Kandhari Rubbers Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2013

To the Members of KANDHARI RUBBERS LIMITED, UDAIPUR

1. We have audited the attached Balance Sheet of KANDHARI RUBBERS LIMITED as at 31st March, 2013 and also the Profit & Loss Account and cash flow statement for the period ended on that date annexed thereto. 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 mis-statement. 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 the management as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies Act (auditor''s report) Order, 2003 issued by the Central Government of India in term of Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of Books and records of the Company as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

a. 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.

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 such books..

c. The Balance Sheet and profit and Loss Account and cash flow statement dealt with by this Report comply with the mandatory accounting standards referred to in Section 211 (3C) of the Companies Act 1956.

d. The Balance Sheet and Profit & Loss account referred to in this report are in agreement with the books of account.

e. Based on the written representations received from the Directors of the Company as on March 31st, 2013 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.

5. Note No. 26 regarding preparation of accounts on going concern basis

6 Attention is invited to:

a Non - provision for margin money in the form of FDRs on account of time barred guarantees given by bank and interest thereupon as referred in Note No. 1 (III) (amount unascertainable). -

b Non -provision for depreciation aggregating toRs.6461610.00 as referred in Note No. 13.

c Non - provision for interest aggregating to Rs. 6146390.00 as referred in Note No. 15.

d Non - provision (amount unascertainable) for interest on bank borrowing as referred in Note No 16.

e Non- provision (amount unascertainable) for interest on loans and advances as referred in Note No. 18.

f. No accounting entries passed on by the company for sales of Immovable and movable assets of the company by Secured creditors of the company on 02-01-2008 and 31-01-2008 for Rs 5 Crore .

g. Effect of sales of assets by secured creditors not given under heading secured loans shown in balance sheet.

h. No TPS Deducted on the payment liable for make TPS ''

We further report that, without considering items mentioned at 6(a), 6(d ) & 6(e) above, the effect of which could not be determined, had the observations made by us in items at 6 (b) & (c) above been considered, the loss for the period would have been Rs. 122.05 Lacs ( as against the reported figure of profit Rs. 04.03 Lacs ) and Liabilities and provisions would have been Rs. 155.51 Lacs ( as against the reported figure of Rs 29.43 Lacs ). Had the un-provided depreciation for the years 1998-99 to 2011-13 and interest to Financial Institutions for the year 2001-02 to 2012-13 also been considered the accumulated loss up to 31.03.13 would have been Rs. 2283.84 Lacs.

7. Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to our observations read together with other notes 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 :

i. In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2013

ii. In the case of the Profit and Loss Account, of the loss for the year ended on that date.

ANNEXURE TO THE AUDITORS'' REPORT

(Referred to in paragraph (3) of our Report of even date) ''

1. In respect of its fixed assets:-

(a) The Company has maintained records in loose leaf showing full particulars including quantitative details and situation of its fixed assets. There is no fixed assets in existence as company Immovable and movable assets possessed and sold out by the FI''s and as reported by management the illegal possession and sales of Immovable and movable assets of the company is challenged before honorable RHC Jodhpur through writ .by the company..

2. In respect of its inventories:- -

(a) There is no Inventory in existence as company Immovable and movable assets possessed and sold out by the FI''s and as reported by management the illegal possession and sales of Immovable and movable assets of the company is challenged before Honorable RHC Jodhpur through writ .by the company

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) According to the information and explanation given to us, the company has granted unsecured interest free loans to 5 parties aggregating to Rs 69.70 lacs and the Company has not taken any loans, secured or unsecured from Companies, firm or other parties covered in the register maintained under section 301of the Companies Act, 1956.

(b) In our opinion and according to the information and explanations given to us, the loans to the parties have been given without interest and any terms and conditions for repayment.

(c) No reasonable steps have been taken by the Company for recovery of the principal.

4. In our opinion and according to the information and explanations given to us, the internal control procedures needs to be strengthened to bring it in line with the size of the Company and the nature of its business, for the purchase of inventory, fixed assets and for sale of goods. During the course of our audit we have not noticed any major weakness in internal control procedures

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

In our opinion and according to the information and explanations given to us, there were no transactions during the year that need to be entered in to the register in pursuance of section 301 of the Companies Act, 1956.

