Auditor Report of Integrated Thermoplastic Ltd.

Mar 31, 2024

We have audited the accompanying financial statements of INTEGRATED
THERMOPLASTICS LIMITED ("the company") which comprise the Balance Sheet as at
March 31, 2024, and the statement of Profit and Loss, and the 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.

In our opinion and to the best of our information and according to the explanations given to us,
the aforesaid financial statements give the information required by the Companies Act, 2013
("the Act") in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2024 and the loss and its cash flows for the year ended on that date.

Basis for Qualified Opinion

1. Amounts receivables and payables to various parties are subject to confirmation and
reconciliation. Pending such confirmations and reconciliations, we were unable to obtain
sufficient and appropriate audit evidence in respect of the carrying amounts of debtors
and creditors at 31.3.2024. Due to which, we were unable to determine whether any
adjustments might have been found necessary in respect of said balances.

2. The Company has not appointed the Internal Auditor as required by Section 138 of the
Companies Act 2013. The audit is not carried out and audit reports were not available.
However, it is clarified by the management that internal auditor will be appointed in FY
2023-24.

We conducted our audit of the financial statements in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Our responsibilities under those Standards
are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the
Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with
the ethical requirements that are relevant to our audit of the financial statements under the
provisions of the Act 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
audit opinion on the financial statements

Key audit matters (''KAM'') are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated financial statements of the current period. These
matters were addressed in the context of our audit of the consolidated 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 following matters as key audit matters to be communicated in our
report:

1. The financial statements indicate that the company has accumulated loss of Rs.
58,89,27,745 and its net-worth has been fully eroded. The Company incurred net loss of
Rs.10,03,40,958 during the current financial year and in the previous year Rs .9,97,24,236
and hence there is a uncertainty in smooth functioning of the company in future.

2. Company has taken Loan from Andhra Pradesh State Financial Corporation towards
additional Working Capital Loan in the year 2012 and the Company has been default in
repayment of Interest & Principal of the same. The Interest Accrued on the term loan has
been reclassified at same place (as long-term liability) in order to have clear view of debt
under OTS, as the company has submitted OTS proposal to the bankers for the
settlement of the dues. As per the discussion with the management the tentative amount
of settlement is at principal or thereabouts.

Hence the Interest on the above said loan has not been provided in the books during the
year.

3. Based on verification of records we found that the operational creditor SP Coal
Resources Private Limited filed Form-5 with NCLT to initiate Corporate insolvency
resolution process on 26^th February 2022 and the case was dismissed by NCLT,
Hyderabad on 10.11.2023. Opposite Company has filed Form-5 with NCLT, Chennai
seeking relief that amount to be returned from SP Coal Resources Private Limited
and adjudication process is going on.

The Company has vailed following facilities from Union Bank of India

U Nature of Limit and A/c No i	Limit in (Rs.)	Total Dues in Rs. as on 09.11.2021
Open Cash Credit (03791304600153	6,50,00,000.00	6,57,59,923.82
Open Cash Credit (140313100000007	1,00,00,000.00	99,97,450.88
Letter of Credit	6,50,00,000.00	593,00,000.00
Total		13,50,57,374.70

Union Bank of India vide letter dated 14^th March 2022 informed the Company that the
abovementioned loan accounts were classified as Non Performing Asset w.e.f 9^th Nov
2021.

Hence the Interest on the above said loan has not been provided in the books during the
year.

4. As per the information and explanation given to us and based on verification of records
Mr. Surendra Singh filed a case against the Company claiming that factory land belongs
to him and case is pending before City Civil Court at Medak.

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

The Company''s Board of Directors is responsible for the other information. The other
information comprises the information of board of director''s report but does not include the
financial statements and our auditor''s report thereon.

Our opinion on the 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 financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the 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.

Responsibility of Management for 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 financial statements
that give a true and fair view of the financial position, financial performance and cash flows of
the Company in accordance with the accounting principles generally accepted in India,
including the accounting Standards specified under section 133 of the Act.

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 statements 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 financial controls relevant to the audit in order to design
audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act,
we are also responsible for expressing our opinion on whether the Company has adequate
internal financial controls 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Companies
Act, 2013, we give in the ''Annexure A'', a statement on the matters specified in the Order, to
the extent applicable.

