Auditor Report of Doon Valley Rice Ltd.

Mar 31, 2012

We have audited the attached Balance Sheet of DOON VALLEY RICE LIMITED, KARNAL as 31st March, 2012 Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. These 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 presentation of the financial statements. We believe that our audit provides a reasonable basis of our opinion.

As required by the Companies (Auditors' Report) Order, 2003 as amended by Companies (Auditors' Report) Amendment Order, 2004 issued by the Central Government in terms of Sec. 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 of the said order.

Further to our comments in Annexure referred to above, report that:

1. 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.

2. In our opinion, proper books of accounts, as required by the Law, have been kept by the company so far as appears form our examination of the books.

3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of accounts.

4. In our opinion Balance Sheet and Profit & Loss account comply with Accounting Standards referred in Section 211 (3C).

5. On the basis of the written representations received from the directors as on 31st March,2012 and taken on records by the Board of directors, we report that none of the directors is disqualified as on 31st March, 2012 form being appointed as directors in terms of clause (g) of sub-section (1 ) of section 274 of the Companies Act, 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read with the notes thereto give the information required by the Companies Act 1956, in the manner so required and give a true and fair view :

i) In the case of Balance Sheet, of the state of affairs of the company as 31st March, 2012 and

ii) In the case of the Profit & Loss Accounts, loss of the company for the year ended on 31st March, 2012.

iii) In the case of Cash Flow Statement, of the cash flows for the year ended 31st March, 2012

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF DOON VALLEY RICE LIMITED ON THE ACCOUNTS AS AT AND FOR THE YEAR ENDED 31st MARCH, 2012.

1. (a) In our opinion and according to information and explanations given to us, the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) In our opinion and according to information and explanations given to us, the fixed Assets of the company have been physically verified by the management at reasonable intervals during the year and no material discrepancies have been noticed on such verification as compared to books of accounts.

(c) In our opinion and according to information and explanations given to us, no substantial part of fixed assets have been disposed off during the year, which could affect the going concern status of the company.

2. (a) In our opinion and according to information and explanations given to us, physical verification of inventory has been conducted at reasonable intervals by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to information and explanations given to us, the procedure of physical verification of inventory followed by the management are reasonable and adequate in relation to size of company and the nature of its business.

(c) In our opinion, the company has maintained proper record of inventory, and according to information and explanation given to us, no material discrepancies were noticed on physical verification conducted by the management.

3. In our opinion and according to information and explanations given to us, the Company has neither granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act 1956.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services.

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

b) In our opinion and according to the information and explanation given to us, there is no transaction made in pursuance of section 301 of the Act.

6. According to the information and explanation given to us, the company has not accepted any deposits from the public. Hence the compliance of the directives issued by the RBI and provision of 58A, 58AA or any other relevant provision of the Act and the Rules framed thereunder, does not arise.

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

8. The Central Govt, has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

9. a) As per the record of the Company and according to information and explanations given to us, Company is regular in depositing undisputed statutory dues including Income tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Provident fund and Excise Duty and any other statutory dues with the appropriate authorities.

b) According to the information and explanations given to us, no amount of Income tax, Sales tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess is pending on account of dispute.

10. The company have accumulated losses at the end of financial year. The Company has incurred cash losses during the financial year and in the immediately preceding financial year.

11. According to information and explanation given to us, the company has not made repayment of the loan taken from State bank of India, Karnal due to the dispute with the Bank, amounting to Rs. 7,69,31,562.34/-. The Company has lodged the claim against the bank amounting to Rs. 15,41,60,780.00/- and the matter is subjudice in the court of law.

12. According to information and explanation given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of share, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) order, 2003 are not applicable to the company.

14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor's Report) order, 2003 are not applicable to the company.

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

16. According to the information and explanations given to us, the company had not availed any term loan.

17. In our opinion and according to information and explanation given to us, the funds raised by the company on short-term basis have not been used for long-term investment and vice-versa.

18. In our opinion and according to information and explanation given to us, the company has not made any preferential allotment of shares during the financial year to parties and companies covered in register maintained under section 301 of Act.

19. The Company has not issued any debentures, hence the provision of clause 4(xix) are not applicable to the company.

20. During the financial year, Company has not raised any money by public issues.

21. In our opinion and according to information and explanation given to us, no frauds on or by the company was noticed or reported during the year.

