Shentracon Chemicals Ltd.की ऑडीटर रिपोर्ट

Mar 31, 2025

SHENTRACON CHEMICALS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of SHENTRACON CHEMICALS LIMITED (“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, the Statement of Cash Flows for the year then ended and notes to the standalone financial statements including material accounting policy information and other explanatory information.

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(“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including as amended, specified under Section 133 of the Act, of the state of affairs of the Company as at 31 March 2025, and its loss ( including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibility 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 standalone financial statements under the provisions of the Act and the Rules made 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 audit opinion on the standalone financial statements.

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.

Key audit matter	How our audit addressed the key audit matter
1.Note No. 2.17 regarding presentation of the accounts on the basis applicable to “Going Concern” although the Company''s net worth has been fully eroded due to accumulated losses, including the loss for the year, for the reason as stated in the note. In the event, the Going Concern assumption is vitiated; the financial statements may require necessary adjustment.	The Board of Directors is further exploring possibilities of trading in chemicals and allied product, to run a manufacturing unit on contract basis in same line of business and thus maintaining the status of going concern.
2. As indicated in the financial statements, th e Company has accumulated losses and its net worth has been fully eroded, the Company has incurred loss during the current year. These conditions, along with other matters set forth in Notes to Financial Statements, indicate the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern. However, these Financial Statements of the Company have been prepared on a going concern basis due to reasons stated in Note No. 2.17.	The Board of Directors is further exploring possibilities of trading in chemicals and allied product, to run a manufacturing unit on contract basis in same line of business and thus maintaining the status of going concern.

Information Other than the Financial Statements and Auditor''s Report Thereon

The company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Company''s Annual Report, but does not include the standalone financial statements and our auditor''s report thereon.

Our opinion on financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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 that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the standalone financial statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“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, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.

This responsibility also includes the 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 the frauds and other irregularities; selection and application of appropriate accounting policies; making judgment and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, 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.

The Companies net worth is negative. There are no borrowings from banks and financial institutions. Further the company is in the process of identifying alternative business plans. The above factors cast a significant uncertainty on the company''s ability to continue as a going concern.

Pending the resolution of the above uncertainties, the company has prepared the aforesaid statements on a going concern basis.

Those charged with governance are also responsible for overseeing the Company''s financial reporting process.

Auditors'' Responsibility

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s 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.

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

• Identify and assess the risks of material misstatements of the standalone financial statements, 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.

• 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 the financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management''s 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 Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the standalone financial statements 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 auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• 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.

We communicate with those charged with governance 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.

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.

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.

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 I”, 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, to the extent applicable, 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 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 it appears from our examination of those books;

c. the Balance Sheet, Statement of Profit and Loss including Other Comprehensive Income, Cash Flow Statement and statement of changes in Equity dealt with by this report are in agreement with the books of account;

d. Except for the possible effects of the matter described in the key audit matter paragraph, in our opinion, the aforesaid standalone financial Statement comply with the Indian Accounting Standards referred to in section 133 of the Companies Act, 2013.

e. The matters described in the key audit matter paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

f. On the basis of 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 sub section (2) of section 164 of the Companies Act, 2013.

g. with respect to the adequacy of the internal financial controls with reference to financial statements of the company and the operating effectiveness of such controls, we give our separate reports in “Annexure II”.

h. With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given

to us, the remuneration paid/provided 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 included in the auditor''s report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to best of our information and according to the explanation given to us:

1) The company has disclosed the impact of pending litigation, if any, on its financial position as at 31^st March, 2025 in its Standalone financial statement. Refer Note 2.16 of other Notes to Accounts.

2) The company did not have any long term contract including derivative contracts for which there were any material foreseeable losses.

3) There has been no delay in transferring amounts, required to be transferred, to the investor''s education and protection fund by the company.

4a) 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 securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (‘the 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 (‘the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;

4b) 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(s) or entity(ies), including foreign entities (‘the 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; and

4c) Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.

5) Based on our examination, the Company has used an accounting software for maintaining its books of account which have a feature of recording audit trail (edit log) facility. The audit trail feature has been operated throughout the year for all transactions recorded in the accounting software. Further, during the course of our audit, we did not come across any instance of the audit trail feature being tampered with.

For Chanani & Associates

Chartered Accoun tan ts Firm''s registration number: 325425E

CA Subhash Chandra Chanani

Place : Howrah Partner

Dated : 10^th May ,2025 Membership number: 063078

ICAI UDIN : 25063078BMTDAD1845

---

Mar 31, 2024

We have audited the accompanying standalone financial statements of SHENTRACON
CHEMICALS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,
2024, the Statement of Profit and Loss (including other comprehensive income), the
Statement of Changes in Equity, the Statement of Cash Flows for the year then ended and
notes to the standalone financial statements including material accounting policy information
and other explanatory information.

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("thc Act") in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India including as amended,
specified under Section 133 of the Act, of the state of affairs of the Company as at 31 March
2024, and its loss (including other comprehensive income), its cash flows and the changes in
equity for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with the
Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the Auditor’s Responsibility 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 standalone financial statements under the provisions of the Act and the Rules
made 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 audit opinion on the standalone
financial statements.

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.

Key audit matter	How our audit addressed the key audit matter
l.Note No. 2.17 regarding presentation of the accounts on the basis applicable to "Going Concern" although the Company''s net worth has been fully eroded due to accumulated losses, including the loss for the year, for the reason as stated in the note. In the event, the Going Concern assumption is vitiated; the financial statements may require necessary adjustment.	The Board of Directors is further exploring possibilities of trading in chemicals and allied product, to run a manufacturing unit on contract basis in same line of business and thus maintaining the status of going concern.
2. As indicated in the financial statements, the Company has accumulated losses and its net worth has been fully eroded, the Company has incurred loss during the current year. These conditions, along with other matters set forth in Notes to Financial Statements, indicate the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern. However, these Financial Statements of the Company have been prepared on a going concern basis due to reasons stated in Note No. 2.17.	The Board of Directors is further exploring possibilities of trading in chemicals and allied product, to run a manufacturing unit on contract basis in same line of business and thus maintaining the status of going concern.

