Auditor Report of Indo Bonito Multinational Ltd.

Mar 31, 2013

We have audited the attached Balance Sheet of Indo Bonito Multinational Ltd. as on March 31, 2013 and also the Profit and Loss Account 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.

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

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

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

1. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our Audit.

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

3. In our opinion, the Profit and Loss Account and the Balance Sheet comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

4. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account of the Company.

5. On the basis of the written representations received from the Directors taken on record by the Board of Directors, we report that none of the Directors is disqualified as on March 31, 2013 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

6. Subject to the above, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the 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 Balance Sheet, of the state of affairs of the Company as on

March 31, 2013; (ii) in the case of Profit and Loss Account, of the Profit for the year ended on that date.

Annexure to the auditors Report (Refer to our report of even date)

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

2. All fixed assets have been physically verified by the management during the year. In my opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its assets. To the best of my knowledge, no material discrepancies have been noticed on such verification.

3. During the year, the company has not disposed off any item of the plant and machinery.

4. As explained to us, the management has conducted physical verification of inventory at the regular intervals during the year.

5. On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. No material discrepancies were noticed on verification between the physical stocks and the book records.

6. According to the information and explanations given to us there are no parties listed in the registers maintained under Section 301 of the Companies Act, 1956. Hence, disclosure requirements under sub-paragraphs (iii) and (v) of the Clause 4 of the Order with respect to transactions with parties under Section 301 of the Companies Act, are not applicable.

7. The Company has not taken unsecured loan from Bank during the year.

8. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to the purchase of inventory and fixed assets and with regard to the sale of services. During the course of our audit, we have not observed any major weakness in the internal controls.

9. The Company has not accepted any deposits from the public.

10. There is no formal internal audit system introduced by the Company.

11. It has been informed to us that the Central Government has not prescribed maintenance of cost records for the product manufactured by the Company, under section 209(1)(d) of the Companies Act, 1956.

12. The Company has been generally regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, custom duty, excise duty, cess, and other statutory dues applicable to it.

13. According to the information and explanations given to us, no undisputed amounts payable in respects of income tax, wealth tax, sales tax, service tax, custom duty and excise duty were outstanding, as on March 31,2013, for a period more than six months from the date they became payable. However, FBT of Rs. 9.31 lakhs and dividend tax of Rs. 12.61 Lakhs remained unpaid.

14. According to the information and explanations, there are no dues of wealth tax, customs duty, excise duty and cess, which have not been deposited on account of any dispute. However, income tax demand of Rs. 34.17 Cr is disputed by the company.

15. Company has accumulated losses at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit.

16. The Company has not borrowed from Financial Institutions/Debenture issue.

17. The Company has not given any guarantee for loans taken by others from Bank or Financial Institutions.

18. The Company has obtained loans from banks and financial institution in the year under audit.

19. According to the information and explanations given to us, we are of the opinion that no short term funds have been utilized for long term investment.

20. Neither have we been informed nor have we observed any fraud on or by the company during the year under audit.

21. Sub paragraphs (xiii), (xiv), (xviii), (xix) and (xx) of the Clause 4 of the Order are not applicable to the Company.

For S.U.Radhakrishnani & Co

Chartered Accountants

Place : Mumbai S.U.Radhakrishnani

Date : 2nd September, 2013 Proprietor

M. No. 31760

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Mar 31, 2012

I have aiidited the attached Balance Sheet of INDO BONITO MULTINATIONAL LTD- (Formerly Indo Castle Multimedia Ltd), as at 31st March, 2012 and also the Statement of Profit & Loss and Cash Flow Statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. My responsibility is to express an opinion on these financial statements based on my audit.

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

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956,1 have enclosed an annexure on the matters specified in paragraphs 4 & 5 of the said order.

Further to my comments in the Annexure referred to above, I report that

1. I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of my audit;

2. in my opinion, proper books of account as required by law have been kept by the company so far as appears from my examination of those books;

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

4. in my opinion, the Balance Sheet and Profit & Loss account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

5. on the basis of written representations received from the directors, as on 31st March 2012, and taken on record by the Board of Directors, I report that none of the director is disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

Subject to non provision by company for losses arising due to aborting of its Hollow Core Block project (as explained by Company in notes to accounts) of Rs 8 to 9 crores,

I report that In my opinion and to the best of my information and according to the explanations given to us the financial accounts give the information as 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 Profit & Loss Account, of the profit for the year ended on that date; and

iii. in the case of cash flow statement, of the cash flows of the company for the year ended on that date.