6. The Company has not accepted any deposits from the public during the accounting year within the meaning of Section 58A and 58AA of the Companies Act, 1956 and rules framed there under.

7. In our opinion, the internal audit system in the Company needs to be strengthened to bring it in line with the size of the Company and the nature of its business.

8. As informed to us, the Central Government has not prescribed for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 for any of the products of the Company. ''

9. In respect of statutory dues:-

(a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Excise Duty, Sales tax and other material statutory dues with appropriate authorities and there are no undisputed statutory dues payable for a period of more than six months from the date they became payable as at 31st March, 2012 except dues of Provident Fund Employees State Insurance as stated below:

Name of statute Nature of the dues Amount

Provident Fund Act Provident Fund 124284.79

Employees State Insurance Act Employees State Insurance 4385.79

(b) According to the records of the Company and the information and explanations given to us, there are no dues in respect of Custom duty, Wealth tax, Excise Duty and Cess matters on account of any dispute. The dues in respect of Sales tax which have not been deposited with the appropriate authorities on account of dispute are as under:

Name of statute Nature of dues Amount Period Forum where pending

Sales Tax Act Sales Tax 2637439.00 2000-2001 CTO Special circle

10. The accumulated losses of the Company as at 31 st March, 2012 exceed Hundred percent of its net worth and the Company has incurred cash losses during the current year and immediately preceding financial year.

11. According to the information and explanations given to us, the Company has defaulted in repayment of dues to financial institutions and bank as follows:

Name of Nature Amount Period Institution (Lacs)

IFC1 Term Loan 244.29 2001-12

IDBI Term Loan 259.56 2001-12

ICICI Term Loan 110.79 2001-12

SBI Working Capital 246.08 2001-12

IFCI Interest 269.50 2001-12

IDBI Interest 286.29 2001-12

ICICI Interest 122.23 2001-12

SBI Interest Unascertained 2001-12

12. The Company has not granted any loans & advances on the basis of security by way of pledge of shares, debentures and other securities, therefore clause 4(xii) is not applicable.

13. The provisions of any special statue applicable to Chit Fund/Nidhi/Mutual benefit funds/ Societies are not applicable to the Company, therefore clause 4(xiii) is not applicable.

14. In our opinion, The Company is not dealing or trading in shares, securities, debentures and other investments, therefore clause 4(xiv) is not applicable.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institution during the year, therefore clause 4(xv) is not applicable.

16. In our opinion and according to the information and explanations given to us, on an overall basis, the term loan taken from the financial institutions have been applied for the purpose for which they were obtained,

17. In our opinion and according to the information and explanations given to us, there are no funds raised on short term basis which have been used for long term investment.

18. The Company has not made any preferential allotment of shares to parties and Companies covered in the registered maintained under section 301 of the Companies Act, 1956. Accordingly clause 4(xviii) of the order is not applicable to the Company.

19. The Company has no debentures, therefore the clause 4(xix) of the order is not applicable to the Company.

20. The Company has not raised money by public issues during the year, therefore the clause 4(xx) of the order is not applicable to the Company.

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 caused the financial statements to be to be materially misstated.

For M/S C.K Jagetia & Co.,

Chartered Accountants

Sd

C. K. JAGETIA

Udaipur Proprietor

25,August. 2013. M.N.074511

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of KANDHARI RUBBERS LIMITED as at 31st March, 2012 and also the Profit & Loss Account and cash flow statement for the period ended on that date annexed thereto. 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 mis-statement. 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 the management as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies Act (auditor''s report) Order, 2003 issued by the Central Government of India in term of Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of Books and records of the Company as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

a. 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.

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 such books.

c. The Balance Sheet and profit and Loss Account and cash flow statement dealt with by this Report comply with the mandatory accounting standards referred to in Section 211 (3C) of the Companies Act 1956.

d. The Balance Sheet and Profit & Loss account referred to in this report are in agreement with the books of account.

e. Based on the written representations received from the Directors of the Company as on March 31st, 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.