For A.K.G. & Associates Chartered Accountants

(A. K. Gupta) Partner M. No. 081177

Place : Karnal Dated : August 14,2012

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Mar 31, 2011

We have audited the attached Balance Sheet of DOON VALLEY RICE LIMITED, KARNAL as at 31st March, 2011 Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. These 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 presentation of the financial statements. We believe that our audit provides a reasonable basis of our opinion.

As required by the Companies (Auditors’ Report ) Order,2003 as amended by Companies ( Auditors’ Report) Amendment Order,2004 issued by the Central Government in terms of Sec. 227 (4A) of the Companies Act,1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 of the said order. Further to our comments in Annexure referred to above, report that:

1. 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.

2. In our opinion, proper books of accounts, as required by the Law, have been kept by the company so far as appears form our examination of the books.

3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of accounts.

4. In our opinion Balance Sheet and Profit & Loss account comply with Accounting Standards referred in Section 211 (3C).

5. On the basis of the written representations received from the directors as on 31st March,2011 and taken on records by the Board of directors , we report that none of the directors is disqualified as on 31st March,2011 form being appointed as directors in terms of clause (g) of sub-section (1 ) of section 274 of the Companies Act,1956.

6. In our opinion and to the best of our information and according to the explanations given to us , the said statement of accounts read with the notes thereto give the information required by the Companies Act 1956, in the manner so required and give a true and fair view :

i) In the case of Balance Sheet, of the state of affairs of the company as at 31st March, 2011 and

ii) In the case of the Profit & Loss Accounts, loss of the company for the year ended on 31st March, 2011.

iii) In the case of Cash Flow Statement, of the cash flows for the year ended 31st March ,2011

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF DOON VALLEY RICE LIMITED ON THE ACCOUNTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2011.

1. (a) In our opinion and according to information and explanations given to us, the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) In our opinion and according to information and explanations given to us, the fixed Assets of the company have been physically verified by the management at reasonable intervals during the year and no material discrepancies have been noticed on such verification as compared to books of accounts.

(c) In our opinion and according to information and explanations given to us, no substantial part of fixed assets have been disposed off during the year, which could affect the going concern status of the company.

2. (a) In our opinion and according to information and explanations given to us, physical verification of inventory has been conducted at reasonable intervals by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to information and explanations given to us, the procedure of physical verification of inventory followed by the management are reasonable and adequate in relation to size of company and the nature of its business.

(c) In our opinion, the company has maintained proper record of inventory, and according to information and explanation given to us, no material discrepancies were noticed on physical verification conducted by the management.

3. In our opinion and according to information and explanations given to us, the Company has neither granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act 1956.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services.

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

b) In our opinion and according to the information and explanation given to us, there is no transaction made in pursuance of Section 301 of the Act.

6. According to the information and explanation given to us, the company has not accepted any deposits from the public. Hence the compliance of the directives issued by the RBI and provision of 58A, 58AA or any other relevant provision of the Act and the Rules framed there under, does not arise.

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

8. The Central Govt. has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

9. a) As per the record of the Company and according to information and explanations given to us, Company is regular in depositing undisputed statutory dues including Income tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Provident fund and Excise Duty and any other statutory dues with the appropriate authorities.

b) According to the information and explanations given to us, no amount of Income tax, Sales tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess is pending on account of dispute.

10. The company have accumulated losses at the end of financial year. The Company has incurred cash losses during the financial year and in the immediately preceding financial year.

11. According to information and explanation given to us, the company has not made repayment of the loan taken from State bank of India, Karnal due to the dispute with the Bank, amounting to Rs.7,69,31,562.34/-. The Company has lodged the claim against the bank amounting to Rs. 15,41,60,780.00/-and the matter is subjudice in the court of law.

12. According to information and explanation given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of share, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor’s Report) order, 2003 are not applicable to the company.

14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditor’s Report) order, 2003 are not applicable to the company.

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

16. According to the information and explanations given to us, the company had not availed any term loan.

17. In our opinion and according to information and explanation given to us, the funds raised by the company on short-term basis have not been used for long-term investment and vice-versa.

18. In our opinion and according to information and explanation given to us, the company has not made any preferential allotment of shares during the financial year to parties and companies covered in register maintained under section 301 of Act.

19. The Company has not issued any debentures, hence the provision of clause 4(xix) are not applicable to the company.

20. During the financial year, Company has not raised any money by public issues.

21. In our opinion and according to information and explanation given to us, no frauds on or by the company was noticed or reported during the year.

