Auditor Report of Anka India Ltd.

Mar 31, 2025

We have audited the standalone financial statements of Anka India Limited ("the
Company"), which comprise the balance sheet as at 31st March, 2025, the statement of
Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity
and Statement of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of material accounting policies and other explanatory
information (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to
us, except for possible effects of the matters described in the Basis of Qualified Opinion
section of our report , the accompanying Standalone Financial Statements give the
information required by the Companies Act, 2013 (hereinafter referred to as "the Act") in
the manner so required and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, (hereinafter referred to as "Ind
AS") and other accounting principles generally accepted in India, of the state of affairs of
the Company as at March 31, 2025, and its profit, total comprehensive income, its cash
flows and the changes in equity for the year ended on that date.

Basis for Qualified Opinion

> As stated in Note 7 to the financial statements, inventories amounting to
?22,50,000/- have been lying idle for more than twelve months. The
Company has not carried out an assessment of the net realisable value of
these inventories as required under the applicable accounting framework
[Ind AS 2 - Valuation of Inventories]. In the absence of adequate supporting
documentation and audit evidence, we are unable to determine whether any
adjustment is required to the carrying value of such inventories as at the
reporting date.

> As stated in Note 4 to the financial statements, intangible assets under
development amounting to ?6,99,84,393/- have been carried in the books for
more than two years without demonstrable progress in development or
indications of technical or commercial feasibility. The Company has not
carried out an impairment assessment in accordance with the applicable
accounting standards [Ind AS 38 - Intangible Assets and Ind AS 36 -
Impairment of Assets]. In the absence of such an assessment, we are unable
to ascertain whether any impairment loss is required to be recognized.

> As stated in Note 9 to the financial statements, the Company continues to
recognize the minimum alternative tax paid in previous years amounting to
Rs. 35,37,792/- as asset and expects the same to be adjusted against future
tax payments. In our view, considering the history of losses and overall
financial position of the Company, it is not prudent on part the company to
recognize the same as assets, and the same is not in consonance with the
provisions of "Guidance Note on accounting for credit available in respect of
Minimum Alternative Tax under the Income Tax Act, 1961 "

These matters are material but not pervasive to the financial statements. Accordingly, we
issue a qualified opinion.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of The Companies Act, 2013. Our responsibilities under those Standards are
further described in the Auditor''s Responsibilities for the Audit of the 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 together with the ethical
requirements that are relevant to our audit of the financial statements under the provisions
of The Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, 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 matter described below to be the key audit matter
to be communicated in our report.

Sr.	Key Audit Matters	Auditor Response
1.	Company has not been in operations over the past few years. As stated above all the inventories have been lying idle for over 2 years and none of the Intangibles Under Developments have been moved towards capitalisation. Based on the above scenarios question arises on the Going Concern assumption considered by the management in preparation of the Financial Statements.	Company is in the process of making certain changes within the management and is also in the process of acquiring a tech Company in the subsequent year and intends to carry out all Information Technology & Advertisement based activities. It has also made suitable amendments to its object clause of the Memorandum of Association.

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

The Company''s management and Board of Directors are responsible for the other
information. The other information comprises the information included in the Management

Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business
Responsibility and Sustainability Report, Corporate Governance and Shareholder''s
Information but does not include the Standalone Financial Statements and our auditor''s
report thereon.

Our opinion on the standalone 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
in the 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
accounting principles generally accepted in India, including the accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
of 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 design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statement that give a true and fair view and
are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the
Company''s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but
to do so.

Those Board of Directors are also responsible for overseeing the Company''s financial
reporting process.

Auditor''s Responsibilities for the Audit of the Financial Statements.

Our objectives are to obtain reasonable assurance about whether the 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 financial
statements.

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

> Identify and assess the risks of material misstatement of the 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 Companies Act, 2013, we are also responsible for expressing our opinion on
whether the company has an adequate internal financial controls system 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 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 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 financial statements,
including the disclosures, and whether the 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 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

As required by The Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of The Companies
Act, 2013, we give in "Annexure A" a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.

(A) 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 except
for the issues mentioned in clause h(VI) below.

c) The Balance Sheet, the Statement of Profit and Loss (including other
comprehensive income), the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this Report are in agreement with the
books of account.

d) In our opinion, the aforesaid standalone 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 the written representations received from the directors as on
31st March, 2025 taken on record by the Board of Directors, none of the
directors is disqualified as on 31st March, 2025 from being appointed as a
director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference
to standalone financial statements of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B".

g) 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 according to the information and explanations given to us,
no remuneration has been paid by the Company to its directors during the
current year and accordingly we don''t have anything to report under this
clause covering section 197(16) of the Companies Act, 2013.

h) 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
explanations given to us:

I. The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements under Note 24.

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 required to be transferred to the Investor
Education and Protection Fund by the Company during the year.

IV. (a) The Management has represented that, to the best of it''s 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 share premium or any other sources or kind of funds)
by the Company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, directly or
indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Company ("Ultimate
Beneficiaries") or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.

(b) The Management has represented, that, to the best of it''s 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 ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the
Company shall, 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.

(c) Based on the audit procedures that has been considered reasonable
and appropriate in the circumstances, nothing has come to our notice
that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain
any material misstatement.

V. Company had not declared any dividend for the previous year and
accordingly section 123 of the Act is not applicable and accordingly
nothing is reportable under this clause. Further the Board of Directors
have not proposed any dividend for the year.