2. As required by section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the 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 and there are no branches
to the company to the best of our knowledge;

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

(d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards referred to in section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.

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

(f) Reporting on the adequacy with respect to the internal financial controls over financial
reporting of the company and the operating effectiveness of such controls are not applicable
to the company.

(g) In our opinion, Section 197 of the Companies Act, 2013 is not applicable to Private
Limited Company.

(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 does not have any pending litigations which would impact its
financial position;

ii. The Company does not have any long term contracts including derivative
contracts for which there were any material foreseeable losses; and

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

(a) Management has represented that, to the best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no funds 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(is), including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall, whether, directly or indirectly lend or invest in other persons
or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

(b) Management has represented that, to the best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no funds 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,
whether, directly or indirectly, lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, and

(c ) Based on the audit procedures adopted by us, nothing has come to our notice that has
caused us to believe that the representations made by the Management under sub clause
(a) and (b) above, contain any material misstatement.

(d) Based on our examination which included test checks, the Company, has used
accounting software for maintaining its books of accounts for the financial year 2023-24,
which has a feature of recording audit trail (edit log) facility but that audit trail is not
enabled at the transaction level and database level for accounting software. The audit trail
facility has not been operating throughout the year for all relevant transactions recorded
in the software.

v. As stated in Note to the financial statements:

(a) The final dividend proposed in the previous year, declared and paid by the company
during the year is in accordance with Section 123 of the Act, as applicable.

(b) The Board of Director of the Company have proposed final dividend for the year, which
is subject the approval of the members at the ensuing Annual General Meeting. The amount
of dividend proposed is in accordance with Section 123 of the Act, as applicable.

For GRANDHY & CO
Chartered Accountants
FRN-001007S

Sd/-

CA. Sudheendra Rao. S
Partner
M No-226611

UDIN-24226611BKAVEA7766

Place :- Hyderabad
Date :-30-05-2024

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Mar 31, 2014

We have audited the accompanying financial statements of M/s. INTEGRATED THERMOPLASTICS LIMITED ("The Comapny") which comprise of the Balance Sheet as at 31st March 2014, the statement of Profit and Loss and also the cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

2) Management''s Responsibility for the Financial Statements:

The Company''s 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 referred to in Section 211 (3C) of the Companies Act, 1956 ("The Act"). This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and free from material misstatement, either due to fraud or error.

3) Auditors 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 Accounting issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 the 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, either due to fraud or error. In making the risk assessment, 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 Company''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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.

4) 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 31st March, 2014;

b) In the case of the Statement of Profit and Loss, of the loss of the company for the year ended on that date; and

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

5) Report on Other Legal and Regulatory Requirements:

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

As required by Section 227(3) of the Act, we report that:

i) 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.

ii) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it appears from our examination of these books.

iii) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in Section 211 (3C) of the Act.

v) On the basis of the written representations received from the Directors as on 31st March, 2014 taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March 2014 from being appointed as a director in terms of section 274(1)(g) of the Act.

ANNEXURE TO THE AUDITOR''S REPORT

(Referred to point no. 5 of our report of even date)

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

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No Substantial part of fixed assets have been disposed off during the year.

2. a) The Inventories have been physically verified by the management during the year. In our opinion the frequency of verification is reasonable and adequate.

b) The procedure of physical verification of inventories followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume of its business.

c) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3. a) The Company has taken interest free unsecured loan from companies, listed in the register maintained under sec. 301 of companies Act, 1956. The amount involved and outstanding is Rs. 205.40 lacs and repaid during the year. The company has not granted loan to companies, firms or other parties listed in the register maintained under sec. 301 of Companies Act, 1956.

b) The rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured are prima facie not prejudicial to the interests of the company.

c) The payments of the principal amount and interest amount are regular.

d) There are no over due amounts of more than rupees one lac.

4. In our opinion, according to the information and explanation 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 purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness has been observed in the internal control

5. a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions with parties with whom transactions exceeding the value of rupees five lacs have been entered into during the financial year at prices are reasonable, having regard to the prevailing market prices at the relevant time.

6. The provisions of section 58A and 58AA of the Companies Act, 1956 are not applicable, as the Company has not accepted deposits from the public.