5. Note No. 26 regarding preparation of accounts ongoing concern basis

6 Attention is invited to:

a Non - provision for margin money in the form of FDRs on account of time'' barred guarantees given by bank and interest thereupon as referred in Note No. 1 (III) (amount unascertainable).

b Non -provision for depreciation aggregating toRs.6461610.00 as referred in Note No. 13.

c Non - provision for interest aggregating to Rs. 6146390.00 as referred in Note No. 15.

d Non - provision (amount unascertainable) for interest on bank borrowing as referred in Note No 16.

e Non- provision (amount unascertainable) for interest on loans and advances as referred in Note No.18.

f. No accounting entries passed on by the company for sales of Immovable and movable assets of the company by Secured creditors of the company on 02-01-2008 and 31-01-2008 for Rs 5 Crore.

g. Effect of sales of assets by secured creditors not given under heading secured loans shown in balance sheet.

h. No TPS Deducted on the payment liable for make TPS

We further report that, without considering items mentioned at 6(a), 6(d) & 6(e) above, the effect of which could not be determined, had the observations made by us in items at 6 (b) & (c) above been considered, the loss for the period would have been Rs. 122.05 Lacs ( as against the reported figure of profit Rs. 04.03 Lacs ) and Liabilities and provisions would have been Rs. 155.51 Lacs ( as against the reported figure of Rs 29.43 Lacs ). Had the un-provided depreciation for the years 1998-99 to 2011-12 and interest to Financial Institutions for the year 2001-02 to 2011-12 also been considered the accumulated loss up to 31.03.12 would have been Rs. 2283.84 Lacs.

7. Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to our observations read together with other notes 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:

i. In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012.

ii. In the case of the Profit and Loss Account, of the profit for the year ended on that date.

ANNEXURE TO THE AUDITORS'' REPORT

(Referred to in paragraph (3) of our Report of even date )

1. In respect of its fixed assets:-

(a) The Company has maintained records in loose leaf showing full particulars including quantitative details and situation of its fixed assets. There is no fixed assets in existence as company Immovable and movable assets possessed and sold out by the FI''s and as reported by management the illegal possession and sales of Immovable and movable assets of the company is challenged before honorable RHC Jodhpur through writ .by the company..

2. In respect of its inventories:-

(a) There is no Inventory in existence as company Immovable and movable assets possessed and sold out by the FI''s and as reported by management the illegal possession and sales of Immovable and movable assets of the company is challenged before Honorable RHC Jodhpur through writ .by the company

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) According to the information and explanation given to us, the company has granted unsecured interest free loans to 5 parties aggregating to Rs 69.70 lacs and the Company has not taken any loans, secured or unsecured from Companies, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanations given to us, the loans to the parties have been given without interest and any terms and conditions for repayment.

(c) No reasonable steps have been taken by the Company for recovery of the principal.

4. In our opinion and according to the information and explanations given to us, the internal control procedures needs to be strengthened to bring it in line with the size of the Company and the nature of its business, for the purchase of inventory, fixed assets and for sale of goods. During the course of our audit we have not noticed any major weakness in internal control procedures

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

In our opinion and according to the information and explanations given to us, there were no transactions during the year that need to be entered in to the register in pursuance of section 301 of the Companies Act, 1956.

6. The Company has not accepted any deposits from the public during the accounting year within the meaning of Section 58A and 58AA of the Companies Act, 1956 and rules framed there under.

7. In our opinion, the internal audit system in the Company needs to be strengthened to bring it in line with the size of the Company and the nature of its business.

8. As informed to us, the Central Government has not prescribed for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 for any of the products of the Company.

9. In respect of statutory dues:-

(a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Excise Duty, Sales tax and other material statutory dues with appropriate authorities and there are no undisputed statutory dues payable for a period of more than six months from the date they became payable as at 31st March, 2012 except dues of Provident Fund Employees State Insurance as stated below:

Name of statute Nature of the dues Amount

Provident Fund Act Provident Fund 124284.79

Employees State Insurance Act Employees State Insurance 4385.79

(b) According to the records of the Company and the information and explanations given to us, there are no dues in respect of Custom duty, Wealth tax, Excise Duty and Cess matters on account of any dispute. The dues in respect of Sales tax which have not been deposited with the appropriate authorities on account of dispute are as under:

Name of statute Nature of dues Amount Period Forum where pending

Sales Tax Act Sales Tax 2637439.00 2000-2001 CTO Special circle

10. The accumulated losses of the Company as at 31 st March, 2012 exceed Hundred percent of its net worth and the Company has incurred cash losses during the current year and immediately preceding financial year.