Information Other than the Financial Statements and Auditor''s Report Thereon

The company''s Board of Directors is responsible for the other information. The other
information comprises the information included in the Company''s Annual Report, but does
not include the standalone financial statements and our auditor''s report thereon.

Our opinion on financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.

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 that fact.

We have nothing to report in this regard.

Responsibilities of management and those charged with governance for the standalone
financial statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of
the Companies Act, 2013 ("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, changes in equity and cash flows of the Company in accordance with the
Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting
principles generally accepted in India.

This responsibility also includes the 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 the frauds and other irregularities; selection and application of
appropriate accounting policies; making judgment and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial control,
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.

The Companies net worth is negative. There are no borrowings from banks and financial
institutions. Further the company is in the process of identifying alternative business plans.
The above factors cast a significant uncertainty on the company’s ability to continue as a
going concern.

Pending the resolution of the above uncertainties, the company has prepared the aforesaid
statements on a going concern basis.

Those charged with governance are also responsible for overseeing the Company''s financial
reporting process.

Auditors’ Responsibility

Our objectives are to obtain reasonable assurance about whether the standalone financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor''s 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.

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

• Identify and assess the risks of material misstatements of the standalone financial
statements, 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.

• 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 the financial
statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management''s 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
Company''s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the standalone financial statements 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 auditor''s report. However, future events or conditions
may cause the Company to cease to continue as a going concern.

• 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.

We communicate with those charged with governance 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.

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.

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.

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 1", 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, to the extent applicable, 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 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 it appears from our examination of those books;

c. the Balance Sheet, Statement of Profit and Loss including Other Comprehensive
Income, Cash Flow Statement and statement of changes in Kquity dealt with by this
report are in agreement with the books of account;

d. Except for the possible effects of the matter described in the key audit matter
paragraph, in our opinion, the aforesaid standalone financial Statement comply
with the Indian Accounting Standards referred to in section 133 of the Companies
Act, 2013.

e. The matters described in the key audit matter paragraph above, in our opinion, may
have an adverse effect on the functioning of the Comnanv.

f. on the basis of written representations received from the directors as on March 31,
2024, taken on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2024 from being appointed as a director in terms of
sub section [2) of section 164 of the Companies Act, 2013.

g. with respect to the adequacy of the internal financial controls with reference to
financial statements of the company and the operating effectiveness of such
controls, we give our separate reports in "Annexure II".

h. With respect to the other matters to be included in the Auditor''s Report in
accordance with the requirements of section 197(16) of the Act, as amended, in our
opinion and to the best of our information and according to the explanations given
to us, the remuneration paid/provided 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 included in the auditor''s report in accordance
with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to best of our information and according to the explanation given to us:

1) The company has disclosed the impact of pending litigation, if any, on its
financial position as at 31^st March, 2024 in its Standalone financial statement.
Refer Note 2.16 of other Notes to Accounts.

2) The company did not have any long term contract including derivative contracts
for which there were any material foreseeable losses.

3) There has been no delay in transferring amounts, required to be transferred, to
the investor''s education and protection fund by the company.

4a) 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 securities
premium or any other sources or kind of funds) by the Company to or in any
person(s) or entity(ies), including foreign entities (''the 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 (''the Ultimate Beneficiaries'') or provide any guarantee, security or the
like on behalf the Ultimate Beneficiaries;

4b) 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(s) or entity(ies), including foreign
entities (''the 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; and

4c) Based on such audit procedures performed as considered reasonable and
appropriate in the circumstances, nothing has come to our notice that has caused
us to believe that the management representations under sub-clauses (a) and (b)
above contain any material misstatement.

5) Based on our examination, the Company has used an accounting software for
maintaining its books of account which have a feature of recording audit trail (edit
log) facility. The audit trail feature has been operated throughout the year for all
transactions recorded in the accounting software. Further, during the course of our
audit, we did not come across any instance of the audit trail feature being
tampered with.

For Chanani & Associates
Chartered Accountants
Firm’s registration number: 325425E

Place: Howrah
Dated : 29^th May 2024

CA Subhash Chandra Chanani

Partner

Membership number: 06307B
ICAI UDIN : 24063078BKFCMV1035

---

Mar 31, 2015

We have audited the accompanying financial statements of M/S SHENTRACON CHEMICALS LIMITED ("the Company"), which comprises the Balance Sheet as at 31st March 2015, 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 Board of Directors is responsible for the matters stated in Section 134(5) of Companies Act, 2013 ("the Act'') with respect to 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 the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision 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 the design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provision of the Act, the accounting and auditing standards, and matters which are required to be included in the audit report under the provision of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 misstatements.

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 financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, 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 on the financial statements.

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, of the state of affairs of the Company as at 31st March 2015, and its Loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw the attention to the following matters in the notes to the financial statements:

a) Note 19(i) in the financial statements which indicates that there is no production in the chemical plant since 18.09.1996 and the work suspension has been notified and declared since 10.10.1999. The management has resolved to close the chemical plant in the F.Y 2010-11. The company has accumulated losses and its net worth has been eroded by more than fifty percent of its net worth. The company has incurred net loss in current financial year. These conditions indicate the existence of material uncertainty that may cast significant doubt about the company's ability to continue on a going concern. However the financial statements of the company have been prepared on a going concern basis for the reason stated in the said Note No 19(i).

b) Note 19(iii) to the financial statements as regards to contingent liability which might have impact on company's net worth.

c) Note 19(v) to the financial statements as regards possible erosion in value of assets held for disposal under current assets due to the plant being shut since many years and it is not possible to assess the possible erosion in value.

d) Note 19(vi) to the financial statements as regards possible reduction in inventory value not ascertained in the absence of physical verification and valuation thereof.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("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 statements on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, 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 and the Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) On the basis of written representations received from the directors as on 31st March 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2015, from being appointed as a director in terms of Section 164 (2) of the Act;

f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies ( Audit and Auditors) Rules ,2014, in our opinion and to the best of our information and according to the explanation given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note No 19 (iii) to the financial statements;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure to the Independent Auditor's Report

The Annexure referred to in our independent Auditor's Report to the members of the company on the Financial Statements for the year ended 31st March 2015, we report that:

1.a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b. We are informed that the Board of Directors had resolved to close the company's main business of chemicals in F.Y 2010-11. In view of the fact that the existing chemical plant will not be of any use in any other probable line of production. It was decided to dispose the Plant & Machinery and Electrical appurtment thereto, As these are meant for disposal, the same were shown under Current Assets since last few years.

