2. Since the company is not in operational during financial year 2011-12 and hence there is no Inventory.

3. a) The Company has not granted any loans, secured or unsecured to the companies, firms or other parties covered in the register maintained U/s.301 of the Companies Act, 1956. Clauses (b), (c) & (d) are not applicable to the Company.

b) The Company has taken unsecured loan from one party covered in the register maintained under section under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. NIL and the year ended balance of loan taken from such party was Rs21, 03,048/- c) In our opinion, the rate of interest and other terms and conditions of such loans are not prima-facie prejudicial to the interest of the company.

d) The loan is repayable on demand.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system 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 system.

5. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements referred to in section 301 of the Companies Act 1956 that need to be entered in the register required to be maintained under that section.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58-A and 58AA or any other relevant provision of the Companies Act 1956 and the rules framed there under.

7. Since the company is non-operational the internal audit system is not in place.

8. We are informed that the Central Government has not prescribed the maintenance of the cost records under section 209 1 (d) of the companies act, 1956 for the products of the company.

9. Since the company is non- operational there are no pending statutory dues as on March 31, 2012.

10. In our opinion, the accumulated losses of the company are more than its net worth. The Company has incurred cash losses during the financial year covered by audit and for the immediately preceding financial year.

11. According to the records of the Company examined by us and the information and explanation given to us, the Company has reached OTS with Secured Creditors.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

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

15. In our opinion and according to the information and explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16. The Company has not raised any new term loans during the year.

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

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statement to be materially misstated.

For C.RAMACHANDRAM & CO.,

CHARTERED ACCOUNTANTS

C.RAMACHANDRAM PARTNER

Membership No.25834

Place: Hyderabad.

Date: 14.08.2012

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Mar 31, 2011

We have audited the attached Balance Sheet of GOLDWON TEXTILES LIMITED as at March 31, 2011, the Profit and Loss Account for the year ended on the date annexed thereto and cash flow statement for the year ended on that date. These financial statements are the responsibility of the management Company. 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 (Auditor's Report) Order, 2003 as amended by the Companies (Auditor’s Report) Order (Amendment) 2004 issued by the Central Government of India in terms of sub-section (4A) Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

Further to our comments in the annexure referred to in paragraph 3 above, we state 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 Account as required by Law have been kept by the Company so far as appears from our examination of those Books:

c. The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the Books of Account of the company:

d. In our opinion, the Balance Sheet and the Profit and Loss account dealt with by this report comply with the Accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956:

e. Based on the representations made by all the Directors of the company as on March 31, 2011 and taken on record by the Board of Director's of the company and in accordance with the information and explanations as made available, the directors of the company do not prima face, have disqualification as referred to in 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, the said accounts give the information required by the companies Act, 1956, in the manner so required, and give a true and fair view in continuity with the accounting principles generally accepted in India subject to:

a. The company has not provided depreciation on fixed assets during the year under review. Due to such non provision, loss for the current financial year has been understated by Rs.70,62,861/- and the accumulated losses of the company are lower by that amount consequently the value of the net block of the fixed assets has been overstated by an amount of Rs.70,62,861/- as on the date of the balance sheet [Refer Note No. 18 of note on accounts].

b. The company is not providing interest on secured creditors loans from 01.04.2005 to 31.03.2011 since reached One time settlement with them. [Refer Note No. 3 of Note on Accounts].

c. The accounts have been prepared on the assumption of going concern basis. [Refer Note No. 2 of note on accounts]

i. in the case of Balance Sheet, of the State of affairs of the company as at March 31, 2011;

ii. in the case of Profit and Loss Account, of the Loss for the year ended on that date and;

iii. in the case of Cash Flow Statement, of the cash flow for the year ended on that date.

1. a) The Company has maintained fixed assets register.

b) As explained to us, the fixed assets have not been physically verified by the management.

c) In our opinion, the company has not disposed off substantial part of fixed assets during the year and the going concern status of the company is not affected.

2. Since the company is not in operation since 2002 and hence there is no Inventory.

3. a) The Company has not granted any loans, secured or unsecured to the companies, firms or other parties covered in the register maintained U/s.301 of the Companies Act, 1956. Clauses (b), (c) & (d) are not applicable to the Company.

b) The Company has taken unsecured loan from one party covered in the register maintained under section under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. NIL and the year ended balance of loan taken from such party was Rs.2,073,048/-.

c) In our opinion, the rate of interest and other terms and condition s of such loans are not prima-facie prejudicial to the interest of the company.

d) The loan is repayable on demand.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system 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 system.

5. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements referred to in section 301 of the Companies Act 1956 that need to be entered in the register required to be maintained under that section.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58-A and 58AA or any other relevant provision of the Companies Act 1956 and the rules framed there under.

7. Since the company is non-operational the internal audit system is not in place.

8. We are informed that the Central Government has not prescribed the maintenance of the cost records under section 209 1 (d) of the companies act, 1956 for the products of the company.

9. Since the company is non- operational there are no pending statutory dues as on March 31, 2011.

10. In our opinion, the accumulated losses of the company are more than its net worth. The Company has incurred cash losses during the financial year covered by audit and for the immediately preceding financial year.

11. According to the records of the Company examined by us and the information and explanation given to us, the Company has reached OTS with Secured Creditors.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

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

15. In our opinion and according to the information and explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16. The Company has not raised any new term loans during the year.

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

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statement to be materially misstated.

For C.RAMACHANDRAM & CO., CHARTERED ACCOUNTANTS

C.RAMACHANDRAM PARTNER

Membership No.25834

Place: Hyderabad. Date: 17th Aug 2011

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Mar 31, 2010

We have audited the attached Balance Sheet of GOLDWON TEXTILES LIMITED as at March 31, 2010, the Profit and Loss Account for the year ended on the date annexed thereto and cash flow statement for the year ended on that date. These financial statements are the responsibility of the management Company. 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 issued by the Central Government of India in terms of sub-section (4A) Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

Further to our comments in the annexure referred to in paragraph I above, we state 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 Account as required by Law have been kept by the Company so far as appears from our examination of those Books:

c. The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the Books of Account of the company:

d. In our opinion, the Balance Sheet and the Profit and Loss account dealt with by this report comply with the Accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956:

e. Based on the representations made by all the Directors of the company as on March 31, 2010 and taken on record by the Board of Directors of the company and in accordance with the information and explanations as made available, the directors of the company do not prima face, have disqualification as referred to in 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, the said accounts give the information required by the companies Act, 1956, in the manner so required subject to:

a. The company has not provided depreciation on fixed assets during the year under review. Due to such non provision, loss for the current financial year has been understated by Rs. 70,62,355/- and the accumulated losses of the company are lower by that amount consequently the value of the net block of the fixed assets has been overstated by an amount of Rs. 70,62,355/- as on the date of the balance sheet [Refer Note No. 18 of note on accounts].

b. The company is not providing interest on secured creditors loans from 01.04.2005 to 31.03.2010 since reached One time settlement with them. [Refer Note No. 3 of Note on Accounts].

c. The accounts have been prepared on the assumption of going concern basis. [Refer Note No. 2 of note on accounts]

and give a true and fair view in continuity with the accounting principles generally accepted in India:

i. in the case of Balance Sheet, of the State of affairs of the company as at

March 31, 2010;

ii. in the case of Profit and Loss Account, of the Loss for the year ended on that date and;

iii. in the case of Cash Flow Statement, of the cash flow for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

1. a) The Company has not maintained fixed assets register.

b) As explained to us, the fixed assets have not been physically verified by the management.

c) In our opinion, the company has not disposed off substantial part of fixed assets during the year and the going concern status of the company is not affected.

2. Since the company is not in operational during financial year 2009-10 and hence there is no Inventory.

3. a) The Company has not granted any loans, secured or unsecured to the companies, firms or

other parties covered in the register maintained U/s.301 of the Companies Act, 1956. Clauses (b), (c) & (d) are not applicable to the Company.

b) The Company has taken unsecured loan from one party covered in the register maintained under section under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. NIL and the year ended balance of loan taken from such party was Rs.2,073,048- c) In our opinion, the rate of interest and other terms and condition s of such loans are not prima-facie prejudicial to the interest of the company.

d) The loan is repayable on demand.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system 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 system.

5. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements referred to in section 301 of the Companies Act 1956 that need to be entered in the register required to be maintained under that section.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58-A and 58AA or any other relevant provision of the Companies Act 1956 and the rules framed there under.

7. Since the company is non-operational the internal audit system is not in place.

8. We are informed that the Central Government has not prescribed the maintenance of the cost records under section 209 1 (d) of the companies act, 1956 for the products of the company.

9. Since the company is non- operational there are no pending statutory dues as on March 31, 2010.

10. In our opinion, the accumulated losses of the company are more than its net worth. The Company has incurred cash losses during the financial year covered by audit and for the immediately preceding financial year.