11. According to the information and explanations given to us, the Company has defaulted in repayment of dues to financial institutions and bank as follows:

Name of Nature Amount Period Institution (Lacs)

IFCI Term Loan 244.29 2001-12

IDBI Term Loan 259.56 2001-12

ICICI Term Loan 110.79 2001-12

SBI Working Capital 246.08 2001-12

IFCI Interest 269.50 2001-12

IDBI Interest 286.29 2001-12

ICICI Interest 122.23 2001-12

SBI Interest Unascer tained 2001-12

12. The Company has not granted any loans & advances on the basis of security by way of pledge of shares, debentures and other securities, therefore clause 4(xii) is not applicable.

13. The provisions of any special statue applicable to Chit Fund/Nidhi/Mutual benefit funds/ Societies are not applicable to the Company, therefore clause 4(xiii) is not applicable.

14. In our opinion, The Company is not dealing or trading in shares, securities, debentures and other investments, therefore clause 4(xiv) is not applicable.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institution during the year, therefore clause 4(xv) is not applicable.

16. In our opinion and according to the information and explanations given to us, on an overall basis, the term loan taken from the financial institutions have been applied for the purpose for which they were obtained.

17. In our opinion and according to the information and explanations given to us, there are no funds raised on short term basis which have been used for long term investment.

18. The Company has not made any preferential allotment of shares to parties and Companies covered in the registered maintained under section 301 of the Companies Act, 1956. Accordingly clause 4(xviii) of the order is not applicable to the Company.

19. The Company has no debentures, therefore the clause 4(xix)of the order is not applicable to the Company.

20. The Company has not raised money by public issues during the year, therefore the clause 4(xx) of the order is not applicable to the Company.

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 caused the financial statements to be to be materially misstated.

For:- M/S CJCJagetia & Co.,

Chartered Accountants



Udaipur Chandresh Kumar Jagetia

25 JULY, 2012 Proprietor

M.N..74511

---

Mar 31, 2009

1. We have audited the attached Balance Sheet of KANDHARI RUBBERS LIMITED as at 31st March, 2009 and also the Profit & Loss Account and cash flow statement for the period ended on that date annexed thereto. 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 mis-statement. 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 the management as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies Act (auditors report) Order, 2003 issued by the Central Government of India in term of Sub-Section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of Books and records of the Company as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

a. 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.

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 such books.

c. The Balance Sheet and profit and Loss Account and cash flow statement dealt with by this Report comply with the mandatory accounting standards referred to in Section 211 (3C) of the Companies Act 1956.

d. The Balance Sheet and Profit & Loss account referred to in this report are in agreement with the books of account.

e. Based on the written representations received from the Directors of the Company as on March 31st, 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 appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

5. Note No. 26 regarding preparation of accounts on going concern basis

6 Attention is invited to:

a Non - provision for margin money in the form of FDRs on account of time barred guarantees given by bank and interest thereupon as referred in Note No. 1 (III) (amount unascertainable).

b Non -provision for depreciation aggregating toRs.6461610.00 as referred in Note No. 13.

c Non - provision for interest aggregating to Rs. 6146390.00 as referred in Note No. 15.

d Non - provision (amount unascertainable) for interest on bank borrowing as referred in Note No 16.

e Non- provision (amount unascertainable) for interest on loans and advances as referred in Note No. 18.

f. No accounting enteries passed on by the company for sales of Immovable and movable assets of the company by Secured creditors of the company on 02-01-2008 and 31-01-2008 for Rs 5 Crore

g. Effect of sales of assets by secured creditors not given under heading secured loans shown in balance sheet.

We further report that, without considering items mentioned at 6(a), 6(d ) & 6(e) above, the effect of which could not be determined, had the observations made by us in items at 6 (b) & (c) above been considered, the loss for the period would have been Rs. 118.34 Lacs ( as against the reported figure of profit Rs. 20.61 Lacs ) and Liabilities and provisions would have been Rs. 166.36 Lacs ( as against the reported figure of Rs.40.28 Lacs ). Had the un-provided depreciation for the years 1998-99 to 2008-09 and interest to Financial Institutions for the year 2001-02 to 2008-09 also been considered the accumulated loss up to 31.03.09 would have been Rs. 2024.79 Lacs.

7. Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to our observations read together with other notes 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 :

i.. In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2009. ii. In the case of the Profit and Loss Account, of the profit for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

( Referred to in paragraph (3) of our Report of even date )

1. In respect of its fixed assets:-

(a) The Company has maintained records in loose leaf showing full particulars including quantitative details and situation of its fixed assets. There is no fixed assets in existence as company Immovable and movable assets possessed and sold out by the FIs and as reported by management the illegal possession and sales of Immovable and movable assets of the company is challenged before honorable RHC Jodhpur through writ .by the company..

2. In respect of its inventories :-

(a) There is no Inventory in existence as company Immovable and movable assets possessed and sold out by the FIs and as reported by management the illegal possession and sales of Immovable and movable assets of the company is challenged before Honorable RHC Jodhpur through writ .by the company

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) According to the information and explanation given to us, the company has granted unsecured interest free loans to 5 parties aggregating to Rs 72.40 lacs and the Company has not taken any loans, secured or unsecured from Companies, firm or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion and according to the information and explanations given to us, the loans to the parties have been given without interest and any terms and conditions for repayment.

(c) No reasonable steps have been taken by the Company for recovery of the principal.

4. In our opinion and according to the information and explanations given to us, the internal control procedures needs to be strengthened to bring it in line with the size of the Company and the nature of its business, for the purchase of inventory, fixed assets and for sale of goods. During the course of our audit we have not noticed any major weakness in internal control procedures

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

In our opinion and according to the information and explanations given to us, there were no transactions during the year that need to be entered in to the register in pursuance of section 301 of the Companies Act, 1956.

6. The Company has not accepted any deposits from the public during the accounting year within the meaning of Section 58A and 58AA of the Companies Act, 1956 and rules framed there under.

7. In our opinion, the internal audit system in the Company needs to be strengthened to bring it in line with the size of the Company and the nature of its business.

8. As informed to us, the Central Government has not prescribed for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 for any of the products of the Company.

9. In respect of statutory dues:-

(a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Excise Duty, Sales tax and other material statutory dues with appropriate authorities and there are no undisputed statutory dues payable for a period of more than six months from the date they became payable as at 31 st March, 2007 except dues of Provident Fund Employees State Insurance as stated below.

Name of statute Nature of the dues Amount

Provident Fund Act Provident Fund 164487.00

Employees State Insurance Act Employees State Insurance 7949.00

(b) According to the records of the Company and the information and explanations given to us, there are no dues in respect of Custom duty, Wealth tax, Excise Duty and Cess matters on account of any dispute. The dues in respect of Sales tax which have not been deposited with the appropriate authorities on account of dispute are as under:

Name of statute Nature of dues Amount Period Forum where pending

Sales Tax Act Sales Tax 2637439.00 2000-2001 CTO Special circle

10. The accumulated losses of the Company as at 31st March, 2009 exceed Hundred percent of its net worth and the Company has incurred cash losses during the current year and immediately preceding financial year.

12. The Company has not granted any loans & advances on the basis of security by way of pledge of shares, debentures and other securities, therefore clause 4(xii) is not applicable.

13. The provisions of any special statue applicable to Chit Fund/Nidhi/Mutual benefit funds/ Societies are not applicable to the Company, therefore clause 4(xiri) is not applicable.

14. In our opinion, The Company is not dealing or trading in shares, securities, debentures and other investments, therefore clause 4(xiv) is not applicable.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantees for loans taken by others from banks or financial institution during the year, therefore clause 4(xv) is not applicable.

16. In our opinion and according to the information and explanations given to us, on an overall basis, the term loan taken from the financial institutions have been applied for the purpose for which they were obtained.

17. In our opinion and according to the information and explanations given to us, there are no funds raised on short term basis which have been used for long term investment.

18. The Company has not made any preferential allotment of shares to parties and Companies covered in the registered maintained under section 301 of the Companies Act, 1956. Accordingly clause 4(xviii) of the order is not applicable to the Company.

19. The Company has no debentures, therefore the clause 4(xix) of the order is not applicable to the Company.

20. The Company has not raised money by public issues during the year, therefore the clause 4(xx) of the order is not applicable to the Company.

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 caused the financial statements to be to be materially misstated.

For:-M/S C.K.Jagetia & Co., Chartered Accountants Sd/- Udaipur C handresh Kumar Jagetia 17 August. 2009 Proprietor M.N..74511