VI. Based on our examination which included test checks, the
Company has not used an accounting software for maintaining
its books of account which has a feature of recording audit trail
(edit log) for the entire year.

For R.S.Prabhu & Associates
Chartered Accountants
FRN.127010W

Anitha Viswanathan
Partner

ICAI Mem No.113512
Date: 30^th May, 2025
Place: Vasai Road (East)

UDIN: 25113512BMIHPM3084

---

Mar 31, 2024

We have audited the standalone financial statements of Anka India Limited ("the
Company"), which comprise the balance sheet as at 31st March, 2024, the statement of
Profit and Loss (including Other Comprehensive Income), Statement of Changes in
Equity and Statement of Cash Flows for the year then ended, and notes to the financial
statements, including a summary of material accounting policies and other explanatory
information (hereinafter referred to as "the standalone financial statements").

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 (hereinafter referred to as "the Act") in the
manner so required and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, (hereinafter referred to as
"Ind AS") and other accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2024, and its profit, total comprehensive
income, its cash flows and the changes in equity for the year ended on that date except
for the below mentioned qualifications:

''''Company continues to recognize minimum alternative tax paid in previous
years amounting to Rs. 25.20 Lakhs as asset and expects the same to be
adjusted against future tax payments. In our view, considering the past
history of losses and overall financial position of the Company, it is not
prudent on part the company to recognize the same as assets, and the same is
not in consonance with the provisions of "Guidance Note on accounting for
credit available in respect of Minimum Alternative Tax under the Income Tax
Act, 1961 "

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of The Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditor''s Responsibilities for the Audit of the
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 together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of The Companies Act, 2013 and the Rules
thereunder, and we have fulfilled our other ethical responsibilities in accordance with

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, 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 matter described below to
be the key audit matter to be communicated in our report.

Sr.	Key Audit Matters	Auditor Response
1.	> Company has not been in operations over the past few years. Further from the liquidity analysis it so appears that it would not be having sufficient short-term funds to repay its short-term liabilities. Further the inventories (Completed Unreleased Song Album) as well as Intangible Assets under Development (Film Rights) have remained stagnant with no movement over that past 2 years. > Further the Company in the previous financial year had acquired 100% shares of another loss¬ making Company (Legend SRS Cinemas Private Limited) with the intention of improving the overall performances. Since nothing materialised positively Company sold all its holding in the current financial year. Based on the above scenarios question arises on the Going Concern assumption considered by the management in preparation of the Financial Statements.	As explained to us the Company has been waiting for the outcome of the inventories to be sold , and were in the final stages of negotiations. However the whole process got delayed due to delay in one of the leading channel''s take over. Company have started the interaction again with distribution team and have been given the assurance of the possible tentative time slot for the release Legend SRS cinemas private Limited was sold only to not create further losses in the books of accounts of ANKA INDIA LTD. At the time of acquisition the Company had hoped that with this it would be able to turn around the positions jointly. However due to low turnout in the theatres and with very less content in the offering specially after covid , it was collectively decided to discontinue with the subsidiary.
2.	At the time of acquiring 100% shareholding in the above-mentioned subsidiary in the previous financial year, the Company had advanced loan	As explained to us Company has been rigorously following it up with the concern party for the loan repayment and has got an

to the tune of Rs.7.15 Crores to it to clear the debt in its books to the tune of similar amount. As per the Share Purchase agreement dated 02/01/2024, the above-mentioned erstwhile subsidiary had to return the loan amount to the Company in three tranches, the last tranche being 15/03/2024. However, at the end of the financial year the Company had not recovered any amount from the former. Question arises with regards to the actual recoverability of the said loan amount and the reason for not creating any provisions / (ECL) / recognizing Impairment of such loan.

assurance that it would be cleared in this ensuing financial year.

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

The Company''s management and Board of Directors are responsible for the other
information. The other information comprises the information included in the
Management Discussion and Analysis, Board''s Report including Annexures to Board''s
Report, Business Responsibility and Sustainability Report, Corporate Governance and
Shareholder''s Information but does not include the Standalone Financial Statements
and our auditor''s report thereon.

Our opinion on the standalone 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 in the 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 accounting principles generally accepted in India, including the accounting
Standards specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the

Act for safeguarding of 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
design, implementation and maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial
statement that give a true and fair view and are free from material misstatement,
whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the
Company''s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company''s financial
reporting process.

Auditor''s Responsibilities for the Audit of the Financial Statements.

Our objectives are to obtain reasonable assurance about whether the 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 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 misstatement of the 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 Companies Act, 2013, we are also responsible for expressing
our opinion on whether the company has an adequate internal financial controls
system 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 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 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 financial
statements, including the disclosures, and whether the 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 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

As required by The Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by
the Central Government of India in terms of sub-section (11) of section 143 of The
Companies Act, 2013, we give in "Annexure A" a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.

(A) 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 except for the issues mentioned in clause h(VI) below.

c) The Balance Sheet, the Statement of Profit and Loss (including other
comprehensive income), the Statement of Changes in Equity and the
Statement of Cash Flows dealt with by this Report are in agreement with
the books of account.

d) In our opinion, the aforesaid standalone 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 the written representations received from the directors as
on 31st March, 2024 taken on record by the Board of Directors, none of
the directors is disqualified as on 31st March, 2024 from being appointed
as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with
reference to standalone financial statements of the Company and the
operating effectiveness of such controls, refer to our separate Report in
"Annexure B".

g) 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 according to the information and
explanations given to us, no remuneration has been paid by the Company
to its directors during the current year and accordingly we don''t have
anything to report under this clause covering section 197(16) of the
Companies Act, 2013.

h) 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 explanations given to us:

I. The Company has disclosed the impact of pending litigations on its
financial position in its standalone financial statements under note
23.

