Hartron Communications Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2014

1. Report on the Financial Statements

We have audited the accompanying financial statements of HARTRON COMMUNICATIONS LTD., Panchkula ("the Company") which comprise the Balance Sheet as at 31st March 2014 and the Statement of Profit and Loss Account and Cash Flow Statement for the year then ended, and a summary of significant accounting polices 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 and financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Sub-Section (3C) of section 211 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 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, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. 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. Basis of Qualified Opinion

i. AS-15 regarding accounting for retirement benefits i.e. provision for retirement benefits has not been made (Refer Note (1.7)).

ii. Further we have relied upon the management representations relating to disclosures regarding impairment of assets as stated in Note No. - 6 in Schedule to the Balance Sheet.

iii. Debit & credit balances in the accounts of debtors, suppliers and few banks are subject to their respective confirmation and reconciliation (Note -3).

The effect of items mentioned at paragraph 4(i) and (ii) above on profit for the year, assets, liabilities and reserves in unascertainable.

5. Auditor''s Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effect of the matters described in the Basis of Qualified Opinion paragraph the effect of which is unascertainable and read together with the other notes, give the information required by the Act in the manner so required and give a true and fair view conformity with the accounting principles generally accepted in India.

a. in the case of Balance Sheet of the state of affairs of the company as at 31st March, 2014.

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

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

6. Report on Other Legal and Regulatory Requirements

A. As required by Companies (Auditor''s Report) order 2003 ("the Order") issued by the Central Government of India in terms of sub-section 227 (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.

B. 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 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, 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 Balance Sheet statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956.

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

ANNEXURE TO THE AUDITOR''S REPORT

(Referred in the paragraph (6) 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) As per the information and explanations given to us, the fixed assets have been physically verified by the management during the year and to the best of our knowledge no material discrepancies between the book records and physical inventory verification has been noticed during the year.

c) During last year, the company had demolished one of the buildings at Plot No. 244-245 and a sum of Rs. 246.64 lacs was written off. A new Modern multistoried building is under construction on the same site.

ii. a) The management has conducted physical verification of inventory at reasonable intervals.

b) The procedure of physical verification of stock followed by management is reasonable & adequate in relation to the size of the company & nature of its business.

c) No significant discrepancies between the book records & physical inventories have been noticed.

iii. a.) The company has not granted any loans, secured/unsecured to other parties covered in the register maintained under section 301 of the Act.

b. Since the Company has not granted any loans as explained above, the applicability of rate of interest and other terms & conditions does not arise.

c. Since the Company has not granted any loans as explained above, question of repayment of principal amount & interest does not arise.

d. Since the Company has not granted any loans as explained above, question of any overdue amount does not arise.

e & f. The company has not taken any interest free unsecured loan from Directors & other parties covered in the register maintained under section 301 of the Act during the year where the terms and conditions are not prima- facie prejudicial to the interests of the company. As informed to us as no written agreement has been entered into between the company & the lenders. There are four such parties from whom loan has been accepted. The amount involved is Rs.249236/-.

g. These loans are repayable on demand & as informed to us the payments are made as & when demanded.

iv. a) 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 for the purchase of inventories plant & machinery and other assets and for the sale of goods & services.

b. As there are no major weaknesses in the internal control procedures so question of correcting them does not arise.

v. a) The particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

b. Not applicable.

vi) The company has not accepted any deposits from the public within the preview of section 58A, 58AA & any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

vii) The company has internal audit system commensurate with its size and nature of its business.

viii) As informed to us, the Central Govt. has not prescribed the maintenance of cost records under section 209(1) (d) of The Companies Act, 1956 to the company.

ix) As explained to us there are no disputed statutory dues outstanding for a period of more than 6 months. The company has been regular in depositing undisputed statutory dues i.e. P.F, ESI, Service tax & other statutory dues with appropriate authorities except delay on few occasions.

x) The company has no accumulated losses at the end of the financial year. It has not incurred cash losses in the financial year under report and the immediately preceding financial year.

xi) On the basis of the records examined by us and the information & explanation given to us the company has not defaulted in repayment of dues to bank and financial institution.

xii) As explained to us the company has not granted any loan and advances on the basis of security by way of pledge of shares, debentures or any other security.