Annexure to the Auditors' Report

(Referred to in paragraph (3) of my report of even date)

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and

situation of fixed assets.

(b) All fixed assets have been physically verified by the management during the year. In my opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its assets. To the best of my knowledge, no material discrepancies have been noticed on such verification.

(c) No substantial part of fixed assets, of the company, was disposed off during the year.

(ii) (a) As explained to us, the management has conducted physical verification of inventory at reasonable intervals

during the year.

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

(c) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The company had granted loans to two parties covered in the registered maintained under section 301 of the

Companies Act, 1956. The maximum amount involved during the year was Rs.2027.66 lacs and the year end balance of the loans granted to such persons is Rs.1944.64 lacs.

(b) In my opinion and according to information and explanation given to me, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.

(c) In respect of such interest free loans granted, repayment of the principal amount is as stipulated.

(d) The company had taken loan from on party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.1263 lacs and the year end balance of the loans granted to such parties was Rs.1169 lacs.

(e) In my opinion and according to information and explanation given to me, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.

(f) In respect of loans taken, payment of the principal amount is as stipulated and the same are interest free.

(iv) In my opinion and according to the information and explanations given to me, there are adequate internal control procedures commensurate with size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of my audit, no major weakness has been noticed in the internal control in respect of these areas.

(v) (a) To the best of my knowledge and belief and according to the information and explanations given to me, I am

of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In my opinion and according to the information and explanation given to me, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1956 and exceeding the value of rupees five lacs in respect of any party during the year, if any, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time where such market prices are available.

(vi) The company has not accepted any deposits from the public hence I do not have anything to comment on that.

(vii) In my opinion and according to the information and explanation given to me, the company has an adequate internal audit system commensurate with the size and nature of its business.

(viii) To the best of my knowledge and according to the information given to me, the Central Government has not prescribed maintenance of cost records under section 209(l)(d) of the Companies Act, 1956 for the products of the company.

(ix) (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues

including, Investor Education and Protection Fund, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues applicable to it Subject to delay in payments of income-tax. Provident Fund and ESIC Act is not applicable.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of sales tax, wealth tax, service tax, custom duty, excise duty, cess or any other statutory dues were in arrears, as at 31st March, 2012 for a period of more than six months from the date they become payable. However, FBT of Rs 9.31 lacs and Dividend Tax of Rs. 12.61 lacs remained unpaid.

(c) According to the records available of the company, there are no dues outstanding of sales tax, wealth tax, service tax, custom duty, excise duty and cess on account of any dispute. However income tax dues of Rs 34.17 cr demand is disputed by the company.

(x) The company has accumulated losses at the end of the financial year and it has incurred cash losses in the current financial year.

(xi) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to financial institutions, banks or debenture holders, except interest on packing credit and bill discounting limit from Bank of India amounting to Rs 4.42 cr. The company's stand is reflected as per the notes to accounts.

(xii) According to the information and explanations given to me, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In me opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of the Order are not applicable to the company.

(xiv) (a) In my opinion and according to the information and explanation given to us, in respect of dealing/ trading in

shares, securities, debentures and other investments, the company is maintaining proper records of the transactions and contracts and timely entries have been made therein.

(b) The shares, securities, debentures and other investments have been held by the company in its own name.

(xv) According to the information and explanations given to me, the company has given corporate guarantee for loans taken by group companies from banks or financial institutions for financials assistance of Rs.20 crores.

(xvi) The company has not obtained any term loan from banks during the year.

(xvii) In my opinion and according to the information and explanations given to me, the funds raised by the company on short-term basis have not been used for long-term investments, if any.

(xviii) The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The company does not have issued any debentures.

(xx) The company has not raised any money through public issue during the year.

(xxi) To the best of my knowledge and belief and according to the information and explanations given to me, no fraud on or by the company has been noticed or reported during the course of my audit.

For S.U.Radhakrishnani & Co (Chartered Accountants)

S.U.Radhakrishnani Proprietor Membership No. 31760

Place: Mumbai

Date : 1st September, 2012.

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Mar 31, 2011

I have audited the attached Balance Sheet of INDO BONITO MULTINATIONAL LTD. (Formerly Indo Castle Multimedia Ltd), as at 31st March, 2011 and also the Profit & Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. My responsibility is to express an opinion on these financial statements based on my audit.

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

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, I have enclosed an annexure on the matters specified in paragraphs 4 & 5 of the said order.