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 required to be transferred to the Investor
Education and Protection Fund by the Company during the year.

IV. (a) The Management has represented that, to the best of it''s
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 share premium or any other
sources or kind of funds) by the Company to or in any other
person(s) or entity(ies), including foreign entities ("Intermediaries"),
with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or
on behalf of the Company ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate
Beneficiaries.

(b) The Management has represented, that, to the best of it''s
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 ("Funding
Parties"), with the understanding, whether recorded in writing or
otherwise, that the Company shall, 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.

(c) Based on the audit procedures that has been considered
reasonable and appropriate in the circumstances, nothing has come
to our notice that has caused us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and
(b) above, contain any material misstatement.

V. Company had not declared any dividend for the previous year and
accordingly section 123 of the Act is not applicable and accordingly
nothing is reportable under this clause. Further the Board of
Directors have not proposed any dividend for the year.

VI. Based on our examination which included test checks, the Company
has not used an accounting software for maintaining its books of
account which has a feature of recording audit trail (edit log) for the
entire year.

As provision to Rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable from April 1, 2023, reporting under rule 11(g) of the
Companies (Audit and Auditors) Rules, 2014 on preservation of audit
trail as per the statutory requirements for record retention is not
applicable for the financial year ended March 31, 2024

For R.S.Prabhu & Associates
Chartered Accountants
FRN.127010W

Anitha Viswanathan
Partner

ICAI Mem No.113512
Date: 30^th May, 2024
Place: Vasai Road (East)

UDIN: 24113512BKABSN2912

---

Mar 31, 2014

We have audited the accompanying financial statements of ANKA INDIA LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,2014 and 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, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956("theAct") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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 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 Profit and Loss Account, of the loss for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, 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 Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

bb) **The report on the accounts of the branch offices audited under section 228 by a person other than the company''s auditor has been forwarded to us as required by clause (c) of sub-section (3) of section 228 and have been dealt with in preparing our report in the manner considered necessary by us.

c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

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.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441Aof the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE TO THE AUDITORS REPORT

REFERRED TO IN PARAGRAPH 1 OF OUR REPORT TO THE MEMBERS OF ANKA INDIA LIMITED ("THE COMPANY") FOR THE YEAR ENDED ON 31st MARCH, 2014

We report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, 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) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (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 not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(b) clauses iii (b) of the order are not applicable to the Company.

(c) clauses iii(c) of the order are not applicable to the Company.

(d) clauses iii (d) of the orderare not applicable to the Company

(e) The Company has taken loans from one party covered in the register maintained under section 301 of the Companies Act, 1956 wherein the balance payable as at the year end is Rs. 2,63,86,575/-. The maximum amount outstanding during the year was Rs. 2,89,64,575/-.

(f) In our opinion, the rate of interest and other terms and conditions on which the loans have been taken to the parties listed in the register maintained under Section 301 of the Act are not, prima facie, prejudicial to the interest of the Company.

(g) In our opinion and according to the explanations given to us, the company is regular in paying the principal and interest as stipulated.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, no transaction have been entered into by the company with parties covered u/s 301 of the Act further it does not exceeds five lacs rupees in a financial year therefore requirement of reasonableness of transactions does not arises.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

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

8. As per information & explanation given by the management, maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act.

9. (a) According to the records of the Company and the information and explanations given to us, it has been observed that there have been delays on some occasions in depositing of TDS with appropriate authorities. However the same has been deposited along with the interest as prescribed.

(b) According to the information and explanations given to us, the details of dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess which have not been deposited on account of any dispute are given below:-

Name of Nature of Financial year to Amount Statute Dues which the matter (Rs.) pertains Central Excise Act Penalty 1997-98 188319/-

Name of Forum where dispute is pending Statute Central Excise Act Customs Excise & Service Tax Appellate Tribunal

10. The Company has accumulated losses exceeding fifty percent of the net worth of the Company. The Company has incurred cash loss during the year covered by our audit.

11. In our opinion and according to the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders, as applicable to the company.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, is not applicable to the Company.

14. According to information and explanations given to us, the Company is not dealing or trading in Shares, securities, debentures and other investments.According the provisions of clause 4(xiv) of the Order is not applicable to the company.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, the company has not taken any term loan during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March,2014 report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares during the year to parties and companies covered in the register maintained under section 301 of the Companies Act.

