MSL Industries Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2013

Report on the Financial Statements -

We have audited the accompanying Financial Statement of MSL INDUSTRIES LIMITED ("the company") which comprise the Balance Sheet as at 31st March2013 the Statement of Profit & loss and Cash Flow statement for the Year then ended and a summary of significant accounting policies and other explanatory information.

Managements Resonsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India including Accounting standards referred to in Section 211 (3C) of the Companies Act. 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

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

An audit involves Performing prooedures to obtain audit evidence about the amounts and disolosures in the financial statements. The procedures selected depend on the aditors judgement, including the assessment of the risk of material misstatement of the financial statements whetner due to fraud or error, in making those risk assessments, the auditor considers internal control relevant to the company''s preperation and fair presentation of the financial statements in order to design audit procedures that ere appropriate in the circumstances. An audit also includes evaluating the aparopriateness of accounting policies used and the reasonableness ofthe acoounting estimates made by the management, as well as evaluating the overall presentation of the finanoial statements.

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

Opinion

Subiect to notes as appearing in the "Notes on Accounts" in Schedule 17 and under each of the Schedules annexed with Balance Sheet and to our comments on other Notes as stated hereunder:-

i) Note No. 2 regarding non-ascertainment of actual Liabilities.

ii) Note No. 4(g) & (h) regarding non-adjustement of Principal amount of dues with interest due to non-receipt of "No Due certificate" from Industrial Development Bank of India (IDBI), Bihar State Credit & investment corporation. Bihar State Finance corporation, although the charged assets were sold by the respective secured Creditors and the sales proceeds of the charged assets were collected and an amount of Rs. 477.56/- Lac were distributed / paid to IDBI by the ARCIL out or the sales proceeds of the charged assets of the company.

iii) Note No.,7(a) regarding non Deposit of unclaimed dividend & Interest due on fully convertible Debentures due to the reasons as stated in the said note.

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 ''2013;

(b) In the cese of the Statement of Profit and Loss of the loss for the year ended on that date; and

(c) In the case of Cash flow Statement of the Cash flows for the year ended on that date Report on other legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order 2003 (tne order) Issued by the Central Government of India in terms of Sub-section 4(A) of Section 227 of the Act. We give in annexture a statement on the matters specified in paragraphs 4 & 5 of the Order.

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 reaquired by law have been kept by the company so far as appers from our examinations of those books

C) The Balance Sheet Profi t & 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 the Accounting Standards referred to in section 211 (3C) of the Act;

e) On the basis ofthe written representations received from the direotors as on March 31 2013 taken on reoord by the Board of Direotors none of the directors is disqualified as on March 31, 2013 from being appointed as a director in terms of section 274(1) (g) of the Act.

1. In respect of its fixed assets:

None ol the fixed assets have been revalued durine the year.

2. In respect of loans, secured or unsecured granted or taken by the Company to/from compaies, firms or other parties covered in the register maintained under section 301 of the Companies Act. 1956:

a) In our opinion and according to the information and explanations given to us the Company has not taken loans, secured or unsecured from } companies firms or other parties listed in the register maintained.u/s.301 of the Companies Act.1956 or from the Companies under the same management within the meaning ot Section 370(1 B) of the Companies Act, 1956. *

b) According to the informaton and explanations given to us the company has not granted loans secured or unsecured to companies, firms or other parties listed in the register maintained u/s- 301 of the companies Act. 1956 or to the companies under the same management within the meaning of Section 370 (1B) of the Companies Act. 1956. Save and except amount given to a Director ot the company of Rs. 1.00.000/- for Medical treatment'' subject to adjustment after approval of the shareholders as stated in Notes under Schedule 12 annexed to the Balance Sheet of the company as at 31st March 2013.

3. The company has not accepted any deposite from the Public within the meaning of Section 58A of the companies Act. 1956.

4. In respect of Internal Audit System: The company has no internal audit system.

5. As explained to us, the Central Government has not prescribed maitenance of cost records under Section 209(1) (d) of the Companies Act. 1956 for any of the Products of the Company.

6. According to the record available to us the Company''s due on Account of Provident Fund and Employees'' State Insurance in respect of all the units of the Company have generally been deposited during the Year in time except there were some delays.

7. According to the information and explanations given to us there are no undisputed amounts payable in respect of income-tax, Wealth Tax,

8. According to the information and explanations given to us and according to the records of the company examined by us and as certified by the management no personal expenses have been charged to revenue account excpet those which are being borne by the company in pursuance of contractual obligations or as per accepted business practices.

9. The Comoany was declared as sick Industrial Company on the basis of Subsection (1) of Section 3 by the Sick Industrial Companies (Special Provision) Act. 1985 by BIFR. It has been reported that the said Honble B1FR has since completed the hearing and on the basis of the request of the Secured Creditors, has abated the reference under third provisions of section 15(A) of SICA Act. 1985.