xiii) In our pinion the company is not a chit fund or a Nidhi/Mutual benefit fund/Society. Therefore the provisions of clause 4(xiii) of the companies (Auditor''s) Report 2003 are not applicable to the company.

xiv) According to the information and explanation given by the management the company is not dealing in or trading in shares, securities, debentures and other investments.

xv) In our opinion the company has not given any guarantees for loans taken by associate concerns.

xvi) In our opinion & on the basis of information & explanation given to us, term loan raised during the year has been used for purpose for which these were raised.

xvii) The company has not been raised any short term unsecured loans.

xviii) During the year The company has not made preferential allotment of shares to parties covered in the register maintained Under Section 301 of the Act.

xix) During the financial year the company did not issue any debentures. Hence the provisions of clause 4 (xix) of the companies (Auditors Report) order 2003 is not applicable to the company.

xx) The company has not raised any money by way of public issue during the year. Accordingly the provisions of clause 4 (xx) of the Companies (Auditor''s Report) order 2003 on the end use of money are not applicable to company.

xxi) According to 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 VINOD KUMAR & ASSOCIATES CHARTERED ACCOUNTANTS

(PARTNER) Pardeep Diwan PLACE : CHANDIGARH M. No. 086687 DATED : 26.05.2014 FRN. 00234N

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. HARTRON COMMUNICATIONS LTD., Panchkula as at 31st March 2012 and the Profit & Loss Statement 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 except point no.4 (d) of the audit report as discussed in the following paragraph.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. These standards require 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 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.

3. As required by the companies (Auditor's Report) order 2003 issued by the Central Government of India in terms of Sub. Section (4A) of section 227 of the companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order to the extent applicable.

4. Further to our comments in the Annexures referred to in paragraphs (3) above : -

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 have been kept by the Company as required by law so far as it appears from our examination of these books.

c) The Balance Sheet the Profit & Loss Statement and cash flow statement dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and the Profit & Loss Statement comply with the mandatory accounting standards referred to in section 211(3) © of Companies Act, 1956 except :

I. AS-15 regarding accounting for retirement benefits i.e. provision for retirement benefits has not been made (Refer Note I (1.7)).

ii. Further we have relied upon the management representations relating to disclosures regarding impairment of assets as stated in Note No. – 8 in Schedule to the Balance Sheet.

iii. Debit & credit balances in the accounts of debtors, suppliers and few banks are subject to their respective confirmation and reconciliation (Note –5).

e) On the basis of written representations from all the directors, taken on record by the board of directors, none of the directors is disqualified as on 31.03.2012 from being appointed as a director under section 274 (i)(g) of The Companies Act, 1956.

f) Subject to above, we report that in our opinion and to the best of our information and according to the explanations given to us, the annexed accounts read together with notes thereon 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 Balance Sheet of the state of affairs of the company as at 31st March, 2012, and

ii) in the case of Profit and Loss Statement of the Profit of the company for the year ended on that date.

iii) in the case of the cash flow statement of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITOR’S REPORT

(Referred in the 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) As per the information and explanations given to us, the fixed assets have been physically verified by the management during the year and to the best of our knowledge no material discrepancies between the book records and physical inventory verification has been noticed during the year.

c) The company has not disposed off any substantial part of fixed assets during the year.

ii a) The management has conducted physical verification of inventory at reasonable intervals.

b) The procedure of physical verification of stock followed

by management is reasonable & adequate in relation to the size of the company & nature of its business.

c) No significant discrepancies between the book records & physical inventories have been noticed.

iii.a.) The company has not granted any loans, secured/unsecured to other parties covered in the register maintained under section 301 of the Act.

b. Not applicable.

c. Not applicable.

d. Not applicable.

e & f. The company has not taken any interest free unsecured loan from directors & other parties covered in the register maintained under section 301 of the Act during the year where the terms and conditions are not prima-facie prejudicial to the interests of the company. As informed to us as no written agreement has been entered into between the company & the lenders. There are four such parties from whom loan has been accepted. The amount involved is Rs.249236/-.

g. These loans are repayable on demand & as informed to us the payments are made as & when demanded.