19. The Company has not issued any secured outstanding debentures during the period.

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

21. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For. H. KUMAR & ASSOCIATES CHARTERED ACCOUNTANTS Firm Regn. No. 021518N

Sd/- PLACE : NEW DELHI (H. Kumar) DATED : 29th May''2014 M. NO. :010431

---

Mar 31, 2013

1. We have audited the attached Balance Sheet of ANKA INDIA LIMITED, as at 31st March, 2013 and statement of Profit & Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors'' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of audit, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

a) subject to our comments in paragraphs 4(f)(1) to 4(f) (Hi) below, 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, 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, the statement of Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 except for non-compliance of Accounting Standard 15 on "Employee''s Benefits" with respect to actuarial valuation of gratuity liability and hence disclosures required there under (refer Note No.18.1x)

e) on the basis of written representations received from the directors of the Company as on 31st March, 2013 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31H March, 2013 from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) in our opinion and to the best of our information and according to the explanations given to us and subject to:

i) Note No. ''28''regarding non-confirmation / reconciliation of balances of debtors, creditors and other parties, the effect of which on accounts upon confirmation and reconciliation not ascertainable;

it) Note No. ''34''regarding the accounts of the Company prepared on going concern basis;

Hi) Note No. ''18.1'' regarding non-provision of gratuity liability on the basis of actuarial valuation, effect of which on accounts has not been ascertained and read with other notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) in the case of the Balance Sheet, of the state of affairs of the Company as at31sl March, 2013; ii) in the case of the statement of Profits Loss Account, of the loss for the year ended on that date; and iii) in the case of the Cash Flow Statement of the cash flows for the year ended on that date.

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

b) As explained to us, physical verification of fixed assets was conducted by the management at the end of the year which in our opinion is reasonable having regard to the size of the Company and nature of its business. No discrepancies were noticed on the aforesaid verification.

c) The Company has disposed of all the fixed assets during the year,

2. a) As per the information and explanation given to us, the inventories have been physically verified by the management during the year. In our opinion, the frequency of physical verification is reasonable.

b) I n our opinion and according to the information and explanations given to us, 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 and according to the information and explanations given to us, we are of the opinion that the Company has maintained proper records of inventory. As per information and explanation given to us no discrepancy was observed on physical verification.

3. (a) As per information and explanation given to us the company has not granted any loan to the companies, firms of other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The company has taken interest free secured loan aggregating to Rs. 90,78,175/- in the earlier years from one party covered in the register maintained u/s 301 of the Companies Act, 1956. A balance of Rs. 2,80,24,575/- was outstanding as on 31st March 2013 out of that loan.

(c) In our opinion and according to the information and explanations given to us the terms and conditions of interest free secured loan taken are not prima facie prejudicial to the interest of the company:

(d) In our opinion and according to the information and explanations given to us the payment of principal amount was regular as stipulated.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control systems.

5. a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the contracts and arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) No transactions were made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs,5,00,000/-or more in respect of each party except for issue of Redeemable Preference Shares as stated in (18) below.

6. The Company has not accepted any deposit from public during the year within the meaning of sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under.

7. The Company has an internal audit system which commensurate with the size of the Company and the nature of its business.

8. We have been informed that the Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 for the product of the Company,

9. a) According to the records of the Company and the information and explanations given to us, the Company has made delays on various occasions in depositing, with appropriate authorities, undisputed statutory dues including investor Education & Protection Fund, Provident Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Custom Duty, Cess and other statutory dues

b) According to the information and explanations given to us, the details of dues of Sales Tax, Income Tax. Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess which have not been deposited on account of any dispute are given below:-

Name of Nature of Financial year to Amount Forum where dispute is pending Statute Dues which the matter (Rs.) pertains

Central Excise Act Penalty 1997-98 188319/- Customs Excise & Service Tax Appellate Tribunal

HVAT Sales Tax 2006-07 182760/- Excise & Taxation Commissioner (Appeals)

10. The Company has accumulated losses exceeding fifty percent of the net worth of the Company. The Company has incurred cash profit during the year covered by cur audit by way of sale of fixed assets.

11. According to the information and explanation given to us, the Company has not defaulted in repayment of dues to financial institution and banks during the year. The company has not issued any debentures.

12. According to information and explanations given to us and based on the records produced to us, the Company has not granted loans and advances on the basis of securities by way of pledge of shares, securities, debentures and other investments.

13. in our opinion the Company is nota chit fund or Nidhi/mutual benefit fund/society,

14. In our opinion and according to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanation given to us, the Company has not guaranteed any loan taken by others from banks and financial institutions,

16. No term loan has been taken during the year.

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, were port that of ends raised on short term basis were used furlong term investment.

18. In our opinion and according to the information and explanations give to us, the price at which the Company has made the preferential allotment of redeemable preference shares to parties covered in the register maintained under section 301 of the Companies Act, 1956, during the year, was not prima facie prejudicial to the interest of the company.

19. The Company did not have any outstanding debentures during the year.

20. The Company has not raised any money by a public issue during the year.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on/or by the Company has been noticed or reported during the course of our audit for the year ended 31st March.2013.

For. H. KUMAR & ASSOCIATES

CHARTERED ACCOUNTANTS

FirmRegn. No. 021518N



Sd/-

PLACE : NEW DELHI (H- Kumar)