2.

a. It is informed to us that inventory comprising stock of materials, stores, fuel, finished goods, work-in-process and reusable residues could not be physically verified since 21.07.1998 due to closure of the factory and hence we are not in a position to comment thereon. Consequently we are not in a position to comment on as regards unserviceable and damaged inventory.

b. It is informed to us that any erosion in potential value of the stock, which may arise due to its nature, could not be dealt with due to non verification of stock and its technical evaluation.

c. The closing stock of finished goods, work in progress and reusable residues and raw materials have been taken in the account on the basis of verification/evaluation certificate dated 21.07.1998 of an independent valuer appointed by State Bank of India. There was no movement of inventory thereafter. No further physical verification and / or technical evaluation has been made thereafter.

d. We are informed that proper records of inventory has been maintained. However in absence of physical verification thereof we are not in a position to comment on discrepancy comparing with the physical stock. The stock has been taken in these accounts on the basis of physical counting and evaluation made by the independent valuer in 1998-99 and there is no movement thereafter.

3. The Company has not granted any loans or advances in the nature of loans to parties covered in the register maintained under Section 189 of the Companies Act, 2013. Hence the question of reporting whether the receipt of principal and interest are regular and, whether reasonable steps for recovery of over-dues of such loans are taken does not arise.

4. Having regard to the fact that there is complete suspension of operational activity during the year, procedure of internal control as regard to purchase of fixed assets and inventory and for sale of goods and services is not applicable.

5. Based on our scrutiny of the company's records and according to the information and explanations provided by the management, in our opinion, the company has not accepted any deposits so far up to 31st March 2015, the directives issued by Reserve Bank of India and provisions of Section 73 to Section 76 of the Companies Act, 2013 and the rules framed there under are not applicable.

6. According to the information and explanations provided by the management, the company is not engaged in production of any such goods or provision of any such services for which the Central Government has prescribed particulars relating to utilization of material or labour or other items of cost. Hence the provisions of section 148(1) of the Act do not apply to the company. Hence, in our opinion, no comment on maintenance of cost records under section 148 (1) of the Act is required.

7.

a. According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has generally been regular in depositing undisputed statutory dues including, Income Tax, and other statutory dues during the year with appropriate authorities.

b. According to the information and explanations given to us, there are no dues of Sales Tax, Custom Duty, Wealth Tax, Excise Duty and Cess which have not been deposited as on 31st March, 2015 with the appropriate authorities on account of any dispute.

c. According to the information and explanations given to us, no amount is required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of Companies Act 2013 and Rules made there under.

8. The Company has accumulated losses at the end of the financial year which is exceeding its fifty percent of net worth and it has incurred cash losses during the financial year ended on that date but not in the immediately preceding financial year.

9. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to the financial institutions, banks or debenture holder during the year.

10. The Company has not given any guarantee in connection with loan taken by others from banks or financial institutions.

11. In our opinion and according to the information and explanations given to us, the company did not have any term loans outstanding during the year.

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

For K.PJhawar & Co. Chartered Accountants Firm Regn. No. 306105E

Place: Kolkata (CA K. P. Jhawar) Date: 28th May 2015 Proprietor Membership No.010309

---

Mar 31, 2014

We have audited the accompanying financial statements of Shentracon Chemicals Limited ("the Company"), which comprise 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

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 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.

Auditor''s 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 entity''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 financial statements read together with notes thereon including disclosure notes given in Notes schedule 16 and subject to notes given in 3 hereof 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 for the year ended on that date.

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. As required by the Companies (Auditor’s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Companies Act, 1956 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 and Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 to the extent applicable;

e. On the basis of written representations received from the directors as on March 31, 2014, and 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 clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

3. Our opinion is subject to notes as under:

a. The accounts of the company have been prepared on a going concern basis. However the work is under suspension since 10.10.1999 and as the company '' has resolved to close its chemical business, its ability to continue as such is largely depend on outcome of its future planning. We are unable to express an opinion in this regard.

b. Subject to matters referred in notes on accounts given in Notes 16 together with resulting impact thereof as regards (1) as indicated in note 16 (VII) as regards possible erosion in inventory value which remains unascertained in absence of physical verification and evaluation thereof. (2) as indicated in note 16(11) accounts of the company have been prepared on a going concern basis even though the production was under suspension. (3) Possible erosion in value of capital work-in progress transferred to Current Assets under assets held for disposal at its written down value as stated in 16(VI). (4) Fixed Assets transferred to Current Assets under the head Assets held for Disposal in the year 2010-11 and still remains undisposed off, Its actual realisable value is not ascertainable (5) Contingent liabilities as specified in Note 16(V), which might have impact on company''s standing. (6) As indicated in Note 16(VIII)(a) Directors resolved to close the company''s main business of chemicals and to explore other avenues of business at the existing site of factory and its possible impact on company''s standing.

ANNEXURE TO THE AUDITORS’ REPORT For the Financial year 2013-14

Covering matters under companies (Auditors Report) order, 2003

1. In Respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The Fixed Assets are not valued during the year.

(b) The Board of Directors had resolved to close the company’s main business of chemicals. In vjew of the fact that the existing chemical plant will not be of any use in any other probable line of production, it was decided to dispose the Plant & Machinery and Electrical equipments appurtenant thereto, As these are meant for disposal, the same are shown undercurrent Assets since 2010-11.

2. In respect of its Inventory :

(a) It is informed to us that inventory comprising stock of materials, stores, fuel, finished goods, work-in-process and reusable residues could not be physically verified since 21.07.1998 due to closure of the factory and hence we are not in a position to comment thereon. Consequently we are not in a position to comment on as regards unserviceable and damaged inventory.

(b) It is informed to us that any erosion in potential value of the stock, which may arise due to its nature, could not be dealt with due to non verification of stock and its technical evaluation.

