Auditor Report of Magnum Ltd.

Mar 31, 2015

We have audited the accompanying Financial Statements of M/s Magnum Limited, ("the company"), which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters 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, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

involves performing procedures to obtain audit evidence about the amounts and in the financial statements. The procedures selected depend on the auditor's judgment, the assessment of the risks of material misstatement of the financial statements, whether or error. In making those risk assessments, the auditor considers internal financial relevant to the Company's preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, 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 on the financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

a. In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

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

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

Report on other Legal and Regulatory Requirements

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

a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

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

d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e. On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

Annexure to the Auditors Report of even date to the Members of M/s Magnum Limited on the Financial Statements for the Year Ended 31st March, 2015

1 Fixed Assets

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

b. All the fixed assets of the Company had been physically verified by the management once during the year, which in our opinion is reasonable having regard to the size of the Company and nature of its business. No material discrepancy was noticed during such verification;

c. The Company has not disposed off any part of the fixed asset during the year.

2. inventories

a. Since there are no Inventory, hence this clause is not applicable.

3. Loans and Advances to Companies

During the year, the Company has not granted any secured or unsecured loans to Companies listed in the Register maintained under section 189 of The Companies Act, 2013. Accordingly, the reporting on the terms of payment of the principal and interest does not arise.

4. Internal Control

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 nature of its business with regard to purchase of fixed assets and purchase and sale of goods except stated earlier. During the course of audit, we have not observed any continuing failure to correct major weaknesses in internal control.

5. Public Deposits

The company has not accepted any Public Deposits, Also the Company had not contravened any of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under, where applicable, have been complied with. Hence the Provision of this Clause of the said order is not applicable.

6. Cost Audit

To the best of our knowledge and belief, the Central Government has not prescribed maintenance of under sub-section (I) of section 148 of the Companies Act, 2013, in respect of Company's product. Accordingly the Provisions of clause of the Order are not applicable.

7. Statutory Dues

a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and other material statutory dues have not been regularly deposited during the year by the Company with the appropriate authorities. As explained to us by the Management,the Company did not have any dues on account of Employees' State Insurance, Customs duty, Excise duty & VAT.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Income tax, Sales tax, Wealth tax, Service tax and other material statutory dues were in arrears as at 31 March, 2015, for a period of more than six months from the date they became payable.

b. Disputed amounts payable in respect thereof, which are outstanding, at the year-end for a period of more than six months from the date they became payable are as follows:

Sr. Name of the Nature of Dues Amount(in Period to which No Statute Rs. Lakhs) Amount Relates

- Nil -

Sr. Name of the Statute Forum where dispute is pending No - Nil -

3. Accumulated Losses

The Company had Accumulated Losses at the end of year. The Company had incurred cash loss during the Financial Year covered under Audit. The company had not incurred cash loss during the immediately preceding previous year.

9. Financial Dues

In our opinion, the Company has not defaulted in repayment of dues to a financial institution, bank or to debenture holders during the year.

10. Guarantees for Loans

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

11. Term Loans

There are no Term Loans during the year, hence the clause is not applicable.

12. Fraud

No fraud on or by the Company has been noticed or reported during the year covered by our audit.

For PRAKASH PATWARI & CO. Chartered Accountants Firm Registration No.: 325639E

(Prakash Patwari) Partner Membership No.: 060583

19th May, 2015

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Mar 31, 2014

We have audited the accompanying finincial statements of MAGNUM LIMITED which comprise the balance sheet as at march 31, 2014 the statement of profit and loss and cash flow statement for the yera then ended and a summary and a summary of significant accounting policies and other explanatory information.

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted <,ur Our responsibility is Auditing issued by the Institute of Chartered Accountants of India.

OPINION

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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) In the case of the Statement of Profit and Loss, of the profit 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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

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

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

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

c. 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 account.

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

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

Annexure to the Auditors'' Report Referred to in Paragraph 1 of our Report of even date

With reference to the annexure referred to in paragraph (1) of the Auditors'' Report to the Members of M/s MAGNUM LIMITED on the financial statements for the year ended 31st March 2014, we report following:

(i) (a) The company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets.

(b) During the year Fixed Assets have been physically verified by the management. According to a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. As informed, no material discrepancies were noticed on such verifications

(c) In our opinion, during the year, the Company has not disposed off substantial part of its fixed assets, which would affect the going concern status of the Company.

(ii) The Company does not have any Inventories, hence the provisions of clause 4 (ii) (a), (b) and (c) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

(iii) (a) The Company has not granted secured or unsecured loan to companies, firms, or parties covered in the register maintained under section 301 of the Companies Act, 1956(read with Companies Act, 2013).

