Hira Automobiles Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

Hira Automobiles Limited

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Hira Automobiles Limited(“the Company”), which comprise the balance sheet as at 31st March 2025, and the statement of Profit and Loss, statement of changes in equity and statement of cash flows for the year then ended, and notes to the Ind As financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”)

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act 2013, as amended ( “the act”)in the manner so required and give a true and fair view in conformity with ( Indian Accounting Standards prescribed under section 133 of the Act read with Companies ( Indian Accounting Standards) Rule 2015, as amended ( “Ind AS”) and otheraccounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2025, and profit/loss, changes in equityand its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Responsibility of Management for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India, including the IndAS and other accounting policies generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate implementation and maintenance of accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of this Consolidated Financial Results by the Directors of the Company, as aforesaid.

In preparing the financial statements, management and Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management and Board of Directors

either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

a) The Company has certain ongoing legal proceedings for various complex matters with the Government of India and other parties, continuing from earlier years. In that regard our audit procedure includes and were not limited to the followings: -

• Discussed with the management on the development in these litigations during the year ended March 31,2025

• Rolled out of enquiry letters to the Company''s management and noted the responses received and assessed the same

• Reviewed the disclosures made by the Company in the financial statements in this regard.

• Obtained representation letter from the management on the assessment of these matters

b) “The Company is covered under Secretarial Audit and compliances under Companies Act, 2013. Our opinion on financial statement of the company is subject to qualification / non compliances (if any) reported/ covered under Secretarial Audit and Compliance report by the practicing company secretary.”

c) We identified IT systems and controls over financial reporting as a key audit matter for the Holding Company because its financial accounting and reporting systems are fundamentally reliant on IT systems and IT controls to process significant transaction volumes, specifically with respect to revenue and raw material consumption. Also, due to such large transaction volumes and the increasing challenge to protect the integrity of the Group''s systems and data, cyber security has become more significant. Our procedures included and were not limited to the following:

• Assessed the design and evaluation of the operating effectiveness of IT general controls over program development and changes, access to programs and data and IT operations by engaging IT specialists.

• Performed inquiry procedures with the head of cyber security at the Holding Company in respect of the overall security architecture and any key threats addressed by the Company in the current year.

• Assessed the design and evaluation of the operating effectiveness of IT application controls in the key processes impacting financial reporting of the Company by engaging IT specialists.

Assessed the operating effectiveness of controls relating to data transmission through the different IT systems to the financial reporting systems by engaging IT specialists.

d) As disclosed in Notes No. 31 to the financial statements, during the year the Company has initiated the closure of one of its key dealership of Muktsar Cluster and will finalized in the coming year. This cluster has historically contributed approximately 20% of the Company''s total turnover/revenue. The closure is expected to significantly impact the Company''s future operating performance and has implications on working capital management, particularly inventory realization, receivables collection, and vendor arrangements.

This matter is considered a key audit matter due to the material contribution of the cluster to the Company''s historical performance, and the significant management judgment involved in assessing the financial impact of the closure. The evaluation includes impairment of assets, provisioning for closure-related expenses, and the impact on future revenue forecasts and liquidity. The matter also requires careful consideration of compliance with the relevant requirements of Ind AS.

Our audit procedures included and were not limited to the following:

• Obtaining and reviewing the Board resolution and management''s rationale for the branch closure;

• Evaluating management''s assessment of the financial and operational impact of the closure, including the effect on revenue forecasts and cash flows;

• Assessing the recognition and measurement of any closure-related provisions or expenses (e.g., employee severance, lease termination costs), and testing their compliance with Ind AS 37 -Provisions, Contingent Liabilities and Contingent Assets;

• Evaluating indicators of impairment for assets related to the branch and, where applicable, reviewing the impairment testing performed by management under Ind AS 36 - Impairment of Assets;

• Reviewing the Company''s working capital assessments and sensitivity analysis prepared by management in light of the branch closure;

• Assessing the adequacy and appropriateness of the related disclosures in the financial statements as per Ind AS 1 - Presentation of Financial Statements, and Ind AS 10 - Events After the Reporting Period (if applicable).

e) As disclosed in Notes no 32 and 33 to the financial statements, as at the reporting date, the Company held inventories comprising new vehicles, pre-owned vehicles under the “True Value” segment, spares, and accessories, amounting to Rs.43.60crores. This represents a significant component of the Company''s total assets.

The valuation of inventories, particularly the determination of net realizable value (NRV), involves significant management judgment. Estimating NRV for pre-owned vehicles requires consideration of factors such as age, condition, mileage, model popularity, and prevailing market demand. Similarly, the valuation of spares and accessories is impacted by their rate of movement, likelihood of obsolescence, and changes in pricing trends. The management has provided sufficient appropriate audit evidence like physical verification of inventory of vehicles along with its technical description, the basis of valuation, existence, and recoverability of such inventory.

The company may face risks and challenges related to inventory management like Inventory Obsolescence Risk, Liquidity and Cash Flow Impact, Demand and Sale fluctuations etc.

We considered higher quantum of inventory and its valuation to be a key audit matter due to the materiality of the balance, the diversity and nature of inventory held, and the significant estimation involved in applying the principles of Ind AS 2 - Inventories.

