Modern Malleables Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

We have audited the accompanying standalone financial statements of MODERN MALLEABLES LTD.
(hereinafter referred to as “the Company”), which comprise the Balance Sheet as at March 31, 2025, the
Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity
and the Statement of Cash Flows for the year ended on that date and a summary of significant accounting
policies and other explanatory information (hereinafter referred to as “the standalone financial statements”).

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

2. Basis for Opinion

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

3. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the standalone financial statements of the current period. These matters were addressed in the
context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. We have determined the matters described
below to be the key audit matters to be communicated in our report.

Sl. No.	Key Audit Matter	Auditor’s Response
NIL

4. Information other than the financial statements and Auditors’ Report thereon

A. The Company’s Board of Directors is responsible for the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board’s Report
including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and
Shareholder’s Information, but does not include the consolidated financial statements, standalone
financial statements and our auditor’s report thereon. Our opinion on the standalone financial statements
does not cover the other information and we do not express any form of assurance conclusion thereon.

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

5. Management’s Responsibilities for the Standalone Financial Statements

A. The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act
with respect to the preparation of these standalone financial statements that give a true and fair view of
the financial position, financial performance, including other comprehensive income, changes in equity
and cash flows of the Company in accordance with the Ind AS and other accounting principles generally
accepted in India. 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 standalone financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.

B. In preparing the standalone financial statements, the Board of Directors of the Company is responsible
for assessing the ability of the Company to continue as a going concern, disclosing, as applicable,
matters related to the going concern and using the going concern basis of accounting unless the Board
of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so. The Board of Directors of the Company is also responsible for overseeing the financial
reporting process of the Company.

6. Auditors’ Responsibilities for the Audit of the Standalone Financial Statements

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

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

i) Identify and assess the risks of material misstatement of the standalone financial results, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

ii) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Company has adequate internal financial
controls with reference to financial statements in place and the operating effectiveness of such
controls.

iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Board of Directors.

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

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

C. Materiality is the magnitude of misstatements in the standalone financial statements that, individually
or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of
the standalone financial statements may be influenced. We consider quantitative materiality and
qualitative factors in:

(i) planning the scope of our audit work and in evaluating the results of our work; and

(ii) t o evaluate the effect of any identified misstatements in the standalone financial statements.

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

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

F. From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the standalone financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

II. REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of Section 143 of the 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, based on our audit, 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 purposes of our audit;

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

(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in
agreement with the books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under
Section 133 of the Act;

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

(f) With respect to the adequacy of the internal financial controls system with reference to financial
statements and the operating effectiveness of such controls, refer to our separate report in “Annexure
B”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company’s internal financial controls with reference to financial statements.

(g) With respect to the other matters to be included in the Auditors’ Report in accordance with the
requirements of Section 197(16) of the Act, as amended:

(h) In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its Directors during the year is in accordance with the provisions
of Section 197 of the Act.

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

a. The Company does not have any pending litigation which would impact its financial position.

b. The Company has made provision, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts.

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

d. Based on our examination with included test checks, the Company has used accounting software
for maintaining its books of account for the finalcial year ended 31st March, 2025, which has a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the software. Further during the course of our audit we did not
come across any instance of audit trail feature being tempered with and the audit trail has been
preserved by the Company as per the statutory requirements for record retention.

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

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

Based on the audit procedures that have been considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material
misstatement.

For B. R. KHAITAN & CO.

Chartered Accountants

P. Khaitan

(Proprietor)

Place : Kolkata M. No. : 060367

Date : 23.05.2025 FRN : 305012E

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Mar 31, 2014

We have audited the accompanying financial statements of Modern Malleables Limited, which comprises the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and 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 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 notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13thSeptember, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. 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.

AUDITORS'' 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 statements. The procedures selected depend on the auditor''s 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 control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. 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 audit 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 aforesaid 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:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014.

(b) In the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and

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

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. This report does not include a statement on the matters specified in paragraph 4 of the Companies (Auditor''s Report) Order, 2003issued by the Central Government of India in terms of Section 227(4A) of the Act;since in our opinion and according to the information and explanation given to us, the said order is not applicable to the company.

2. As required by Section 227(3) of the Act, 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 purpose of our audit.

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

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

(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with Accounting Standards notified under the Act; read with the General Circular 15/2013 dated 13thSeptember, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

(e) On the basis of the written representations received from the directors as on March 31,2014, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of Section 274(1 )(g) of the Act.

ANNEXURE TO THE PART OF THE AUDITORS REPORT

(This is annexure referred to in our Report of even date)

In terms of information and explanations given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under:

The company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets. These Fixed Assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such verification.

None of the Fixed Assets have been revalued during the year.

