Lloyd Rockfibres Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2014

We have audited the attached Balance Sheet of LLOYD ROCKFIBRES LIMITED as at 31st March, 2014 and also the Profit and Loss Account of the Company 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 this financial statement based on our audit.

1. 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 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 statement presentation. We believe that our audit provides a reasonable basis for our opinion and report thereto:

2. As required by the Companies(Auditor''s Report) Order, 2003 issued by the Central Government in terms of section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company, as we considered appropriate, we enclose in the annexure a statement on the matters specified in the said Order.

3. Further to our comments in annexure referred to in paragraph(2) above:

a) We have obtained all the information and explanations which to the best of our knowledge and belief are 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 & Loss Account dealt with by this Report are in agreement with the books of accounts and;

d) In our Opinion the Balance Sheet and Profit & Loss Account comply with the accounting standards referred to in sub-section (3c) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at 31st March, 2014 from being appointed as a Director in term of Clause (g) of Sub Section (i) 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, read together with the significant accounting policies in Schedule13 and notes appearing thereon give the information required by the Companies Act, 1956,in 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 the Balance Sheet of the state of affairs of the Company as at 31st March, 2014,

(ii) In the case of the Profit & Loss Account, of the Loss 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.

ANNEXURE TO AUDITORS'' REPORT

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

(i) (a) The Company has maintained proper records showing full particulars Including quantitative details and locations of the fixed assets.

(b) All the assets have been physically verified by the management during the year. There is 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, the company has not disposed of any part of the plant & machinery.

(ii) (a) 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. No discrepancy noticed on verification of physical stocks and the books records.

(iii) (a) The Company took unsecured loan, from Companies, listed in the Register maintained under Section 301 of the Companies Act, 1956. In respect of the said loans maximum amount outstanding at any time during the year is Rs 2,02,34,757/- and the closing balance as at 31-03-2014 is Rs. 1,84,94,757/-. It has been explained by the management that the said sums were taken for rehabilitation of the Company.

(b) According to information and explanations given to us and in our opinion, terms and conditions in respect of unsecured loans taken by the company are not prima-facie prejudicial to the interest of the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size and nature of the Company''s business with regards to purchase of inventory, fixed assets 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) According to the information and explanation given to us, during the year, there were no contracts or arrangements that were required to be entered in the register maintained u/s 301 of Companies Act.1956.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding Rupees Five Lacs or more in respect of each party during the year, have been made at prices which are reasonable having regard to the prevailing market prices wherever available at the relevant time.

(vi) The company has not accepted any deposits as defined under sections 58A and 58AA of the companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975.

(vii) The company is required to maintain Cost records as per section 209(1) (d) of the Companies Act, 1956. The Company is also required to get the records audited by a qualified Cost Accountant. A compliance report is also required to be filed with the Central Government. The Company has not complied with these requirements.

(viii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employee''s 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 amount payable in respect of income tax, wealth tax, sales tax, customs duty and cess were in arrears, as at March 31, 2014 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of sale tax, income tax, customs duty, wealth tax, service tax, excise duty and cess which have not been deposited on account of any dispute.

(ix) In our opinion, the accumulated losses of the company at the year end are more than its net worth. The company has incurred cash losses during the financial year covered by our audit. The Company''s heavy accumulated loses of Rs. 14,92,01,236/- (Previous Year Rs. 13,49,28,910/-) is contrary to the fundamental accounting assumption of ''Going Concern'' and dependent on the company''s ability to infuse requisite funds and resume normal operations. An application U/s 15(1) of SICA to the Hon''ble BIFR for registration has been declined.

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

(xi) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

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

(xiii) In our opinion, the Company has not taken any term loan during the period under review.

(xiv) According to the information and explanations given to us and on overall examinations of the Balance Sheet of the company, we report that no funds raised on short term basis have been used for long term investments.

(xv) According to the information and explanations given to us, the company has not made preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Act.

(xvi) According to the information and explanations given to us, during the period covered by our audit report, the company has not issued debentures.

(xvii) The company has not raised money by way of public issues during the period under review.