10. The assets of the Hind Polymers Unit at Ghaziabad and of the High Tech Steel Unit and Steel Unit at Patna were taken over and sold by the Asset Reconstruction Company India) Ltd. (ARCIL) and have been sold by ARCIL on behalf of the secured creditors. The Company is not a going concern as has been stated bv the company in the Notes on Aooounts. (Notes No.4(ii) in Schedule 17 annexed to the Balance Sheet asat31stMarch.2013.

11. 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) Amendment) order, 2004 are not applicable to the company.

12. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provision clause 4(xiv) of the companies (Auditors Report) (Amendment) order 2004 are not applicable to the company.

13. According to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and companies in the register maintained under section 301 of the companies Act. 1956

14. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported by the Branch Auditor in their Audit report and at other offices audited by us in course of the audit Other clauses of this annexure are not applicatble.

28, BLACK BURN LANE FOR TAPARIA & CO.

KOLKATA-700 012 CHARTERED ACCOUNTANTS

DATED: 13th November 2013, Sd/-

J.K.TAPARIA

Proprietor,

Firm Regd.No.305054E.

Membership No. F-007582.

PANNO.ABKPT7240A

---

Mar 31, 2012

We have audited the attached Balance Sheet of MSL INDUSTRIES LIMITED as at 31st March, 2012, Profit & Loss Amount for the Year ended on that date annexed thereto (in which are incorporated accounts of the company''s Polymer Division in Surajpur, U.P. audited by the Branch Auditor) and the accounts of Steel & High-tech Division at Patna, Bihar and Kolkata Office audited by us. These financial statements are the response- ability of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with the 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 exam- ining, 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 statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor''s Report) Order, 2003, as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004, is- sued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Aot,1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us and as reported by the Banoh Auditor, we set out in the annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

We Report that -

Subject to our comment on other Notes as appearing in the Notes on Accounts more particularly on the following notes -

i) Note No. 5 (K) of schedule 17 regarding non ascertainment of intrinsic value of unquoted investments and non proviso for the shortfall in market value of quoted investments.

ii) Non-provision of interest payable IDBI, BSFC & BICICO

iii) Regarding Non-deposit of unclaimed dividend and interest due on FCD and non-compliance u/s 205(c) of the Companies Act, 1956 for Rs. 4,32,672/- & Rs 7.61,414/- respectively. under Note No. 5(L)

iv) Non-ascertainments of actual liabilities of the company in respect of matters stated in Note No. 5(f) in Schedule 17 under the head Contingent liabilities not provided for and resulting further loss to the Company, if any.

v) Further to our comments in the annexure referred to in paragraph 3 above, we report that :

a) Subject to our comment made above, 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 accounts as required by law have been kept by the Company, soar as appears from our examination of the books. We also reports that on the accounts of the divisions audited by Branch auditors we have dealt with them in preparing our report in the manner consider necessary by us.

c) The Balance Sheets, Profit & Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion subject to our comment in para 4 above, the Balance Sheet, Profit & Loss Account dealt with by this report comply with the Accounting Standard referred to in Section 211 (3c) of the Companies Act, 1956.

e) On the basis of written representations received from the directors, as on 31.3.2012 and taken on record by the Board of Directors of the company, we report that none of the directors are dis- qualified from being appointed as Director in terms of clause 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with all other Notes thereon and attached thereto give in the prescribed manner the information required by the companies Act, 1956 in the manner so required and also give, subject to our comments in para 4, a true and fair view in conformity with accounting principles generally accepted in india.

(i) in 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, taking into appropriation A/c, of the Profit of the company for the Year ended on that date.

Annexure to the Auditors'' Report referred to in Paragraph 3 of our report of even date ;

1) As reported by the Branch Auditor the unit, Hind Polymers at Gazibad

has generally maintained proper records showing particulars includ- ing quantitative details and situation of the Fixed Assets. As re- ported by the Branch Auditors the said units could not carry out physical verification of fixed assets as the assets have been taken over and sold by the secured creditors under SARFAESI Act. 2002.

2) None of the fixed assets have been revalued during the year.

3) As reported by the Branch Auditor the stocks of Finished Goods. Stores, spare parts and Raw Materials at Company''s Polymer Division at Surajpur in UP. except material in transit and lying with third parties have not been physically verified by the management during the year as the stocks have been taken over and sold by the ARCIL under SARFAESI Act.

4) According to the information and explanations given to us and as reported by the Branch Auditors, the company has not taken loans, secured or unsecured, from companies, firms or other parties listed in the register maintained u/s 301 of the companies Act, 1956 or from the companies under the same management within the meaning of Section 370(1 B) of the companies Act, 1956.

5) According to the information and explanations given to us and as reported by the Branch Auditor, the Company has not granted loans, secured or unsecured, to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act,1956 or to the Companies under the same manage- ment within the meaning of Section 370(1 B) of the Companies Act, 1956.