Our audit procedures included and were not limited to the following:

• Evaluating the design and implementation of controls over inventory valuation and NRV assessment across categories;

• Assessing the Company''s inventory valuation policies and their compliance with the requirements of Ind AS 2;

• Performing sample testing of inventory items, including verification of cost and estimation of NRV for new and pre-owned vehicles, based on recent sale transactions and market pricing;

• Reviewing ageing analysis and evaluating the basis for provisioning against slow-moving or

obsolete spares and accessories;

• Specifically examining the NRV assessment methodology for pre-owned vehicles considering factors such as condition, age, and past sales trends;

• Comparing actual sales realisations post year-end with NRV estimates, where available;

• Assessing the adequacy and appropriateness of the related disclosures in the financial statements.

f) As disclosed in Notesno 34 to the financial statements, as at the reporting date, the Company''s trade receivables amounted to Rs.24.57 crores, representing a significant portion of the total assets. A substantial part of these receivables relates to customers with extended credit terms or aged outstanding balances.

Under Ind AS 109 - Financial Instruments, trade receivables are required to be assessed for impairment using the expected credit loss (ECL) model. The application of the ECL model involves significant judgment by the management in evaluating historical payment trends, credit risk characteristics, ageing profiles, and forward-looking information. In certain cases, recoverability assessments also require consideration of legal or commercial disputes and communication with debtors.

We identified this area as a key audit matter due to the materiality of the balances, the degree of estimation involved, and the potential impact on the Company''s financial position.

Our audit procedures included and were not limited to the following:

• Assessing the design and operating effectiveness of key controls related to credit risk management and receivables monitoring;

• Reviewing the Company''s ECL policy and impairment assessment methodology for compliance with Ind AS 109;

• Performing detailed testing of ageing analysis and evaluating management''s assumptions for provisioning;

• Obtaining direct confirmations for selected balances and performing alternative procedures where necessary;

• Evaluating the historical accuracy of bad debt provisioning and post-year-end collections;

• Assessing the adequacy of disclosures made in the financial statements relating to trade receivables and credit risk.

However, the management has provided sufficient appropriate audit evidence and very much sure regarding the recoverability of such receivable.

Information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Annual Report such as Management Discussion and Analysis, Board''s Report including Annexure to Board''s report, Business Responsibility Report, Corporate Governance and Shareholder''s information, Printing of Annual report and financial statements, but does not include the standalone financial statements and our auditor''s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereupon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.If, based on the work we have performed, we concluded that there is a

material misstatement of their information, we are required to report that fact. We have nothing to report in this regard.

Auditor''s Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 such controls.

• Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial results, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Perform procedure in accordance with the circular issued by the SEBI under regulation 33(8) of the Listing Regulations to the extend applicable.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the ''Annexure A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 it appears from our examination of those books [and proper returns adequate for the purposes of our audit have been received from the branches not visited by us].

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

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March, 2025 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2025 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

g) In our and to the best of our information and according to the explanations given to us, the remuneration paid by the company to its directors during the year is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements. Further explained by the management, there no such major/ materialistic litigationsare pending which would impact its financial position.

ii. The Company has made provision, as required under the applicable law or Indian Accounting Standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. The management has informed and explained to us that there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company, hence reporting of the same is not applicable.

iv. (a) The Management has represented that , to the best of its knowledge and belief , no funds( which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other source or any kind of funds ) by the company to or in any other person or entity, including foreign entity (“ Intermediaries”), with the understanding , whether recorded in writing or otherwise , that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of company (“Ultimate Beneficiaries”)or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) The Management has represented that, to the best of its knowledge and belief, no funds ( which are material either individually or in the aggregate) have been received by the company from any person or entity, including foreign entity (“ Funding Parties”), with the understanding, whether recorded in writing or otherwise , that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(c) Based on audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations, as provided above, contain any material misstatement.

v. Based on our examination, which included test checks, the company has used accounting software for maintaining its books of account for the financial year ended March 31,2025 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the companies (Accounts)Rules, 2014 is applicable from April 1,2023, reporting under Rule 11(g) of the companies ( Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31,2025.

2. As required by Companies ( Auditor''s Report) Order, 2020 ( the “Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraph 3 and 4 of the Order.

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Mar 31, 2024

We have audited the standalone financial statements of Hira Automobiles Limited(“the Company”),
which comprise the balance sheet as at 31st March 2024, and the statement of Profit and Loss, statement
of changes in equity and statement of cash flows for the year then ended, and notes to the Ind As financial
statements, including a summary of significant accounting policies and other explanatory information
(hereinafter referred to as “the standalone financial statements”)

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone financial statements give the information required by the Companies Act 2013, as amended (
“the act”)in the manner so required and give a true and fair view in conformity with ( Indian Accounting
Standards prescribed under section 133 of the Act read with Companies ( Indian Accounting Standards)
Rule 2015, as amended ( “Ind AS”) and otheraccounting principles generally accepted in India, of the state
of affairs of the Company as at March 31,2024, and profit/loss, changes in equityand its cash flows for the
year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial Statements in accordance with the Standards on
Auditing specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements
section of our report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our
audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to
provide a basis for our opinion.

Responsibility of Management for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance, changes in equity and cash flows of the
Company in accordance withthe accounting principles generally accepted in India, including the Ind AS
and other accounting policies generally accepted in India. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate implementation and maintenance of accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statement that give a true and fair view
and are free from material misstatement, whether due to fraud or error, which have been used for the
purpose of preparation of this Consolidated Financial Results by the Directors of the Company, as
aforesaid.