(xviii) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the 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 DUBEY & CO. CHARTERED ACCOUNTANTS

Place: New Delhi Sd/- Date: 26.05.2014 (DEEPAK DUBEY) PROPRIETOR M.NO . 086349

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Mar 31, 2012

We have audited the attached Balance Sheet of LLOYD ROCKFIBRES LIMITED as at 31st March, 2012 and also the Profit and Loss Account of the Company 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 this financial statement based on our audit.

1 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 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 statement presentation. We believe that our audit provides a reasonable basis for our opinion and report thereto:

2 As required by the Companies(Auditor''s Report) Order, 2003 issued by the Central Government in terms of section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company, as we considered appropriate, we enclose in the annexure a statement on the matters specified in the said Order.

3. Further to our comments in annexure referred to in paragraph(3) above:

a) We have obtained all the information and explanations which to the best of our knowledge and belief are 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 & Loss Account dealt with by this Report are in agreement with the books of accounts and;

d) In our Opinion the Balance Sheet and Profit & Loss Account comply with the accounting standards referred to in sub-section (3c) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at 31st March, 2012 from being appointed as a Director in term of Clause (g) of Sub Section (i) 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, read together with the significant accounting policies in Schedule 3 and notes appearing thereon give the information required by the Companies Act, 1956,in 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 the Balance Sheet of the state of affairs of the Company as at 31st March, 2012,

(ii) In the case of the Profit & Loss Account, of the Loss 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.

ANNEXURE REFFERED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

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

(b) All the Assets have been physically verified by the management during the year. There is a regular programme of verification which in our opinion is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) During the year the company has not disposed of any part of the plant and machinery.

(ii)(a) 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. No discrepancy noticed on verification of physical stocks and the books records.

(iii)(a) The company took unsecured loan, from companies, listed in the Register maintained under section 301 of the companies Act, 1956. In respect of the said loans maximum amount outstanding at any time during the year is Rs. 2,01,72,117/- and the closing balance as at 31-03-2012 is Rs. 1,49,64,317/-.It has been explained by the management that the said sums were taken for rehabitation of the company.

(b) According to information and explanation given to us and in our opinion terms and conditions in respect of unsecured loans taken by the company are not prima-face prejudicial to the interest of the company.

(iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedure commensurate with the size and nature of the company’s business with regards to purchase of inventory, fixed assets and with regards to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

(v)(a) According to the information and explanation given to us during the year there were no contracts or arrangements that were required to be entered in the register maintained u/s 301 of companies Act 1946.

(b) In our opinion and according to the information and explanation given to us, the transactions made in presence of contracts or RRENGEMENTS ENTERED IN THE REGISTER MAINTAINED u/s 301of the companies Act 1956 and exceeding Five Lakhs or more in respect of each party during the year have been made at prices which are responsible having regard to the prevailing market prices wherever available at the relevant time.

(vi) The company has not accepted any deposits as defined under section 58A and 58AA of the companies Act, 1956 and the companies (Acceptance Deposits) Rules 1975.

(vii) The company is not required to maintain cost records as per section 209(1) of the companies Act 1956.

(viii) (a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, wealth tax, custom tax, cess and other material statutory dues applicable to it.

(b) According to the information and explanation given to us, no undisputed amount payable in respect of Income tax, wealth tax, sales tax, custom duty and cess were in arrears, as at March 31, 2012 for a period of more than six months from the date they become payable.

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

(ix) (a) In our opinion, the accumulated losses of the company are not more than 100% of its net worth. The company has earned profit during the financial year covered by our audit.

(b) Since the net worth of the company had become positive a michellenious application (MA-75/BC/2012) had been filed before the humble BIFR to release the company from its preview. The Humble BIFR has concurred with this view and issued vide its order dated 11th May, 2012 (No. 331/2000) to this efface.

(x) In our opinion, the company is not a chit fund or Nidhi/ mutual benefit fund society. Therefore the provisions of clause 4(xii) of the companies (Auditors Report) Order 2003, are not applicable to the company.

(xi) 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 (Auditors Report) Order 2003, are not applicable to the company.

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

(xiii) In our opinion, the company has not taken any term loan during the period under review.

(xiv) According to the information and explanation given to us and on overall examination of the balance sheet of the company we report that no funds raised on short term basis have been used for long term investments.

