India Polyspin Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2013

We have audited the attached balance sheet of M/S INDIA POLYSPIN LIMITED as at 31st March, 2013 and also the Profit & Loss account for the year ended on that date, annexed thereto. These financial statements are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor''s Report) Order, 2003, as amended by companies (amendment) order 2004, issued by the Department of Company Affairs, in terms of section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraph 4 and 5 of the said order.

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

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

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

III. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

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

V. On this basis of written representations received from the directors, as on 31st March, 2013, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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, 2013;

b) In the case of the Profit & Loss Account, of the loss 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 AS REFERRED TO IN PARA 3 OF THE SAID REPORT OF EVEN DATE

i. The company does not have any Fixed Assets, hence clause (i) (a), (b) and (c ) are not applicable to the company during the year under audit.

ii. The company does not have any inventories, hence clause (ii) (a), (b) and (c ) are not applicable to the company during the year under audit.

iii.

a. The company has granted loans to companies, firms and other parties covered under the Register maintained under Sec 301 of the Companies Act,1956 aggregating Rs.4,50,000/- to one such parties.

b. In our opinion, the rate of interest and other terms and conditions on which the said loans have been given are not, prima facie, prejudicial to the interest of the company.

c. As explained to us the receipts of payment of principal amounts and Interest, if any, are as per the terms of the said loan.

d. As explained to us there is no overdue amount.

e. The company has taken unsecured loans from companies, firms and other parties covered in the Register maintained under Section 301 of the Companies Act, 1956 amounting Rs. 1,68,66,636/- from 7 such parties.

f. In our opinion, the rate of interest and other terms and conditions on which the said loans have been taken are not, prima facie, prejudicial to the interest of the company

g. As explained to us the company is regular in payment of principal amounts and interest if any, as per the terms of the said loan.

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

v. a. Based on audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of Companies Act, 1956 have been so entered.

b. In our opinion and according to the information and explanations given to us, the Contract or arrangements entered in the register maintained under Section 301 and exceeding the value of five lakh rupees in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanation given to us, the company has not accepted any deposits from the public within the meaning of Sec.58A and 58AA of the Companies Act, 1956.

vii. The company does not have a formal Internal Audit System. However, in our opinion, there are adequate internal control procedures commensurate with the size of the company and the nature of its business.

viii. According to the information and explanation given to us, the company is not required to maintain cost records under section 209(l)(d) of the Companies Act, 1956.

ix. a. According to the information and explanation given to us, the company is generally regular in depositing with appropriate authorities undisputed statutory due including provident fund, investor education protection fund, employees'' state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

b. According to the information and explanations given to us, no undisputed amounts payable in respect of income- tax, wealth tax, sales tax, custom duty, excise duty and cess were in arrears as at 31/03/2012 for a period of more than six months from the date they became payable.

c. According to the information and explanation given to us, there are no dues of sales tax, custom duty, wealth tax, excise duty and cess that have not been deposited on account of any dispute.

x. The accumulated losses of the company are more than fifty present of its net worth. The company has also incurred cash losses during the financial year covered by our audit and also incurred cash loss in the immediately preceding financial year.

xi. Based on the audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues if any, to any financial institution, bank or debenture holder.

xii. Based on the audit procedures and as per information and explanation given by the management, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. In our opinion, the company is not a Chit fund or Nidhi mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors-Report) Order, 2003 (As Amended) are not applicable to the company.

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

xv. As informed to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

xvi. On the basis of our examination of the books of a/c and the information and explanation given to us, in our opinion, the term loans taken , have been applied for the purpose for which they were raised.

xvii. On the basis of our examination of the books of a/c and the information and explanation given to us, in our opinion, the funds raised on short term basis have not been used for long term investment.

xviii. The company has not issued any Bonus shares during the year. The company has not issued any Debentures during the year.

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

xx. During the year under audit the company has not issued debentures.

xxi. The company is not a public company. Accordingly, the provisions of clause 4(xx) of the companies (Auditor''s Report) order, 2005 are not applicable to the company.

xxii. Based upon the audit procedures performed and information and explanation given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For SONI JHAWAR & CO.

