Omni Dye-Chem Exports Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2010

We have audited the annexed Balance sheet of OMNI DYE CHEM EXPORTS LTD., as at 31/03/2010 and the Profit and Loss Account for the year ended on that date annexed thereto and the Cash flow for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted Our audit in accordance with auditing standards generally accepted in India. Those Standards require that We plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1. This report does includes a statement on the matters specified in paragraph 4 of the Companies (Auditor's Report) Order, 2003, issued by the department of company affairs, in terms of section 227 (4A) of the companies Act, 1956.

2. Further to Our comments in the annexure referred to in paragraph 1 above, I state 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 books of accounts as required by the law have been kept by the Company so far as it appears from the examination of such books;

(c) In Our opinion, the Company has not followed the provisions of Section II of Part II of Schedule XIII to the Companies Act, 1956.

(d) The Balance Sheet and the Profit and Loss Account and cash flow statement, dealt with by this report, are in agreement with the said books of accounts;

(e) In Our opinion the Balance Sheet and Profit & Loss Account and cash flow statement comply with the accounting standards referred to in Sub Section 3(c) of Section 211 of the Companies Act, 1956.

(f) On the basis of written representation received from the directors as of 31/03/2010 and taken on record by the board of directors, We report that none of the directors is disqualified as of 31/03/2010 from being appointed as a director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956.

(g) In Our opinion and to the best of Our information and according to the explanations given to us, read with notes on Accounting and Accounting Policies generally accepted in India, the said accounts give the information required by the Companies Act, 1956, in the manner so required give a true and fair view.

(i) In the case of the Balance Sheet, of the State of Affairs of the Company as at 31/03/2010 and;

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

(iii) In case of Cash flow statement, cash flow of the company for the year ended on that date

ANNEXURE TO THE AUDITORS' REPORT

1. In respect of its fixed assets:

(a) The company has not maintained proper records showing full particulars including quantitative details and situation of fixed assets. We have been informed that this exercise is in process

(b) Fixed assets have been physically verified by the management at reasonable intervals; No material discrepancies were noticed on such verification.

(c) No substantial part of fixed assets have been disposed off during the year, and hence no question of affecting going concern.

2. In respect of its inventories:

(a) We have been informed by the management that physical verification of inventory has been conducted at reasonable intervals by the management.

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

(c) Company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification.

3. In respect of loans granted and taken to / from parties covered in the register maintained u/s 301 of the Companies Ad; 1956.

(a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s 301 of the companies Act-1956.

(b) Not Applicable

(c) Not Applicable

(d) Not Applicable

(e) The company has taken loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act 1956 or from the company under same management as defined under section 370(1-B)

No. of parties: 1 Amount: Rs. 15,00,000.

(f) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.

(g) In respect of loans taken, repayment of principal amount and interest have been regular.

4. In respect of internal control

In our opinion and according to the information and explanations given to us there is adequate internal control system 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 and services. During the course of audit, We have not observed continuing failure to correct major weaknesses in internal control system.

5. In respect of contracts or arrangements need to be entered into a register maintained u/s 301 of the Companies Act, 1956

(a) According to the information and explanation given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the companies Act 1956 have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act 1956 are made at price which are reasonable having regard to prevailing market prices at the relevant time.

6. In respect of deposits from public

No deposits within the meaning of Sections 58A and 58AA or any other relevant provision of the Act and rules farmed thereunder have been accepted by the Company.

7. In respect of internal audit system

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

8. In respect of maintenance of cost records

The Company is not required to maintain cost cecords pursuant to the Rules made by the Central Govenment for the maintenance of cost records under Section 209 (l)(d) of the Act

9. In respect of statutory dues

(a) The company is regular in depositing the undisputed statutory dues including privident fund, investor education protection fund, employees' state insurance, income tax, sales, tax wealth tax, service tax, custom duty, excise duty. Cess and other material statutory dues applicable to the Company with the appropriate authorities. No undisputed amounts payable in respect of the aforesaid statutory dues were outstanding as at the last day of the financial year for a period of more than six months from the date they became payable.

(b) According to the records of the Company, there are no dues of Income tax, sales tax, customs duty, wealth tax, service tax, excise duty, sales tax and cess that have been not been deposited on amount of any dispute.

10. In respect of accumulated losses and cash losses

The company's accumulated losses at the end of the financial year are less than 50% of its net worth and it has not incurred cash losses in the current and immediately preceding financial year.

11. In respect of dues to financial institution / banks / debentures

The company has not defaulted in repayment of dues to financial histitution, bank or debenture holders.

12. In respect of loans and advances granted on the basis of security

The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In respect of provisions applicable to Chit fund

In our opinion and according to information and explanations given to us the company is not chit fund or nidhi or mutual benefit fund/society. Therefore the provisions of clause 4(xiii) of the Order are not applicable to the company. Hence further sub sections xiii(a), xiii(b), xiiii(c), xiii(d) are not applicable to the company.

14. In respect of dealing or trading in shares, securities, debentures and other investment

According to information and explanations given to us the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of dause 4(xiv) of the Order are not applicable to the company.

15. In respect of guarantee given for loans taken by others

On the basis of records examined by us and information provided by the management, we are of the opinion that the company has not given guarantees for loans taken by others from banks or financial institutions.

16. In respect of application of term loans

In our opinion, the term loans raised by the company during the year have been applied for the purpose for which it was raised.

17. In respect of fund used

Based on an overall examination of the Balance Sheet of the company and a review of the consolidated fund ftaw statement for the year, we report that no funds raised on short-term basis have been used for long-term investments.

18. In respect of preferential allotment of shares

The company has not made any preferential allotment of shares to parties and companies covered in the register maintained u/s 301 of the Act, during the year.

19. In respect of securities created for debentures

The company has not issued any debentures during the year. Therefore provisions of clause 4(xix) of the Order are not applicable to the company.

20. In respect of end use of money raised by public issues

The company has not raised any money from the public during the year under audit

21. In respect of fraud

According to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year.

For MEHRA ANIL & ASSOCIATES (Chartered Accountants) Reg. No. :117692W

Place: AHMEDABAD ANIL MEHRA Dated: 31/08/2010 (Proprietor) Membership .NolOO-033052