7. The Company does not have a formal internal audit system.

8. Cost records under Section 209 (1) (d) of the Companies Act 1956, are not prescribed for the business carried out by this Company.

9. a) According to the information and explanations given to us the company is regular in depositing undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities, which were outstanding as at 31st March 2014 for a period of more than six months from the date they become payable except the following;

STATEMENT OF ARREARS OF STATUTORY DUES OUTSTANDING FOR MORE THAN SIX MONTHS:

S. Nature of Dues Amount Period to which the No. amount relates to

1. APGST (ST Deferment) 3114718 1998-1999

2. APGST (ST Deferment) 12329041 1999-2000

3. APGST (ST Deferment) 19792919 2000-2001

4. Income Tax 4328070 2010-11

5. Income Tax 3417967 2011-12

6. Income Tax 3749686 2012-13

b) According to the information and explanation given to us the following are the disputed dues relating to Income Tax, Wealth Tax, Cess and Sales Tax, Service Tax, Central Excise as on 31.03.2014.

S. Nature of Statute Nature of Amount Period to Forum Where No. Dues (Rs. in which the Dispute is Lacs) amount Pending Relates

1 APGST/VAT Act Sales Tax 66.42 2001-02 Appeal in STAT

2 Central Excise Act Excise Duty 1.04 1998-99 Department Appeal in CESTAT

3 Central Excise Act Excise Duty 89.00 Jan''05 to Department June''05 Appeal in CESTAT

4 The Finance Act Service Tax 2.09 2003-04 Appeal in to 2007-08 CESTAT

10. The Company has incurred cash losses of Rs. 1,38,82,547/- during the year. The accumulated losses are Rs. 2,41,75,668/- as against the net worth of Rs. 6,28,89,000/-.

11. Based on our audit procedures and the information and explanations given by the management, the company has default in repayment of dues to financial institutions i.e., A.P.S.F.C Rs. 3,41,21,661/- (Instalment Rs. 1,79,29,919/- and Interest due Rs. 1,61,91,742/-).

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

13. Clause No. XIII of CARO 2003 is not applicable to the company, as this company is not a chit fund/nidhi/mutual benefit fund/society.

14. Clause No. XIV of CARO 2003 is not applicable to the company, as this company is not dealing in shares, securities, debentures and other investment.

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

17. The funds raised on short-term basis have not been used for long-term investment.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued Debentures.

20. The company has not raised any money through public issue during the year.

21. Based upon the audit procedures performed and information and explanations given by the management, we report that, no fraud and or by the company has been noticed or reported during the year.

For L.B. REDDY & CO., Chartered Accountants Firm''s Registration No. 8611S

Sd/- Place : Hyderabad M. THIRUPALU REDDY Date : 01-09-2014 Partner, M.No. 203098

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Mar 31, 2012

We have audited the attached Balance Sheet of M/s. INTEGRATED THERMOPLASTICS LIMITED, as at 31st March 2012 and the annexed Profit and Loss Account of the Company for the Year ended on that date. The 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 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 examination 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provisions of Section 227 of the Companies Act, 1956, we report as under :

1. As required by the Companies (Auditor's Report) Order, 2003 Issued by the Central Govt, under Section 227 (4A) of the Companies Act 1956, we enclose in the Annexure to our report the matters specified in the said Order.

2. Further to our comments in the Annexure referred to in paragraph 1 above :

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

b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appears from our examination of those books;

c) The said Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of accounts;

d) The said Profit and Loss Account and Balance Sheet comply with the Accounting Standards referred to section 211 (3C) of the Companies Act, 1956 except in case of Accounting Standard AS-15 Accounting for Retirement Benefits in the Financial Statement of employers. The Company accounts for leave encasement on cash basis and provisions required at 31st March, 2012 have not been ascertained, hence we are unable to express our opinion in respect thereof (refer note no 21 (A)(2)).

e) In our opinion, as per the information furnished to us no Director is disqualified from being appointed as a Director under clause (g) of sub-section (1) of section 274.

f) Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with significant accounting policies in schedule 16 (A), and notes on accounts in schedule 16 (B) 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 the Balance Sheet, of the State of affairs of the Company as at 31st March 2012 and

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

ANNEXURE TO THE AUDITOR'S REPORT

(Referred to in paragraph 1 of our report of even date)

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITOR'S REPORT OF EVEN DATE

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

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No Substantial part of fixed assets have been disposed off during the year, which has bearing on the going concern assumption.