CHARTERED ACCOUNTANTS

(SATYANARAIN SONI)

PARTNER

M.NO. : 071689

FIRM REG. NO: 110386W

PLACE : SURAT

DATE : 23rd August,2013

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Mar 31, 2012

We have audited the attached balance sheet of INDIA POLYSPIN LIMITED as at 31 st March, 2012 and also the Profit & Loss account for the year ended on that date, annexed thereto. These financial statements are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor''s Report) Order, 2003, as amended by companies (amendment) order 2004, issued by the Department of Company Affairs, in terms of section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraph 4 and 5 of the said order.

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

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

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

(iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

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

(v) On this basis of written representations received from the directors, as on 31st 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 appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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 principals generally accepted in India;

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

b) In the case of the Profit & Loss Account, of the loss for the year ended on that date.

ANNEXURE TO THE AUDTTORS'' REPORT AS REFERRED TO TN PARA 3 OF THE SATD REPORT OF EVEN DATE

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets of the company have been physically verified by the management during the year and no significant discrepancies were noticed on such verification.

(c) During the year, the company has not disposed off any substantial part of fixed assets that affects the going concern of the company.

(ii) (a) The inventories have been physically verified at reasonable intervals by the management.

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

(c) According to the information & explanation given to us by the management, the company has maintained proper stock records and as explained to us there were no material discrepancies noticed on physical verification of the stocks of Finish Goods, having regard to the size of the operations of the Company. The Stock records are subject to our verification.

(iii) (a) The company has granted loans to companies, firms and other parties covered under the Register maintained under Sec 301 of the Companies Act,1956 aggregating Rs.4,44,900/- to two such parties.

(b) In our opinion, the rate of interest and other terms and conditions on which the said loans have been given are not, prima facie, prejudicial to the interest of the company.

(c) As explained to us the receipts of payment of principal amounts and Interest, if any, are as per the terms of the said loan.

(d) As explained to us there is no overdue amount.

(e) The company has taken unsecured loans from companies, firms and other parties covered in the Register maintained under Section 301 of the Companies Act, 1956 amounting Rs. 72,38,349/- from six such parties.

(f) In our opinion, the rate of interest and other terms and conditions on which the said loans have been taken are not, prima facie, prejudicial to the interest of the company

(g) As explained to us the company is regular in payment of principal amounts and interest if any, as per the terms of the said loan.

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

(v) (a) Based on audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the Contract or arrangements entered in the register maintained under Section 301 and exceeding the value of five lakh rupees in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanation given to us, the company has not accepted any deposits from the public within the meaning of Sec.58A and 58AA of the Companies Act, 1956.

(vii) The company does not have a formal Internal Audit System. However, in our opinion, there are adequate internal control procedures commensurate with the size of the company and the nature of its business.

(viii) According to the information and explanation given to us, the company is not required to maintain cost records under section 209(l)(d) of the Companies Act, 1956.

(ix) (a) According to the information and explanation given to us, the company is generally regular in depositing with appropriate authorities undisputed statutory due including provident fund, investor education protection fund, employees'' state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income- tax, wealth tax, sales tax, custom duty, excise duty and cess were in arrears as at 31/03/2012 for a period of more than six months from the date they became payable.

(c) According to the information and explanation given to us, there are no dues of sales tax, custom duty, wealth tax, excise duty and cess that have not been deposited on account of any dispute.

(x) The company does not have accumulated losses. Also the company has not incurred cash losses during the financial year covered by our audit.

(xi) Based on the audit procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues if any, to any financial institution, bank or debenture holder.

(xii) Based on the audit procedures and as per information and explanation given by the management, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

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

(xv) As informed to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

(xvi) On the basis of our examination of the books of a/c and the information and explanation given to us, in our opinion, the term loans taken , have been applied for the purpose for which they were raised.

(xvii) On the basis of our examination of the books of a/c and the information and explanation given to us, in our opinion, the funds raised on short term basis have not been used for long term investment.

(xviii) The company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

(xix) During the year under audit the company has not issued debentures.

(xx) The company is not a public company. Accordingly, the provisions of clause 4(xx) of the companies (Auditor''s Report) order, 2005 are not applicable to the company.

(xxi) Based upon the audit procedures performed and information and explanation given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For SONT JHAWAR & CO.

