Harsh Polymers (India) Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2014

1. We have audited the attached Balance Sheet of Harsh Polymers (India) LTD. as at March 31,2014 and also the Statement of Profit and Loss and also the''Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 the significant estimates made by the management, as well as evaluating the overall financial tatements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies, (Auditor''s Report) Order, 2003 issued by the Central Government in terms of section 227 (4A) of the Companies Act, 1956, we annex hereto as statement on the matters specified in paragraph 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to in paragraph 3 above, 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 the Statement of Profit and Loss dealt with by this report are in agreement with the books of account;

d) In our opinion the Balance Sheet and the Statement of Profit and Loss 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) On the basis of 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 a director in terms of 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 Accounts read with significant Accounting Policies and Notes to Accounts, give the information as 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:

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014.

(ii) In the case of the statement of Profit and Loss, of the profit of the Company for the year ended on that date.

(iii) In the case of Cash Flow Statement, of the Cash Flows for ihe year ended on that date.

ANNEXURE TO THE AUDITOR''S REPORT

Referred to in paragraph one of our Report of even date on the accounts of Harsh Polymers (India) Ltd. For the year ended 315t March, 2014. As required by the Companies (Auditor''s Report) Order, 2003 and according to information and explanations given to us during the course of the audit and on the basis of such checks we considered appropriate, we report that:

1. The Company has maintained proper records showing full particulars including quantitative details and the situation of fixed assets. These assets have been physically verified by the management periodically at reasonable intervals, which in our opinion is reasonable having regard to the size of the company and the nature of its business. No material discrepancies were noticed on such verification.

2. All Fixed Assets have been sold during the year.

3. There is no Stock of Finished goods, spare parts, raw and packing material etc, at the year end.

4. The Procedures followed by management for Physical Verification of Stocks are reasonable and adequate in relation to size of the company and nature of its business.

5. According to the information given, no discrepancies are noticed on physical verification of Stocks as compared to the books records.

6. In our opinion the procedure for valuation of stocks is fair and proper in accordance with the normally accepted accounting principles. However there is no stock at the year end.

7. The Company has taken loan from a Company Covered in the Register maintained under section 301 of the Companies Act, 1956. The Maximum amount involved during the year was Rs.62.44 Lac and Loan from Director of an amount Rs. 12.55 Lac. All such loan taken by the company has been repaid during the year. In our opinion and according to the information and explanations given to us the terms and condition on which loan has been taken are not, prime facie, prejudicial to the interest of the company.

8. The Company has not granted any loans to companies, firm or other parties listed in the register maintained under section 301 of the companies Act, 1956.

9. The company maintains records for issue, and consumption of Stores, raw materials including components; However there is need for strict control procedures commensurate with the size of the company and nature of its business so as to ensure proper control.

10. In our opinion and according to the information and explanations given to us, the transaction of purchase of goods and materials and sale of goods, material and services made in pursuance of contract or arrangement entered in the register maintained under section 301 of the Companies Act, 1956, and aggregating during the year to Rs. 50000 or more in respect of each party have been made at price which are reasonable having regard to the prevailing market price for such goods, materials and service or the prices at which transaction for similar goods, materials or services have been made with other parties.

11. The Company has maintained proper records regarding unserviceable stores & raw materials. There being no major discrepancies, so no provision has been made in the accounts.

12. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits during the year from the public, during the periods covered by our audit reports, to which the provisions of section 58A and 58 AA of the Companies Act, 1956, and the rule made there under would apply.

13. In our opinion reasonable records have been maintained for the sale and disposals of scraps. The Company has no by- products.

14. According to the information and explanation given to us, the central government has not prescribed for maintenance of cost records under section 209(1) (d) of Companies Act, 1956 for any products manufactured by the company.

15. The Company has accumulated losses to the tune of Rs. 498.04 lac. The Company has incurred cash losses during the financial year covered by our audit and also the immediately preceding financial year.

16. According to information and explanation given to us, no Undisputed amounts payable in respects of Income-Tax, Sales- Tax, Wealth-Tax, Custom-Duty and Excise-Duty were outstanding as at March31,2014 for a periods more than six months from the date they become payable.

17. In our opinion, the Company is not a Chit Fund/ Mutual benefit fund/ Society. Therefore the provision of clause 4(xiii) of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

18. In our opinion and according to information and explanation given to us, the Company is not dealing in or trading in Shares, Securities, Debentures and other Investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

19. On the basis of the Examination of the books of accounts carried out by us in accordance with generally accepted auditing practice and according to the information and explanations given to us, no Personal Expenses of employees/ Directors been charged to the profit and loss account, other than those payable under contractual obligation or accepted business practice.

20. In our opinion and according to information and explanation given to us, and on an overall examination of the balance sheet of the company, we report that no funds on short term basis have been used for Long Term Investment and vice-versa.