(xv) According to the information and explanation given to us, the company has not made professional allotment of shares during the year to parties and companies covered in the registered under section 301 of the Act.

(xvi) According to the information and explanation given to us, during the period covered by our audit report the company has not issued debentures.

(xvii) The company has not raised money by way of public issues during the period under review.

(xviii) Based up on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements an as for the information’s 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 DUBEY & CO.

CHARTERED ACCOUNTANTS

SD/-

(DEEPAK DUBEY)

PROPRIETOR

M. NO. 086349

PLACE : NEW DELHI

DATED : 28TH August, 2012

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Mar 31, 2011

We have audited the attached Balance Sheet of LLOYD ROCKFIBRES LIMITED as at 31st March, 2011 and also the Profit and Loss Account of the Company 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 this financial statement based on our audit.

1. 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 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 statement presentation. We believe that our audit provides a reasonable basis for our opinion and report thereto:

2. As required by the Companies(Auditor's Report) Order, 2003 issued by the Central Government in terms of section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company, as we considered appropriate, we enclose in the annexure a statement on the matters specified in the said Order.

3. Further to our comments in annexure referred to in paragraph(3) above:

a) We have obtained all the information and explanations which to the best of our knowledge and belief are 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 & Loss Account dealt with by this Report are in agreement with the books of accounts and;

d) In our Opinion the Balance Sheet and Profit & Loss Account comply with the accounting standards referred to in sub-section (3c) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at 31st March, 2011 from being appointed as a Director in term of Clause (g) of Sub Section (i) 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, read together with the significant accounting policies in Schedule13 and notes appearing thereon give the information required by the Companies Act, 1956,in 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 the Balance Sheet of the state of affairs of the Company as at 31st March, 2011,

(ii) In the case of the Profit & Loss Account, 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.

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

(i) (a) The Company has maintained proper records showing full particulars Including quantitative details and locations of the fixed assets.

(b) All the assets have been physically verified by the management during the year. There is 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, the company has not disposed of any part of the plant & machinery.

(ii) (a) 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. No discrepancy noticed on verification of physical stocks and the books records.

(iii) (a) The Company took unsecured loan, from Companies, listed in the Register maintained under Section 301 of the Companies Act, 1956. In respect of the said loans maximum amount outstanding at any time during the year is Rs 2,01,72,117/- and the closing balance as at 31-03-2011 is Rs. 2,01,72,117/-. It has been explained by the management that the said sums were taken for rehabilitation of the Company.

(b) According to information and explanations given to us and in our opinion, terms and conditions in respect of unsecured loans taken by the company are not prima- facie prejudicial to the interest of the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size and nature of the Company's business with regards to purchase of inventory, fixed assets 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) According to the information and explanation given to us, during the year, there were contracts or arrangements that were required to be entered in the register maintained u/s 301 of Companies Act.1956.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act,1956 and exceeding Rupees Five Lacs or more in respect of each party during the year, have been made at prices which are reasonable having regard to the prevailing market prices wherever available at the relevant time.

(vi) The company has not accepted any deposits as defined under sections 58A and 58AA of the companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975.

(vii) The company is not required to maintain Cost record as per section 209(1) of the Companies Act, 1956.

(viii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employee's 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 amount payable in respect of income tax, wealth tax, sales tax, customs duty and cess were in arrears, as at March 31, 2011 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of sale tax, income tax, customs duty, wealth tax, service tax, excise duty and cess which have not been deposited on account of any dispute.

(ix) (a) In our opinion, the accumulated losses of the company are not more than 100% of its net worth. The company has earned profit during the financial year covered by our audit.

(b) The Hon'ble BIFR has approved a rehabilitation package vide its order dated 28/12/06 which is being implemented.

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

(xi) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

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

(xiii) In our opinion, the Company has not taken any term loan during the period under review.

(xiv) According to the information and explanations given to us and on overall examinations of the Balance Sheet of the company, we report that no funds raised on short term basis have been used for long term investments.

(xv) According to the information and explanations given to us, the company has not made preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Act.

(xvi) According to the information and explanations given to us, during the period covered by our audit report, the company has not issued debentures.