For A.K.G. & ASSOCIATES

Chartered Accountants

Place : KARNAL (A. K. GUPTA )

Date : August 13, 2011 Partner

M. No. 081177 Pan No-AAACFA4827B

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Mar 31, 2010

We have audited the attached Balance Sheet of DOON VALLEY RICE LIMITED, KARNAL as at 31st March, 2010 Profit & Loss Account and Cash Flow Statement of the Company for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. These 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 presentation of the financial statements. We believe that our audit provides a reasonable basis of our opinion.

As required by the Companies (Auditors Report) Order, 2003 as amended by Companies (Auditors Report) Amendment Order, 2004 issued by the Central Government in terms of Sec. 227 (4A) of the Companies Act,1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 of the said order.

Further to our comments in Annexure referred to above, report that:

1. 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.

2. In our opinion, proper books of accounts, as required by the Law, have been kept by the company so far as appears form our examination of the books.

3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of accounts.

4. In our opinion Balance Sheet and Profit & Loss account comply with Accounting Standards referred in Section 211(3C).

5. On the basis of the written representations received from the directors as on 31st March,2010 and taken on records by the Board of directors, we report that none of the directors is disqualified as on 31st March,2010 form being appointed as directors in terms of clause (g) of sub-section (1) of section 274 of the Companies Act,1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read with the notes thereto give the information required by the Companies Act 1956, in the manner so required and give a true and fair view :

i) In the case of Balance Sheet, of the state of affairs of the company as at 31st March, 2010 and

ii) In the case of the Profit & Loss Accounts, loss of the company for the year ended on 31st March, 2010.

iii) In the case of Cash Flow Statement, of the cash flows for the year ended 31st March ,2010

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF DOON VALLEY RICE LIMITED ON THE ACCOUNTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2010.

1. (a) In our opinion and according to information and explanations given to us, the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) In our opinion and according to information and explanations given to us, the fixed Assets of the company have been physically verified by the management at reasonable intervals during the year and no material discrepancies have been noticed on such verification as compared to books of accounts.

(c) In our opinion and according to information and explanations given to us, no substantial part of fixed assets have been disposed off during the year, which could affect the going concern status of the company.

2. (a) In our opinion and according to information and explanations given to us, physical verification of inventory has been conducted at reasonable intervals by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to information and explanations given to us, the procedure of physical verification of inventory followed by the management are reasonable and adequate in relation to size of company and the nature of its business.

(c) In our opinion, the company has maintained proper record of inventory, and according to information and explanation given to us, no material discrepancies were noticed on physical verification conducted by the management.

3. In our opinion and according to information and explanations given to us, the Company has neither granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act 1956.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services.

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

b) In our opinion and according to the information and explanation given to us, there is no transaction made in pursuance of section 301 of the Act.

6. According to the information and explanation given to us, the company has not accepted any deposits from the public. Hence the compliance of the directives issued by the RBI and provision of 58A, 58AA or any other relevant provision of the Act and the Rules framed there under, does not arise.

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

8. The Central Govt. has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for the products of the Company.

9. a) As per the record of the Company and according to information and explanations given to us, Company is regular in depositing undisputed statutory dues including Income tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Provident fund and Excise Duty and any other statutory dues with the appropriate authorities.

b) According to the information and explanations given to us, no amount of Income tax, Sales tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess is pending on account of dispute.

10. The company have accumulated losses at the end of financial year. The Company has incurred cash losses during the financial year and in the immediately preceding financial year.

11. According to information and explanation given to us, the company has not made repayment of the loan taken from State bank of India, Karnal due to the dispute with the Bank, amounting to Rs.7,69,31,562.34. The Company has lodged the claim against the bank amounting to Rs. 15,41,60,780.00 and the matter is subjudice in the court of law.

12. According to information and explanation given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of share, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) order, 2003 are not applicable to the company.

14. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of clause 4(xiv) of the Companies (Auditors Report) order, 2003 are not applicable to the company.

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

16. According to the information and explanations given to us, the company had not availed any term loan.

17. In our opinion and according to information and explanation given to us, the funds raised by the company on short-term basis have not been used for long-term investment and vice-versa.

18. In our opinion and according to information and explanation given to us, the company has not made any preferential allotment of shares during the financial year to parties and companies covered in register maintained under section 301 of Act.

19. The Company has not issued any debentures, hence the provision of clause 4(xix) are not applicable to the company.

20. During the financial year, Company has not raised any money by public issues.

21. In our opinion and according to information and explanation given to us, no frauds on or by the company was noticed or reported during the year.

For A.K.G. ASSOCIATES,

Chartered Accountants

(A.K.GUPTA)

Partner

Place: KARNAL M. No. 081177

Date : August 14, 2010