The stock of the inventory (Raw materials, Components, Stores & Spare Parts, Work-in-process, Finished Goods etc.) have been physically verified by the management during the year at reasonable intervals except stock lying with third parties, it is stated to us that confirmation of such stocks lying with parties have been obtained by the company in most of the cases. In our opinion the procedure of physical verification of inventory followed by the Management is reasonable and adequate in relation to the size of the company and its nature of business. The company is maintaining proper records of inventory.

The discrepancies noticed on physical verification between physical stock and book records which were of not material value have been properly dealt with in the Books of account.

In our opinion there are adequate 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.

The Central Government has not prescribed the maintenance of Cost records by the company U/S 209(1 )(d) of the Companies Act-1956 for any of its products.

In case of transaction of purchase of goods and materials and services and sale of goods and materials exceeding the vaiue of Rupees Five Lacs in the financial year in respect of any;

a) Transaction that to be entered into a register in pursuant of section 301 of the Act have been so entered.

b) In our opinion, each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

The company has not accepted any deposits from the public. In our opinion the directive issued by the Reserve Bank of India and the provision of the section 58Aand 58AAof the Act and the rules framed thereunder, where applicable, have been complied with. National Company Law Tribunal or any other Court has not passed any order in this respect.

In our opinion reasonable records have been maintained by the Company for the sale and disposal of realisable scraps. The Company has no by-products.

The Company is depositing the Provident Fund and employees'' State Insurance dues with the appropriate authority.

According to the information and explanation given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty were outstanding as at 31.03.2014 for a period of more than six months from the date they become payable (Except as mentioned in Notes on Accounts).

According to the information and explanations given to us, no personal expenses of Directors or employees have been charged to Profit & Loss Account, other than those payable under contractual obligations or in accordance with generally accepted business practice.

The Company has accumulated losses and incurred loss in the financial year to under review and has cash losses in the financial year immediately preceding the said financial year.

The Company has invested in shares as disclosed in respective schedule.

The Company has not given any guarantee for loans taken by others from banks or financial institutions.

The Company is a sick industrial unit within the meaning of clause (o) of sub Section (1) of Section 3 of the Sick Industrial Companies (Special Provision) Act, 1985. The Board for Industrial & Financial Reconstruction (BIFR) had also declared the Company as a sick industrial unit.

The Company is a recognized R&D Centre of the Govt, of India under its recognition letter of ministry science and technology.

In respect of trading items, according to the information and explanations given to us, there were no damaged goods during the year.

The Company is not a Chit Fund, Nidhi, or Mutual benefit fund/Society.

During the checks carried out by us, any fraud on or by the company has not been noticed or reported during the year under report.



For B. R. KHAITAN & CO. Chartered Accountants

P. KHAITAN Proprietor

Place : Kolkata Membership No. 060367 Date : 13th May, 2014 Regn. No. 305012E

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Mar 31, 2011

1. We have audited the attached Balance Sheet of M/S MODERN MALLEABLES LIMITED as at 31st March, 2011 and also the Profit and Loss Account and the Cash Flow Statement for the year ended 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 ^n 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 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, in the preparation of financial statements, 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 (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 matter specified in paragraph 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 and belief were necessary for the purposes of our audit;

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

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

(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the mandatory Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; On the basis of written representation received from the Directors as on 31.03.2011 and taken on record by the Board of Directors, in our opinion none of the Director is disqualified from being appointed as Director in terms of clause (g) section (1) of section 274 of the Companies Act, 1956.

(e) In our opinion, and to the best of our information and according to the explanations given to us , the said accounts together with the 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 the Balance Sheet of the state of affairs of the Company as at 31st March, 2011;

ii) in the case of Profit and Loss Account, of the loss to the Company for the year ended on that date; and

iii) in case of the Cash Flow Statement, of the Cash Flow of the Company for the year ended on that date.

In terms of information and explanation given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under:

The company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets. These Fixed Assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such verification.

None of the Fixed Assets have been revalued during the year except replacement of vehicles.

The Stock of the inventory (Raw materials, Components, Stores & Spare Parts, Work-in- progress, Finished Goods etc.) have been physically verified by the management during the year at reasonable intervals except stock lying with third parties, it is stated to us that confirmation of such stocks lying with third parties have been obtained by the company in most of the cases. In our opinion the procedure of physical verification of inventory followed by the Management is reasonable and adequate in relation to the size of the company and its nature of business. The company is maintaining proper records of inventory.

The discrepancies noticed on physical verification between physical stock and book records which were not material value have been properly dealt with in the Books of account.

The company has neither granted nor taken any loan whether secured or unsecured from or to any Company, Firm or other parties covered in the register maintained u/s 301 of the Companies Act, 1956.

In our opinion, there is adequate internal control procedure 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.

The Central Government has not prescribed the maintenance of Cost records by the company u/ s 209(1)(d) of the Companies act, 1956 for any of its products.

