SG Global Exports Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2011

1.We have audited the attached Balance Sheet of S.G GLOBAL EXPORTS LTD As at 31st March, 20II and Profit & Loss Account and also cash flow statement 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 have- conducted our audit m 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 misstatements(s), an audit include 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.

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 of the matters specified in the paragraph 4 and 5 of the said order

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

(i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for She purpose of our audit:

(ii) 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:

(iii) The Balance Sheet and the Profit & Loss Account dealt with by this Report are in agreement with the books of account;

(iv) In our opinion, balance sheet and Profit & Loss Account dealt with by this report comply with the Accounting Standards referred to in and sub-section (3C) of section (211) of the Companies Act, 1956;

(v) On the basis of our review of the confirmations received from the directors as on 31st March, 2011 and taken on record by the Board of Directors and the information and explanations given to us, none of the directors of the company are prima facie, as at 31st March, 2011 disqualified from being appointed as directors of the company under clause (g) of sub-section (J) of section 274 of She Companies Act, 1956:

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give tire 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:

(a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2011;

(b) In the case of the Profit & Loss Account of the profit of the Company for the year ended on that date. (c) In the case of the cash flow statement, of the cash flow for the year ended on that date.

ANNEXURE H£I ERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF M/S S.G. GLOBAL EXPORTS LTD, ON THE ACCOUNTS FOR 1HE YEAR ENDED 3la MARCH 201L

(i) The company is maintaining the proper records showing the full particulars Including quantitative details and situation of all the fixed assets.

(b) The fixed assets has been physical verified by the management at reasonable interval and no discrepancies has been found on such verification.

(c) As per the information and explanation given to us, no substantial part of the fixed assets has been disposed off during the year,

(ii) (a) As per informal ion and explanations given to us and on the basis of Examination of records, we are of the opinion that physical verification of inventory has been conducted by the management at reasonable intervals during the year.

(b) In our opinion, the procedures of 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) On the basis of examination of records maintained by the company, we are of the opinion that the company is maintaining proper records of inventory. Mo material discrepancies were noticed on physical verification of stock as compared to books,

(iii) In our opinion and according to the information and explanations given to us, the company has granted loan secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 which has been received during the year .So, (he sub clause (b), (c) and (g) of clause (iii) of the paragraph 4 of the companies (Auditor's Report) order 2003 is not applicable to the company.

(e) In our opinion and according to the information and explanations given to us, the company has not taken any loan secured Or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 during the year 2010-11. So, the sub clause (e), (f) and (g) of clause (iii) of the paragraph 4 of the companies (Auditor's Report) order 2003 is not applicable to the company

(iv) in our opinion and according to the information and explanations given to us, There are adequate internal control procedures commensurate with the size of the company and nature of its business. During the course of our audit we have not observed any major weakness in internal controls.

(v} (a) As per information and explanation given to us, we are of the opinion that the transactions that need to he entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered,

(b) In our opinion and according to the information and explanations given to us. the company has not made any transactions in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 exceeding the value of Rs 5 Lac in respect of any party during the year.

{vi) In our opinion and according to the information and explanations given to us the company has not accepted any deposits within the meaning Section 58A, 58AA or any other provisions of the Companies Act, 1956 and the rules framed there under during the year ending 31st March, 2011.

(vii) In our opinion and on the basis of examination of records, the company has an adequate internal audit system commensurate with its size and nature of its business,

(vii) As per information and explanations given to us, the central govt, has not prescribed to the company to maintain any cost records so the Clause (viii) of the paragraph 4 of the Companies (Auditor's Report) Order, 2003 relating to maintenance of cost records is not applicable to the company.

{ix) (a) The Company is regular in depositing with the appropriate authorities any undisputed statutory dues during the year as applicable to the company.

(b) According to the information and explanations given So us, there are no dues of income Tax. Sales tax., Wealth tax. Service Tax Custom Duty, and cess, which have not been deposited on account of any dispute,

(x) In our opinion and according to the information and explanations provided to as, there is an accumulated loss of Rs 1832328.04 with the company as on 31,3.2011 The company has not incurred cash losses during the year 2010-11.

(xi) In our opinion and according to the information and explanations provided to us, me company is not defaulted in repayment of dues to a financial Institute or bank or debenture holders,

(xii) As per information and explanations given to us, we are of the opinion that the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. So the requirement of maintenance of documents and records in regard to loans and advances is not applicable to the company,

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore the provisions of sub clause (a),(b),(c) and (d) of clause

(xiii) of para 4 of the Companies (Auditor's Report.) Order, 2003 are not applicable to the company.

(xiv) in our opinion and on the basis of examination of records, the company has maintained proper records of the transactions and contracts and timely entries have been made therein. Further shares, securities, debentures and other investments are held by the company during the year 2010-11 in it's name or in process of transfer the same in it's own name.

(xv) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions,

(xvi) According to the information and explanation given to us the company has not obtained any term loans during the year covered by our audit.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for long term investment,

(xviii) According to the information and explanations given to us, the company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the: Act during the year ending 31st March, 2011.

(xix) According to the information and explanation given to us, the company has not issued any debentures. Therefore clause (xix) of paragraph 4 of Companies (Auditor's Report) Order, 2003 is not applicable to the company

(xx) The company has not raised money by way of public issues. Therefore clause (xx) of paragraph 4 of Companies (Auditor's Report) Order, 2003 is not applicable to the company

(xxi} According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the year ended on 31st March 2011

For PAWAN PURI & ASSOCIATES

CHARTERED ACCOUNTANTS FIRM REG. No.005950 PLACE : LUDHIANA DATE : 22.07.2011 (PAWAN PURI) Partner