Further to my comments in the Annexure referred to above, I report that:

1. I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of my audit;

2. In my opinion, proper books of account as required by law have been kept by the company so far as appears from my examination of those books;

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

4. In my opinion, the Balance Sheet and Profit & Loss account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

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

5. In my opinion and to the best of my information and according to the explanations given to us the financial accounts give the information as 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 profit for the year ended on that date; and

iii. in the case of cash flow statement, of the cash flows of the company for the year ended on that date.

Annexure to the Auditors' Report

(Referred to in paragraph (3) of my report of even date)

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

(b) All fixed assets have been physically verified by the management during the year. In my opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its assets. To the best of my knowledge, no material discrepancies have been noticed on such verification.

(c) No substantial part of fixed assets, of the company, was disposed off during the year.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year.

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

(c) The company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) (a) The company had granted loans to three parties covered in the registered maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.2027.67 lacs and the year end balance of the loans granted to such persons is Rs.2027.67 lacs.

(b) In my opinion and according to information and explanation given to me, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company. The loan to them is secured against financial assets underlying them.

(c) In respect of such interest free loans granted, repayment of the principal amount is as stipulated.

(d) The company had taken loan from two parties covered in the registered maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.1176.33 lacs and the year end balance of the loans granted to such parties was Rs.1115.84 lacs.

(e) In my opinion and according to information and explanation given to me, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.

(f) In respect of loans taken, payment of the principal amount is as stipulated and the same are interest free.

(iv) In my opinion and according to the information and explanations given to me, there are adequate internal control procedures commensurate with size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of my audit, no major weakness has been noticed in the internal control in respect of these areas.

(v) (a) To the best of my knowledge and belief and according to the information and explanations given to me, I am of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In my opinion and according to the information and explanation given to me, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1956 and exceeding the value of rupees five lacs in respect of any party during the year, if any, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time where such market prices are available.

(vi) The company has not accepted any deposits from the public hence I do not have anything to comment on that.

(vii) In my opinion and according to the information and explanation given to me, the company has an adequate internal audit system commensurate with the size and nature of its business.

(viii) To the best of my knowledge and according to the information given to me, the Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the products of the company.

(ix) (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including, Investor Education and Protection Fund, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues applicable to it. Subject to delay in payments of income-tax. Provident Fund and ESIC Act is not applicable.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of sales tax, wealth tax, service tax, custom duty, excise duty, cess or any other statutory dues were in arrears, as at 31st March, 2011 for a period of more than six months from the date they become payable. However, Income-Tax dues of Rs. 12.19 lacs, FBT of Rs. 9.32 lacs and Dividend Tax of Rs. 12.61 lacs was overdue.

(c) According to the records available of the company, there are no dues outstanding of sales tax, wealth tax, service tax, custom duty, excise duty and cess on account of any dispute except disputed income tax liability of Rs 5.75 crores on account of income tax for AY 2008-09.

(x) The company has accumulated losses at the end of the financial year and it has incurred cash losses in the current financial year.

(xi) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to financial institutions, banks or debenture holders, as of 31st March 2011.

(xii) According to the information and explanations given to me, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In me opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of the Order are not applicable to the company.

(xiv) (a) In my opinion and according to the information and explanation given to us, in respect of dealing/ trading in shares, securities, debentures and other investments, the company is maintaining proper records of the transactions and contracts and timely entries have been made therein.

(b) The shares, securities, debentures and other investments have been held by the company in its own name.

(xv) According to the information and explanations given to me, the company had given corporate guarantee for loans taken by group companies from banks or financial institutions for financials assistance of Rs.20 crores in the last year.

(xvi) The company has not obtained any term loan from banks during the year.

(xvii) In my opinion and according to the information and explanations given to me, the funds raised by the company on short-term basis have not been used for long- term investments, if any.

(xviii) The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The company has not issued any debentures.

(xx) The company has not raised any money through public issue during the year.

(xxi) To the best of my knowledge and belief and according to the information and explanations given to me, no fraud on or by the company has been noticed or reported during the course of my audit. However during the year an enquiry has been initiated by Central Bureau of Investigation which matter is still under investigation. As far as the company is concerned there seems to be no wrong doing or any fraud committed by any of company's employees ,directors or associates .The financial statements carry adequate notes on the issue.

For S.U.Radhakrishnani & Co

(Chartered Accountants)

S.U.Radhakrishnani

Proprietor

Membership No. 31760

Place : Mumbai

Date : 02nd September, 2011

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Mar 31, 2010

I have audited the attached Balance Sheet of INDO BONITO MULTINATIONAL LTD. as at 31st March, 2010 and also the Profit & Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. My responsibility is to express an opinion on these financial statements based on my audit.