2. a) The stock of finished goods, stores, spare parts and raw materials have been physically verified by the Management during the year. In our opinion the frequency of verification is reasonable and adequate.

b) The procedure of physical verification of stock followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume of its business.

c) The Company is maintaining proper records of inventory and the discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the books of accounts.

3. a) The Company has taken loan from companies, listed in the register maintained under sec. 301 of companies Act, 1956, and the company has not granted loan to companies, firms or other parties listed in the register maintained under sec. 301 of Companies Act, 1956.

b) The rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured are prima facie not prejudicial to the interest of the company.

c) The payments of the principal amount and interest amount are regular.

d) There are no over due amounts of more than rupees one lac.

4. In our opinion, according to the information and explanation 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 purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness has been observed in the internal control

5. a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions with parties with whom transactions exceeding the value of rupees five lacs have been entered into during the financial year at prices are reasonable, having regard to the prevailing market prices at the relevant time.

6. The provisions of section 58A and 58AA of the Companies Act, 1956 are not applicable, as the Company has not accepted deposits from the public.

7. The Company does not have a formal internal audit department but the Company's internal control procedures can be considered as an adequate internal audit system commensurate with the size and nature of its business through personal supervision of management in respect of purchase of stores, raw material including components, trading goods, plant & machinary and other assets and for the sale of goods.

8. Cost records under Section 209 (1) (d) of the Companies Act 1956, are not prescribed for the business carried out by this Company.

9. a) According to the information and explanations given to us the company is regular in deposting undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities, which were outstanding as at 31 st March 2012 for a period of more than six months from the date they become payable.

b) There are no disputed statutory duties under Sales Tax/VAT / Income Tax Custom Tax / Wealth Tax / Excise Duty / Cess Duty pending for payment.

10. The Company has not incurred cash losses during the year and in the preceding year. The accumulated losses are Rs.13688393.59 as against the net worth of Rs.63059288.42.

11. Based on our audit procedures and the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institutions.

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

13. Clause No. XIII of CARO 2003 is not applicable to the company, as this company is not a chit fund/nidhi/mutual benefit fund/society.

14. Clause No. XIV of CARO 2003 is not applicable to the company, as this company is not dealing in shares, securities, debentures and other investment.

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. Clause No. 4 (CVI) of the CARO-2003 is not applicable, as the company is not having term loans.

17. The funds raised on short-term basis have not been used for long-term investment and vice versa.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued Debentures.

20. The company has not raised any money through public issue during the year.

21. Based upon the audit procedures performed and information and explanations given by the management, we report that, no fraud and or by the company has been noticed or reported during the year.

For L.B.REDDY & CO.,

Chartered Accountants

Sd/-

Place : Hyderabad M. THIRUPALU REDDY

Date : 14-08-2012 Partner, M.No. 203098

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Mar 31, 2010

We have audited the attached Balance Sheet of M/s. INTEGRATED THERMOPLASTICS LIMITED, as at 31st March 2010 and the annexed Profit and Loss Account of the Company for the Year ended on that date. The financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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 examination 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

In accordance with the provisions of Section 227 of the Companies Act, 1956, we report as under:

1. As required by the Companies (Auditors Report) Order, 2003 Issued by the Central Govt, under Section 227 (4A) of the Companies Act 1956, we enclose in the Annexure to our report the matters specified in the said Order.

2. Further to our comments in the Annexure referred to in paragrap 1 above :

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

b) In our opinion, proper books of accounts as required by law have been kept by the company so far as it appears from our examination of those books;

c) The said Balance Sheet and Profit and Loss Account referred to in this report are in agreement with the books of accounts;

d) In addition to our observations in para 10 of Annexure to the Auditors Report, attention is invited to notes 1 of Schedule 16(B) regarding the company becoming a sick industrial company within the meaning of clause (o) of sub-section 3 of the Sick Industrial Companies (Special provisions) Act, 1985;

e) The said Profit and Loss Account and Balance Sheet comply with the Accounting Standards referred to section 211 (3C) of the Companies Act, 1956 except in case of Accounting Standard AS-15 Accounting for Retirement Benefits in the Financial Statement of employers. The Company accounts for leave encasement on cash basis and provisions required at 31st March, 2009 have not been ascertained, hence we are unable to express our opinion in respect thereof (refer schedule 16 (B) note 3);

f) In our opinion, as per the information furnished to us no Director is disqualified from being appointed as a Director under clause (g) of sub-section (1) of section 274.