6) The company has not accepted any deposits from the Public within the meaning of Section 58A of the Companies Act, 1956

7) The Company has no internal audit system.

8) As explained to us, the Central Government has not prescribed maintenance of cost records under Section 209(1 )(d) of the Compa- nies Act, 1956 for any of the products of the Company.

9) As reported by the Branch Auditor according to the records of the Company, Provident Fund and Employees State Insurance dues in respect of its Polymer division, have generally been deposited during the year in time except there were some delays.

10) According to the information and explanations give to us there are no undisputed amounts payable in respect of Income-tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty out- standing as at 31 st March, 2011 for a period of more than six months from the date they became payable save and except exclusion below

Name of the Name of Amount Period to Form where Statue the dues which the dispute is amount pending relates.

Sales Tax Trade Tax 2245398 1998-1999 High Court. Act (Allahabad).

Trade Tax 142345 2002-2003 Trade Tax Tribunal (Noida)

Finance Tax Service 484846 1997-1998 Commissioner Act Tax Act Excise & Service Tax

Central excise Excise 2370970 1994-96 Supreme Court Act Duty



11) According to the information and explanations given to us and as reported by the Branch Auditor and according to the records of the Company examined by us and as certified by the Management, no personal expenses have been charged to revenue account ex- cept those which are being borne by the Company in pursuance of contractual obligations or as per accepted business practices.

12) The Company has been declared as sick Industrial Company on the basis of its net worth as on 31st March, 2002 within the meaning of clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985, by BIFR. It has been reported that the said Hon''ble BIFR has since completed the hear- ing and on the basis of the request of the Secured Creditors has abated the reference under third provisions of section 15(A) of SICA Act, 1985.

13) The assets of the Hind Polymers Unit at Ghaziabad were taken over

& sold by the said ARCIL Since the Fixed Assets of Patna and of polymers division has been sold by ARCIL , we cannot comment as to whether the Company is a going concern.

14) In our opinion the Company is not a chit fgnd or a nidhi/mutual benefit fund/ society. Therefore the provisions of clause 4(xiii) of the Companies (Auditor''s Report)(Amendment) Order, 2004 are not applicable to the Company.

15) In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the pro- visions of clause 4(xiv) of the Companies (Auditor''s Report)(Amendmant) Order, 2004 are not applicable to the Com- pany.

16) According to the information and explanations given to us, the. Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

17) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported by the Branch Auditor in their Audit Report and at other offices audited by us in course of the audit.

18) Other clauses of this annexure are not applicable.

28, BLACK BURN LANE, FOR TAPARIA & CO.

KOLKATA- 700 012 CHARTERED ACCOUNTANTS

DATED : 26 th November, 2012 Sd/-

J.K.TAPARIA

Proprietor,

Membership No. F-007582.

---

Mar 31, 2011

We have audited the attached Balance Sheet of MSL INDUSTRIES LIMITED as at 31st March, 2011, Profit & Loss Amount for the Year ended on that date annexed thereto (in which are incorporated accounts of the company's Polymer Division in Surajpur, U.P. audited by the Branch Auditor) and the accounts of Steel & Hightech Division at Patna, Bihar and Kolkata Office audited by us. These financial statements are the responsibility of the Commpany's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with the 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditor's Report) (Amendment) Order, 2004, is- sued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Aot,1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us and as reported by the Board Auditor, we set out in the annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

We Report that : -

1. Subject to our comment on other Notes as appearing in the Notes on Accounts more particularly on the following notes -

i). Note No. 8 of schedule 17 regarding non ascertainment of intrinsic value of unquoted investments and non provision for the shortfall in market value of quoted investments.

ii). Non-provision of interest payable IDBI, BSFC & BICICO

iii). Regarding Non-deposit of unclaimed dividend and interest due on FCD and non-compliance u/s 205(c) of the Companies Act, 1956 for Rs. 4,32,672/- & Rs 7 61,414/- respectively under Note No 11

iv). Non-ascertainment of actual liabilities of the company in respect of matters stated in Note No. 3 in Schedule 17 under the head Contin- gent liabilities not provided for and resulting further loss to the Company, if any.

v). Further to our comments in the annexure referred to paragraph 3 above, we report that:

a) Subject to our comment made above, 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 accounts as required by law have been kept by the Company, so far as appears from our examination of the books. We also reports that on the accounts of the divisions audited by Branch auditors we have dealt with them in preparing our report in the manner considered necessary by us.

c) The Balance Sheets, Profit & Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion subject to our comment in para 4 above, the Balance Sheet, Profit & Loss Account dealt with by this report comply with the Accounting Standard referred to in Section 211 (3c) of the Companies Act, 1956.

e) On the basis of written representations received from the directors, as on 31.3.2011 and taken on record by the Board of Directors of the company, we report that none of the directors are disqualified from being appointed as Director in terms of clause 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with all other Notes thereon and attached thereto give in the prescribed manner the information required by the companies Act, 1956 in the manner so required and also give, subject to our comments in para 4, a true and fair view in conformity with accounting principles generally accepted in india.

