Jaidka Industries Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2015

We have audited the accompanying financial statements of Jaidka Industries Limited ("the Company") which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the 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 and presentation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate 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 statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the Auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Auditor considers internal financial control relevant to the Company's preparation and presentation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2015 and its Profit and its Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ('the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

(b) In our opinion proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of those books;

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

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) On the basis of written representation received from the directors as on March 31st' 2015, taken on record by the Board of Directors, none of the directors is disqualified as on March 31st' 2015, from being appointed as a director in terms of Section 164(2) of the Act; and

(f) 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.

ii. The Company has made provision, as required under the applicable law or accounting standards,

for material foreseeable losses, if any, and as required on long-term contracts including derivatives contracts.

iii. There has been no delay in transferring amounts, required to be transferred, if any, to the Investor Education and Protection Fund by the Company.

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 st March 2015;

(ii) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

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

The Annexure referred to in paragraph 1 of our Report of even date to the members of Jaidka Industries Limited on the accounts of the Company for the year ended 31st March, 2015

On the basis of such checks as we considered appropriate and according to the informationand explanation given to us during the course of our audit, we report that:

1. a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets

b) In our opinion the fixed assets have been physically verified by the management at reasonable intervals, having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.

2. a) as informed to us, the inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company

3. The year-end balance of unsecured loan granted to 1 (one) Company covered in the register maintained under Section 189 amounts to Rs. 291.68 Lakhs (P.Y.Rs. 273.68 Lakhs). There is no irregularity in respect of receipt of principal amount and interest.

4. In our opinion and according to the information and explanations given to us, there are internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

5. During the year, the Company has not accepted any deposits from the Public

6. Companies (Cost Records& Audit) Rules, 2014 prescribed by the Central Government under subsection (1) of section 148 of the Act are not applicable to the Company

7. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, service tax, excise duty, customs duty, wealth tax, value added tax, cess and other material statutory dues with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, wealth tax, cess, sales tax, service tax, value added tax, customs duty and excise duty which have not been deposited on account of a dispute.

(c) According to the information and explanations given to us, the amounts which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 and rules there under has been transferred to such fund within time.

8. The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

9. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution, Bank or debenture holders.

10. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

11. The Company has not taken any term loans from the financial institutions.

12. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management

For Ashwani & Associates Chartered Accountants FRN:000497N

Ashwani Kumar Partner Membership No.: 080711

Place: Ludhiana Date: 30.05.2015

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Mar 31, 2013

We have audited the accompanying financial statements of Jaidka Industries Limited ("the Company") which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow statement for the year then ended and a summary of accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Acl. 1956 ("the Act"). This responsibility includes the design implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement The procedures selected depend on the auditor s Moment, including the assessment of the risks of material misstatement of the financial ''statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in to* circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the edit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanations given to us. the financial suitcase give the information required by the Act in the manner so

The Annexure referred to in paragraph 1 of our Report of even date to the members of judoka Industries Limited on the accounts of the company for the year ended 31st March, 2013

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit we report that;

i) a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets

b) In our opinion the fixed assets have been physically verified by the management at reasonable intervals having regard to the size of the company and the nature of its assets No material discrepancies were noticed on such physical verification.

c) NO substantial pan of feed assets have been disposed off during the year.

ii) a) As informed to us the inventory has been physically verified during the year by the management in our opinion the frequency of verification is reasonable.

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

c) The company is maintaining proper records of inventory the discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operation of the company.

iii) a) According to the information and explanations giving to us we are of the opinion that the rate of interest and terms and conditions of loan given by the company to 1 (one) company covered in the register maintained u/s 301 of the Act amounting to Rs, 221,38 Lacs are prima facie prejudicial to the interest of the company on account of following reasons.

1) The company is not charging any interest on the Loan

2) Coupled with the (1) above there are no covenants with regard to the repayment of the Loan

b) The company has not taken any loans from persons covered in the register maintained under section 301 of the companies Act, 1956

c) We are not giving comments in respect of clause (c) and (d) as the terms of repayment have been stipulated in respect of loan granted as mentioned above.

iv) In our opinion and acceding to the information and explanations given to us there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory fixed assets and with regard to the sale of goods and services During the course of our audit we have not observed any major weaknesses in internal controls system.

v) a) In our opinion and acceding to the information and explanations given to us the particulars of contracts or arrangements referred to in section 301 of Act, have been entered in the register required to be maintained under that section.

b) In our opinion and according to the information and explanations given to us the transactions made in pursuance of such contracts or arrangements entered into Us register in pursuance of Section 30) of the Act and exceeding the value of Repacks five lubes in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at chew relevant time.

vh The Company has no. accepted any deposits from public as defined resections 58A and 58AA or any other relevant provisions of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules. 1975.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business

viii) The Companies (Cost Accounting Records) Rules. 2011 prescribed by the Central Covalent under clause (d) of subsection (1) of section 209 of the Art are not applicable to the Company

a) According to the information and explanations given to us and the records of the company examined by us in our opinion the company is regular in depositing undisputed statutory dues including provident and employees insurance, income tax. sales tax. wealth tax, serv.ee tax. customs duty,_ excise duty, cess and other applicable statutory dues as applicable. with the appropriate authorities.

b) According to the information and explanations given to us, excise respect of Income - tax/ Sales - tax/ Wealth-tax / Service - tax/ Custom Duty / Forty /Cess outstanding as on 31.03,13 which have not been deposited on account of any dispute.