(b) The Company has taken secured or unsecured loan from companies, firms, or other parties covered in the register maintained under section 301 of the Companies Act, 1956 (read with Companies Act, 2013).

(iv) In our opinion and according to the information and explanations given to us, and subject to notes of accounts, having regard to the explanations that there exists an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of fixed assets and for the sale of services. During the course of our audit, we have neither observed nor have been informed of any continuing failure to correct major weaknesses in internal control procedures.

(v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956(read with Companies Act, 2013) have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956(read with Companies Act, 2013) and exceeding the value of Rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from public during the year and hence, the directives issued by the Reserve Bank of India and provisions of Sections 58A and 58AA and other relevant provisions of the Companies Act, 1956(read with Companies Act, 2013) and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public framed there under are not applicable to the company.

(vii) The Company has carried out internal audit system departmentally during the year.

(viii) To the best of our knowledge and according to the information given to us, the Central Government has not prescribed for the maintenance of cost records under Section 209(l)(d) of the Companies Act, 1956(read with Companies Act, 2013) for the products of the Company.

(ix) (a) According to the information and explanations given to us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues in respect of Income Tax, Service Tax and other material statutory dues as applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax and Service Tax were in arrears, as at 31st March 2014 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of Income Tax and Service Tax which have not been deposited on account of any dispute.

(x) The Company has accumulated losses of Rs. 39,49,184.00 at the year end. The Company has not incurred any cash loss during the financial year covered by our audit. But the Company has incurred Cash Loss of Rs. 90,664.00 during the immediately preceeding financial year.

(xi) In our opinion and according to the information and explanations given to us, the Company has not obtained hence not defaulted in repayment of dues to financial institutions or banks. The company has not issued debentures.

(xii) According to the information and explanations given to us and on the basis of our examination of the books of accounts, 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 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.

(xiv) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of the investments in shares. The shares have been held by the company in its own name except to the exemption granted under Section 49 of the Companies Act, 1956(read with Companies Act, 2013).

(xv) In our opinion according to the information and explanations given to us, the Company has not given guarantees for loan taken by others from bank or financial institutions.

(xvi) In our opinion according to the information and explanations given to us, the Company has not raised term loans that were not applied for the purpose for which they were raised and accordingly the provisions of Clause 4 (xvi) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) The Company has made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956(read with Companies Act, 2013).

(xix) According to the information and explanations given to us, during the period covered by our audit report, the Company has not issued any debentures hence clause 4 (xix) of the Companies (Auditor''s Report) Order, 2003 is not applicable to the company.

(xx) The Company has not raised any money by public issues hence clause 4 (xx) of the Companies (Auditor''s Report) Order, 2003 is not applicable to the company.

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

For prakash patwari & co. (Chartered Accountant)

(CA. Prakash Patwari) Partner

Membership No. 060583 Firm Reg. No. 325639E

Place : Ahmedabad Date :30th May, 2014

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Mar 31, 2013

We have audited the accompanying financial statements of MAGNUM LIMITED ("the Company"), which comprises the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

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

REPORT ON OTHER LEGAL AND REGULATORY MATTERS

1. 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, This report includes a statement on the matters specified in paragraph 4 of the Companies (Auditor'' Report) Order, 2003, issued by the Companies Act, 1956, is annexed to this report.

2. As required by section 227(3) of the Act, we report that:

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

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

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

d) in our opinion, the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, 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.

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

Annexure to the Auditors'' Report:

(REFERRED TO IN PARAGRAPH [1] OF OUR REPORT ON OTHER LEGAL & REGULATORY MATTERS)

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, and on the basis of such checks of book & records of Company as we considered appropriate & according to the information and explanation given to us, during the course of our Audit, we report that in our opinion.

1)

(a) The Company has maintained records showing full particulars including quantitative details and situation of fixed Asset.

(b) All the fixed assets have not been verified by the management during the year but, according to the information and explanations given to us, there is a regular Programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies between the book records and the physical inventory have been noticed in respect of the assets physically verified.

(c) During the year, in our opinion, a substantial part of fixed assets has not been disposed off by the Company, which would affect the going concern of the Company.

2) The company has no stock of Inventory 3)

(a) The company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Act during the financial year under the audit.

(b) Repayment of interest free loans from associates has been made during the year.

4) In our opinion and according to the information and explanations given to us, and subject to notes of accounts, having regard to the explanations that there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of fixed assets and for the sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

(a) In our opinion and according to the information and explanations given to us, during the year, no transactions that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been found.