(c) The closing stock of finished goods, work in progress and reusable residues and raw materials have been taken in the account on the basis of verification/evaluation certificate dated 21.07.1998 of an independent valuer appointed by State Bank of India. There was no movement of inventory thereafter. No further physical verification and/or technical evaluation has been made thereafter.

(d) We are informed that proper records of inventory has been maintained. However in absence of physical verification thereof since long we are not in a position to comment on discrepancy comparing with the physical stock. The stock has been taken in these accounts on the basis of physical counting and evaluation made by the independent valuer in 1998-99 and there is no movement thereafter

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

(a) As per information and explanations furnished the company has not granted but has taken unsecured loan from companies, firms and other associates covered in the register maintained under section 301 of the Companies Act, 1956. The aggregate amount outstanding loan taken at the dose of the year is 2,37,70,462/-.

(b)In our opinion the rate of interest and other terms and conditions on which these loan has been taken are prima facie not prejudicial to the interest of the company. The amount of principal and interest in respect of such loans are not claimed for repayment consequently there is no overdue amount of principal and interest in respect of such loan. These loans are accommodative in nature and do not bear interest as arranged with lenders.

4. Having regard to the fact that there is complete suspension of operational activity during the year, procedure of internal control as regards purchase of inventory is not applicable.

5. In respect of the contract of arrangement referred to in section 301 of Companies Act, 1956:

In our opinion and according to information and explanation provided by the management, there is no such transaction need to be entered in the register in pursuance of Section 301 of the Companies Act, 1956. Accordingly para V (b) of the Companies (Auditor’s Report) Order, 2003 are not applicable.

6. According to information and explanation given to us, the company has not accepted any deposit from the public during the year except inter-corporate loan and loan from Directors/their relatives/associates/promoters which are coming from earlier years.

7. As per the information and explanations furnished, the company has an adequate infrastructure of in house internal audit system commensurate with the size and nature of its business.

8. In respect of statutory dues:

In absence of any emoluments of the employees during the year, the deduction of P.F. & E.S.I. and deposit thereof has no relevance. According to information and explanation furnished to us, there is no disputed amount relating to Income Tax Sales Tax. Wealth Tax, Cess, other material Statutory Dues.

9. The company have net worth sufficient to cover its accumulated losses.

10. The company have accumulated losses at the end of the financial year. The company has not incurred cash loss during the financial year covered by the audit and has not incurred loss in the immediate preceding financial year.

11. According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of Shares, Debentures and other Securities. Accordingly the provisions of clause 4 (xii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.

12. In our opinion the company is not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society. Accordingly the provisions of clause 4 (xiii) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.

13. According to the information and explanation given to us, the Company is not dealing and trading in shares, Securities, debentures and other Investments.

14. 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.

15. In our opinion, the application of term loan for the purpose for which they were raised, have no relevance as there is no secured term loan.

16. According to the information and explanation given to us, and 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.

17. The Company has not made any preferential allotment of any shares to parties and companies covered u/s301 of the Companies Act,1956 during the year.

18. According to the information and explanation given to us, the company has not created security for debentures issued in earlier years. No new debentures were issued during the year covered by our audit report.

19. According to the information and explanation given to us, the company has not made any public issue during the year to raise money. Accordingly, the provisions of clause 4(xx) of the Companies (Auditor’s Report) Order, 2003 are not applicable to the Company.

20. According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported in the year as explained to us during the course of our audit. .

For K. P. JHAWAR & CO.

CHARTERED ACCOUNTANT Firm Registration No.-306105E (K. P. JHAWAR) Proprietor Place : Kolkata M-10309 Dated : 30th May 2014

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of SHENTRACON CHEMICALS LIMITED as at 31st March, 2012 and the Profit and Loss account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on 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 (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 paragraph 4 & 5 of the said order.

4. Further to our comments given in (3) 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 purpose of our audit.

B) In our opinion proper books of accounts as required by law have been kept by the company, so far as appears from our examination of the books.

C) The Balance Sheet and Profit & Loss account dealt with by this report are in agreement with the books of account.

D) In our opinion the Balance Sheet and Profit & Loss account dealt with in this report complies with the mandatory accounting standard referred to in sub-section 3(c) of Section 211 of the Companies Act., 1956.

E) On the basis of written submission received from the Directors' and taken on record by the Board of Directors', we report that none of the Directors is disqualified as on 31st March 2012 from being appointed as a Director in term of Section 274(1)(g) of the Companies Act. 1956 as amended.

F) (a) The accounts of the company have been prepared on a going concern basis. However since the work is under suspension since 10.10.1999, its ability to continue as such is highly doubtful and largely depend on outcome of its future planning. We are unable to express an opinion on the same.

(b) Subject to matters referred in notes on accounts given in Schedule 14 together with resulting impact thereof as regards (i) as indicated in note B:7 as regards possible reduction in inventory value not ascertained in absence of physical verification and evaluation thereof. (ii) as indicated in note B:2 accounts of the company have been prepared on a going concern basis even though the production was under suspension. (iii) As indicated in the note B:8 No depreciation has been provided on Assets disposed off and Plant & Machinery transferred to Current Assets. (iv) Possible erosion of value of capital work-in progress arising due to long suspension as stated in B:6. (v) Amount advanced against orders Rs. 24,43,030/- pending settlement as specified in Note B:14(i). (vi) Contingent liabilities as specified in Note B:5, which might have impact on company's standing. (vii) As indicated in Note B:8 Directors resolved to close the company's main business of chemicals and to explore other avenues of businesss at the existing site of factory and its possible impact on company's standing. (viii)Sundry creditors and Other current liabilities coming from years and subject to confirmation & evaluation.

Subject to the above in our opinion and to the best of our information and according to explanation given to us, the said accounts read together with significant accounting policies and other notes appearing in Schedule 11 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view :

a. In the case of Balance Sheet, of the State of affairs of the Company as at 31st March 2012.

b. In the case of the Profit & Loss account, of the loss for the year ended on that date.