The Company does not have accumulated losses as at 31st March, 2013 and has not incurred any cash losses in the financial year ended on that date or on the immediately preceding financial year. minimum and according to the information and explanations given to us.

xi) In our opinion and acceding to the information and explanations given to us the company has not defaulted in repayment of dues to a financial institution Bank or debenture holders.

Xii) 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 provision* of any special statute as specified under paragraph (xiii) of the said order are not applicable to the Company In our opinion. the Company is not dealing or trading in shares, securities, debentures and outer investments.

xv) in our opinion and according to the information and explanations given to us the Company has not given any guarantee for loans taken by others from banks or financial institutions during the fern.

xvi) The Company has not taken any term loans from the financial institutions.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, funds raised on short-term basis have not been used during the year for long-term investment

xviii) According to the information and explanations given to us. the Company has not made preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Act.

xix) According to the information and explanations given to ask. during the period covered by our audit, Company has not issued debentures

KX) The Company has not raised any money by way of public issues during the year

xx.) According to the information and explanations given to us. during the year, no fraud on or by the Company has been noticed or reported during the year.

For Ashwani & Associates

Chartered Accountants

FRN: 000497N



Ashwani kumar

Partner

Membership No.080711

Place: Ludhtana

Date : 25.05.2013

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Mar 31, 2012

We have audited the attached Balance Sheet of Jaidka Industries Ltd., New Delhi as at 31st March 2012 and also the Profit and Loss account for the year ended on that date both of which we have signed under reference to this report. 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 provided a reasonable basis for our opinion.

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

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

a) We have obtained all the information and explanations, which to the best of our knowledge & belief were necessary for the purpose of our audit.

b) In our opinion, proper Books of Accounts as required by law have been kept by the Company so far as appears from our examination of such Books.

c) The Balance Sheet and Profit and Loss Accounts dealt with by this report are in agreement with the Books of the Accounts of the Company

d) In our opinion, the Profit & Loss Account and Balance Sheet comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act 1956.

e) In our opinion and based on the information and explanations given to us, none of the Directors are disqualified as on 31st March 2012 from being appointed as Director in terms of Clause (g) of sub section (1) of section 274 of the Companies Act, 1956

f) In our opinion and to the best of our information and according to the explanations given to us the said accounts read with Significant Accounting Policies and Notes on Accounts thereon vide Schedule-M give the information required by the Companies Act 1956, in the manner so required and give a true and fair view:

1. In the case of Balance Sheet, of the State of Affairs of the Company as at 31st March 2012, and

2. In the case of Profit and Loss Account, of the Loss for the period ended on that date

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

ANNEXURE TO THE AUDITORS' REPORT REFERRED TO IN PARAGRAPH (3) THEREOF

i) a) The Company is maintaining proper records showing full particulars

including quantitative details and situation of fixed assets

b) In our opinion the fixed assets have been physically verified by the management at reasonable intervals, having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.

c) No substantial part of fixed assets have been disposed off during the year,

ii) a) As informed to us, the inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company

iii) a) The Company has granted interest free unsecured Loan amounting to

Rs.221.38 Lacs to 1 (one) Company covered in the register maintained u/s 301 of the Act. There are no specific terms and conditions regarding the repayment of the same

b) The Company has not taken any loans from persons covered in the register maintained under section 301 of the Companies Act, 1956.

c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

d) The Company is regular in repaying the principal amounts as stipulated and has also been regular in the payment of interest.

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

v) a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of Act, have been entered in the register required to be maintained under that section

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered into the register in pursuance of Section 301 of the Act and exceeding the value of Rupees five lacs in respect of any party during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits from public as defined under sections 58A and 58AA or any other relevant provisions of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business

viii) The Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under clause (d) of subsection (1) of section 209 of the Act are not applicable to the Company

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other applicable statutory dues as applicable, with the appropriate authorities.

b) According to the information and explanations given to us, there are no amounts in respect of Income - tax/ Sales - tax/ Wealth-tax / Service - tax/ Custom Duty / Excise Duty /Cess outstanding as on 31.03.11 which have not been deposited on account of any dispute.

x) The Company does not have accumulated losses as at 31st March, 2012 and has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution, Bank or debenture holders.

xii) 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 provisions of any special statute as specified under paragraph (xiii) of the said order are not applicable to the Company

xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments.

xv) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

xvi) The Company has not taken any term loans from the financial institutions.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, funds raised on short-term basis have not been used during the year for long-term investment

xviii) According to the information and explanations given to us, the Company has not made preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Act.

xix) According to the information and explanations given to us, during the period covered by our audit, Company has not issued debentures

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

xxi) According to the information and explanations given to us, during the year, no fraud on or by the Company has been noticed or reported during the year.