CHARTERED ACCOUNTANTS

SATYANARATN SONT

PARTNER

M.NO. : 71689

FTRM REG. NO: 110386W

PLACE : SURAT

DATE : 23rd August, 2012

---

Mar 31, 2011

We have audited the attached balance sheet of INDIA POLYSPIN LIMITED, SURAT as at 31st March, 2011 and also the Profit & Loss account for the year ended on that date, annexed thereto. These financial statements are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies (Amendment) Order, 2004 issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

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

(iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

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

(v) On this basis of written representations received from the directors, 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 appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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 principals 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 in the case of the Profit & Loss Account, of the profit for the year ended on that date.

ANNEXURE TO AUDITOR''S REPORT ON THE ACCOUNTS OF INDIA POLYSPIN LIMITED FOR THE YEAR ENDED ON 31st MARCH 2011 AS REFERRED TO IN OUR REPORT OF EVEN DATE.

i. (a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. (b) As explained to us, the fixed assets have been physically verified by the management in accordance with a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification. (c) During the year company has disposed off all its fixed assets, which will affect the going concern assumption.

ii. to (c) As informed to us the company has no inventory.

iii. (a) The company has not granted any loans to companies, firms and other parties covered under the Register maintained under Sec 301 of the Companies Act, 1956. hence sub clause (b) , (c) & (d) does not apply. (e) The Company has not any taken unsecured loans from companies, firms and other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. hence sub clause (f) & (g) does not apply.

iv. In our opinion and according to the information and explanations given to us, there Are adequate internal control procedures commensurate with the size of the company and the nature of its business, however there are no purchases of inventory, fixed assets and the sale of goods during the year.

v. (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the contracts & arrangements that need to be entered into the register maintained under section 301 have been so entered. (b) In our opinion and according to the information and explanations given to us, the transactions entered in the register maintained under Section 301 and exceeding the value of five lakh rupees in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi. The company has not accepted any deposits from public.

vii. The company does not have a formal internal audit system. However it was observed that all transactions are being carried out under personal supervision of senior official of the company.

viii. We have been informed that the company is not required to maintain the cost records under Section 209 (1) (d) of the Companies Act, 1956.

ix. (a)According to the records, information and explanations provided to us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including income-tax, sales-tax, wealth-tax, custom duty, excise- duty, cess and other statutory dues applicable to it and no undisputed amounts were outstanding as at 31st March, 2011 for a period of more than six months from the date they became payable. (b)According to the information & explanation given to us, there are no dues in respect of sales tax, income tax, custom duty, wealth tax, excise duty and cess that have not been deposited with the appropriate authorities on account of any dispute.

x. The accumulated losses of the company are more than fifty percent of its net worth. The company has also incurred cash losses during the financial year covered by our audit and also incurred cash loss in the immediately preceding financial year.

xi. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that previously the company has defaulted in repayment of dues to financial institutions IIBI and IDBI , that had been settled during the previous year.

xii. Based on our examination of documents and records, we are of the opinion that the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. The company is not a chit/nidhi/mutual benefit fund/society, accordingly, clause 4(xiii) of the order is not applicable.

xiv. According to the information and explanation given to us, the company is not dealing or trading in shares, securities, debentures and other securities, hence, clause 4(xiv) of the order is not applicable.

xv. According to the information and explanation given to us the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi. The company has not obtained any term loans during the year, hence clause 4(xvi) of the order is not applicable.

xvii. On the basis of our examination of the books of a/c and the information and explanation given to us, in our opinion, the funds raised on short term basis have not been used for long term investment and vice versa.

xviii. The company has not made any preferential allotment of shares during the year.

xix. The company has not issued any debenture during the year.

xx. The company has not raised any money by way of public issues during the year.

xxi. Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

FOR SONI JHAWAR & CO.

CHARTERED ACCOUNTANTS

(AMARCHAND KALANI)

PARTNER

Place: SURAT M.N0.74182

Date: 22nd, August, 2011. FRN.110386W

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Mar 31, 2010

We have audited the attached balance sheet of INDIA POLYSPIN LIMITED, SURAT as at 31st March, 2010 and also the Profit & Loss account for the year ended on that date annexed thereto. These financial statement are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a resaonable basis for our opinion.