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

ANNEXURE TO THE AUDITORS' REPORT

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) We are informed that the Board of Directors resolved to close the company's main business of chemicals. In view of the fact that the existing chemical plant will not be of any use in any other probable line of production. it was decided to dispose the Plant & Machinery and Electrical appurtment thereto, As these are meant for disposal, the same are shown under Current Assets.

ii) Inventory :

(a) It is informed to us that inventory comprising stock of materials, stores, fuel, finished goods, work-in-process and reusable residues could not be physically verified since 21.07.1998 due to closure of the factory and hence we are not in a position to comment thereon. Consequently we are not in a position to comment on as regards unserviceable and damaged inventory.

(b) It is informed to us that any erosion in potential value of the stock,which may arise due to its nature,could not be dealt with due to non verification of stock and its technical evaluation.

(c) The closing stock of finished goods, work in progress and reusable residues and raw materials have been taken in the account on the basis of verification/evaluation certificate dated 21.07.1998 of an independent valuer appointed by State Bank of India. There was no movement of inventory thereafter. No further physical verification and/or technical evaluation has been made thereafter.

(d) We are informed that proper records of inventory has been maintained. However in absence of physical verification thereof we are not in a position to comment on discrepancy comparing with the physical stock. The stock has been taken in these accounts on the basis of physical counting and evaluation made by the independent valuer in 1998-99 and there is no movement thereafter

iii) (a) As per information and explanations furnished the company has not granted but has taken unsecured loan from companies, firms and other associates covered in the register maintained under section 301 of the Companies Act, 1956. The aggregate amount outstanding loan taken at the close of the year is 2,36,98,462/-. (b) In our opinion the rate of interest and other terms and conditions on which these loan has been taken are prima facie not prejudicial to the interest of the company. The amount of principal and interest in respect of such loans are not claimed for repayment consequently there is no overdue amount of principal and interest in respect of such loan. These loans are accommodative in nature and do not bear interest as arranged with lenders.

iv) Having regard to the fact that there is complete suspension of operational activity during the year, procedure of internal control as regards purchase of inventory is not applicable.

v) (a) According to information and explanation provided by the management, there is no such transaction need to be entered in the register in pursuance of Section 301 of the Companies Act, 1956. Accordingly para V (b) of the Companies (Auditor's Report) Order, 2003 are not applicable.

vi) The company has not accepted any deposit from the public during the year except intercorporate loan and loan from Directors/their relatives/associates/promoters which are coming from earlier years.

vii) As per the information and explanations furnished, the company has an adequate infrastructure of in house internal audit system commensurate with the size and nature of its business.

viii) In absence of any emoluments of the employees during the year, the deduction of P.F. & E.S.I. and deposit thereof has no relevance. According to information and explanation furnished to us, there is no disputed amount relating to Income Tax Sales Tax, Wealth Tax, Cess, other material Statutory Dues except the past dues of E.S.I. of Rs. 76,591/-, Income Tax Rs. 15,727/- and Professional Tax payable Rs. 14,570/- which are coming from years and still remain unpaid.

ix) The company has accumulated losses.. The company has incurred cash loss during the financial year and has incurred loss in the immediate preceding financial year.

x) The company have net worth sufficient to cover its accumulated losses.

xi) According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of Shares, Debentures and other Securities. Accordingly the provisions of clause 4 (xii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xii) In our opinion the company is not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society. Accordingly the provisions of clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xiii) According to the information and explanation given to us, the Company is not dealing and trading in shares, Securities, debentures and other Investments

xiv) 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.

xv) In our opinion, the application of term loan for the purpose for which they were raised, have no relevance as there is no secured term loan.

xvi) According to the information and explanation given to us, and 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. No fund whether short term or long term has been raised during the year.

xvii) The Company has not made any preferential allotment of any shares to parties and companies covered u/s301 of the Companies Act,1956 during the year.

xviii) According to the information and explanation given to us, the company has not created security for debentures issued in earlier years. No new debentures were issued during the year covered by our audit report.

xix) According to the information and explanation given to us, the company has not made any public issue during the year to raise money. Accordingly, the provisions of clause 4(xx) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xx) According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported in the year as explained to us during the course of our audit.

For K. P. JHAWAR & CO.

CHARTERED ACCOUNTANTS

Firm Registration No.-306105E

K. P. JHAWAR

Proprietor

Place : Kolkata M-10309

Dated : The 2nd day of August, 2012

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of SHENTRACON CHEMICALS LIMITED as at 31st March, 2011 and the Profit and Loss account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on 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 (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 paragraph 4 & 5 of the said order.

4. Further to our comments given in (3) 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 purpose of our audit.

B) In our opinion proper books of accounts as required by law have been kept by the company, so far as appears from our examination of the books.

C) The Balance Sheet and Profit & Loss account dealt with by this report are in agreement with the books of account.

D) In our opinion the Balance Sheet and Profit & Loss account dealt with in this report complies with the mandatory accounting standard referred to in sub- section 3(c) of Section 211 of the Companies Act., 1956.

E) On the basis of written submission received from the Directors' and taken on record by the Board of Directors', we report that none of the Directors is disqualified as on 31st March 2011 from being appointed as a Director in term of Section 274(1)(g) of the Companies Act. 1956 as amended.

F) (a) The accounts of the company have been prepared on a going concern basis. However since the work is under suspension since 10.10.1999, its ability to continue as such is highly doubtful and largely depend on outcome of its future planning. We are unable to express an opinion on the same.

5. Subject to matters referred in notes on accounts given in Schedule 10 together with resulting impact thereof as regards (i) as indicated in note B:5 as regards possible reduction in inventory value not ascertained in absence of physical verification and evaluation thereof. (ii) as indicated in note B:2 accounts of the company have been prepared on a going concern basis even though the production was under suspension. (iii) As indicated in the note B:7 No depreciation has been provided on Assets disposed off and Plant & Machinery transferred to Current Assets. (iv) Possible erosion of value of capital work-in progress arising due to long suspension as stated in B:4. (v) Amount advanced against orders Rs. 24,43,030/- pending settlement as specified in Note B:11(i). (vi) Contingent liabilities as specified in Note B:3, which might have impact on company's standing. (vii) As indicated in Note B:6 Directors resolved to close the company's main business of chemicals and to explore other avenues of businesss at the existing site of factory and its possible impact on company's standing. (viii)Sundry creditors and Other current liabilities coming from years and subject to confirmation & evaluation.