(i) in 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 taken into appropriation A/c of the Profit of the company for the Year ended on that date.

Annexure to the Auditors' Report referred to in Paragraph 3 of our report of even date

1) As reported by the Branch Auditor the unit, Hind Polymers at Gazibad

has generally maintained proper records showing particulars includ- ing quantitative details and situation of the Fixed Assets. As re- ported by the Branch Auditors the said units could not carry out physical verification of fixed assets as the assets have been taken over and sold by the secured creditors under SARFAESI Act, 2002.

2) None of the fixed assets have been revalued during the year.

3) As reported by the Branch Auditor the stocks of Finished Goods. Stores, spare parts and Raw Materials at Company's Polymer Division at Surajpur in U.P. except material in transit and lying with third parties have not been physically verified by the management during the year as the stocks have been taken over and sold by the ARCIL under SARFAESI Act.

4) According to the information and explanations given to us and as reported by the Branch Auditors, the company has not taken loans, secured or unsecured, from companies, firms or other parties listed in the register maintained u/s 301 of the companies Act, 1956 or from the companies under the same management within the meaning of Section 370(1B) of the companies Act, 1956.

5) According to the information and explanations given to us and as reported by the Branch Auditor, the Company has not granted loans, secured or unsecured, to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act,1956 or to the Companies under the same management within the meaning of Section 370(1 B) of the Companies Act, 1956.

6) The company has not accepted any deposits from the Public within the meaning of Section 58A of the Companies Act, 1956

7) The Company has no internal audit system.

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

9) As reported by the Branch Auditor according to the records of the Company, Provident Fund and Employees State Insurance dues in respect of its Polymer division, have generally been deposited during the year in time except there were some delays.

10) According to the information and explanations give to us there are no undisputed amounts payable in respect of Income-tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty out- standing as at 31 st March, 2011 for a period of more than six months from the date they became payable save and except exclusion below

Name of the Name of Amount. Period to Form where Statue the dues which the dispute is amount pending relates.

Sales Tax Trade Tax 2245398 1998-1999 HighCourt. Act (Allahabad).

Trade Tax 142345 2002-2003 Trade Tax Tribunal (Noida)

Finance Tax Service 484846 1997-1998 Commissioner Act Tax Act Excise & Service Tax

Central excise Excise 2370970 1994-96 Supreme Court Act Duty

11) According to the information and explanations given to us and as reported by the Branch Auditor and according to the records of the Company examined by us and as certified by the Management, no personal expenses have been charged to revenue account except those which are being borne by the Company in pursuance of contractual obligations or as per accepted business practices.

12) The Company has been declared as sick Industrial Company on the basis of its net worth as on 31 st March, 2002 within the meaning of clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985, by BIFR. It has been reported that the said Hon'ble BIFR has since completed the hear- ing and on the basis of the request of the Secured Creditors has abated the reference under third provisions of section 15(A) of SICA Act, 1985.

13) The assets of the Hind Polymers Unit at Ghaziabad were taken over

& sold by the said ARCIL Since the Fixed Assets of Patna and of polymers division has been sold by ARCIL , we cannot comment as to whether the Company is a going concern.

14) 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 (Auditor's Report)(Amendment) Order, 2004 are not applicable to the Company.

15) In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the pro- visions of clause 4(xiv) of the Companies (Auditor's Report)(Amendment) Order, 2004 are not applicable to the Company.

16) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

17) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported by the Branch Auditor in their Audit Report and at other offices audited by us in course of the audit.

18) Other clauses of this annexure are not applicable.

28, BLACK BURN LANE, FOR TAPARIA & CO.

KOLKATA- 700 012 CHARTERED ACCOUNTANTS

DATED : 28th December, 2011 Sd/- J.K.TAPARIA

Proprietor,

Membership No. F-007582.

---

Mar 31, 2010

We have audited the attached Balance Sheet of MSL INDUSTRIES LIMITED as at 31st Maroh, 2010, Profit & Loss Account for the Year ended on that date annexed thereto (in which are incorporated accounts of the company's Polymer Division in Surajpur, U.P. audited by the Branch Auditor) and the accounts of Steel & Hightech Division at Patna, Bihar and Kolkata Office audited by us. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with the 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditor's Report) (Amendment) Order, 2004, is- sued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Companies Aot,1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us and as reported by the Banoh Auditor, we set out in the annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

We Report that: -

1. Subject to our comment on other Notes as appearing in the Notes on Accounts more particularly on the following notes -

i). Note No. 8 of schedule 17 regarding non ascertainment of intrinsic value of unquoted investments and non provision for the shortfall in market value of quoted investments.