iv.a) 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 for the purchase of inventories plant & machinery and other assets and for the sale of goods & services.

b. As there are no major weaknesses in the internal control procedures so question of correcting them does not arise.

v.a) The particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

b. Not applicable.

vi) The company has not accepted any deposits from the public within the preview of section 58A, 58AA & any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

vii) The company has internal audit system commensurate with its size and nature of its business.

viii) As informed to us, the Central Govt. has not prescribed the maintenance of cost records under section 209(1) (d) of The Companies Act, 1956 to the company.

ix) As explained to us there are no disputed statutory dues outstanding for a period of more than 6 months. The company has been regular in depositing undisputed statutory dues i.e. P. F, ESI, Service tax & other statutory dues with appropriate authorities except delay on few occasions.

x) The company has no accumulated losses at the end of the financial year. It has not incurred cash losses in the financial year under report and the immediately preceding financial year.

xi) On the basis of the records examined by us and the information & explanation given to us the company has not defaulted in repayment of dues to bank and financial institution.

xii) As explained to us the company has not granted any loan and advances on the basis of security by way of pledge of shares, debentures or any other security.

xiii) In our pinion the company is not a chit fund or a Nidhi/Mutual benefit fund/Society. Therefore the provisions of clause 4(xiii) of the companies (Auditor's) Report 2003 are not applicable to the company.

xiv) According to the information and explanation given by the management the company is not dealing in or trading in shares, securities, debentures and other investments.

xv) In our opinion the company has not given any guarantees for loans taken by associate concerns.

xvi) In our opinion & on the basis of information & explanation given to us, term loan raised during the year has been used for purpose for which these were raised.

xvii) The company has not been raised any short term unsecured loans.

xviii) During the year The company has not made preferential allotment of shares to parties covered in the register maintained Under Section 301 of the Act.

xix) During the financial year the company did not issue any debentures. Hence the provisions of clause 4 (xix) of the companies (Auditors Report) order 2003 is not applicable to the company.

xx) The company has not raised any money by way of public issue during the year. Accordingly the provisions of clause 4 (xx) of the Companies (Auditor's Report) order 2003 on the end use of money are not applicable to company.

xxi) According to 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 VINOD KUMAR & ASSOCIATES CHARTERED ACCOUNTANTS

Partner

Pardeep Diwan

M. No. 086687 FRN 00234N

PLACE : CHANDIGARH DATED : 23/08/2012

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Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. HARTRON COMMUNICATIONS LTD., Panchkula as at 31 st March 2010 and the 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 except point no.4 (d) of the audit report as discussed in the following paragraph.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. These standards require 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 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.

3. 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 to the extent applicable.

4. Further to our comments in the Annexures referred to in paragraphs (3) above: -

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 have been kept by the Company as required by law so far as it appears from our examination of these books.

c) The Balance Sheet the 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 and the Profit & Loss Account comply with the mandatory accounting standards referred to in section 211 (3) © of Companies Act, 1956 except:

I. AS -2 regarding valuation of stock i.e. the stocks being of technical & obsolete in nature, the realisable value there of could not be confirmed. Moreover the Raw Material has been valued at realisable value instead of cost. (Refer note 1 (d))

ii. AS-15 regarding accounting for retirement benefits i.e. provision for retirement benefits has not been made (Refer Note I (g)).

iii. Further we have relied upon the management representations relating to disclosures regarding impairment of assets as stated in Note No. - 12 in Schedule to the Balance Sheet.

iv. Debit & credit balances in the accounts of debtors, suppliers and few banks are subject to their respective confirmation and reconciliation (Note -7).

e) On the basis of written representations from all the directors, taken on record by the board of directors, none of the directors is disqualified as on 31.03.2010 from being appointed as a director under section 274 (i)(g) of The Companies Act, 1956.

f) Subject to above, we report that in our opinion and to the best of our information and according to the explanations given to us, the annexed accounts read together with notes thereon 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 Balance Sheet of the state of affairs of the company as at 31 st March, 2010, and

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

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

(Referred in the 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) As perthe information and explanations given to us, the fixed assets have been physically verified by the management during the year and to the best of our knowledge no material discrepancies between the book records and physical inventory verification has been noticed during the year.