Subject to the above in our opinion and to the best of our information and according to explanation given to us, the said accounts read together with significant accounting policies and other notes appearing in Schedule 11 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view :

a) In the case of 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 loss for the year ended on that date.

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

ANNEXURE TO THE AUDITORS' REPORT

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) We are informed that the Board of Directors resolved to close the company's main business of chemicals. In view of the fact that the existing chemical plant will not be of any use in any other probable line of production. it was decided to dispose the Plant & Machinery and Electrical apartment thereto, As these are meant for disposal, the same has been transferred under Current Assets. Few of the fixed Assists of immaterial value had been disposed off during the year.

ii) Inventory :

(a) It is informed to us that inventory comprising stock of materials, stores, fuel, finished goods, work-in-process and reusable residues could not be physically verified since 21.07.1998 due to closure of the factory and hence we are not in a position to comment thereon. Consequently we are not in a position to comment on as regards unserviceable and damaged inventory.

(b) It is informed to us that any erosion in potential value of the stock, which may arise due to its nature, could not be dealt with due to non verification of stock and its technical evaluation.

(c) The closing stock of finished goods, work in progress and reusable residues and raw materials have been taken in the account on the basis of verification/evaluation certificate dated 21.07.1998 of an independent value appointed by State Bank of India. There was no movement of inventory thereafter. No further physical verification and/or technical evaluation has been made thereafter.

(d) We are informed that proper records of inventory has been maintained. However in absence of physical verification thereof we are not in a position to comment on discrepancy comparing with the physical stock. The stock has been taken in these accounts on the basis of physical counting and evaluation made by the independent value in 1998-99 and there is no movement thereafter

iii) (a) As per information and explanations furnished the company has not granted but has taken unsecured loan from companies, firms and other associates covered in the register maintained under section 301 of the Companies Act, 1956. The aggregate amount outstanding loan taken at the close of the year is 2,36,28,144/-.

(b) In our opinion the rate of interest and other terms and conditions on which these loan has been taken are prima facie not prejudicial to the interest of the company. The amount of principal and interest in respect of such loans are not claimed for repayment consequently there is no overdue amount of principal and interest in respect of such loan. These loans are accommodative. in nature and do not bear interest as arranged with lenders.

iv) Having regard to the fact that there is complete suspension of operational activity during the year, procedure of internal control as regards purchase of inventory is not applicable.

v) (a) According to information and explanation provided by the management, there is no such transaction need to be entered in the register in pursuance of Section 301 of the Companies Act, 1956. Accordingly Para V (b) of the Companies (Auditor's Report) Order, 2003 are not applicable.

vi) The company has not accepted any deposit from the public during the year except interoperate loan and loan from Directors/their relatives/associates/promoters which are coming from earlier years.

vii) As per the information and explanations furnished, the company has an adequate infrastructure of in house internal audit system commensurate with the size and nature of its business.

viii) In absence of any emoluments of the employees during the year, the deduction of P.F. & E.S.I. and deposit thereof has no relevance. According to information and explanation furnished to us, there is no disputed amount relating to Income Tax Sales Tax, Wealth Tax, Cess, other material Statutory Dues except the past dues of E.S.I. of Rs. 76,591/-, Income Tax Rs. 17,162/- and Professional Tax payable Rs. 14,570/- which are coming from years and still remain unpaid.

ix) The company has accumulated losses.. The company has incurred cash loss during the financial year and has incurred loss in the immediate preceding financial year.

x) The company have net worth sufficient to cover its accumulated losses.

xi) According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of Shares, Debentures and other Securities. Accordingly the provisions of clause 4 (xii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xii) In our opinion the company is not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society. Accordingly the provisions of clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xiii) According to the information and explanation given to us, the Company is not dealing and trading in shares, Securities, debentures and other Investments

xiv) 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.

xv) In our opinion, the application of term loan for the purpose for which they were raised, have no relevance as there is no secured term loan.

xvi) According to the information and explanation given to us, and 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. No fund whether short term or long term has been raised during the year.

xvii) The Company has not made any preferential allotment of any shares to parties and companies covered u/s301 of the Companies Act,1956 during the year.

xviii) According to the information and explanation given to us, the company has not created security for debentures issued in earlier years. No new debentures were issued during the year covered by our audit report.

xix) According to the information and explanation given to us, the company has not made any public issue during the year to raise money. Accordingly, the provisions of clause 4(xx) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xx) According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported in the year as explained to us during the course of our audit.

For K. P. JHAWAR & CO.

CHARTERED ACCOUNTANTS

Firm Registration No.-306105E

(K. P. JHAWAR)

Proprietor

Place : Kolkata M-10309

Dated : The 26th day of July, 2011

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of SHENTRACON CHEMICALS LIMITED as at 31st March, 2010 and the Profit and Loss account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on 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 (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 paragraph 4 & 5 of the said order.

4. Further to our comments given in (1) 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 purpose of our audit.

B) In our opinion proper books of accounts as required by law have been kept by the company, so far as appears from our examination of the books.

C) The Balance Sheet and Profit & Loss account dealt with by this report are in agreement with the books of account.

D) In our opinion the Balance Sheet and Profit & Loss account dealt with in this report complies with the mandatory accounting standard referred to in sub-section 3(c) of Section 211 of the Companies Act., 1956.

E) On the basis of written submission received from the Directors' as on 31st March 2010 and taken on record by the Board of Directors', we report that none of the Directors is disqualified as on 31st March 2010 from being appointed as a Director in term of Section 274(1 )(g) of the Companies Act. 1956 as amended.

F) (a) The accounts of the company have been prepared on a going concern basis. However since the work is under suspension since 10.10.1999, its ability to continue as such is highly doubtful and largely depend on outcome of its future planning. We are unable to express an opinion on the same.