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

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of subsection (4A) of section 227 of the Companies Act, 1956, I have enclosed an annexure on the matters specified in paragraphs 4 & 5 of the said order.

Further to my comments in the Annexure referred to above, I report that:

1. I have obtained all the information and explanations, which to the best of my knowledge and belief were necessary for the purpose of my audit;

2. In my opinion, proper books of account as required by law have been kept by the company so far as appears from my examination of those books;

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

4. In my opinion, the Balance Sheet and Profit & Loss account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

On the basis of written representations received from the directors, as on 31st March 2010, and taken on record by the Board of Directors, I report that none of the director is disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

5. In my opinion and to the best of my information and according to the explanations given to us the financial accounts give the information as 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, 2010;

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

iii. in the case of cash flow statement, of the cash flows of the company for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph (3) of my report of even date)

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

(b) All fixed assets have been physically verified by the management during the year. In my opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of its assets. To the best of my knowledge, no material discrepancies have been noticed on such verification.

(c) No substantial part of fixed assets, of the company, was disposed off during the year.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year.

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

(c) The company is maintaining proper records of inventory and no material discrepancies were noticed on physica verification.

(iii) (a) The company had granted loans to two parties covered in the registered maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.270.72 lacs and the year end balance of the loans granted to such persons is Rs.270.72 lacs.

(b) In my opinion and according to information and explanation given to me, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.

(c) In respect of such interest free loans granted, repayment of the principal amount is as stipulated.

(d) The company had taken loan from two parties covered in the registered maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.1034.40 lacs and the year end balance of the loans granted to such parties was Rs.1029.40 lacs.

(e) In my opinion and according to information and explanation given to me, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the company.

(f) In respect of loans taken, payment of the principal amount is as stipulated and the same are interest free.

(iv) In my opinion and according to the information and explanations given to me, there are adequate internal contro procedures commensurate with size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of my audit, no major weakness has been noticed in the internal control in respect of these areas.

(v) (a) To the best of my knowledge and belief and according to the information and explanations given to me, I am of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In my opinion and according to the information and explanation given to me, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1956 and exceeding the value of rupees five lacs in respect of any party during the year, if any, have been made at prices which are reasonable, having regard to prevailing market prices at the relevant time where such market prices are available.

(vi) The company has not accepted any deposits from the public hence I do not have anything to comment on that.

(vii) In my opinion and according to the information and explanation given to me, the company has an adequate internal audit system commensurate with the size and nature of its business.

(viii) To the best of my knowledge and according to the information given to me, the Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the products of the company.

(ix) (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues including, Investor Education and Protection Fund, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues applicable to it. Subject to delay in payments of income-tax. Provident Fund and ESIC Act is not applicable.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of sales tax, wealth tax, service tax, custom duty, excise duty, cess or any other statutory dues were in arrears, as at 31st March, 2010 for a period of more than six months from the date they become payable. However, Income-Tax dues of Rs.12.19 lacs, FBT of Rs.6.39 lacs and Dividend Tax of Rs.8.47 lacs was overdue.

(c) According to the records available of the company, there are no dues outstanding of income tax, sales tax, wealth tax, service tax, custom duty, excise duty and cess on account of any dispute.

(x) The company does not have any accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and immediately preceding financial year.

(xi) In my opinion and according to the information and explanations given to me, the company has not defaulted in repayment of dues to financial institutions, banks or debenture holders, if any.

(xii) According to the information and explanations given to me, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In my opinion, the company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4

(xiii) of the Order are not applicable to the company.

(xiv) (a) In my opinion and according to the information and explanation given to us, in respect of dealing/ trading in shares, securities, debentures and other investments, the company is maintaining proper records of the transactions and contracts and timely entries have been made therein.

(b) The shares, securities, debentures and other investments have been held by the company in its own name.

(xv) According to the information and explanations given to me, the company has given corporate guarantee for loans taken by group companies from banks or financial institutions for financials assistance of Rs.20 crores.

(xvi) The company has not obtained any term loan from banks during the year.

(xvii) In my opinion and according to the information and explanations given to me, the funds raised by the company on short-term basis have not been used for long-term investments, if any.

(xviii) The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The company does not have issued any debentures.

(xx) The company has not raised any money through public issue during the year.

(xxi) To the best of my knowledge and belief and according to the information and explanations given to me, no fraud on or by the company has been noticed or reported during the course of my audit.

For S.U.Radhakrishnani & Co (Chartered Accountants)

Sd/-

S.U.Radhakrishnani Proprietor Membership No. 31760

Place :Mumbai Date :30th August, 2010