Himgiri Foods Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2010

1. We have audited the attached balance sheet of Himgiri Foods Limited as at 31st March 2010, that profit and 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 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 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.

3. As required by the Companies (Auditor's Report) order 2003 issued by the Central Government of Indian 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.

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

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

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

(iii) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account.

(iv) In our opinion, 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.

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

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with note no.6 regarding sale of plant & machinery by bank note no.7 regarding insurance claim and note no. 8 regarding litigation with Dena Bank and other notes thereon gives the information required under the companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India

(a) in the case of the balance sheet, of the state of affairs of the company as at 31st March 2010.

(b) in the case of the profit and loss account, of the loss 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.

ANNEXURE TO THE AUDITORS REPORT Re. HIMGIRI FOODS LIMITED (Financial Year 2009-2010) Referred to in paragraph 3 of our report of even date.

(i) Most of the assets has been sold by the Bank and the company is maintaining proper record showing full particulars including quantitative details and situation of fixed assets.

(ii) There is no inventory on the date of Balance sheet.

(iii) The Company has not granted or taken any loan from other companies covered in the register maintained under

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

(v)(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) There were no transactions during the year in pursuance of contracts or arrangements with the parties covered u/s 301 of the companies Act 1956 exceeding the value of Rs. 5 lacs in respect of any party.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits to which the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975 are applicable.

(vii) The company has an in-house internal audit system and also an audit committee commensurate with the size and nature of its business.

(viii) The central government has not prescribed the maintenance of cost records under clause (d) of sub section (1) of section 209 of the Act.

(ix)(a) There are no undisputed statutory dues outstanding including provident fund, investor education protection fund, employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, there is no disputed dues of sales tax, income tax, custom duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute and there are no dues outstanding on date of balance sheet.

(x) In our opinion, the accumulated losses of the company are more than 50% of its networth. The company has incurred cash losses of Rs. 15192304/- during the financial year covered under our audit and Rs.4080501/- in the immediately proceedings financial year.

(xi) The Company had taken term loan and working capital (fund based and non fund based) from bank in the past for which the bank had filed suit for recovery and had started recovery proceedings.

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

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

(xiv) The company has not done any trading in shares during the year

(xv) The Company has not given any guarantee for loans taken by others from banks or from financial institutions.

(xvi) The loan from bank were applied for the purpose for which these were granted.

(xvii) According to the information and explanations given by 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. No long terms funds have been used to finance short terms assets except permanent working capital

(xviii) The company has not made any preferential allotment of shares to parties and companies covered in the registered maintained u/s. 301 of the Act.

(xvix) The Company has not issued any debentures. Therefore, the question of creating security does not arise.

(xx) During the year, the company has not raised any money by way of public issue and hence para 4(xx) of the order is not applicable. However, The money raised by public issue in the past was deployed and the enduse was for the purpose for which it was raised.

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

Place : Ahmedabad For SUDHIR J.SHAH

Date : *10.05.2010 (Chartered Accountants)

Sd/-

( SUDHIR J.SHAH )

PROPRIETOR.