(b) Subject to matters referred in notes on accounts given in Schedule 11 together with resulting impact thereof as regards (i) as indicated in note B:6 as regards possible reduction in inventory value unascertained due to no physical verification and evaluation thereof, (ii) as indicated in note B:2 accounts of the company have been prepared on a going concern basis even though the production , was under suspension, (iii) As indicated in the note B:9 possible erosion in realizable value of fixed assets comparing to its written down value, quantum of which could not be ascertained, (vi) Possible erosion of value of capital work-in progress arising due to long suspension as stated in B: 5. (vii)Amount advanced against orders Rs. 24,43,030/- pending settlement as specified in Note B:13(ii)- (viii) Contingent liabilities as specified in Note B:4, which might have impact on company's standing.

Subject to the above in our opinion and to the best of our information and according to explanation given to us, the said accounts read together with significant accounting policies and other notes appearing in Schedule 13 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view:

a. In the case of Balance Sheet, of the State of affairs of the Company as at 31st March 2010.

b. In the case of the Profit & Loss account, of the loss (excluding waiver of interest) for the year ended on that date.

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

ANNEXURE TO THE AUDITORS'REPORT For the Financial year 2009-10

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) We are informed that the physical verification of the fixed assets could not be carried out due to complete closure of the factory since 10.10.99. In view there of result of physical verification can not be compared with book records and material discrepancy, if any can not be reported. We are informed that none of the fixed assets has been revalued during the year.

ii) Inventory:

(a) It is informed to us that inventory comprising stock of materials, stores, fuel, finished goods, work-in-process and reusable residues could not be physically verified due to closure of the factory and hence we are not in a position to comment thereon consequently we are not in a position to comment on as regards unserviceable damaged inventory.

(b) It is informed to us that any erosion in potential value of the stock which may arise due to its nature could not be dealt with due to non verification of stock and its technical evaluation.

(c) The closing stock of finished goods, work in progress and reusable residues and raw materials have been taken in the account on the basis of verification/evaluation and certificate dated 21.07.1998 of an' independent value appointed by State Bank of India as there was no movement of inventory thereafter. No further physical verification and/or technical evaluation has been made thereafter.

(d) We are informed that proper records of inventory has been maintained. However in absence of physical verification thereof we are not in a position to comment on discrepancy comparing with the physical stock. The stock has been taken in these accounts on the basis of physical counting and evaluation made by the independent value in 1998-99 and there is no movement thereafter

iii) (a) As per information and explanations furnished the company has not granted but has taken unsecured loan from companies, firms and other associates covered in the register maintained under section 301 of the Companies Act, 1956. The aggregate amount involved outstanding at the close of the year is 92,80,144/-

(b) In our opinion the rate of interest and other terms and conditions on which these loan has been taken are prima facie not prejudicial to the interest of the company. The amount of principal and interest in respect of such loans are not payable during the currency of institutional loans as explained in note no. Bill of Schedule 11 consequently there is no overdue amount of principal and interest in respect of such loan.

iv) Having regard to the fact that there is complete suspension of operational activity during the year procedure of internal control as regards purchase of inventory, fixed and other assets is not applicable.

v) (a) According to information and explanation provided by the management, there is no such transaction need to be entered the register in pursuance of Section 301 of the Companies Act, 1956 accordingly Para V (b) of the Companies (Auditor's Report) Order, 2003 are not applicable.

vi) The company has not accepted any deposit from the public, during the year except interoperate loan and loan from Directors/their relatives/associates/promoters.

vii) As per the information and explanations furnished, the company has an adequate infrastructure of in house internal audit system commensurate with the size and nature of its business.

viii) In absence of any emoluments of the employees during the year, the deduction of P.F. & E.S.I, and deposit thereof has no relevance. According to information and explanation furnished to us, there is no disputed amount relating to Income Tax Sales Tax, Wealth Tax, Cess, other material Statutory Dues except the past dues of E.S.I, of Rs. 76,591/-, Income Tax Rs. 17,162/- and Professional Tax payable Rs. 14,570/- which is coming from years and still remain unpaid.

ix) The company has accumulated losses.. The company has incurred cash loss, before extraordinary item adjustment, during the financial year and has incurred loss in the , / immediate preceding financial year.

x) According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of Shares, Debentures and other Securities. Accordingly the provisions of clause 4 (xii) of the Companies (Auditor's Report) Order ,12:003 are not applicable to the Company.

xi) Li our opinion the company is not a Chit Fund or a Nidhi/Mutual Benefit. Fund/Society. Accordingly the provisions of clause 4 (xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xii) According to the information and explanation given to us, the Company is not dealing and trading in shares, Securities, debentures and other Investments

xiii) 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.

xiv) In our opinion, the term loans have been applied for the purpose for which they were raised.

xv) According to the information and explanation given to us, and 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. No fund whether short term or long term has been raised during the year.

xvi) The Company has not made any preferential allotment of any shares to parties and companies covered u/s301 of the Companies Act,1956 during the year.

xvii) According to the information and explanation given to us, the company has not created security for debentures issued in earlier years. No new debentures were issued during the year covered by our audit report.

xviii) According to the information and explanation given to us, the company has not made any public issue during the year to raise money. Accordingly, the provisions of clause 4(xx) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

xix) According to the information and explanation given to us, no fraud on or by the Company leas been noticed or reported in the year as explained to us during the course of our audit.

For K.P.JHAWAR & CO.

CHARTERED ACCOUNTANTS Firm Regisration NO 306105E

(KP.JHAWAR)

Proprietor

Place : Kolkata M-10309

Dated : The 27th day of July, 2010

---

Mar 31, 2009

1. We have audited the attached Balance Sheet of SHENTRACON CHEMICALS LIMITED as at 31sf March, 2009and the Profit and Loss account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on 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 Seqtion 227 of the Companies Act, 1956, We enclose in the Annexure a statement of the matters specified in paragraph 4 & 5 of the said order.

4. Further to our comments given in (1) 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 purpose of our audit.

B) In our opinion proper books of accounts as required by law have been kept by the company, so far as appears from our examination of the books.

C) The Balance Sheet and Profit & Loss account dealt with by this report are in „ agreement with the books of account.

D) In our opinion the Balance Sheet and Profit & Loss account dealt with in this report complies with the mandatory accounting standard referred to in sub-section 3(c) of Section 211 of the Companies Act., 1956.