c) The company has not disposed off any substantial part of fixed assets during the year.

iia) The management has conducted physical verification of inventory at reasonable intervals.

b) The procedure of physical verification of stock followed by management is reasonable & adequate in relation to the size of the company & nature of its business.

c) No significant discrepancies between the book records & physical inventories have been noticed.

iii.a.) The company has not granted any loans, secured/unsecured to other parties covered in the register maintained under section 301 of the Act.

b. Not applicable.

c. Not applicable.

d. Not applicable.

e&f.The company has taken interest free unsecured loan from directors & other parties covered in the register maintained under section 301 of the Act during the year where the terms and conditions are not prima-facie prejudicial to the interests of the company. As informed to us as no written agreement has been entered into between the company & the lenders. There are four such parties from whom loan has been accepted. The amount involved is Rs. 1224236/.

g. These loans are repayable on demand & as informed to us the payments are made as & when demanded. iv.a)ln 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 for the purchase of inventories plant & machinery and other assets and for the sale of goods & services.

b. As there are adequate and effective procedure in place for the internal control measures so question of correcting them does not arise.

v.a)The particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

b. Not applicable.

vi) The company has not accepted any deposits from the public within the preview of section 58A, 58AA & any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

vii) The company has internal audit system commensurate with its size and nature of its business.

viii) As informed to us, the Central Govt, has not prescribed the maintenance of cost records under section 209(1) (d) of The Companies Act, 1956 to the company.

ix) As explained to us there are no disputed statutory dues outstanding for a period of more than 6 months. The company has been regular in depositing undisputed statutory dues i.e. RF, ESI, Service tax & other statutory dues with appropriate authorities except delay on few occasions.

x) The company has no accumulated losses at the end of the financial year. It has not incurred cash losses in the financial year under report and the immediately preceding financial year.

xi) On the basis of the records examined by us and the information & explanation given to us the company has not defaulted in repayment of dues to bank and financial institution.

xii) As explained to us the company has not granted any loan and advances on the basis of security by way of pledge of shares, debentures or any other security.

xiii) In our pinion 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 2003 are not applicable to the company.

xiv) According to the information and explanation given by the management the company is not dealing in or trading in shares, securities, debentures and other investments.

xv) In our opinion the company has not given any guarantees for loans taken by associate concerns.

xvi) In our opinion & on the basis of information & explanation given to us, term loan raised during the year has been used for purpose for which these were raised.

xvii)The company has not raised short term unsecured loans which has been used in construction/renovation of building.

xviii)During the year The company has not made preferential allotment of shares to parties covered in the register maintained Under Section 301 of the Act.

xix) During the financial year the company did not issue any debentures. Hence the provisions of clause 4 (xix) of the companies (Auditors Report) order 2003 is not applicable to the company.

xx) The company has not raised any money by way of public issue during the year. Accordingly the provisions of clause 4

(xx) of the Companies (Auditors Report) order 2003 on the end use of money are not applicable to company.

xxi) According to 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 Vinod Kumar & Associates CHARTERED ACCOUNTANTS PLACE: CHANDIGARH FRN00234N

DATED: 19-07-2010

Pardeep Diwan (PARTNER) M.No. 86687

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Mar 31, 2009

1. We have audited the attached Balance Sheet of M/s. HARTRON COMMUNICATIONS LTD., Panchkula as at 31st March 2009 and the 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 except point no.4 (d) of the audit report as discussed in the following paragraph.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. Art 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.

3. 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 to the extent applicable.

4. Further to our comments in the Annexures referred to in paragraphs (3) above: -

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 have been kept by the Company as required by law so far as it appears from our examination of these books.

c) The Balance Sheet the 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 and the Profit & Loss Account comply with the mandatory accounting standards referred to in section 211 (3) © of Companies Act, 1956 except:

I. AS -2 regarding valuation of stock i.e. the stocks being of technical & obsolete in nature, the realisable value there of could not be confirmed. Moreover the Raw Material has been valued at realisable value instead of cost. (Refer note 1 (d))

ii. AS-15 regarding accounting for retirement benefits i.e. provision for retirement benefits has not been made (Refer Note I (g)).

