Vatsa Corporation Ltd.की ऑडीटर रिपोर्ट

Oct 31, 2013

1. We have audited the attached Balance Sheet of Vatsa Corporations Ltd. as at 31st October, 2013 and also the Profit & Loss Account for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have 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 presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies (Auditor''s Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order to the extent applicable to the Company.

4. Further to our comments in the annexure referred in paragraph 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 account as required by law have been kept by the Company so far as appears from our examination of these books;

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

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

e) We are unable to comment as we have not received any written representation from the directors of the company as on 31st October 2013 regarding disqualification as directors of the company under section 274(1)(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit & Loss Account and Cash Flow statement read together with the Significant Accounting Policies and Notes thereon and attached thereto give in the prescribed manner the information required by the ''Act'' and also give respectively, a true and fair view in conformity with the accounting principles generally accepted in India

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at October 31, 2013 and

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

(iii) In case of the Cash Flow statement of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS'' REPORT

Referred to in paragraph 3 of our report of even date,

1) (a) The Company has maintained proper records showing full particulars of fixed assets. As explained to us, the Fixed Asset Register is under compilation.

(b) All the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no substantial part of fixed assets has been disposed off by the Company during the year.

2) (a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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

(c) On the basis of our examination of the records of inventory, in our opinion, the Company is maintaining proper records of inventory. No discrepancies have been noticed on physical verification of stocks as compared to the books records.

3) (a) The Company has not granted or taken loans from parties covered in the register maintained under section 301 of the Act. In view of the above sub clause (b),(c),(d),(e),(1) and (g) of clause iii of pare 4, are not applicable.

4) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for sale of goods. Further, on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness In the aforesaid internal control procedures.

5) (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Act, have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of the contract or arrangements with the parties to be specified in register maintained Ids 301 exceeding the value of rupees five lacs during the year or more.

6) In our opinion and according to the information and explanations given to us, the Company has not accepted deposit within the meaning of the provisions of Sections 58A and 58AA of the Companies Act, 1956 and the Rules made there under.

7) In our opinion, the Company has no format internal audit system.

8) As explained to us, maintenance of cost records has not been prescribed by the Central Government u/s 209 (i)(d) of the Companies Act, 1956.

9) (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, income-Tax, Sales-Tax, Value Added Tax, Custom Duty, Cess and other statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us and on the basis of records of the Company examined by us, there are some disputed dues outstanding in respect of Income-Tax, Sales-Tax, Provident Fund, Custom Duty and Cess as at 31 n OCTOBER, 2013 for a period of more than six months from the date of becoming payable,

10) The Company has accumulated losses as on 31s'' OCTOBER, 2013. However, the company has incurred cash loss in the financial year ending OCTOBER, 2013.

11) According to the records of the Company examined by us and the information and explanations given by the management, the Company has not defaulted in repayment of dues to a bank, holders as at the Balance Sheet date and the company has not issued any debentures.

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

13) The provisions of any special statute applicable to chit fund / nidhi 1 mutual benefit fund / societies are not applicable to the Company.

14) The company has maintained proper records of transactions and contracts in respect of trading in securities, debentures and other investments and timely entries have been made therein. All shares, debentures and other investments have been held by the company in its own name.

15) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) The Company has not taken any term loans for the year under consideration.

17) Based on the information and explanations given to us and on an overall examination of Balance Sheet of the Company, in our opinion, funds raised on a long term basis have not been used for short term investment or vice versa.

18) The Company has not made preferential allotment of shares to parties and companies covered under Section 301 of the Companies Act, 1956.

19) The Company has not issued any debentures.

20) The Company has not raised any money by public issues during the year

21) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.

For S. M. BHAT & ASSOCIATES (Chartered Accountants)

(S. M. BHAT) (PROPRIETOR) (M. N0. 030696)

---

Oct 31, 2012

1 We have audited the attached Balance Sheet of Vatsa Corporations Ltd. as at 31st October, 2012 and also the Profit & Loss Account for the year ended on that date both of which we have signed under reference to this report These financial statements are the responsibility of the management of the Company. Our responsibility s express an opinion on these financial statements based on our audit.

2 We have 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 they 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 accenting significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies auditors^ Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order to the extent applicable to the Company.

4 Further to our comments in the annexure referred in paragraph 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 account as required by law have been kept by the Company so far as appears from our examination of these books;

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

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

e) We are unable to comment as we have not received any written representation from the directors of the company as on 31st October 2012regarding disqualification as directors of the company under section 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit & Loss Account and Cash Flow statement read together with the Significant Accounting Policies and Notes thereon and attached thereto give in the prescribed manner the information required by the ‘Act’ and also give respectively, a true and fair view In conformity with the accounting principles generally accepted in India :

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at October 31, 2012 and

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

(iii) in case of the Cash Flow statement of the cash flows for the year ended on that date.

Referred to in paragraph 3 of our report of even date,

1) (a) The Company has maintained proper records showing full particulars of fixed assets. As explained to us, the Fixed Asset Register is under compilation.

(b) All the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable haring regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no substantial part of fixed assets has been disposed off by the Company during the year.

2) (a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of Inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of Its business.