In case of transaction of purchase of goods and materials and services and sale of goods and materials exceeding the value of Rupees Five Lacs in the financial year in respect of any;

a) Transaction that to be entered into a register in pursuant of section 301 of the Act have been so entered.

b) In our opinion, each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

The company has not accepted any deposits from the public. In our opinion, the directive issued by the Reserve Bank of India and the provision of the Section 58A and 58AA of the Act and the rules framed thereunder, where applicable, have been complied with. National Company Law Tribunal or any other Court has not passed any order in this respect.

In our opinion, reasonable records have been maintained by the Company for the sale and disposal of realizable scraps. The Company has no by-products.

The Company is depositing the Provident Fund and Employees' State Insurance dues with the appropriate authority.

According to the information and explanation given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty were outstanding as at 31.03.2011 for a period of more than six months from the date they become payable (Except as mentioned in Notes on Accounts).

According to the information and explanations given to us, no personal expenses of Directors or employees have been charged to Profit & Loss Account, other than those payable under contractual obligations or in accordance with generally accepted business practice.

The Company has accumulated losses and incurred loss in the financial year under review.

The Company is not dealing or trading in shares, securities debentures and other investments.

The Company has not given any guarantee for loans taken by others from banks or financial institutions.

The Company is a sick industrial unit within the meaning of clause (o) of sub section (1) of Section 3 of the Sick Industrial Companies (Special Provision) Act, 1985. The Board for Industrial & Financial Reconstruction (BIFR) had also declared the Company as a sick industrial unit.

In respect of trading items, according to the information and explanations given to us, there were no damaged goods during the year.

The Company is not a Chit Fund, Nidhi or Mutual Benefit Fund/Society.

During the checks carried out by us, any fraud on or by the company has not been noticed or reported during the year under report.

For B. R. KHAITAN & CO.

Chartered Accountants

B. R. Khaitan

Proprietor

Place : Kolkata Membership No. : 7106

Date : 30th July 2011 Regn. No. : 305012E

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Mar 31, 2010

1. We have audited the attached Balance Sheet of M/S MODERN MALLEABLES LIMITED as at 31st March, 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 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, in the preparation of financial statements, 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 (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 matter specified in paragraph 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 and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books if accounts as required by law have been kept by

the Company, so far as appears from our examination of them;

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

(d) In our opinion, the Balance Sheet, Profit & Loss Account & Cash Flow Statement dealt with by this report comply with the mandatory Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act. 1956 ; On the basis of written representation received from the Directors as on 31.03.2010 and taken on record by the Board of Directors, in our opinion none of the Director is disqualified from being appointed as Director in terms of clause(g) section (1) of section 274 of the Companies Act, 1956;

(e) In our opinion, and to the best of our information and according to the explanations given to us, the said accounts together with the 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 the Balance Sheet of the sate of affairs of the Company as at 31st March, 2010.

(ii) in the case of Profit and Loss Account, of the loss to the Company for the year ended on that date; and

(iii) in case of the Cash Flow Statement, of the Cash Flow of the Company for the year ended on that date.

Annexure to the part of the Auditors Report (This is annexure referred to in our Report of even date)

The Company has reduced/converted the nominal value of Equity Share to Rs. 10/- each to Rs. 1/- per share during the year.

In terms of information and explanation given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under:

The company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets. These Fixed Assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such verification.

None of the Fixed Assets have been revalued during the year except replacement of vehicles.

The stock of the inventory (Raw materials, Components, Stores & Spare Parts, Work-in- process, Finished Goods etc.) have been physically verified by the management during the year at reasonable intervals except stock lying with third parties, it is stated to us that confirmation of such stocks lying with third parties have been obtained by the company in most of the cases. In our opinion the procedure of physical verification of inventory followed by the Management is reasonable and adequate in relation to the size of the company and its nature of business. The company is maintaining proper records of inventory.

The discrepancies noticed on physical verification between physical stock and book records which were not material value have been properly dealt with in the Books of account.

The company has neither granted nor taken any Loan whether secured or unsecured from or to any Company, Firm, or other parties covered in the register maintained U/s 301 of the Companies Act-1956.

In our opinion there is adequate 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.

The Central Government has not prescribed the maintenance of Cost records by the company U/ S 209(1 )(d) of the Companies Act-1956 for any of its products.

In case of transaction of purchase of goods and materials and services and sale of goods and materials exceeding the value of Rupees Five Lacs in the financial year in respect of any;

a) Transaction that to be entered into a register in pursuant of section 301 of the Act have been so entered;

b) In our opinion, each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

The company has not accepted any deposits from the public. In our opinion, the directive issued by the Reserve Bank of India and the provision of the section 58A and 58AA of the Act and the rules framed thereunder, where applicable, have been complied with. National Company Law Tribunal or any other Court has not passed any order in this respect.