In preparing the financial statements, management and Board of Directors is responsible for assessing the
Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management and Board of Directors

either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.

a) The Company has certain ongoing legal proceedings for various complex matters with the
Government of India and other parties, continuing from earlier years. In that regard our audit
procedure includes and were not limited to the followings: -

• Discussed with the management on the development in these litigations during the year
ended March 31,2024.

• Rolled out of enquiry letters to the Company''s management and noted the responses
received and assessed the same.

• Reviewed the disclosures made by the Company in the financial statements in this regard.

• Obtained representation letter from the management on the assessment of these matters

b) “The Company is covered under Secretarial Audit and compliances under Companies Act, 2013.
Our opinion on financial statement of the company is subject to qualification / non compliances (if
any) reported/ covered under Secretarial Audit and Compliance report by the practicing company
secretary.”

c) We identified IT systems and controls over financial reporting as a key audit matter for the Holding
Company because its financial accounting and reporting systems are fundamentally reliant on IT
systems and IT controls to process significant transaction volumes, specifically with respect to
revenue and raw material consumption. Also, due to such large transaction volumes and the
increasing challenge to protect the integrity of the Group''s systems and data, cyber security has
become more significant. Our procedures included and were not limited to the following:

• Assessed the design and evaluation of the operating effectiveness of IT general controls
over program development and changes, access to programs and data and IT operations
by engaging IT specialists.

• Performed inquiry procedures with the head of cybersecurity at the Holding Company in
respect of the overall security architecture and any key threats addressed by the Company
in the current year.

• Assessed the design and evaluation of the operating effectiveness of IT application controls
in the key processes impacting financial reporting of the Company by engaging IT
specialists.

Assessed the operating effectiveness of controls relating to data transmission through the different IT
systems to the financial reporting systems by engaging IT specialists.

Information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The company''s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Annual Report such as Management Discussion and
Analysis, Board''s Report including Annexure to Board''s report, Business Responsibility Report, Corporate
Governance and Shareholder''s information, Printing of Annual report and financial statements, but does

not include the standalone financial statements and our auditor''s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not
express any form of assurance conclusion thereupon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
standalone financial statements or our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated.If, based on the work we have performed, we concluded that there is a
material misstatement of their information, we are required to report that fact. We have nothing to report in
this regard.

Auditor''s Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional
skepticism throughout the audit. We also

• Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 such controls.

• Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our
opinion on whether the company has adequate internal financial controls system in place and the
operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company''s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor''s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor''s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial results, including the
disclosures, and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.

• Perform procedure in accordance with the circular issued by the SEBI under regulation 33(8) of the
Listing Regulations to the extend applicable.

We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 (“the Order”), issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give
in the ''Annexure A'' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.

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
it appears from our examination of those books [and proper returns adequate for the purposes of our
audit have been received from the branches not visited by us].

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

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting
Standards specified under Section 133 of the Act.

e) On the basis of the written representations received from the directors as on 31st March, 2024
taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2024
from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure
A”.

g) In our and to the best of our information and according to the explanations given to us, the
remuneration paid by the company to its directors during the year is in accordance with the provisions of
section 197 of the Act.

h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial
statements. Further explained by the management, there no such major/ materialistic litigationsare
pending which would impact its financial position.

ii. The Company has made provision, as required under the applicable law or Indian Accounting
Standards, for material foreseeable losses, if any, on long-term contracts including derivative
contracts.

iii. The management has informed and explained to us that there were no amounts which were
required to be transferred to the Investor Education and Protection Fund by the Company, hence
reporting of the same is not applicable.

iv. (a) The Management has represented that , to the best of its knowledge and belief , no funds( which
are material either individually or in the aggregate) have been advanced or loaned or invested (either
from borrowed funds or share premium or any other source or any kind of funds ) by the company to
or in any other person or entity, including foreign entity (“ Intermediaries”), with the understanding ,
whether recorded in writing or otherwise , that the intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
company (“Ultimate Beneficiaries”)or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(b) The Management has represented that, to the best of its knowledge and belief, no funds ( which
are material either individually or in the aggregate) have been received by the company from any
person or entity, including foreign entity (“ Funding Parties”), with the understanding, whether
recorded in writing or otherwise , that the company shall, whether, directly or indirectly, lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of Funding Party
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

(c) Based on audit procedures that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations, as provided above, contain any material misstatement.

v. Based on our examination, which included test checks, the company has used accounting software
for maintaining its books of account for the financial year ended March 31,2024 which has a feature
of recording audit trail (edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software. Further, during the course of our audit we did not
come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the companies (Accounts)Rules, 2014 is applicable from April 1,2023,
reporting under Rule 11(g) of the companies ( Audit and Auditors) Rules, 2014 on preservation of
audit trail as per the statutory requirements for record retention is not applicable for the financial
year ended March 31,2024.

2. As required by Companies ( Auditor''s Report) Order, 2020 ( the “Order”) issued by the Central
Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the
matters specified in paragraph 3 and 4 of the Order.

For Mohan Juneja & Co.

Chartered Accountants
Firm Registration No.020488N

CA Mohan Juneja
Partner

Membership Number 099825
UDIN :24099825BKCPVV1808

Place: Chandigarh
Date:May30, 2024

---

Mar 31, 2014

1. We have audited the attached Balance Sheet of Hira Automobiles Limited as at 31st March 2014, the Profit & Loss Account and also the Cash Flow Statement of the Company for the year ended on that date annexed there to. These financial statements are the responsibility of the management of the company Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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 misstatements. An audit includes, examining on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s report) order 2003 (as amended) 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 the paragraphs 4 & 5 of the said order.