ii). Non-provision of interest payable IDBI, BSFC & BICICO

iii). Regarding Non-deposit of unclaimed dividend and interest due on FCD and non-compliance u/s 205(c) of the Companies Act, 1956 for Rs. 4,32,672/- & Rs 7.61,414/- respectively. under Note No. 11

iv). Non-ascertainment of actual liabilities of the company in respect of matters stated in Note No. 3 in Schedule 17 under the head Contin- gent liabilities not provided for and resulting further loss to the Company, if any.

v). Further to our comments in the annexure referred to paragraph 3 above, we report that:

a) Subject to our comment made above, 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 accounts as required by law have been kept by the Company, so far as appears from our examination of the books. We also reports that on the accounts of the divisions audited by Branch auditors we have dealt with them in preparing our report in the manner considered necessary by us.

c) The Balance Sheets, Profit & Loss Account dealt with by this report are in agreement with the books of account.

d) In our opinion subject to our comment in para 4 above, the Balance Sheet, Profit & Loss Account dealt with by this report comply with the Accounting Standard referred to in Section 211 (3c) of the Companies Act, 1956.

e) On the basis of written representations received from the directors, as on 31.3.2010 and taken on record by the Board of Directors of the company, we report that none of the directors are dis- qualified from being appointed as Director in terms of clause 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with all other Notes thereon and attached thereto give in the prescribed manner the information required by the companies Act, 1956 in the manner so required and also give, subject to our comments in para 4, a true and fair view in conformity with accounting principles generally accepted in india.

(i) in 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 of the company for the Year ended on that date.

Annexure to the Auditors' Report referred to in Paragraph 3 of our report of even date ;

1) As reported by the Branch Auditor the unit, Hind Polymers at Gazibad

has generally maintained proper records showing particulars including quantitative details and situation of the Fixed Assets. As re- ported by the Branch Auditors the said units could not carry out physical verification of fixed assets as the assets have been taken over by the secured creditors under SARFAESI Act. 2002.

2) None of the fixed assets have been revalued during the year.

3) As reported by the Branch Auditor the stocks of Finished Goods. Stores, spare parts and Raw Materials at Company's Polymer Division at Surajpur in U.P. except material in transit and lying with third parties have not been physically verified by the management during the year as the stocks have been taken over by the ARCIL under SARFAESI Act.

4) According to the information and explanations given to us and as reported by the Branch Auditors, the company has not taken loans, secured or unsecured, from companies, firms or other parties listed in the register maintained u/s 301 of the companies Act, 1956 or from the companies under the same management within the meaning of Section 370(1 B) of the companies Act, 1956.

5) According to the information an explanations given to us and as reported by the Branch Auditor, the Company has not granted loans, secured or unsecured, to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act,1956 or to the Companies under the same management within the meaning of Section 370(1 B) of the Companies Act, 1956.

6) The company has not accepted any deposits from the Public within the meaning of Section 58A of the Companies Act, 1956

7) The Company has no internal audit system.

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

9) As reported by the Branch Auditor according to the records of the Company, Provident Fund and Employees State Insurance dues in respect of its Polymer division, have generally been deposited during the year in time except there were some delays.

10) According to the information and explanations give to us there are no undisputed amounts payable in respect of Income-tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty out- standing as at 31st March, 2010 for a period of more than six months from the date they became payable save and except exclusion below :-

Name of the Name of Amount. Period to Form where Statue the dues which the dispute is amount pending relates.

Sales Tax Trade Tax 2245398 1998-1999 High Court. Act (Allahabad).

Trade Tax 142345 2002-2003 Trade Tax Tribunal (Noida)

Finance Tax Service 484846 1997-1998 Commissioner Act Tax Act Excise & Service Tax

11) According to the information and explanations given to us and as reported by the Branch Auditor and according to the records of the Company examined by us and as certified by the Management, no personal expenses have been charged to revenue account ex- cept those which are being borne by the Company in pursuance of contractual obligations or as per accepted business practices.

12) The Company has been declared as sick Industrial Company on the basis of its net worth as on 31 st March, 2002 within the meaning of clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985, by BIFR. It has been reported that the said Hon'ble BIFR has since completed the hearing and on the basis of the request of the Secured Creditors has abated the reference under third provisions of section 15(A) of SICA Act, 1985.

13) The assets of the Hind Polymers Unit at Ghaziabad were taken over by the said ARCIL we cannot comment as to whether the Company is a going concern. However, as reported, the Directors are looking for opportunities to carry on the business at the Hind Polymers Unit after possible diversification, provided financial assistance are forth coming from banks and from financial institutions.

14) 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 (Auditor's Report)(Amendment) Order, 2004 are not applicable to the Company.

15) In our opinion the Company is not dealing in or trading in shares, securities, debentures and cthc. investments. Accordingly, the pro- visions of clause 4(xiv) of the Companies (Auditor's Report)(Amendmant) Order, 2004 are not applicable to the Com- pany.

16) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

17) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported by the Branch Auditor in their Audit Report and at other offices audited by us in course of the audit.

18) Other clauses of this annexure are not applicable.

Note :

1) Net value of Immovable & Movable Assets which were taken over by Secured Creditors and sold as intimated, and thus not being in-existence written off in profit & loss a/c (excluding Free Hold Land at Steel unit having Book value of Rs. 164.77 lacs, and including other assets not sold but written off in 2008- 09 as advised.

2) Two motor cars purchased in 1995-96 at value of Rs. 819871/- becoming scrapped were sold during 2008-09 at a scrap value of Rs. 20,000/- having written

down value of Rs. Nil. The said amount of Rs. 20,000/- has been credited in Misc. Income A/c. Written off value of those vehicles will be adjusted in next year.

28, BLACK BURN LANE, FOR TAPARIA & CO.

KOLKATA-700 012 CHARTERED ACCOUNTANTS

DATED : 12th September, 2011 Sd/- J.K.TAPARIA

Proprietor,

Membership No. F-007582.

---

Mar 31, 2009

We have audited the attached Balance Sheet of MSL INDUSTRIES LIMITED as at 31st Maroh, 2009, Profit & Loss Aooount and also the Cash Flow Statement for the Year ended on that date annexed thereto (in whioh are incorporated accounts of the companys Polymer Division in Surajpur, UP. audited by the Branch Auditor) and the accounts of Steel & Hightech Division atPatna, Bihar and Kolkata Office audited by us. These financial statements are the responsibility of the Commpanys management. Our responsibility is to express an opinion on these finanoial statements based on our audit.

We have conducted our audit in accordance with the 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 exam- ining, on a test basis evidence supporting the amounts and disclosures, in the finanoial statements. An audit also inoludes 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.

As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004, is- sued by the Central Government of India in terms of Sub-Section (4A) of Seotion 227 of the Companies Aot,1956 and on the basis of such checks as we considered appropirate and acording to the information and explanations given to us and as reported by the Banoh Auditor, we set out. in the annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

We Report that : -

i) As reported by us in earlier years Audit Reports, movable & immov- able assets of Steel Unit and High-Tech Steel Unit at Patna were taken over by ARCIL under SARFAEST Act,2002. It has now been reported by the ARCIL that they have since sold all Stock-in-Trade and all immovable assets of the said units at Patna for an amount of Rs.1039.89 Lac Similarly, as reported by the BSFC & BICICO, who were also the secured creditors of the Company, have sold their respective assets mortaaged in their favour for an amount of Rs.20,00 Lac & Rs.10.01 Lac respectively Thus the total amount so realized by the aforesaid institutions agregating to Rs.1069.90 Lac. have been deducted from the total amount of Secured Credi- tors in absence of any information from ARCIL about the distribu tion of the sale proceeds amongst the secured creditors namely ICICI, IDBI & SBI as reported by the Company in Para 6A in Schedule 17. In view of the above, the net book value of all fixed assets of the units at Patna and net book value of stock-in-trade of the said units were written off. Provisions made by the Company on account of "Impairment in value of Fixed Assets" and on ac- count of "Diminution in the value of Stock-in-Trade" were written back in the Profit & Loss Account as reported in para 6(a) in Sched- ule 17. It has also been reported by the Company that the adjust- ment of the Sale Proceeds with the secured creditors of the Units at Patna in full & final settlement of their dues are pending due to non- receipts of information from the ARCIL as well as from ICICI Bank, IDBI & SBI and also from BICICO & BSFC .

ii) The ARCIL has also taken over the Hind Polymer Unit of the company at Gaziabad but not yet reported about the sale porceeds in respect thereof. Hence, assets and liabilities of the Polymer unit have been shown at their book value as reported by the branch Auditor.

iii) The ARCIL also took over certain Investment in Shares but they have not yet reported the amount realised by sale of such shares. In view of the above, profit &/or loss on sale of such Investment in Shares whether Long Term &/or Short Term has not yet been arrived at and not provided for &/or adjusted in the books of account. Investment in Shares includes such shares taken over by ARCIL

iv) During the year under Audit the Company has written off certain debtors and written back certain creditors of the said units at Patna who were having balances of Rupees less than I Lac. The Company has also made provisions for certain debtors of the said Units at Patna not written off. We are of the view that the Company should have write off all debtors and write back all creditors of the said units at Patna leaving only those debtors & creditors which are sub- judice. The company has not explained the reasons for not written off and writing back all the debtors and creditors except those are sub-judice which are all lying outstanding since the factory was closed from 1.04.2001.