As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies (Amendment) Order 2004, issued by the Central Government of India in terms of sub-section (4A) of section 277 of the companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

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

III. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account:

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

V. On the basis of written representations received from the directors, as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the directors in disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of sub-secton (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 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 principals generally accepted in India:

a) In the Case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; and

b) In the case of the Profit & Loss Account, of the profit for the year ended on that date.

ANNEXURE TO AUDITOR''S REPORT ON THE ACCOUNTS OF INDIA POLYSPIN LIMITED FOR THE YEAR ENDED ON 31st MARCH 2010 AS REFERRED TO IN OUR REPORT OF EVEN DATE.

(i) a) The company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets. During the year IIBI aquar the whole undertaking (Assets) except office building of the company in terms of order of DRT and auctioned as a result there are no fixed assets accept office building.

b) As explained to us, the fixed assets have been physically verified by the management in accordance with a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) During the IIBI aquared the whole of the undertaking (assets) except office building of the company in terms of order of DRT and auctioned as a result there are no fixed assets accept office building which will affect the going concern assumption.

(ii) a) to (c) As informed to us the company has no inventory.

(iii) a) The company has not granted any loans to companies, firms and other parties covered under the Register maintained under Sec 301 of the Companies Act, 1956. Hence sub clause (b), (c) & (d) does not apply.

e) The Company has taken unsecured loans from companies, firms and other parties covered in the Register maintained under Section 301 of the Companies Act, 1956 aggregating to Rs. 25906536/- from 10 such parties.

f) In our opinion, the rate of interest and others terms and conditions on which the said loans have been taken are not primafacie prejudicial to the interest of the Company.

g) As explained to us the company is regular in payment of principal amount and interest if any as per terms of the said loan.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business, however there are no purchases of inventory, fixed assets and the sale of goods during the year.

(v) a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the contracts & arrangements that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transaction entered in the register maintained under Section 301 and exceeding the value of five lakh rupees in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The company has not accepted any deposits from public.

(vii) The company does not have a formed internal audit system. However it was observed that all transaction are being carried out under personal supervision of senior official of the company.

(viii) We have been informed that the company is not required to maintain the cost records under Section 209 (1) (d) of the Companies Act, 1956.

(ix) a) According to the records, information and explanations provided to us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including income-tax, sales-tax, wealth-tax, custom duty, excise-duty, cess and other statutory dues applicable to it and no undisputed amounts were outstanding as at 31st March, 2010 for a period of more than six months from the date they became payable.

b) According to the information & explanation given to us, there are no dues in respect of sales tax, income tax, custom duty, wealth tax, excise duty and cess that have not been deposited with the appropriate authorities on account of any dispute.

(x) The accumulated losses of the company are more than fifty percent of its net worth. The company has also incurred cash losses during the financial year covered by our audit and also incurred cash loss in the immediately preceding financial year.

(xi) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that previously the company has defaulted in repayment of dues to financial institutions IIBI and IDBI, and that the period and amount of defaults are as per notes in notes on accounts.

(xii) Based on our examination of documents and records, we are of the opinion that the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The company is not a chit/nidhi/mutual benefit fund/society, accordingly, clause 4(xiii) of the order is not applicable.

(xiv) According to the information and explanation given to us, the company is not dealing or trading in shares, securities, debentures and othe securities, hence, clause 4(xiv) of the order is not applicable.

(xv) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

(xvi) The company has not obtained any terms loans during the year, hence clause 4(xvi) of the order is not applicable.

(xvii) On the basis of our examination of the books of a/c and the information and explanation given to us, in our opinion, the funds raised on short term basis have not been used for long term investment and vice versa.

(xviii) The company has not made any preferential allotment of shares during the year.

(xix) The company has not issued any debenture during the year.

(xx) The company has not raised any money by way of public issues during the year.

(xxi) Based upon the audit procedures performed and information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

Place : SURAT FOR SONI JHAWAR & CO.

Date : 26th May 2010. CHARTERED ACCOUNTANTS

Sd/-

(AMARCHAND KALANI)

PARTNER M.NO. 74182

FRN. 110386W