DATED : 12th JUNE 2013 M- NO. :010431

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of ANKA INDIA LIMITED, as at 31st March, 2012 and statement of Profit & Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors'' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of audit, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

a) subject to our comments in paragraphs 4(f)(i) to 4(f) (iii) below, 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, 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, the statement of Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 except for non-compliance of Accounting Standard 15 on "Employee''s Benefits" with respect to actuarial valuation of gratuity liability and hence disclosures required there under (refer Para No. 15(c) of Note No. 18 '''')

e) on the basis of written representations received from the directors of the Company as on 31st March, 2012 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 director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) in our opinion and to the best of our information and according to the explanations given to us and subject to:

i) Para No. 3 of Note No. ''18'' regarding non-confirmation / reconciliation of balances of debtors, creditors and other parties, the effect of which on accounts upon confirmation and reconciliation not ascertainable;

ii) Para No. 7 of Note No. ''18'' regarding pendency of assessment of impairment loss, the effect of which on accounts of the Company upon assessment not ascertained;

iii) Para No. 13 of Note No. ''18'' regarding the accounts of the Company prepared on going concern basis;

iv) Para No. 15(c) of Note No. ''18'' regarding non-provision of gratuity liability on the basis of actuarial valuation, effect of which on accounts has not been ascertained and read with other notes thereon, give the information required by the Companies Act,1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012;

ii) in the case of the statement of Profit & Loss Account, of the loss for the year ended on that date; and

iii) in the 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 ON THE ACCOUNTS OF ANKA INDIA LIMITED FOR THE PERIOD ENDED ON 31st MARCH, 2012

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

b) As explained to us, physical verification of fixed assets was conducted by the management at the end of the year which in our opinion is reasonable having regard to the size of the Company and nature of its business. No discrepancies were noticed on the aforesaid verification.

c) There was no disposal of fixed assets during the year.

2. a) As per the information and explanation given to us, the inventories have been physically verified by the management during the year. In our opinion, the frequency of physical verification is reasonable.

b) In our opinion and according to the information and explanations given to us, 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 and according to the information and explanations given to us, we are of the opinion that the Company has maintained proper records of inventory. As per information and explanation given to us no discrepancy was observed on physical verification.

3. (a) As per information and explanation given to us the company has not granted any loan to the companies, firms of other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The company has taken interest free secured loan aggregating to Rs. 92,58,175/- in the earlier years from one party covered in the register maintained u/s 301 of the Companies Act, 1956. A balance of Rs. 90,78,175/- was outstanding as on 31st March 2012 out of that loan.

(c) In our opinion and according to the information and explanations given to us the terms and conditions of interest free secured loan taken are not prima facie prejudicial to the interest of the company;

(d) In our opinion and according to the information and explanations given to us the payment of principal amount was regular as stipulated.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control systems.

5. a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the contracts and arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) No transactions were made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs.5,00,000/- or more in respect of each party except for issue of Redeemable Preference Shares as stated in (18) below.

6. The Company has not accepted any deposit from public during the year within the meaning of sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed thereunder.

7. The Company has an internal audit system which commensurate with the size of the Company and the nature of its business.

8. We have been informed that the Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the product of the Company.

9. a) According to the records of the Company and the information and explanations given to us, the Company has made delays on various occasions in depositing, with appropriate authorities, undisputed statutory dues including Investor Education & Protection Fund, Provident Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Custom Duty, Cess and other statutory dues. The undisputed statutory dues outstanding as at 31st March, 2012 for a period exceeding six months from the date they became payable are as follows:-

NOTE : Amount of custom duty of Rs.3,15,664/- which was outstanding prior to 01.04.03 has been written off and shown under the head extra ordinary items

10. The Company has accumulated losses exceeding fifty percent of the net worth of the Company. The Company has incurred cash losses during the year covered by our audit and in the immediately preceding financial year.

11. According to the information and explanation given to us, the Company has not defaulted in repayment of dues to financial institution and banks during the year. The company has not issued any debentures.

12. According to information and explanations given to us and based on the records produced to us, the Company has not granted loans and advances on the basis of securities by way of pledge of shares, securities, debentures and other investments.

13. In our opinion the Company is not a chit fund or Nidhi/mutual benefit fund/society.

14. In our opinion and according to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanation given to us, the Company has not guaranteed any loan taken by others from banks and financial institutions.

16. No term loan has been taken during the year.

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis were used for long term investment.

18. In our opinion and according to the information and explanations give to us, the price at which the Company has made the preferential allotment of redeemable preference shares to parties covered in the register maintained under section 301 of the Companies Act, 1956, during the year, was not prima facie prejudicial to the interest of the company.

19. The Company did not have any outstanding debentures during the year.

20. The Company has not raised any money by a public issue during the year.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on/or by the Company has been noticed or reported during the course of our audit for the year ended 31st March,2012. For. H.KUMAR & ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Regn. No. 021518N

PLACE : NEW DELHI. ( H. Kumar )

DATED : M. NO. :010431

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of ANKA INDIA LIMITED, as at 31 st March, 2011 and also the Profit & Loss Account and the Cash Flow Statement for the period from 1st October, 2010 to 31st March, 2011. 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 the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors'' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of audit, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

a) subject to our comments in paragraphs 4(f)(i) to 4(f) (Hi) below, 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, 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, the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 except for non-compliance of Accounting Standard 15 on "Employee''s Benefits" with respect to actuarial valuation of gratuity liability and hence disclosures required there under (refer Note No. 15(c) of Schedule ''«'')

e) on the basis of written representations received from the directors of the Company as on 31 st March, 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 st March, 2011 from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) in our opinion and to the best of our information and according to the explanations given to us and subject to:

i) Note No. 3 of Schedule K''regarding non-confirmation /reconciliation of balances of debtors, creditors and other parties, the effect of which on accounts upon confirmation and reconciliation not ascertainable;

ii) Note No. 7 of Schedule ''K regarding pendency of assessment of impairment loss, the effect of which on accounts of the Company upon assessment not ascertained;

Hi) Note No. 15(c) of Schedule ''K'' regarding non-provision of gratuity liability on the basis of actuarial valuation, effect of which on accounts has not been ascertained;

iv) Note No. 13 of Schedule ''K'' regarding the accounts of the Company prepared on going Concern basis; and read with other notes thereon, give the information required by the Companies Act,1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

ii) in the case of the Profit & Loss Account, of the loss for the period ended on that date; and

iii) in the case of the Cash Flow Statement of the cash flows for the period ended on that date.