21. According to the Information and explanation given to us, the Company has not made any preferential Allotment of Share to Parties and Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

22. In our opinion and according to information and explanation given to us, the Company has not issued any Secured Debentures during the period covered by our report. Accordingly, the Provisions of clause 4(xix) of the Companies (Auditor Report) Order, 2003 are not applicable to the company.

23. During the period covered by our Audit report, the Company has not raised any money by Public Issue.

For, Nikunj H. Shah & Co. Chartered Accountants Nikunj H. Shah Proprietor Place : Ahmedabad Membership No. 131415 Date : 30/05/2014 FRN: 131307W

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Mar 31, 2010

We have audited the attached Balance sheet of Harsh Polymers (India) Ltd. as at 31st March 2010 and Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the 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 disclosure 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 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, 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:

(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 and records as required by law have been kept so far as appears from our examination of those books;

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

(d) In our opinion the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in Sub-section (3C) of section 211 of the Companies Act, 1956;

(e) 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, prima-facie, disqualified as on above date from being appointed as a Director 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, the said accounts, read together with the notes, schedules attached thereto and Statement on Accounting Policies 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:

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2010,

(ii) In the case of the Profit and Loss Account, of the Loss for the year ended on that date and

(iii) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Annexure to the Auditors Report dated 31st July, 2010

Referred to in paragraph one of the Auditors Report on the Accounts of Harsh Polymers (India) Ltd. for the year ended March 31,2010.

(1) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets. Based on the programme of physically verification, fixed assets have been physically verified by the management during the year and as explained to us no serious discrepancy been noticed on such physical verification.

(2) None of the Fixed Assets have been revalued during the year.

(3) There is no stock of finished goods, spares parts, raw and packing materials etc, at the year end.

(4) The Procedures followed by the Management for Physical verification of Stocks are reasonable and adequate in relation to the size of the Company and the nature of its business.

(5) According to the information given, no discrepancies are noticed on physical verification of stocks as compared to the book records.

(6) In our opinion the procedure for valuation of stocks is fair and proper in accordance with the normally accepted accounting principles. However there is no stock at the year-end.

(7) The Company has taken loan from a Company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 55.45 lac and at the end of the year balance of loan taken from such company was Rs. 55.45 Lac. In our opinion and according to the information and explanations given to us, the terms and conditions on which loan has been taken are not, prima facie, prejudicial to the interest of the Company.

(8) The Company has not granted any loans to Companies, firm or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

(9) The Company maintain records for issue, and consumption of stores, raw materials including components, However there is need for strict control procedures commensurate with the size of the Company and nature of the business so as to ensure proper control.

(10) In our opinion and according to the explanations given to us, the transaction of Purchase of goods and materials and Sale of goods, materials and services made in pursuance of contract or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956, and aggregating during the year to Rs. 50,000 or more in respect of each party have been made at price which are reasonable having regard to the prevailing market price for such goods, materials and services or the prices at which transactions for similar goods, materials or services have been made with other parties.

(11) The Company has maintained proper records regarding unserviceable stores & raw materials. There being no major discrepancies, So no provision has been made in the accounts.

(12) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit form the public, during the period covered by our audit report, to which the provisions of the Section 58A and 58AA of the Companies Act 1956, and the rules made there under would apply.

(13) In our opinion reasonable records have been maintained for the sale and disposal of Scrap. The Company has no by- products.

(14) According to the information and explanations given to us, the Central Government has not prescribed for maintenance of cost records under section 209 (1) (d) of Companies Act, 1956 for any products manufactured by the Company.

(15) The Company has accumulated losses to the tune of Rs. 442.58 lac. The Company has incurred cash losses during the financial year covered by our audit and also the immediately preceding financial year.

(16) According to information and explanation given to us, no undisputed amounts payable in respect of Income-tax, Sales-tax, Wealth-tax, Custom-duty and Excise duty were outstanding as at March 31,2010 for a period more than six months from the date they become payable.

(17) 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, 2003 are not applicable to the Company.

(18) In our opinion and according to the information and explanations given to us, 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.

(19) On the basis of the examination of the books of account carried out by us in accordance with generally accepted auditing practices and according to the information and explanations given to us, no Personal Expenses of Employees / Directors been charged to the Profit & Loss account, other than those payable under contractual obligation or accepted business practice.

(20) In our opinion and 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 on Short-Term basis have been used for Long- Term investment and vice- versa.

(21) According to the information and explanations given to us, the Company has not made any Preferential Allotment of Shares to Parties and Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

(22) In our opinion and according to the information and explanations given to us, the Company has not issued any Secured Debentures during the period covered by our report. Accordingly, the provisions of clause 4 (xix) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

(23) During the period covered by our audit report, the Company has not raised any money by Public Issue.

For Khese Associates

Chartered Accountants,

Date : July 31, 2010 Umesh Khese

Place : Ahmedabad (Proprietor)