4. Furtherto our comments in the Annexure referred to in paragraph 3 above, we report that :-

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary forthe purpose of ouraudit;

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 & 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 and Profit & Loss Account and Cash Flow Statement dealtwith by this report are in compliance with theAccounting Standards referred to in sub-section (3c)ofsection211oftheCompaniesAct,1956.

v) On the basis of written representations received from directors of the company as on 31st March, 2014 and taken on record by the board of directors, we report that none of the directors is disqualified as on 31st March 2014, from being appointment 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 significant accounting policies and other notes of accounts thereon, 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.

a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2014; and

b) In the case of Profit & Loss account, of the profit of the company for the year ended on that date; and

c) In the case of cash flow statement, of the cash flowforthe year ended on that date.

Annexure To Auditors'' Report Annexure referred to in paragraph 3 of our report of even date

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets at Corporate Office and in the process of maintaining at outlets.

(b) We have been informed that the fixed assets of the company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

(c) In terms of the information and explanation given to us the books and records examined by us in the normal course of audit and to the best of our knowledge and bel ief, west atethat no substanti alpar to fixed assets have been disposed off during year and hence our comments regarding the effect on going concern are not required.

2. (a) As informed to us, physical verification of inventory of the company has been conducted by the management at reasonable intervals. In our opinion, the Verification is reasonable.

(b) In our opinion and according to the explanations given to us, the procedures of Physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and according to the explanations given to us, the Company is maintaining proper records of inventory. We have been informed that no material discrepancies have been noticed on physical verification as compared to records.

3. (a) According to the information and explanation given to us ,the Company has advanced inter corporate deposits to three companies covered in the register maintain under section 301 of the Companies Act,1956. Detail of amount of transactions and balance outstanding atyearend is as under. i) Name of the Company BajwaArjun Property Developers (p) Ltd.

Debit Summation 3.05 Lacs

Credit Summation 19.08 Lacs

Balance Outstanding NIL

ii) Name of the Company Pacific Finlease(p) Ltd.

Debit Summation 1.52 Lacs

Credit Summation NIL

Balance Outstanding 15.60 Lacs

iii) Name of the Company Rahul Sidhu Enterprises (p) Ltd.

Debit Summation 114.66 Lacs

Credit Summation 203.44 Lacs

Balance Outstanding 114.00 Lacs

iv) Name of the Company RSG Studios (p) Ltd.

Debit Summation 255.23 Lacs

Credit Summation 230.23 Lacs

Balance Outstanding 25.00 Lacs

(b) According to the information and explanation given to us ,the rate of interest and the other terms and condition of loan given are not prima facie prejudicial to the interest of the Company.

(c) There is no stipulation as to the time period for recovery of principal amount of unsecured loan given.

(d) Further, as there is no stipulation as to the time period for recovery of principal amount of unsecured loan given, we are unable to comment on the overdue amount in respect of the said loan.

(e) During the year the Company has not taken any loan, secured or unsecured from Parties covered in the Register maintained u/s 301 of the CompaniesAct, 1956.

4. 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 the inventory, fixed assets and also for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

5. (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangement referred to in section 301 of the Companies Act, 1956 have been so entered in the register required to be maintained under that section and

(b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

6. According to the information and explanation given to us, the Company has accepted deposit from public and due compliances have been made. Advances from customer for sale of vehicles and against sale promotion schemes run by the Company to promote its sale are received during the period of audit.

7. In our opinion the internal audit system of the company is commensurate with it''s size and nature of business.

8. The maintenance of cost records under section 209(1 )(d) of the Companies Act ,1956 has not been prescribed by the Central government for the Company since it is not manufacturing Company.

9. (a) According to the information and explanations given to us, the company is generally regular in depositing all undisputed statutory dues including provident fund, investor education and protection fund , employees state insurance .income tax, sales tax, wealth tax, custom duty, excise duty, cess and any other statutory due with appropriate authority during the year.

(b) According to the information and explanations given to us, no undisputed amount payables in respect of provident fund, investor education and protection fund , employees state insurance .income tax, sales tax, wealth tax , custom duty, excise duty, cess and any other undisputed statutory dues were outstanding at the year end .for period of more than six months from the date they become payables.

(c) According to the information and explanations given to us, there are no disputed amount payables in respect of provident fund, investor education and protection fund , employees state insurance .income tax, sales tax, wealth tax, custom duty, excise duty, cess by the Company

10. The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in current and immediately preceding financial year.

11. As informed to us, the company has not defaulted in repayment of dues to financial institutions or banks.

12. As informed to us, the company has not granted loans and advances on the basis of security bywayof pledgeof shares, debentures or other securities.

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

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

investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditor''s Report) order ,2003 (as amended) are not applicable to the Company.

15. As informed to us, the company has not given any guarantee for loans, taken by others from bank or financial institutions, the terms and conditions whereof are prima-facie prejudicial to the interest of the Company.

16. As informed to us, the proceeds of the loans taken by the company are applied for the purpose forwhich the loans wereobtained.

17. The company has not maintained any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act,1956.

18. The company has not issued debenture, therefore the company has not created any security on debentures.

19. The company has not raised any money from public issues during the year except unpaid allotment money.

20. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanation given by the management, we report that no fraud by the company has been noticed or reported during the course of ouraudit.