iii. Further we have relied upon the management representations relating to disclosures regarding impairment of assets as stated in Note No. - 12 in Schedule to the Balance Sheet.

iv. Debit & credit balances in the accounts of debtors, suppliers and few banks are subject to their respective confirmation and reconciliation (Note -7).

e) On the basis of written representations from all the directors, taken on record by the board of directors, none of the directors is disqualified as on 31.03.2009 from being appointed as a director under section 274 (i)(g) of The Companies Act, 1956.

f) Subject to above, we report that in our opinion and to the best of our information and according to the explanations given to us, the annexed accounts read together with notes thereon 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 Balance Sheet of the state of affairs of the company as at 31 st March, 2009, and ii) in the case of Profit and Loss Account of the Profit of the company for the year ended on that date.

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 (Referred in the 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) As per the information and explanations given to us, the fixed assets have been physically verified by the management during the year and to the best of our knowledge no material discrepancies between the book records and physical inventory verification has been noticed during the year.

c) The company has not disposed off any substantial part of fixed assets during the year.

iia) The management has conducted physical verification of inventory at reasonable intervals.

b) The procedure of physical verification of stock followed by management is reasonable & adequate in relation to the size of the company & nature of its business.

c) No significant discrepancies between the book records & physical inventories have been noticed.

iii.a.) The company has not granted any loans, secured/unsecured to other parties covered in the register maintained under section 301 of the Act.

b. Not applicable.

c. Not applicable.

d. Not applicable.

e&f.The company has taken interest free unsecured loan from directors & other parties covered in the register maintained under section 301 of the Act during the year where the terms and conditions are not prima-facie prejudicial to the interests of the company. As informed to us as no written agreement has been entered into between the company & the lenders. There are four such parties from whom loan has been accepted. The amount involved is Rs. 1224236/- and Rs. 6679196/- has been repaid by the company during the year.

g. These loans are repayable on demand & as informed to us the payments are made as & when demanded. iv.a)ln 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 for the purchase of inventories plant & machinery and other assets and for the sale of goods & services.

b. As there are adequate and effective procedure in place for the internal control measures so question of correcting them does not arise.

v.a)The particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that section.

b. Not applicable.

vi) The company has not accepted any deposits from the public within the preview of section 58A, 58AA & any other relevant provisions of the Companies Act, 1956 and the rules framed thereunder.

vii) The company has internal audit system commensurate with its size and nature of its business.

viii) As informed to us, the Central Govt, has not prescribed the maintenance of cost records under section 209( 1) (d) of The Companies Act, 1956 to the company.

ix) As explained to us there are no disputed statutory dues outstanding for a period of more than 6 months. The company has been regular in depositing undisputed statutory dues i.e. RF, ESI, Service tax & other statutory dues with appropriate authorities except delay on few occasions.

x) The company has no accumulated losses at the end of the financial year. It has not incurred cash losses in the financial year under report and the immediately preceding financial year.

xi) On the basis of the records examined by us and the information & explanation given to us the company has not defaulted in repayment of dues to bank and financial institution.

xii) As explained to us the company has not granted any loan and advances on the basis of security by way of pledge of shares, debentures or any other security.

xiii) In our pinion 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 2003 are not applicable to the company.

xiv) According to the information and explanation given by the management the company is not dealing in or trading in shares, securities, debentures and other investments.

xv) In our opinion the company has not given any guarantees for loans taken by associate concerns.

xvi) In our opinion & on the basis of information & explanation given to us, term loan raised during the year has been used for purpose for which these were raised.

xvii)The company has raised short term unsecured loans which has been used in construction/renovation of building.

xviii)During the year The company has not made preferential allotment of shares to parties covered in the register maintained Under Section 301 of the Act.

xix) During the financial year the company did not issue any debentures. Hence the provisions of clause 4 (xix) of the companies (Auditors Report) order 2003 is not applicable to the company.

xx) The company has not raised any money by way of public issue during the year. Accordingly the provisions of clause 4

(xx) of the Companies (Auditors Report) order 2003 on the end use of money are not applicable to company.

xxi) According to 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 Vinod Kumar & Associates CHARTERED ACCOUNTANTS PLACE: CHANDIGARH DATED: 10th Aug., 2009 (PARTNER)