In our opinion reasonable records have been maintained by the Company for the sale and disposal of realisable scraps. The Company has no by-products.

The Company is depositing the Provident Fund and employees' State Insurance dues with the appropriate authority.

According to the information and explanation given to us, no undisputed amounts payable in respect of.Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty were outstanding as at 31.03.2010 for a period of more than six months from the date they become payable (Except as mentioned in Notes on Accounts).

According to the information and explanations given to us, no personal expenses of Directors or employees have been charged to Profit & Loss Account, other than those payable under contractual obligations or in accordance with generally accepted business practice.

The Company has accumulated losses and incurred loss in the financial year to under review and no cash losses in the financial year immediately preceding the said financial year.

The Company is not dealing or trading in shares, securities debentures and other investments.

The Company has not given any guarantee for loans taken by others from banks or financial institutions.

The Company is a sick industrial unit within the meaning of clause (o) of sub Section (1) of Section 3 of the Sick Industrial Companies (Special Provision) Act, 1985. The Board for Industrial & Financial Reconstruction (BIFR) had also declared the Company as a sick industrial unit.

In respect of trading items, according to the information and explanations given to us, there were no damaged goods during the year.

The Company is not a Chit Fund, Nidhi, or Mutual benefit fund/Society.

During the checks carried out by us, any fraud on or by the company has not been noticed or reported during the year under report.

For B. R. KHAITAN & CO.

Chartered Accountants

Place: Kolkata B. R. KHAITAN

Date: 31st July, 2010. Proprietor

Membership no. 7106

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Mar 31, 2009

1. We have audited the attached Balance Sheet of M/s. MODERN MALLEABLES LIMITED as at 31st March, 2009 and also the Profit and Loss Account and the Cash Flow Statement for the year ended 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 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 misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors 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 paragraph 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 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 appears from our examination of the books ;

(c) the Balance Sheet, profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

(d) In our opinion, the Balance Sheet, profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Companies Act, 1956.

(e) on basis of our review of the written representations received form the directors as on 31st March, 2009, and taken on record by the board of Directors, we report that none of the directors is disqualified as on 31st March 2009 form being appointed as a director in terms of Clause (g) of Sub-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 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 the Balance Sheet of the state of affairs of the Company as at 31st March, 2009

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

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

Annexure to the Auditors Report

(This is the annexure referred to in our report of even date)

In terms of information and explanations given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under:

i. a. The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets.

b. None of the Fixed assets have been revalued during the year.

c. The Stock of Inventory has been physically verified by the management during the year at reasonable intervals except stock lying with third parties, confirmation of such stocks with parties have been obtained by the Company in most of the cases.

d. The discrepancies noticed on physical verification between physical stocks and book record which were not material have been properly dealt with in the books of account.

e. The company has not taken any loans, secured or unsecured, from companies firms or other parties listed in the Register maintained under Section 301 of Companies Act.

f. According to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to purchase of inventory and fixed assets and with regard to the sale of goods.

ii a. To the best of our knowledge and according to the information given 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 the Companys products.

b. The company has not accepted deposits from the public to which the provisions of Section 58(A) and 58(AA) of the Companies Act, 1956 and the rules framed there under apply.

c. In case of transactions of purchase of goods and material as and services and sale of goods and materials exceeding the value of Rupees five lacs in the financial year in respect of any-.

d. The transaction that to be entered into a register in pursuant of section 301 of the Act have been so entered;

e. In our opinion, each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

f. According to the information and explanations given to us and according to the books and records as produced and examined by us,in accordance with the generally accepted auditing practices in India , the Company is regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Excise Duty, Customs Duty, cess and other statutory dues as applicable with the appropriate authorities.

g. The company does not have any accumulated losses at the end of the financial year, and it has not incurred cash losses during the financial year and immediately preceding such financial year.

h. The company during the year has not defaulted in repayment of dues to Financial Institution or bank or debenture holders

i. The company during the year has not granted any loan and advance on the basis of security by way of pledge of shares, debentures and other securities.

j. The company is not a Nidhi/mutual benefit fund/society to which the provisions of special statute relating to chit fund are applicable.

k. The Company is a sick Industrial unit within the meaning of clause(O) of sub Section(1) of section 3 of the Sick Industrial Companies (Special Provision) Act,1985.The Board of Industrial & Financial Reconstruction (BIFR) has also declared the Company as a sick industrial unit.

l. During the checks carried out by us, any fraud on or by the Company has not been noticed or reported during the year under reported.

For B. R. KHAITAN & CO. Chartered Accountants

Place : Kolkata B. R. Khaitan Date : 25th July 2009 Proprietor