For Pankaj Chug hand Associates Chartered Accountants Registration No. 26311N

CA.Pankaj Chugh (Proprietor) Membership No. 529702

Place: Chandigarh Date: 30-05-2014

---

Mar 31, 2012

The Members of Hira Automobiles Limited

1. We have audited the attached Balance Sheet of Hira Automobiles Limited as at 31st March 2012, the Profit & Loss Account and also the Cash Flow Statement of the Company for the year ended on that date annexed there to. These financial statements are the responsibility of the management of the company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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 misstatements. An audit includes, examining on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s report) order 2003(as amended) 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 the paragraphs 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 purpose 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 & 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 and Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub-section (3c) of section 211 of the Companies Act, 1956.

v) On the basis of written representations received from directors of the company as on 31M March, 2012 and taken on record by the board of directors, we report that none of the directors is disqualified as on 31st March 2012, from being appointment 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 oiven to us, the said accounts read together with significant accounting policies and other notes of accounts thereon, 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.

a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March,2012; and

b) In the case of Profit & Loss account, of the profit of the company for the year ended on that date; and

c) In the case of cash flow statement, of the cash flow for the year ended on that date.

Annexure To Auditors'' Report

Annexure referred to in paragraph 3 of our report of even date

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets at Corporate Office and in the process of maintaining at outlets.

(b) We have been informed that the fixed assets of the company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

(c) In terms of the information and explanation given to us the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that no substantial part of fixed assets have been disposed off during year and hence our comments regarding the effect on going concern are not required.

2. (a) As informed to us, physical verification of inventory of the company has been conducted by the management at reasonable intervals. In our opinion, the Verification is reasonable.

(b) In our opinion and according to the explanations given to us. the procedures of Physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and according to the explanations given to us. the Company is maintaining proper records ot inventory. We have been informed that no material discrepancies have been noticed on physical verification as compared to records.

3. (a) According to the information and explanation given to us .the Company has advanced inter corporate deposits to three companies covered in the register maintain under section 301 of the Companies Act, 1956. Detail of amount of transactions and balance outstanding at year end is as under.

i) Name of the Company : Bajwa Aijun Property Developers (p) Ltd.

Debit Summation : 2.81 Lacs

Credit Summation : NIL

Balance Outstanding : 14.31 Lacs

ii) Name of the Company : Pacific Finlease (p) Ltd.

Debit Summation : 1.24 Lacs

Credit Summation : NIL

Balance Outstanding : 12.70 Lacs

iii) Name of the Company : Rahul Sidhu Enterprises (p) Ltd.

Debit Summation : 21.25 Lacs

Credit Summation : 21.15 Lacs

Balance Outstanding : 172.56 Lacs

(b) According to the information and explanation given to us .the rate of interest and the other terms and condition of loan given are not prima facie prejudicial to the interest of the Company.

(c) There is no stipulation as to the time period for recovery of principal amount of unsecured loan given.

(d) Further, as there is no stipulation as to the time period for recovery of principal amount of unsecured loan given, we are unable to comment on the overdue amount in respect of the said loan.

(e) During the year the Company has not taken any loan, secured or unsecured from Parties covered in the Register maintained u/s 301 of the Companies Act, 1956.

4. 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 the inventory, fixed assets and also for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

5. (a) According to the information and explanations given to us. we are of the opinion that the particulars of contracts or arrangement referred to in section 301 of the Companies Act. 1956 have been so entered in the register required to be maintained under that section and

(b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

6. According to the information and explanation given to us, the Company has accepted deposit from public and due compliances have been made. Advances from customer for sale ot vehicles and against sale promotion schemes run by the Company to promote its sale are received during the period of audit.

7. In our opinion the internal audit system of the company is commensurate with it''s size and nature of business.

8. The maintenance of cost records under section 209(1 )(d) of the Companies Act ,1956 has not been prescribed by the Central government for the Company since it is not manufacturing Company.

9. (a) According to the information and explanations given to us, the company is generally regular in depositing all undisputed statutory dues including provident fund, investor education and protection fund , employees state insurance .income tax. sales tax. wealth tax , custom duty, excise duty, cess and any other statutory due with appropriate authority during the year.

(b) According to the information and explanations given to us, no undisputed amount payables in respect of provident fund, investor education and protection fund , employees state insurance .income tax, sales tax. wealth tax , custom duty, excise duty, cess and any other undisputed statutory dues were outstanding at the year end ,for period of more than six months from the date they become payables.

(c) According to the information and explanations given to us. there are no disputed amount payables in respect of provident fund, investor education and protection fund . employees state insurance .income tax, sales tax, wealth tax, custom duty, excise duty, cess by the Company

10. The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in current and immediately preceding financial year .

11. As informed to us. the company has not defaulted in repayment of dues to financial institutions or banks.

12. As informed to us .the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. In our opinion the company is no! a chit-fund, nidhi or mutual benefit fund/society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) order ,2003 (as amended) are not applicable to the Company.

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

15. As informed to us, the company has not given any guarantee for loans, taken by others from bank or financial institutions, the terms and conditions whereof are prima-facie prejudicial to the interest of the Company.

16. As informed to us, the proceeds of the loans taken by the company are applied for the purpose for which the loans were obtained.