(c) On the basis of our examination of the records of inventory, in our opinion, the Company is maintaining proper records of inventory. No discrepancies have been noticed on physical verification of stocks as compared to the books records.

3) (a) The Company has not granted or taken loans from parties covered in the register maintained under section 301 of the Act.

In view of the above sub clause (b),(c),(d),(e),(f) and (g) of clause ii of para 4, are not applicable.

4) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for sale of goods. Further, on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedures.

5) (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Act, have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of the contract or arrangements with the parties to be specified in register maintained u/s 301 exceeding the value of rupees five lacs during the year or more.

6) In our opinion and according to titer information and explanations given to us, the Company has not accepted deposit within the meaning of the provisions of Sections 58A and 58AA of the Companies Act, 1956 and the Rules made there under.

7) In our opinion, the Company has no formal internal audit system.

8) As explained to us, maintenance of cost records has not been prescribed by the Central Government u/s 209 (i)(d) of the Companies Act, 1956.

9) (a) According to the records of the Company, the Company is regular In depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income-Tax, Sales-Tax, Value Added Tax, Custom Duty, Cess and other statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us and on the basis of records of the Company examined by us, there are some disputed dues outstanding in respect of Income-Tax, Sales-Tax, Provident Fund, Custom Duty and Cess as at 31st OCTOBER, 2012 for a period of more than six months from the date of becoming payable.

10) The Company has accumulated losses as on 31 * OCTOBER, 2012. However, the company has incurred cash loss in the financial year ending OCTOBER, 2012.

11) According to the records of the Company examined by us and the information and explanations given by the management, the Company has not defaulted in repayment of dues to a bank, holders as at the Balance Sheet date and the company has not issued any debentures.

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

13) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company .

14) The company has maintained proper records of transactions and contracts in respect of trading in securities, debentures and other investments and timely entries have been made therein. All shares, debentures and other investments have been held by the company in its own name.

15) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) The Company has not taken any term loans for the year under consideration.

17) Based on the information and explanations given to us and on an overall examination of Balance Sheet of the Company, in our opinion, funds raised on a long term basis have not been used for short term investment or vice versa.

18) The Company has not made preferential allotment of shares to parties and companies covered under Section 301 of the Companies Act, 1956.

19) The Company has not issued any debentures.

20) The Company has not raised any money by public issues during the year.

21) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices In India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.

For S. M. BHAT & ASSOCIATES

(Chartered Accountants)

Place: Mumbai

Date : 05-01-2013

(S. M. BHAT)

(PROPRIETOR)

(M. No. 030696)

---

Oct 31, 2011

To, The Members of Vatsa Music Ltd.

1. We have audited the attached Balance Sheet of Vatsa Corporations Ltd. as at 31st October, 2011 and also the Profit & Loss Account for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have 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 presentation of the financial state- ments. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies (Auditor''s Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order to the extent applicable to the Company.

4. Further to our comments in the annexure referred in paragraph 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 account as required by law have been kept by the Company so far as appears from our examination of these books;

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

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

e) We are unable to comment as we have not received any written representation from the directors of the company as on 31st October 2011 regarding disqualification as directors of the company under section 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit & Loss Account and Cash Flow statement read together with the Significant Accounting Policies and Notes thereon and attached thereto give in the prescribed manner the information required by the ''Act* and also give respectively, a true and fair view in conformity with the accounting principles generally accepted in India :

(i) In the case of the Balance Sheet, of the state of affairs of the Company as at October 31, 2011 and

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

(iii) In case of the Cash Flow statement of the cash flows for the year ended on that date.

Referred to in paragraph 3 of our report of even date,

1) (a) The Company has maintained proper records showing full particulars of fixed assets. As explained to us, the Fixed Asset Register is under compilation.

(b) All the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no substantial part of fixed assets has been disposed off by the Company during the year.

2) (a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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

(c) On the basis of our examination of the records of inventory, in our opinion, the Company is maintaining proper records of Inventory. No discrepancies have been noticed on physical verification of stocks as compared to the books records.

3) (a) The Company has not granted or taken loans from parties covered in the register maintained under section 301 of the Act.

In view of the above sub clause (b),(c),(d),(e),(f) and (g) of clause it of para 4, are not applicable.

4) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for sale of goods. Further, on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedures.

5) (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Act, have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of the contract or arrangements with the parties to be specified in register maintained u/s 301 exceeding the value of rupees five lacs during the year or more.

6) In our opinion and according to the information and explanations given to us, the Company has not accepted deposit within the meaning of the provisions of Sections 58A and 58AA of the Companies Act, 1956 and the Rules made there under.

7) In our opinion, the Company has no formal internal audit system.

8) As explained to us, maintenance of cost records has not been prescribed by the Central Government u/s 209 (i){d) of the Companies Act, 1956.

9) (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income-Tax, Sales-Tax, Value Added Tax, Custom Duty, Cess and other statutory dues applicable to it with the appropriate authorities.

(b) According to the Information and explanations given to us and on the basis of records of the Company examined by us, there are some disputed dues outstanding in respect of Income-Tax, Sales-Tax, Provident Fund, Custom Duty and Cess as at 31st OCTOBER, 2011 for period of more than six months from the date of becoming payable.