FOR ASHWANI & ASSOCIATES,

CHARTERED ACCOUNTANTS,

Place: Ludhiana

Dated: 20/08/2012 (ASHWANI KUMAR)

PARTNER

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Mar 31, 2010

We have audited the attached Balance Sheet of Jaidka Industries Ltd., New Delhi 31st March 2010 and also the Profit and Loss account for the year ended on that date both of which we have signed under reference to this report 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 provided a reasonable basis for our opinion.

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

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

a) We have obtained all the information and explanations, which to the best of our knowledge & belief were necessary for the purpose of our audit.

b) In our opinion, proper Books of Accounts as required by law have been kept by the Company so far as appears from our examination of such Books.

c) The Balance Sheet and Profit and Loss Accounts dealt with 11)” this report are in agreement with the Books of the Accounts of the Company

d) In our opinion, the Profit & Loss Account and Balance Sheet comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act1956.

e) In our opinion and based on the information and explanations given to us, none of the Directors are disqualified as on 31" March 2010 from being appointed .as Director in terms of Clause ,{g) of sub section (1) of section 274 of the Companies Act. 1956

f) In our opinion and to the best of our information and according to the explanations given to us the said accounts read with Significant Accounting Policies and Notes on Account thereon vide Schedule-M give the information required by the Companies Act 1956, in the manner so required give a true’ ,and fair view:

1. In the case of Balance Sheet, of the State of Affairs of the Company as at 31st March 2010, and

2. In the case of Profit and Loss Account, of the Loss (or the period ended on that date.

3. In the case of the Cash Row Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS’ REPORT REFERRED TO IN PARAGRAPH (3) THEREOF

i) a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets

b) In our opinion the fixed assets have been physically verified by the management at reason- able intervals, .having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such physical verification.

c) No substantial part of fixed assets have been disposed off during the year.

ii) a) As informed to us the inventory has been physically verified during the year by the management In our opinion the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material in relation to the operations of the Company

iii) a)The Company has not granted any Loans, Secured or Unsecured to Companies, Firms or Other parties covered in the register maintained u/s 301 of the Act.

b) During the year the Company has not taken any fresh loans from persons covered in the register maintained under section 301 of the Companies Act, 1956.

c) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from parties listed in the register maintained under section 301 of the Companies Act,1956 are not. prima facie prejudicial to the interest of the Company.

d) The Company is regular in repaying the principal amounts as stipulated and has also been regular in the payment of interest.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of inventory fixed assets and with regard to the sale of goods and services. During the course of our audit we have not observed any major weaknesses in internal controls system.

v) a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of Act, have been entered in the register required to be maintained under that section

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered into the register in pursuance of Section 301 of the act and exceeding the value of Rupees five laces in respect of any party during the year have been made at prices which are reason able having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits from public as defined under sections 58A and 58AA or any other relevant provisions of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

viii) To the best of our knowledge and according to the explanations provided to us, the Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act. 1956 in respect of any of me products of the Company.

ix) a) According to the information and explanations given to us and the records of the Company Examined by us, in our opinion, the Company is regular in depositing un disputed statutory dues including provident fund, employees’ state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other applicable statutory dues as applicable, with the appropriate authorities.

b)According to the information and explanations given to us, there are no amounts in respect of Income-tax/ Sales-tax/Wealth-tax/ Service-tax/ Customs Duty/ Excise Duty/ Cess outstanding as on 31.03.10 which have not been deposited on account of any dispute.

x) The Company does not have accumulated losses as at 31 st March, 2010, and has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

xi) In our opinion and according to’ the information and explanation given to us,. the Company has not defaulted in repayment of dues to a financial institution, Bank or debenture holders.

xii) 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 provisions of any special statute as specified under paragraph (xiii) of the said order are not applicable to the Company.

xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments.. .

xv) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

xvi) The Company has not taken any term loans from the financial institutions.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, funds raised on short-term basis have not been used during the year for long-term investment.

xviii) According to the information and explanations given to us, the Company has not made preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Act.

xix) According to the information and explanations given to us, during the period covered by our audit the Company has not issued debentures.

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

xxi) According to the information and explanations given to us, during the year, no fraud on or by the Company has been noticed or reported during the year.

FOR ASHWANI & ASSOCIATES CHARTERED ACCOUNTANTS

(ASHWANI KUMAR)

PARTNER

Palace : Ludhiana

Date : 29-05-2010