17. The company has not maintained any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

18. The company has not issued debenture, therefore the company has not created any security on debentures.

19. The company has not raised any money from public issues during the year.

20. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanation given by the management, we report that no fraud by the company has been noticed or reported during the course of our audit.

For Rahul Rajput & Associates

(Chartered Accountants)

Registration No.023487N

CA . Rahul Rajput

(Proprietor) Place : Chandigarh

Membership No. 504877 Date : 03-09-2012

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of Hira Automobiles Limited as at 31st March 2011, the Profit & Loss Account and also the Cash Flow Statement of the Company for the year ended on that date annexed there to. These financial statements are the responsibility of the management of the company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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 misstatements. An audit includes, examining on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s report) order 2003(as amended) 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 the paragraphs 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 purpose 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 & 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 and Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in sub-section (3 c) of section 211 of the Companies Act, 1956.

v) On the basis of written representations received from directors of the company as on 31st March, 2011 and taken on record by the board of directors, we report that none of the directors is disqualified as on 31st March 2011, from being appointment 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 significant accounting policies and other notes of accounts thereon, give the information required by the Companies Act, 1956 in the manner so required and give a mie 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,2011; and

b) In the case of Profit & Loss account, of the profit of the company for the year ended on that date; and

c) In the case of cash flow statement, of the cash flow for the year ended on that date.

Annexure To Auditors'' Report

Annexure referred to in paragraph 3 of our report of even date

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets at Corporate Office and in the process of maintaining at outlets.

(b) We have been informed that the fixed assets of the company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification. _

(c) In terms of the information and explanation given to us the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that no substantial part of fixed assets have been disposed off during year and hence our comments regarding the effect on going concern are not required.

2. (a) As informed to us, physical verification of inventory'' of the company has been conducted by the management at reasonable intervals. In our opinion, the Verification is reasonable.

(b) In our opinion and according to the explanations given to us, the procedures of Physical verification of inventory followed by the management are reasonable and adequate in relation to the size of die company and the nature of its business.

(c) In our opinion and according to the explanations given to us, the Company is maintaining proper records of inventory. We have been informed that no material discrepancies have been noticed on physical verification as compared to records.

3. (a) According to the information and explanation given to us ,the Company has advanced inter corporate deposits to three companies covered in the register maintain under section 301 of the Companies Act, 1956. Detail of amount of transactions and balance outstanding at year end is as under.

i) Name of the Company : Bajwa Aijun Property Developers (p) Ltd.

Debit Summation : 3.25 Lacs

Credit Summation : NIL

Balance Outstanding : 11.49 Lacs

ii) Name of the Company : Pacific Finlease (p) Ltd.

Debit Summation : 1.00 Lacs

Credit Summation * : NIL

Balance Outstanding : 11.46 Lacs

iii) Name of the Company : Rahul Sidhu Enterprises (p) Ltd.

Debit Summation : 149.56 Lacs

Credit Summation : 120.89 Lacs

Balance Outstanding : 172.47 Lacs

(b) According to the information and explanation given to us ,the rate of interest and the other terms and condition of loan given are not prima facie prejudicial to the interest of the Company.

(c) There is no stipulation as to the time period for recovery of principal amount of unsecured loan given.

(d) Further, as there is no stipulation as to the time period for recovery of principal amount of unsecured loan given, we arc unable to comment on the overdue amount in respect of the said loan.

(e) During the year the Company has not taken any loan, secured or unsecured from Parties covered in the Register maintained u/s 301 of the Companies Act, 1956.

4. 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 the inventory, fixed assets and also for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

5. (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangement referred to in section 301 of the Companies Act, 1956 have been so entered in the register required to be maintained under that section and (b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

6. According to the information and explanation given to us, die Company has accepted deposit from public u/s 58A during the financial year. The Company also accepted advance from customer for sale of vehicles and against sale promotion schemes run by the company to promote its sale.

7. In our opinion the internal audit system of the company is commensurate with its size and nature of business.

8. The maintenance of cost records under section 209(1 )(d) of the Companies Act ,1956 has not been prescribed by the Central government for the Company since it is not manufacturing Company.

9. (a) According to the information and explanations given to us, the company is generally regular in depositing all undisputed statutory dues including provident fund, investor education and protection fund , employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and any other statutory due with appropriate authority during the year.

(b) According to the information and explanations given to us, no undisputed amount payables in respect of provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax , custom duty, excise duty, cess and any other undisputed statutory dues were outstanding at the year end ,for period of more than six months from the date they become payables.

(c) According to the information and explanations given to us, there are no disputed amount payables in respect of provident fund, investor education and protection fund , employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess by the Company.

10. The company has no accumulated losses at the end of the financial year and it has not incurred reach losses in current and immediately preceding financial year .

11. As informed to us, the company has not defaulted in repayment of dues to financial institutions or banks.

12. As informed to us, the company lias not granted loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

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

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

15. As informed to us, the company has not given any guarantee for loans, taken by others from bank or financial institutions, the terms and conditions whereof are prima-facie prejudicial to the interest of the Company.

16. As informed to us, the proceeds of the loans taken by the company are applied for the purpose for which the loans were obtained.

17. 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.