10) The Company has accumulated losses as on 31st OCTOBER, 2011. However, the company has incurred cash loss in the financial year ending OCTOBER, 2011.

11) According to the records of the Company examined by us and the information and explanations given by the management, the Company has not defaulted in repayment of dues to a bank, holders as at the Balance Sheet date and the company has not issued any debentures.

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

13) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company.

4) The company has maintained proper records of transactions and contracts in respect of trading in securities, debentures and other investments and timely entries have been made therein. All shares, debentures and other investments have been held by the company in its own name.

15) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) The Company has not taken any term loans for the year under consideration.

17) Based on the information and explanations given to us and on an overall examination of Balance Sheet of the Company, in our opinion, funds raised on a long term basis have not been used for short term investment or vice versa.

18) The Company has not made preferential allotment of shares to parties and companies covered under Section 301 of the Companies Act, 1956.

19) The Company has not issued any debentures.

20) The Company has not raised any money by public issues during the year.

21} During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.

For S. M. BHAT & ASSOCIATES

(Chartered Accountants)

Place: Mumbai

Date : 05-01-2012

(S. M. BHAT)

(PROPRIETOR) (M. No. 030696)

---

Oct 31, 2010

1 We have audited the attached Balance Sheet of Vratsa Corporations Ltd. as at 31st October, 2010 and also the I Profit & Loss Account for the year ended on that date both of which we have signed under reference to this report

These financial statements are the responsibility of the management of the Company. Our responsibility ,s to express an opinion on these financial statements based on our audit.

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

3 As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies auditor^ Report) I '' amendment) Order 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order to the extent applicable to the Company.

4. Further to our comments in the annexure referred in paragraph 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 account as required by law have been kept by the Company so far as appears from our examination of these books;

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

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow statement dealt with by this report 4 are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

e) We are unable to comment as we have not received any written representation from the directors of the company as on 31st October 2010 regarding disqualification as directors of the company under section 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the Balance I Sheet Profit & Loss Account and Cash Flow statement read together with the Significant Accounting Policies I and Notes thereon and attached thereto give in the prescribed manner the information required by the Act and also give respectively, a true and fair view in conformity with the accounting principles generally accepted in India ;

(i) in the case of 1he Balance Sheet, of the state of affairs of the Company as at October 31, 2010 and

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

(iii) In case of the Cash Flow statement of the cash flows for the year ended on that date.

Referred to in paragraph 3 of our report of even date,

1) (a) The Company has maintained proper records showing full particulars of fixed assets. As explained to us, the Fixed Asset Register is under compilation.

(b) All the assets have been physically verified by the management during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification,

(c) In our opinion and according to the information and explanations given to us, no substantial part of fixed assets has been disposed off by the Company during the year.

2) (a) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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

(c) On the basis of our examination of the records of Inventory, in our opinion, the Company is maintaining proper records of inventory. No discrepancies have been noticed on physical verification of stocks as compared to the books records.

3) (a) The Company has not granted or taken loans from parties covered in the register maintained under section 301 of the Act.

In view of the above sub clause (b),(c),(d),(e),(f) and (g) of clause tin of Para 4, are not applicable.

4) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for sale of goods. Further, on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedures.

5) (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Act, have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions made in pursuance of the contract or arrangements with the parties to be specified in register maintained u/s 301 exceeding the value of rupees five lacs during the year or more.

6) In our opinion and according to the information and explanations given to us, the Company has not accepted deposit within the meaning of the provisions of Sections 58A and 58AA of the Companies Act, 1956 and the Rules made there under.

7) In our opinion, the Company has no formal internal audit system.

8) As explained to us, maintenance of cost records has not been prescribed by the Central Government u/s 209 (i)(d) of the Companies Act, 1956.

9) (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income-Tax, Sales-Tax, Value Added Tax, Custom Duty, Cess and other statutory dues applicable to it with the appropriate authorities.
10) The Company has accumulated losses as on 31" OCTOBER, 2010. However, the company has incurred cash loss in the financial year ending OCTOBER, 2010.

11) According to the records of the Company examined by us and the information and explanations given by the management, the Company has not defaulted in repayment of dues to a bank, holders as at the Balance Sheet date and the company has not issued any debentures.

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

13) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the Company.

14) The company has maintained proper records of transactions and contracts in respect of trading in securities, debentures and other investments and timely entries have been made therein. All shares, debentures and other investments have been held by the company in its own name.

15) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) The Company has not taken any term loans for the year under consideration.

17) Based on the information and explanations given to us and on an overall examination of Balance Sheet of the Company, in our opinion, funds raised on a long term basis have not been used for short term investment or vice versa.

18) The Company has not made preferential allotment of shares to parties and companies covered under Section 301 of the Companies Act, 1956.

19) The Company has not issued any debentures.

20) The Company has not raised any money by public issues during the year.

21) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any Instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.

For S. M. BHAT & ASSOCIATES

{Chartered Accountants)

Place: Mumbai

Date : 05-01-2011

(S. M. BHAT)

(PROPRIETOR)

(M. No. 030696)