11. According to the records of the Company examined by us and the information and explanation given to us, the Company has reached OTS with Secured Creditors.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

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

15. In our opinion and according to the information and explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16. The Company has not raised any new term loans during the year.

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

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statement to be materially misstated.

For C.RAMACHANDRAM & CO., CHARTERED ACCOUNTANTS C.RAMACHANDRAM PARTNER Membership No.25834

Place: Hyderabad. Date: 17th Aug 2010

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Mar 31, 2009

We have audited the attached Balance Sheet of GOLDWON TEXTILES LIMITED as at March 31, 2009, the Profit and Loss Account for the year ended on the date annexed thereto and cash flow statement for the year ended on that date. These financial statements are the responsibility of the management Company. 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 issued by the Central Government of India in terms of sub-section (4A) Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

Further to our comments in the annexure referred to in paragraph I above, we state 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 Account as required by Law have been kept by the Company so far as appears from our examination of those Books:

c. The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the Books of Account of the company:

d. In our opinion, the Balance Sheet and the Profit and Loss account dealt with by this report comply with the Accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956:

e. Based on the representations made by all the Directors of the company as on March 31,2009 and taken on record by the Board of Directors of the company and in accordance with the information and explanations as made available, the directors of the company do not prima face, have disqualification as re Ted to in 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, the said accounts give the information required by the companies Act, 1956, in the manner so required subject to:

a. The company has not provided depreciation on fixed assets during the year under review. Due to such non provision, loss for the current financial year has been understated by Rs. 70,62,355/- and the accumulated losses of the company are lower by that amount consequently the value of the net block of the fixed assets has been overstated by an amount ofRs. 70,62,355/- as on the date of the balance sheet [Refer Note No. 18 of note on accounts].

b. The company is not providing interest on secured creditors loans from 01.04.2005 to 31.03.2009 since reached One time settlement with them. [Refer Note No. 3 of Note on Accounts].

c. The accounts have been prepared on the assumption of going concern basis. [Refer Note No. 2 of note on accounts] and give a true and fair view in continuity with the accounting principles generally accepted in India:

i. in the case of Balance Sheet, of the State of affairs of the company as at March 31,2009;

ii. in the case of Profit and Loss Account, of the loss for the year ended on that date and;

iii. in the case of Cash Flow Statement, of the cash flow for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

1. a) The Company has not maintained fixed assets register.

b) As explained to us, the fixed assets have not been physically verified by the management.

c) In our opinion, the company has not disposed off substantial part of fixed assets during the year and the going concern status of the company is not affected.

2. Since the company is not in operational during financial year 2008-09 and hence there is no Inventory.

3. a) The Company has not granted any loans, secured or unsecured to the companies, firms or other parties covered in the register maintained U/s.301 of the Companies Act, 1956.

Clauses (b), (c) & (d) are not applicable to the Company.

b) The Company has taken unsecured loan from one party covered in the register maintained under section under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. NIL and the year ended balance of loan taken from such party was Rs.19, 06,448/-

c) In our opinion, the rate of interest and other terms and condition s of such loans are not prima-facie prejudicial to the interest of the company.

d) The loan is repayable on demand.

4. In our opinion and according to the information and explanations given to us, there is adequate internal control system 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 system.

5. In our opinion and according to the information and explanations given to us, there are no contracts or arrangements referred to in section 301 of the Companies Act 1956 that need to be entered in the register required to be maintained under that section.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58-A and 58AA or any other relevant provision of the Companies Act 1956 and the rules framed there under.

7. Since the company is non-operational the internal audit system is not in place.

8. We are informed that the Central Government has not prescribed the maintenance of the cost records under section 209 1 (d) of the companies act, 1956 for the products of the company.

9. Since the company is non- operational there are no pending statutory dues as on March 31, 2009.

10. In our opinion, the accumulated losses of the company are more than its net worth. The Company has incurred cash losses during the financial year covered by audit and for the immediately preceding financial year.

11. According to the records of the Company examined by us and the information and explanation given to us, the Company has reached OTS with Secured Creditors.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

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

15. In our opinion and according to the information and explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16. The Company has not raised any new term loans during the year.

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

18. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19. The Company has not issued any debentures during the year.

20. The Company has not raised any money by way of public issue during the year.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statement to be materially misstated.

For C.RAMACHANDRAM & CO., CHARTERED ACCOUNTANTS

C.RAMACHANDRAM

PARTNER Membership No.25834

Place & Date: Hyderabad, 17th Aug 2009