18. The company has not issued debenture, therefore the company has not created any security on debentures

19. The company has not raised any money from public issues dunng the year. ,*

20. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanation given by the management ,we report that no fraud by the company has been noticed or reported during the course of our audit

For Dalbir & Associates

Chartered Accountants

Registration No.021454N

CA. Dalbir Siligh

(Proprietor) Place : Patiala

Membership No.096320 Date : 03-09-2011

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of Hira Automobiles Limited as at 31 StMarch 2010, the Profit & Loss Account and also the Cash Flow Statement of the Company for the year ended on that date annexed there to. These financial statements are the responsibility of the management of the company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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 misstatements. An audit includes, examining on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors report) order 2003(as amended) 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 the paragraphs 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 purpose 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;

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

v) On the basis of written representations received from directors of the company as on 31sl 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 appointment 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 significant accounting policies and other notes of accounts thereon, 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.

a) In the case of the Balance Sheet, of the state of affairs of the company as at 31sl March,2010; and

b) In the case of Profit & Loss account, of the profit of the company for the year ended on that date and

c) In the case of Cash Flow Statement, of the cash flow for the year ended on that date.

Annexure To Auditors Report Annexure referred to in paragraph 3 of our report of even date

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets at Corporate Office and in the process of maintaining at outlets.

(b) We have been informed that the fixed assets of the company have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.

(c) In terms of the information and explanation given to us the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that no substantial part of fixed assets have been disposed off during year and hence our comments regarding the effect on going concern are not required.

2. (a) As informed to us, physical verification of inventory of the company has been conducted by the management at reasonable intervals.In our opinion, the Verification is reasonable.

(b) In our opinion and according to the explanations given to us,the procedures of Physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and according to the explanations given to us, the Company is maintaining proper records of inventory.We have been informed that no material discrepancies have been noticed on physical verification as compared to records.

3. (a) According to the information and explanation given to us ,the Company has granted unsecured loan to three companies covered in the register maintain under section 301 of the Companies Act, 1956. Detail of amount of transactions and balance outstanding at year end is as under.

i) Name of the Company : BajwaArjun Property Developers (p) Ltd. Debit Summation : 24.26 Lacs

Credit Summation : 263.88 Lacs

Balance Outstanding : 8.24 Lacs

ii) Name of the Company : Pacific Finlease (p) Ltd.

Debit Summation : 0.91 Lacs

Credit Summation : NIL

Balance Outstanding : 10.46 Lacs

Hi) Name of the Company : Rahul Sidhu Enterprises (p) Ltd.

Debit Summation : 77.88 Lacs

Credit Summation : NIL

Balance Outstanding : 143.79 Lacs



(b) According to the information and explanation given to us ,the rate of interest and the other terms and condition of loan given are not prima facie prejudicial to the interest of the Company.

(c) There is no stipulation as to the time period for recovery of principal amount of unsecured loan given.

(d) Further,as there is no stipulation as to the time period for recovery of principal amount of unsecured loan given, we are unable to comment on the overdue amount in respect of the said loan.

(e) During the year the Company has not taken any loan, secured or unsecured from Parties covered in the Register maintained u/s 301 of the Companies Act,l 956.

4. 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 the inventory, fixed assets and also for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

5. (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangement referred to in section 301 of the Companies Act, 1956 have been so entered in the register required to be maintained under that section and (b) According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

6. According to the information and explanation given to us, the Company has not accepted any deposit from public .Advances from customer for sale of vehicles and against sale promotion schemes run by the Company to promote its sale are received during the period of audit.

7. In our opinion the internal audit system of the company is commensurate with its size and nature of business.

8. The maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 has not been prescribed by the Central government for the Company since it is not manufacturing Company.

9. (a) According to the information and explanations given to us, the company is generally regular indepositing all undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance ,income tax, sales tax, wealth tax, custom duty, excise duty, cess and any other statutory due with appropriate authority during the year.

(b) According to the information and explanations given to us, no undisputed amount payables in respect of provident fund, investor education and protection fund, employees state insurance ,income tax, sales tax, wealth tax, custom duty, excise duty, cess and any other undisputed statutory dues were outstanding at the year end ,for period of more than six months from the date they become payables.

(c) According to the information and explanations given to us, there are no disputed amount payables in respect of provident fund, investor education and protection fund, employees state insurance ,income tax, sales tax, wealth tax, custom duty, excise duty, cess ,by the Company except Rs. 76000/- of service tax penalty as stated in contingent liabilities.

10. The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in current and immediately preceding financial year.

11. As informed to us, the company has not defaulted in repayment of dues to financial institutions or banks.

12. As informed to us ,the company has not granted loans and advances on the basis of security by way of pledge of shares,debentures or other securities.

13. In our opinion the company is not a chit-fund,nidhi or mutual benefit fund/sociery.Therefore,the provisions of clause 4 (xiii) of the Companies (Auditors Report) order ,2003 (as amended) are not applicable to the Company.

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

15. As informed to us, the company has not given any guarantee for loans, taken by others from bank or financial institutions, the terms and conditions whereof are prima-facie prejudicial to the interest of the Company.

16. As informed to us, the proceeds of the loans taken by the company are applied for the purpose for which the loans were obtained.

17. The company has not maintained any preferential allotment of shares to parties and companies covered in the register maintained under section 301 ofthe Companies Act,1956.

18. The company has not issued debenture,therefore the company has not created any security on debentures.

19. The company has not raised any money from public issues during the year except unpaid allotment money.

20. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanation given by the management ,we report that no fraud by the company has been noticed or reported during the course of our audit.