(b) In our opinion and according to the information and explanations given to us, there are no such transactions exceeding Rs. five lakhs each which have been made at prices, which are not reasonable having regard to the prevailing market prices, for such goods, materials or services at the relevant time.

6) As per explanation given to us, the Company has not accepted any deposits from public to which the provisions of section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 would apply. Therefore, the provisions of clause 4 (vi) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

7) The Company is conducting Internal Audit Departmentally.

8) The Central Government has not prescribed the maintenance of the cost record u/s 209(1) (d) of the Companies Act, 1956 and hence the provisions of clause 4 (viii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

9)

(a) In our opinion and according to the information and explanation given to us, the company is regular in depositing with appropriate authorities undisputed statutory dues including the investor education and protection fund, provident fund, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

(b) In our opinion and according to the explanation given to us, and the records examined by us there are no dues to be deposited on account of dispute.

10) The company has accumulated losses as at 31st March, 2013 amounted to Rs.40,48,352/- and has incurred cash loss of Rs. 90,664/- during the financial year ended on that date.

11) Based on our audit procedures and on the information and explanations given by the management, the company has not obtained any loans from any financial Institution or bank.

12) The company has not granted any loans and advances on the basis of security by way of pledge of shares, 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 and according to the information and explanations given to us, the company is not a dealer or trader in securities.

15) The company has not given any guarantees for loans taken by others from banks or financial institutions.

16) The company has not obtained any term loans that were not applied for the purpose for which these were raised.

17) Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment, and vice versa.

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

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

20) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit. For ASIM MEHTA & ASSOCIATES

Chartered Accountants

ASIM C. MEHTA

Proprietor

Membership No.35039

Place: Ahmedabad FRN:114050W

Date:14/08/2013

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Mar 31, 2012

We have audited the attached Balance Sheet of MAGNUM LIMITED as at 31st March, 2012, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereon. 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.

1. We conducted our audit 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.

2. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure, a statement on the matters specified in paragraph 4 & 5 of the said order.

3. Further to our statements in the Annexure referred to above, we report that:

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

(b) In our opinion, proper Books of Account as required by law have been kept by the Company so far as appears from our examination of those books.

(c) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet and Profit and 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.

(e) On the basis of written representations received from the Directors, as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with other notes thereon give the information required by the Companies Act 1956, in the manner so required and subjects to our notes on accounts and remarks as stated in Companies (Auditors Report) Order, 2003 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; and,

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

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

ANNEXURE TO THE AUDITORS' REPORT:

(REFERRED TO IN PARAGRAPH [2] OF OUR REPORT OF EVEN DATE.)

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, and on the basis of such checks of book & records of Company as we considered appropriate & according to the information and explanation given to us, during the course of our Audit, we report that in our opinion.

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

(b) All the fixed assets have not been verified by the management during the year but, according to the information and explanations given to us, there is a regular Programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies between the book records and the physical inventory have been noticed in respect of the assets physically verified.

(c) During the year, in our opinion, a substantial part of fixed assets has not been disposed off by the Company which would affect the going concern of the Company.

2) The company has no stock of Inventory

3) (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act during the financial year under the audit.

(b) The company has taken unsecured loan of Rs. 1,00,000/- from 1 (one) company covered in the register maintained under section 301 of the Act during the financial year under audit. The loan outstanding as on 31st March, 2012 from such company is Rs. 2,25,000/-.

(c) The Company has repaid interest free loans of Rs. 4,50,000/- to companies covered in the register maintained under section 301 of the Act during the financial year under the audit. .

4) In our opinion and according to the information and explanations given to us, and subject to notes of accounts, having regard to the explanations that there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of fixed assets and for the sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

5) (a) In our opinion and according to the information and explanations given to us, during the year, no transactions that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been found.

(b) In our opinion and according to the information and explanations given to us, there are no such transactions exceeding Rs. five lakhs each which have been made at prices, which are not reasonable having regard to the prevailing market prices, for such goods, materials or services at the relevant time.

6) As per explanation given to us, the Company has not accepted any deposits from public to which the provisions of section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 would apply. Therefore, the provisions of clause 4 (vi) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

7) The Company is conducting Internal Audit Departmentally.

8) The Central Government has not prescribed the maintenance of the cost record u/s 209(1) (d) of the Companies Act, 1956 and hence the provisions of clause 4 (viii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

9) (a) In our opinion and according to the information and explanation given to us, the company is regular in depositing with appropriate authorities undisputed statutory dues including the investor education and protection fund, provident fund, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

(b) In our opinion and according to the explanation given to us, and the records examined by us there are no dues to be deposited on account of dispute.

10) The company has accumulated losses as at 31st March, 2012 amounted to Rs.39,12,473/- and has incurred cash loss of Rs. 3,55,288/- during the financial year ended on that date.