ANNEXURE TO THE AUDITORS REPORT

REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF ANKA INDIA LIMITED FOR THE PERIOD ENDED ON 30TH SEPTEMBER, 2011

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

b) As explained to us, physical verification of fixed assets was conducted by the management at the end of the period which in our opinion is reasonable having regard to the size of the Company and nature of its business. No discrepancies were noticed on the aforesaid verification.

c) There was no disposal of fixed assets during the period.

2. a) As per the information and explanation given to us, the inventories have been physically verified by the management during the period. In our opinion, the frequency of physical verification is reasonable.

b) In our opinion and according to the information and explanations given to us, 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 and according to the information and explanations given to us, we are of the opinion that the Company has maintained proper records of inventory. As per information and explanation given to us no discrepancy was observed on physical verification.

3. (a) As per information and explanation given to us the company has not granted any loan to the companies, firms of other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) The company has taken interest free secured loan aggregating to Rs. 1,21,57,175/- in the earlier years from one party covered in the register maintained u/s 301 of the Companies Act, 1956. A balance of Rs. 92,58,175/- was outstanding as on 31st March 2011 out of that loan.

(c) In our opinion and according to the information and explanations given to us the terms and conditions of interest free secured loan taken are not prima facie prejudicial to the interest of the company;

(d) In our opinion and according to the information and explanations given to us the payment of principal amount was regular as stipulated.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and for sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control systems.

5. a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the contracts and arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) No transactions were made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the period to Rs.5,00,000/- or more in respect of each party except for issue of Redeemable Preference Shares as stated in (18) below.

6. The Company has not accepted any deposit from public during the period within the meaning of sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed thereunder.

7. The Company has an internal audit system which in our opinion needs to be further strengthened to make it commensurate with the size of the Company and the nature of its business

8. We have been informed that the Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 for the product of the Company.

9. a) According to the records of the Company and the information and explanations given to us, the Company has made delays on various occasions in depositing, with appropriate authorities, undisputed statutory dues including Investor Education & Protection Fund, Provident Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Custom Duty, Cess and other statutory dues. The undisputed statutory dues outstanding as at 31st March, 2011 for a period exceeding six months from the date they became payable are as follows:-

According to the information and explanations given to us, the details of dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess which have not been deposited on account of any dispute are given below:-

10. The Company has accumulated losses exceeding fifty percent of the net worth of the Company. The Company has incurred cash losses during the period covered by our audit and in the immediately preceding financial year.

11. According to the information and explanation given to us, the Company has not defaulted in repayment of dues to financial institution and banks during the period. The company has not issued any debentures.

12. According to information and explanations given to us and based on the records produced to us, the Company has not granted loans and advances on the basis of securities by way of pledge of shares, securities, debentures and other investments.

13. In our opinion the Company is not a chit fund or Nidhi/mutual benefit fund/society.

14. In our opinion and according to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanation given to us, the Company has not guaranteed any loan taken by others from banks and financial institutions.

16. No term loan has been taken during the period.

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis were used for long term investment.

18. In our opinion and according to the information and explanations give to us, the price at which the Company has made the preferential allotment of redeemable preference shares to parties covered in the register maintained under section 301 of the Companies Act, 1956, during the period, was not prima facie prejudicial to the interest of the company.

19. The Company did not have any outstanding debentures during the period.

20. The Company has not raised any money by a public issue during the period.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on/or by the Company has been noticed or reported during the course of our audit for the period ended 31st March, 2011.

For V.K.DHINGRA & CO.

CHARTERED ACCOUNTANTS

Firm Regn. No. 000250N

PLACE : NEW DELHI (V. K. DHINGRA)

DATED : 2nd July, 2011 PARTNER

M. NO.-.14467

---

Sep 30, 2010

1. We have audited the attached Balance Sheet of ANKA INDIA LIMITED, as at 30th September, 2010 and also the Profit & Loss Account and the Cash Flow Statement for the period from 1st July, 2009 to 30th September, 2010. 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 the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors'' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of audit, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

a) subject to our comments in paragraphs 4(f)(i) to 4(f) (iii) below, 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, 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, the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 except for non-compliance of Accounting Standard 15 on "Employee''s Benefits" with respect to actuarial valuation of gratuity liability and hence disclosures required there under (refer Note No. 16 of Schedule ''L'')

e) on the basis of written representations received from the directors of the Company as on 30th September, 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th September, 2010 from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) in our opinion and to the best of our information and according to the explanations given to us and subject to:

i) Note No. 3 of Schedule ''L'' regarding non-confirmation / reconciliation of balances of debtors, creditors and other parties, the effect of which on accounts upon confirmation and reconciliation not ascertainable;

ii) Note No. 8 of Schedule ''L'' regarding pendency of assessment of impairment loss, the effect of which on accounts of the Company upon assessment not ascertained;

iii) Note No. 16(c) of Schedule ''L'' regarding non-provision of gratuity liability on the basis of actuarial valuation, effect of which on accounts has not been ascertained;

iv) Note No. 14 of Schedule ''L'' regarding the accounts of the Company prepared on going concern basis; and read with other notes thereon, give the information required by the Companies Act,1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 30th September, 2010;

ii) in the case of the Profit & Loss Account, of the loss for the period ended on that date; and

iii) in the case of the Cash Flow Statement of the cash flows for the period ended on that date.

REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF ANKA INDIA LIMITED FOR THE PERIOD ENDED ON 30TH SEPTEMBER, 2010

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

b) As explained to us, physical verification of major portion of fixed assets was conducted by the management at the end of the period which in our opinion is reasonable having regard to the size of the Company and nature of its business. No discrepancies were noticed on the aforesaid verification.

c) There was no disposal of fixed assets during the period.

2. a) As per the information and explanation given to us, the inventories have been physically verified by the management during the period. In our opinion, the frequency of physical verification is reasonable.

b) In our opinion and according to the information and explanations given to us, 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 and according to the information and explanations given to us, we are of the opinion that the Company has maintained proper records of inventory. As per information and explanation given to us no discrepancy was observed on physical verification.

3. (a) As per information and explanation given to us the company has not granted any loan to the companies, firms of other parties covered in the register maintained under section 301 of the Companies Act, 1956;

(b) The company has taken interest free secured and unsecured loans aggregating to Rs. 1,79,73,956/- in the earlier years from three parties covered in the register maintained u/s 301 of the Companies Act, 1956. Further interest free loan amounting to Rs. 42,54,700/- was taken from one of those parties during the period under audit. A balance of Rs. 1,21,57,175/- was outstanding as on 30th September 2010 out of these loans;

(c) In our opinion and according to the information and explanations given to us the terms and conditions of interest free secured and unsecured loans taken are not prima facie prejudicial to the interest of the company;

(d) In our opinion and according to the information and explanations given to us the payment of principal amount was regular as stipulated.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control systems.

5. a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the contracts and arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) No transactions were made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the period to Rs.5,00,000/- or more in respect of each party except for issue of Redeemable Preference Shares as stated in (18) below.

6. The Company has not accepted any deposit from public during the period within the meaning of sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed thereunder. As explained to us, no order was passed by the Board or National Company Law Tribunal or Reserve Bank of India or any court or any tribunal in this regard.

7. The Company has an internal audit system which in our opinion needs to be further strengthened to make it commensurate with the size of the Company and the nature of its business.

8. We have been informed that the Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the product of the Company.

9. a) According to the records of the Company and the information and explanations given to us, the Company has made delays on various occasions in depositing, with appropriate authorities, undisputed statutory dues including Investor Education & Protection Fund, Provident Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Custom Duty, Cess and other statutory dues. The undisputed statutory dues outstanding as at 30th September, 2010 for a period exceeding six months from the date they became payable are as follows:-



S. No. Nature of Dues Period of Default Amount (Rs.)

1. Custom Duty Prior to 01.04.03 3,15,664.27

2. Sales Tax / VAT 2005-2006 33,518.00

2006-2007 8,47,928.00

2008-2009 5,41,758.43

2009-2010 1,26,780.00

3. Income Tax (TDS) 2008-2009 25,135.00

2009-2010 22,259.79



b) According to the information and explanations given to us, the details of dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Excise Duty, Service Tax and Cess which have not been deposited on account of any dispute are given below:-



Name of Nature Financial year to Amount Forum where dispute Statute of Dues which the matter (Rs.) is pending pertains

Central Penalty 1997 - 98 195497/- Additional Commissioner, Excise Act Central Excise

HVAT Sales Tax 2006 - 07 182760/- Jt. Excise & Taxation Commissioner (Appeals)



10. The Company has accumulated losses exceeding fifty percent of the net worth of the Company. The Company has incurred cash losses during the period covered by our audit and also during the immediately preceding financial year.

11. According to the information and explanation given to us, the Company has not defaulted in repayment of dues to financial institution and banks during the period. The company has not issued any debentures.

12. According to information and explanations given to us and based on the records produced to us, the Company has not granted loans and advances on the basis of securities by way of pledge of shares, securities, debentures and other investments.

13. In our opinion the Company is not a chit fund or Nidhi/mutual benefit fund/society.

14. In our opinion and according to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

15. In our opinion and according to the information and explanation given to us, the Company has not guaranteed any loan taken by others from banks and financial institutions.

16. In respect of term loans raised in the earlier years we have been informed that the same were applied for the purpose for which they were obtained. No term loan has been taken during the period.

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis were used for long term investment.

18. In our opinion and according to the information and explanations give to us, the price at which the Company has made the preferential allotment of redeemable preference shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956, during the period, was not prima facie prejudicial to the interest of the company.

19. The Company did not have any outstanding debentures during the period.

20. The Company has not raised any money by a public issue during the period.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on/or by the Company has been noticed or reported during the course of our audit for the period ended 30th September, 2010.