E) On the basis of written submission received from the Directors as on 31s March 2009 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31s1 March 2009 from being appointed as a Director in term of Section 274(1 )(g) of the Companies Act. 1956 as amended.

F) (a) The accounts of the company have been prepared on a going concern basis. However since the work is under suspension since 10.10.1999, its ability to continue as such is highly doubtful and largely depend on outcome of its future planning. We are unable to express an opinion on the same.

(b) Subject to matters referred in notes on accounts given in Schedule 12 together with resulting impact thereof as regards (i) as indicated in note B:7 as regards possible reduction in inventory value unascertained due to no physical verification and evaluation thereof, (ii) as indicated in note 13:3 accounts of the company have been prepared on a going concern basis even though the production was under suspension, (iii) As indicated in the note B:10 possible erosion in realisable value of fixed assets comparing to its written down value, quantum of which could not be ascertained, (vi) Possible erosion of value of capital work-in progress arising due to long suspension as stated in B: 6. (vii)Amount advanced against orders Rs. 24,43,030/- pending settlement as specified in Note B:14(ii). (viii) Contingent liabilities as specified in Note B:5, which might have impact on companys standing.

Subject to the above in our opinion and to the best of our information and according to explanation given to us, the said accounts read together with significant accounting policies and other notes appearing in Schedule 13 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view :

a. In the case of Balance Sheet, of the State of affairs of the Company as at 31st March 2009.

b. In the case of the Profit & Loss account, of the loss (excluding waiver of interest) for the year ended on that date.

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

ANNEXURE TO THE AUDITORS REPORT For the Financial year 2008-09

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) We are informed that the physical verification of the fixed assets could not be carried out due to complete closure of the factory since 10.10.99. In view there of result of physical verification can not be compared with book records and material discrepancy, if any can not be reported. We are informed that none of the fixed assets has been revalued during the year.

c) According to the information and explanations given to us the Company has been disposed off a part of factory shed during the year.

ii) Inventory:

(a) It is informed to us that inventory comprising stock of materials, stores, fuel, finished goods, work-in-process and reusable residues could not be physically verified due to closure of the factory and hence we are not in a position to comment thereon consequently we are not in a position to comment on as regards unserviceable damaged inventory.

(b) It is informed to us that any erosion in potential value of the stock which may arise due to its nature could not be dealt with due to non verification of stock and its technical evaluation.

(c) The closing stock of finished goods, work in progress and reusable residues and raw materials have been taken in the account on the basis of verification/evaluation and certificate dated 21.07.1998 of an independent valuer appointed by State Bank of India as there was no movement of inventory thereafter. No further physical verification and/or technical evaluation has been made thereafter.

(d) We are informed that proper records of inventory has been maintained. However in absence of physical verification thereof we are not in a position to comment on discrepancy comparing with the physical stock. The stock has been taken in these accounts on the basis of physical counting and evaluation made by the independent valuer in 1998-99 and there is no movement thereafter

iii) (a) As per information and explanations furnished the company has not granted but has taken unsecured loan from companies, firms and other associates covered in the register maintained under section 301 of the Companies Act, 1956. The aggregate amount involved outstanding at the close of the year is 91,54,144/-

(b) In our opinion the rate of interest and other terms and conditions on which these loan has been taken arc prima facie not prejudicial to the interest of the company. The amount of principal and interest in respect of such loans are not payable during the currency of institutional loans as explained in note no. B: 16 of Schedule 13 consequently there is no overdue amount of principal and interest in respect of such loan.

iv) Having regard to the fact that there is complete suspension of operational activity during the year procedure of internal control as regards purchase of inventory, fixed and other assets is not applicable.

v) (a) According to information and explanation provided by the management, there is no such transaction need to be entered in the register in pursuance of Section 301 of the Companies Act, 1956 accordingly para V (b) of the Companies (Auditors Report) Order, 2003 are not applicable.

vi) The company has not accepted any deposit from the public during the year except intercorporate loan and loan from Directors/their relatives/associates/promoters.

vii) As per the information and explanations furnished, the company has an adequate infrastructure of inhouse internal audit system commensurate with the size and nature of its business.

viii) In absence of any emoluments of the employees during the year, the deduction of P.F. & E.S.I, and deposit thereof has no relevance. According to information and explanation furnished to us, there is no disputed amount relating to Income Tax Sales Tax, Wealth Tax, Cess, other material Statutory Dues except the past dues of E.S.I, of Rs. 76,591/-, Income Tax Rs. 17,162/- and Professional Tax payable Rs. 14,570/- which is coming from years and still remain unpaid.

ix) The company has accumulated losses.. The company has incurred cash profit, before extraordinary item adjustment, during the financial year and has incurred loss in the immediate preceding financial year.

x) In view of upfront one time settlement with Financial Institution and Banks the nonpayment or delayed payment has not been considered as default.

xi) According to information and explanation given to us, the company has not granted any loans and advances on the basis of security by way of pledge of Shares, Debentures and other Securities. Accordingly the provisions of clause 4 (xii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

xii) In our opinion the company is not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society. Accordingly the provisions of clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

xiii) According to the information and explanation given to us, the Company is not dealing and trading in shares, Securities, debentures and other Investments

xiv) 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.

xv) In our opinion, the term loans have been applied for the purpose for which they were raised.

xvi) According to the information and explanation given to us, and 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. No fund whether short term or long term has been raised during the year.

xvii) The Company has not made any preferential allotment of any shares to parties and companies covered u/s. 301 of the Companies Act, 1956 during the year.

xviii) According to the information and explanation given to us, the company has not created security for debentures issued in earlier years. No new debentures were issued during the year covered by our audit report.

xix) According to the information and explanation given to us, the company has not made any public issue during the year to raise money. Accordingly, the provisions of clause 4(xx) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

xx) According to the information and explanation given to us, no fraud on or by the Company has been noticed or reported in the year as explained to us during the course of our audit.

For K. P. JHAVVAR & CO.

CHARTERED ACCOIJNJANTS

( K. P. JHAWAR) Proprietor

M-10309

Place : Kolkata

Dated : The 10th day of July, 2009