v) Miscllaneous Bank Balances shown for both Units at Patna totalling fts.6.15 Lac(excluding unclaimed dividend/interest not released by State Bank of India on the ground that the matter is sub-judice as stated in Note No. 10 in Schedule 17 lying for many years, since the plant was closed,1 the Company has not yet been able to produce before us, certificates confirming the balances or the State- ment of Accounts from the respective banks. Hence, we do not express any opinion on the correctness of the figure shown in the Balance Sheet

vi) The ARCIL has not informed the company, at the same time the company has also not communicated with ARCIL, how much amount they have paid to ICICI Bank, IDBI & SBI at whose instances, they took over the stock in-trade and fixed assets of both the units at Patna. If the amount paid to the said Institutions is in full and final settlement of their dues in that case, therewill be seizable amount of write back in the P & L A/c. for interest as well as for the principal amount of loan- The adjustment in respect of the same has to be done in the accounts for the year ended 31.03.2010.

vii) As reported by the Company in Para 5A in Schedule 17 and also as reported by the Branch Auditor in the accounts of the Units, the Units did not initiate any recovery proceedings against any of the debtors or taken any positive actions for realization of the dues in both the units at Pafna. Similarly, it has also been reported that Units did not receive any confirmation for the accuracy of the Balances. It has also been reported that the units did not receive any confirmation from any of the Bank of the Units regarding balance standing to the debit or credit in the accounts of the Units, Under such circumstances, in our view, the company should write off all outstanding balance standing in the books of accounts of the Units at Patna in their Bank Accounts or obtain Bank balance certifi- cates and statement of accounts from such banks and prepare and submit bill wise details of Sundry Debtors and Sundery Creditors.

Subject to our comment made above and also on other Notes as appearing in the Notes on Accounts more particularly on the following notes -

i). Note No. 8 of schedule 17 regarding non ascertaimment of intrinsic value of unquoted investments and non provison for the shortfall in market value of quoted investments and bed delivery of shares.

ii). Non-provision of interest payable as per note No.6 (E)&6 (F) of schedule 17.

iii). Regarding Non-deposit of unclaimed dividend and interest due on FCD and non-compliance u/s 205(c) of the Companies Act, 1956 for Rs. 4,32,672/- & Rs 7.61,414/- respetively. under Note No. 10

iv). Non-assertainment of actual liabilities of the company in respect of matters stated in Note No. 3 in Schedule 17 under the head Contin- gent liabilitiesnot provided for and resulting further loss to the Company, if any.

v). Further to our comments in the annexure referred to paragraph 3 above, we report that:

a) Subject to our comment made above, 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 accounts as required by law have been kept by the Company, sofar as appears from our examination of the books. We also reports that on the accounts of the divisions audited by Branch auditors we have dealt with them in preparing our report in the manner considred necessary by us.

c) The Balance Sheets, Profits Loss Account and cash flow statement dealt with by this report are in agreement with the books of ac- count.

d) In our opinion subject to our comment in para 4 above, the Balance Sheet, Profit & Loss Account and cash flow statement dealt with by this report comply with the Accounting Standard re- ferred to in Section 211 (3c) of the Companies Act, 1956.

e) On the basis of written representations received from the directors,

as on 31.3.2008 and taken on record by the Board of Directors of the company, we report that none of the directors are dis- qualified from being appointed as Director in terms of clause 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with all other Notes thereon and attached thereto give in the prescribed manner the information required by the companies Act, 1956 in the manner so required and also give, subject to our comments in para 4, a true and fair view in conformity with accounting principles generally accepted in india.

(i) in case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2009.

(ii) In the case of the Profit & Loss Account of the Profit of the company for the Year ended on that date.

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



Annexure to the Auditors Report referred to in Paragraph 3 of our report of even date ;

1) As reported by the Branch Auditor the unit, Hind Polymers at Gazibad

has generally maintained proper records showing particulars includ- ing quantitative details and situation of the Fixed Assets. As re- ported by the Branch Auditors the said units could not carry out physical verification of fixed assets as the assets have been taken over by the secured creditors under SARFAESI Act. 2002. The units at Patna i.e. Steel and Hi-tech Divisions has no fixed assets other than Leasehold land.

2) None of the fixed assets have been revalued during the year.

3) As reported by the Branch Auditor the stocks of Finished Goods.

Stores, spare parts and Raw Materials at Companys Polymer Division at Surajpur in U.P. except material in transit and lying with third parties have not been physically verified by the management during the year as the stocks have been taken over by the ARCIL under SARFAESI Act.

4) As reported by the Branch Auditor of Hind Polimers Unit, inventories

have not been physically verified by the Management.

5) As reported by the Branch Auditor of the Polymers Units of the Company physical verifications of inventories have not been car- ried on by the management of the said unit during the year. As such discrepancies between physical stocks and book records were not ascertained by the Units.

6) According to the information and explanations given to us and as reported by the Branch Auditors, the company has not taken loans, secured or unsecured, from companies, firms or other parties listed in the register maintained u/s 301 of the companies Act, 1956 or from the companies under the same management within the meaning of Section 370(1 B) of the companies Act, 1956.