For V. K. DHINGRA & CO. CHARTERED ACCOUNTANTS Firm Regn. No. 000250N



PLACE : NEW DELHI (V. K. DHINGRA) DATED : DECEMBER 02, 2010 PARTNER M. NO. : 14467

---

Jun 30, 2009

1. We have audited the attached Balance Sheet of ANKA INDIA LIMITED, as at 30th June 2009 and also the Profit & Loss Account and the Cash Flow Statement for the period from 1st April 2008 to 30th June 2009. 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 the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors'' Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the Company as we considered appropriate and the information and explanations given to us during the course of audit, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above; we report that:

a) subject to our comments in paragraph 4(g)(i) and 4(g) (ii) below, we have obtained all the information and expla- nations, 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, 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, the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956;

e) on the basis of written representations received from the directors of the Company as on 30th June, 2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th June, 2009 from being appointed as director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) Attention is invited to the Note No. 18 of Schedule ''L'' regarding disposal of machines used in the production of PU Sole which is subject to necessary approvals.

g) in our opinion and to the best of our information and according to the explanations given to us and subject to:

i) Note No. 3 of Schedule ''L'' regarding non-confirmation / reconciliation of balances of debtors, creditors and other parties, the effect of which on accounts upon confirmations and reconciliation not ascertainable;

ii) Note No. 8(b) of Schedule ''L'' regarding pendency of assessment of impairment loss, the effect of which on accounts of the Company upon assessment not ascertained;

iii) Note No. (14) of Schedule ''L'' regarding the accounts of the Company prepared on going concern basis; and read with other notes thereon, give the information required by the Companies Act,1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 30th June, 2009

ii) in the case of the Profit & Loss Account, of the profit for the period ended on that date; and

iii) in the case of the Cash Flow Statement, of the cash flows for the period ended on that date.

ANNEXURE TO THE AUDITORS REPORT

REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNTS OF ANKA INDIA LIMITED FOR THE PERIOD ENDED ON 30th June, 2009

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

b) As explained to us, physical verification of major portion of fixed assets was conducted by the management at the end of the PERIOD which in our opinion is reasonable having regard to the size of the Company and nature of its business. On the basis of explanations given to us, no discrepancies were noticed on the aforesaid verification.

c) A substantial pan" of fixed assets has been disposed off during the period. According to the management, it has not affected the going concern. However, in our opinion, going concern is already affected in view of the negative networth of the company.

2. a) As per the information and explanation given to us, the inventories have been physically verified by the Manage- ment during the year. In our opinion, the frequency of physical verification is reasonable^

b) In our opinion and according to the information and explanations given to us, 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 and according to the information and explanations given to us, we are of the opinion that the Company has maintained proper records of inventory. As per information and explanation given to us no discripancy was obeserved on physical verification.

3. (a) As per information and explanation given to us the company has not granted any loan to the companies, firms of other parties covered in the register maintained under section 301 of the Companies Act, 1956;

(b) The company has taken an interest free unsecured loan aggregating to Rs. 87,79,748/- from three parties covered in the register maintained u/s 301 of the Companies Act, 1956 during the year. Maximum amount due to these parties at any time during the year was Rs. 2,21,12,826/-

(c) In our opinion and according to the information and explanations given to us the terms and conditions of interest free loans taken during the year were not prima facie prejudicial to the interest of the company; and

(d) In our opinion and according to the information and explanations given to us the payment of principal amount were regular as stipulated.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control systems.

5. a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the contracts and arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b) No transactions were made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs.5,00,000/- or more in respect of each party.

6. The Company has not accepted any deposit from public during the year within the meaning of sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed thereunder. As explained to us, no order was passed by the Board or National Company Law Tribunal or Reserve Bank of India or any court or any tribunal in this regard.

7. The Company has an internal audit system which in our opinion needs to be further strengthened to make it commen- surate with the size of the Company and the nature of its business

8. We have been informed that the Central Government has not prescribed maintenance of cost records under section 209(1 )(d) of the Companies Act, 1956 for the product of the Company.

9. According to the records of the Company and the information and explanations given to us, the Company has made delays on various occasions in depositing, with appropriate authorities, undisputed statutory dues including Investor Education & Protection Fund, Provident Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise Duty, Custom Duty, Cess and other statutory dues.

10. The Company has accumulated losses exceeding fifty percent of the net worth of the Company. The Company has not incurred cash losses during the period covered by our audit also immedately preceding financial year.

11. According to the information and explanation given to us, the Company has not defaulted in repayment of dues to financial institution and bank during the year. The company has not issued any debentures.

12. According to information and explanations given to us and based on the records produced to us, the Company has not granted loans and advances on the basis of securities by way of pledge of shares, securities, debentures and other investments.

13. In our opinion the Company is not a chit fund or Nidhi/mutual benefit fund/society.

14. In our opinion and according to the information and explanation given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

15. In our opinion and accordingly to the information and explanation given to us, the Company has not guaranteed any loan taken by others from banks and financial institutions.

16. In respect of term loans raised in the earlier years we have been informed that the same were applied for the purpose for which they were obtained. No term loan has taken during the period.

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short term basis were used for long term investment.

18. In our opinion and according to the information and explanations give to us, the price at which the Company has made the preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956, during the period was not prima facie prejudicial to the interest of the company.

19. The Company did not have any outstanding debentures during the period.

20. The Company has not raised any money by a public issue during the period.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on/or by the Company has been noticed or reported during the course of our audit for the period ended 30th June, 20oH

for V.K.DHINGRA & CO.

CHARTERED ACCOUNTANTS

PLACE : NEW DELHI. (V.K. DHINGRA)

DATED: DECEMBER 02, 2009. PARTNER

M.No. : 14467