For Dalbir & Associates

Chartered Accountants

Registration No.021454N

CA. Dalbir Singh

Place: Patiala Proprietor

Date : 03-09-2010 Membership No.096320

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Mar 31, 2009

1. We have audited the attached Balance Sheet of Hira Automobiles Limited as at 31 st March 2009, the Profit & Loss Account and also the Cash Flow Statement of the Company for the year ended on that date annexed there to. These financial statements are the responsibility of the management of the company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. 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 misstatements. An audit includes, examining on a test basis, evidence supporting the amount and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall presentation of the financial statements. 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 (4-A) of section 227 of the Companies Act 1956 , we enclose in the Annexure, a statement on the matters specified in the paragraphs 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 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 purpose 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 and proper returns adequate for the purpose of our audit have been received from branches not visited by us.

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

iv) In our opinion , the Balance Sheet and Profit & Loss Account and cash flow statement dealt with by this report are in compliance with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

v) On the basis of written representations received from directors of the company as on 31st March, 2009 and taken on record by the board of directors. We report that none of the directors is disqualified as on 31st March 2009, from being appointment 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 significant accounting policies and other nates of accounts thereon, 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 iccepted in India.

a) In the case of the Balance Sheet, of the state of affairs of the company as at 31 st March,2009; and

b) In the case of Profit & Loss account, of the profit of the company for the year ended on that date; and

c) 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 data

1. In respect of its fixed assets: -

a. The Company has maintained proper records to show full particulars, including quantitative details and situation of its fixed assets.

b. As explained to us, the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable, having regard to size of the company and nature to its assets. No material discrepancies were noticed on such physical verification.

2. In respect of its inventories,

a. As explained to us, inventories have been physically verified by the management at regular intervals during the year.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verifications of inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c. The company has maintained proper records of inventories. As explained to us, there were some discrepancies noticed on physical verification of inventory as compared to books of record which have been rectified or adjusted accordingly in the books.

3. In respect of loans secured or unsecured, granted or taken by the company to / from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956:

a. The company has granted inter corporate deposit to two companies covered in the register maintained under section 301 of the companies Act. 1956, Detail of amount of transactions and balance outstanding as on 31.03.2009 is as under.

1) Name of the company : Pacific Finlease Pvt Ltd Debit Summations : Rs. 1.67 Lacs Credit Summations : Rs. 37.00 Lacs And Balance Outstanding as on 31/03/2009 is Rs. 9.54 lacs

2) Name of the company : BajwaArjun Property Developers Pvt Ltd Debit Summations : Rs. 29.96 Lacs

Credit Summations : Rs NIL

And Balance Outstanding as on 31/03/2009 is Rs.247.86 lacs

In our opinion and information and explanations given to us , company has not taken secured or unsecured loans from companies, firms or other parties covered in the register maintained under section 301 of the Act.

b. In our opinion and according to the information and explanations given to us, the rate of interest and other terms & conditions of inter corporate deposits given to the companies mentioned above in 3(a) is not prima-facie prejudicial to the interest of the company.

c. As explained above company has not taken any loan from companies, firms or parties covered in the register maintained under section 301 of the companies Act. 1956, and in respect of loan granted to. the companies mentioned above in 3(a), the account is running one.

d. In our opinion and according to information & explanations given to us, there is no overdue amount in respect of the loan given by the company.

4. 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 the inventory, fixed assets and also for the sale of goods. During the course of our audit we have not observed any major weaknesses in internal controls.

5. In respect of the transactions covered under section 301 of the Companies Act, 1956:

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

b. In our opinion and according to the information and explanations given to us, These transactions have been made at price which are reasonable having regard to the prevailing market price at the relevant time.

6. The company has not accepted any deposits from the public except advances for sale of vehicles/ against sales promotion schemes run by the company to promote its sales.

7. In our opinion the internal audit system of the company is commensurate with its size and nature of its business.

8. The maintenance of cost records under section 209(l)(d) of the Companies Act 1956 has not been prescribed by the central government for the company since it is not a manufacturing concern.

9. In respect of statutory dues :

a. In our opinion and according to the information and explanations given to us, the company is regular in depositing all undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, E.S.I, Income Tax, Sales Tax, Wealth Tax , Custom Duty. Excise Duty, Cess and any other statutory due with appropriate authority. According to the information and explanations given to us , no undisputed amount was outstanding in respect of statutory dues as at 31 st March 2009 for a period of more than 6 months from the date of becoming payable.

b. There is no amount outstanding in case of sales tax/income tax / custom duty / wealth tax / excise duty /cess on account of any dispute.

10. The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in financial year and in the financial year immediately preceding such financial year also.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions or banks.

12 Our opinion and according to the information and explanations given to us, no loans and advances have been granted by the company 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, clause 4(xiii) of the companies (Auditors Report) order 2003 is not applicable to the company.

14 In our opinion and according to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments. But the investment made in shares of other companies are held in its own name.

15 According to the information and explanations given to us, we are of the opinion that the company has not given any guarantees for loans taken by others from banks and financial institutions.

16 According to the information and explanation given to us the company has not raised any fresh term loans during this financial year..

17 According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we are of the opinion that the company has not utilized from short term sources for long-term investments.

18 During the year, 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. -

19 The company has not issued debentures, therefore the company has not created any security for the debentures issued.

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 statements to be materially misstated.

Place: Chandigarh For Dalbir & Associates

Dated: 03.09.2009 Chartered Accountants

Dalbir Singh Prop.

M.No. 096320