11) Based on our audit procedures and on the information and explanations given by the management, the company has not obtained any loans from any financial Institution or bank.

12) The company has not granted any loans and advances on the basis of security by way of pledge of shares, 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 and according to the information and explanations given to us, the company is not a dealer or trader in securities.

15) The company has not given any guarantees for loans taken by others from banks or financial institutions.

16) The company has not obtained any term loans that were not applied for the purpose for which these were raised.

17) Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment, and vice versa.

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

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

20) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For, Asim Mehta & Associates

Chartered Accountants

Firm Registration No. 114050W

Place : Ahmedabad Asim C. Mehta

Date : 30th May, 2012 Proprietor

M. No. 35039

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Mar 31, 2010

We have audited the attached Balance Sheet of MAGNUM LIMITED as at 31st March, 2010, the profit and loss account and also the cash flow statement for the year ended on that date annexed thereon. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

1. We conducted our audit 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.

2. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure, a statement on the matters specified in paragraph 4 & 5 of the said order.

3. Further to our statements in the Annexure referred to above, we report that:

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

(b) In our opinion, proper Books of Account as required by law have been kept by the Company so far as appears from our examination of those books.

(c) The Balance Sheet and Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of account.

(d) In our opinion the Balance Sheet and Profit and 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. Subject to notes stated in schedule 16.

(e) On the basis of written representations received from the Directors, as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the Directors are 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;

(f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with other notes thereon give the information required by the Companies Act 1956, in the manner so required and subjects to our notes on accounts and remarks as stated in Companies (Auditors Report) Order, 2003 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; and,

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

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

ANNEXURE TO THE AUDITORS REPORT: (REFERRED TO IN PARAGRAPH [2] OF OUR REPORT OF EVEN DATE.)

As required by the Companies (Auditors Report) Order 2003 issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, and on the basis of such checks of book & records of Company as we considered appropriate & according to the information and explanation given to us, during the course of our Audit, we report that in our opinion.

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

(b) All the fixed assets have not been verified by the management during the year but, according to the information and explanations given to us, there is a regular Programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies between the book records and the physical inventory have been noticed in respect of the assets physically verified.

(c) During the year, in our opinion, a substantial part of fixed assets has not been disposed off by the Company, which would affect the going concern of the Company.

2) The company has no stock of Inventory.

3) (a) The company has neither granted nor taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Act during the financial year under the audit.

(b) Repayment of interest free loans from associates is not done hence there is no repayment involved.

4) In our opinion and according to the information and explanations given to us, and subject to notes of accounts, having regard to the explanations that there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchase of fixed assets and for the sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control procedures.

5) (a) In our opinion and according to the information and explanations given to us, during the year, no transactions that need to be entered into the Register maintained and Section 301 of the Companies Act, 1956 have been found.

(b) In our opinion and according to the information and explanations given to us, there are no such transactions exceeding Rs. five lakhs each which have been made at prices, which are not reasonable having regard to the prevailing market prices, for such goods, materials or services at the relevant time.

6) As per explanation given to us, the Company has not accepted any deposits from public to which the provisions of section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 would apply. Therefore, the provisions of clause 4 (vi) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

7) The company is conducting Internal Audit Departmentally.

8) The Central Government has not prescribed the maintenance of the cost record u/s 209(1) (d) of the Companies Act, 1956 and hence the provisions of clause 4 (viii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

9) (a) In our opinion and according to the information and explanation given to us, the company is regular in depositing with appropriate authorities undisputed statutory dues including the investor education and protection fund, provident fund, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

(b) In our opinion and according to the explanation given to us, and the records examined by us there are no dues to be deposited on account of dispute.

10) The company has accumulated losses as at 31st March, 2010 amounted to Rs.30,09,638 and has incurred cash loss of Rs. 4,07,890 during the financial year ended on that date.

11) Based on our audit procedures and on the information and explanations given by the management, the company has not obtained any loans from any financial Institution or bank.

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

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

14) In our opinion and according to the information and explanations given to us, the company is not a dealer or trader in securities.

15) The company has not given any guarantees for loans taken by others from banks or financial institutions.

16) The company has not obtained any term loans that were not applied for the purpose for which these were raised.

17) Based on the information and explanations given to us and on an overall examination of the balance sheet of the Company, in our opinion, there are no funds raised on a short term basis which have been used for long term investment, and vice versa.

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

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

20) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.



For, Asim Mehta & Associates

Chartered Accountants

Place : Ahmedabad Asim C. Mehta

Date : 29th May, 2010 Proprietor

M. No. 35039