3. Subject to the foregoing, in our opinion and to the best of our

information and according to the explanations given to us, the said accounts, read together with significant accounting policies in schedule 16 (A), and notes on accounts in schedule 16 (B) 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 the Balance Sheet, of the State of affairs of the Company as at 31st March 2010 and

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

ANNEXURE TO THE AUDITORS REPORT (Referred to in paragraph 1 of our report of even date)

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF AUDITORS REPORT OF EVEN DATE

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

b) According to the information and explanations given to us the fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

c) No Substantial part of fixed assets have been disposed off during the year, which has bearing on the going concern assumption.

2. a) The stock of finished goods, stores, spare parts and raw materials have been physically verified by the Management during the year. In our opinion the frequency of verification is reasonable and adequate.

b) The procedure of physical verification of stock followed by the management is reasonable and adequate having regard to the size of the company, the nature and volume of its business.

c) The Company is maintaining proper records of inventory and the discrepancies noticed on verification between the physical stocks and the book records were not material and the same have been properly dealt with in the books of accounts.

3. a) The Company has taken loan from companies, listed in the register

maintained under sec. 301 of companies Act, 1956, and the company has not.granted loan to companies, firms or other parties listed in the register maintained under sec. 301 of Companies Act, 1956.

b) The rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured are prima facie not prejudicial to the interest of the company.

c) The payments of the principal amount and interest amount are regular.

d) There are no over due amounts of more than rupees one lac.

4. In our opinion, according to the information and explanation 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 purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness has been observed in the internal control

5. a) According to the information and explanations given to us, we are of

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

b) In our opinion and according to the information and explanations given to us, the transactions with parties with whom transactions exceeding the value of rupees five lacs have been entered into during the financial year at prices are reasonable, having regard to the prevailing market prices at the relevant time.

6. The provisions of section 58A and 58AA of the Companies Act, 1956 are not applicable, as the Company has not accepted deposits from the public.

7. The Company does not have a formal internal audit department but the Companys internal control procedures can be considered as an adequate internal audit system commensurate with the size and nature of its business through personal supervision of management in respect of purchase of stores, raw material including components, trading goods, plant & machinary and other assets and for the sale of goods.

8. Cost records under Section 209 (1) (d) of the Companies Act 1956, are not prescribed for the business carried out by this Company.

9. a) According to the information and explanations given to us the

company is regular in deposting undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax/VAT, Wealth Tax, Customs Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities, which were outstanding as at 31st March 2010 for a period of more than six months from the date they become payable.

b) There are no disputed statutory duties under Sales Tax/VAT / Income Tax / Custom Tax / Wealth Tax / Excise Duty / Cess Duty are pending for payment.

10. The Company has incurred cash losses in earlier year and has accumulated losses of Rs.3,01,41,207.98/-

11. Based on our audit procedures and the information and explanations given by the management, the company has not defaulted in repayment of dues to financial institutions.

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

13. Clause No. XIII of CARO 2003 is not applicable to the company, as this company is not a chit fund/nidhi/mutual benefit fund/society.

14. Clause No. XIV of CARO 2003 is not applicable to the company, as this company is not dealing in shares, securities, debentures and other investment.

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. Clause No. 4 (CVI) of the CARO-2003 is not applicable, as the company is not having term loans.

17. The funds raised on short-term basis have not been used for long-term investment and vice versa.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued Debentures.

20. The company has not raised any money through public issue during the year.

21. Based upon the audit procedures performed and information and explanations given by the management, we report that, no fraud and or by the company has been noticed or reported during the year.

for MTR & ASSOCIATES Chartered Accountants



Place : Hyderabad (M. THIRUPALU REDDY) Date : 30-06-2010 Proprietor M.No.203098