(xvii) The company has not raised money by way of public issues during the period under review.

(xviii) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the 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 DUBEY & CO. CHARTERED ACCOUNTANTS

PLACE: NEW DELHI ( DEEPAK DUBEY)

DATED: 29th August, 2011 PROPRIETOR

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Mar 31, 2010

We have audited the attached Balance Sheet of LLOYD ROCKFIBRES LIMITED as at 31st March, 2010 and also the Profit and Loss Account of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on this financial statement based on our audit.

1. 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 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 statement presentation. We believe that our audit provides a reasonable basis for our opinion and report thereto:

2. As required by the Companies(Auditors Report) Order, 2003 issued by the Central Government in terms of section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company, as we considered appropriate, we enclose in the annexure a statement on the matters specified in the said Order.

3. Further to our comments in annexure referred to in paragraph(3) above:

a) We have obtained all the information and explanations which to the best of our knowledge and belief are 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 & Loss Account dealt with by this Report are in agreement with the books of accounts and;

d) In our Opinion the Balance Sheet and Profit & Loss Account comply with the accounting standards referred to in sub-section (3c) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at 31st March, 2010 from being appointed as a Director in term of Clause (g) of Sub Section (i) 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, read together with the significant accounting policies in Schedule13 and notes appearing thereon give the information required by the Companies Act, 1956,in 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 the Balance Sheet of the state of affairs of the Company as at 31st March, 2010,

(ii) In the case of the Profit & Loss Account, of the Loss 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.

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

(i) (a) The Company has maintained proper records showing full particulars Including quantitative details and locations of the fixed assets.

(b) All the assets have been physically verified by the management during the year. There is 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, the company has not disposed of any part of the plant & machinery.

(ii) (a) 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. No discrepancy noticed on verification of physical stocks and the books records.

(iii) (a) The Company took unsecured loan, from Companies, listed in the Register maintained under Section 301 of the Companies Act, 1956. In respect of the said loans maximum amount outstanding at any time during the year is Rs 2,63,94,676/- and the closing balance as at 31-03-2010 is Rs. 1,32,24,444/-. It has been explained by the management that the said sums were taken for rehabilitation of the Company.

(b) According to information and explanations given to us and in our opinion, terms and conditions in respect of unsecured loans taken by the company are not prima-facie prejudicial to the interest of the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size and nature of the Companys business with regards to purchase of inventory, fixed assets 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) According to the information and explanation given to us, during the year, there were contracts or arrangements that were required to be entered in the register maintained u/s 301 of Companies Act. 1956.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act,1956 and exceeding Rupees Five Lacs or more in respect of each party during the year, have been made at prices which are reasonable having regard to the prevailing market prices wherever available at the relevant time.

(vi) The company has not accepted any deposits as defined under sections 58A and 58AA of the companies Act, 1956 and the Companies (Acceptance of Deposits) Rules 1975.

(vii) The company is not required to maintain Cost record as per section 209(1) of the Companies Act, 1956.

(viii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident 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 amount payable in respect of income tax, wealth tax, sales tax, customs duty and cess were in arrears, as at March 31, 2010 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of sale tax, income tax, customs duty, wealth tax, service tax, excise duty and cess which have not been deposited on account of any dispute.

(ix) (a) In our opinion, the accumulated losses of the company are not more than 100% of its net worth. The company has not incurred cash losses during the financial year covered by our audit.

(b) The Honble BIFR has approved a rehabilitation package vide its order dated 28/12/06 which is being implemented.

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

(xi) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

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

(xiii) In our opinion, the Company has not taken any term loan during the period under review.

(xiv) According to the information and explanations given to us and on overall examinations of the Balance Sheet of the company, we report that no funds raised on short term basis have been used for long term investments.

(xv) According to the information and explanations given to us, the company has not made preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Act.

(xvi) According to the information and explanations given to us, during the period covered by our audit report, the company has not issued debentures.

(xvii) The comply has not raised money by way of public issues during the period under review.

(xviii) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the 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 DUBEY & CO. CHARTERED ACCOUNTANTS

PLACE: NEW DELHI ( DEEPAK DUBEY)

DATED: 10th August, 2010 PROPRIETOR