7) According to the information and explanations given to us and as

reported by the Branch Auditor, the Company has not granted loans, secured or unsecured, to companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act,1956 or to the Companies under the same manage- ment within the meaning of Section 370(1 B) of the Companies Act, 1956.

8) As reported by the Branch Auditor parties to whom loans and advances in the nature of loans have been given by the company are not repaying the principal amounts as per stipu- lation, whereever such stipulation exists. As regards interest on these loans, principal/ interest thereof is not forthcoming as per stipulated terms.

9) In our opinion and according to the information and explanations given to us and as reported by the Branch Auditor, internal con- trol procedures for the purchase of stores, raw materials including components, plants and machinery, equipments and other assets and for the sale of goods at the unit Hind Polymers at Surajpur in UP are commensurate with the size of the company and the nature of its busi ness. Since both the units at Patna are lying closed, there are no question of any internal control procedure arise in the said units.

10) In our opinion and as reported by the Branch Auditor, purchase of

goods and materials and sate of goods and materials and service made in pursuance to contracts or arrangements entered in the register maintained u/s 301 of the Companies Act, 1956 and agreegating during the period of Rs. 50,000/- or more in value in respect of each party have been made at price which are reasonable having regard to the prevailing market prices or such goods and materials or the prices at which the transactions for similar goods have been made with other parties. This is applicable only in respect of the Polymer Division and not on Steel and Hi-Tech Divisions at Patna since both the units at Patna are lying closed and taken over by ARCIL.

11) As explained to us and as reported by the Branch Auditor, the Company has procedure for the determination of unservice- able or damaged stores,raw materials and finished goods at the time of their physical verifications at its Polymer Division and ad- equate provision has been made in the accounts for the loss arising on the items so determined. However, in so far as the Steel and Hi-Tech Dibisions at Patna are concerned, provision has been made as metioned in para 3 above.

12) The company has not accepted any deposits from the Public within the meaning of Section 58A of the Companies Act, 1956

13) In our opinion, reasonable records have been maintained by the company for the sale or disposal of realisable by-products and scraps in Polymer Division only which is only working unit.

14) The Company has no intenal audit system.

15) As explained to us, the Central Government has not prescribed maintenance of cost records under Section 209(1 )(d) of the Compa- nies Act, 1956 for any of the products of the Company.

16) As reported by the Branch Auditor according to the records of the Company, Provident Fund and Employees State Insurance dues in respect of its Polymer division, have generally been deposited during the year in time except there were some delays.

17) According to the information and explanations give to us there are

no undisputed amounts payable in respect of Income-tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty out- standing as at 31 st March, 2009 for a period of more than six months from the date they became payable save and except exclusion below :-



Name of the Name of Amount. Period to Form where Statue the dues which the dispute is amount pending relates.

Sales Tax Trade Tax 2245398 1998-1999 HighCourt.

Act (Allahabad).

Trade Tax 142345 2002-2003 Trade Tax

Tribunal (Noida)

Finance Tax Service 484846 1997-1998 Commissioner Act Tax Act Excise & Service Tax



18) According to the information and explanations given to us and as reported by the Branch Auditor and according to the records of the Company examined by us and as certified by the Management, no personal expenses have been charged to revenue account ex- cept those which are being borne by the Company in pursuance of contractual obligations or as per accepted business practices.

19) The Company has been declared as sick Industrial Company on the basis of its net worth as on 31 st March, 2002 within the meaning of clause (o) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act. 1985, by BIFR. It has been reported that the said Honble BIFR has since completed the hear- ing and on the basis of the request of the Secured Creitors has

abated the reference under third provisions of section 15(A) of SICA Act, 1985.

20) In view of the above and as the assets of the units at Patna were

taken over and sold by ARCIL on behalf of Secured Creditors and by other secured creditors as also the assets of the Hind Polymers Unit at Ghaziabad were taken over by the said ARCIL as also in view of the production of the Hind Polymers Unit was discontinued from 28th March,2009 we cannot comment as to whether the Com- pany is a going concern. However, as reported, the Directors are looking for opportunities to carry on the business at the Hind Poly- mers Unit after possible diversification, provided financial assis- tance are fort coming from banks and from financial institutions.

21) In bur opinion and according to the information and explanations given to us, the Company has defulated in repayment of dues to a financial institutions and bank.

22) 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)(Amendment) Order, 2004 are not applicable to the Company.

23) In our opinion the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the pro- visions of clause 4(xiv) of the Companies (Auditors Report)(Amendmant) Order, 2004 are not applicable to the Com- pany.

24) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

25) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported by the Branch Auditor in their Audit Report and at other offices audited by us in course of the audit,

28, BLACK BURN LANE, FOR TAPARIA & CO.

KOLKATA-700012 CHARTERED ACCOUNTANTS

DATED : 20th October, 2010

Sd/-

J.K.TAPARIA

Proprietor,

Membership No. F-07582.