Auditor Report of Shree Precoated Steels Ltd.

Mar 31, 2024

We have audited the accompanying financial
statements of SHREE PRECOATED STEELS
LIMITED (“the Company”), which comprise the
Balance Sheet as at March 31,2024, the Statement
of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the
Statement of Cash Flows for the year ended on that
date, and a summary of the significant accounting
policies and other explanatory information
(hereinafter referred to as “the financial statements”).

In our opinion and to the best of our information
and according to the explanations given to us,
the aforesaid Ind AS 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 Indian Accounting
Standards specified under Section 133 of the Act
and other accounting principles generally accepted
in India, of the state of affairs of the Company as at
31^st March, 2024 and its loss, total comprehensive
income, changes in equity and its cash flows for the
year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements
in accordance with the Standards on Auditing
specified under section 143(10) of the Act (SAs).
Our responsibilities under those Standards are
further described in the Auditor''s Responsibilities
for the Audit of the Financial statements section of
our report. We are independent of the Company in
accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India (ICAI)
together with the independence requirements that
are relevant to our audit of the financial statements
under the provisions of the Act and the Rules
made thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements and the ICAI''s 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.

Material Uncertainty Related to Going Concern

We draw attention to the Note no. 33 of the
accompanied financial Statements, regarding
preparation of financial statements on going concern
basis. The Company''s net worth is negative and it
indicates that a material uncertainty exists that may
cast significant doubt on the Company''s ability to

continue as a going concern. The appropriateness
of the assumption of the going concern is dependent
on the Company''s ability to raise finance and
generate cash flows in future to meet its obligation.
However, the Annual financial statements have been
prepared on “going concern” basis for the reasons
stated in aforesaid note.

Our conclusion is not modified in respect of this
matter.

Key Audit Matters

Key audit matters are those matters that, in our
professional judgment, were of most significance in
our audit of the financial statements of the current
period. These matters were addressed in the context
of our audit of the 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 matters described below to
be the key audit matters to be communicated in our
report.

1. The Company has material matters under
dispute which involves significant judgement to
determine the possible outcome of these disputes
(Refer Note No. 23 to the Financial Statements).
We obtained the details of the disputes with
their present status and documents. We made
an in-depth analysis of the disputes. We also
considered legal procedures and other rulings
in evaluating management''s position on these
disputes to evaluate whether any change was
required to management''s position on these
disputes.

Information Other than the Financial statements
and Auditor’s Report Thereon

The Company''s Board of Directors is responsible for
the preparation of the other information. The other
information comprises the information included in
the Management Discussion and Analysis, Board''s
Report including Annexures to Board''s Report, 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
during the course of our 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.

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 Indian Accounting Standards specified
under Section 133 of the Act. 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.

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. The Board of Directors are
responsible for overseeing the Company''s Financial
reporting process.

Auditor’s Responsibility 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.

Materiality is the magnitude of misstatements in
the financial statements that, individually or in
aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of
the financial statements may be influenced. We
consider quantitative materiality and qualitative

factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in
the financial statements.

We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and significant
audit findings, including any significant deficiencies
in internal control that we identify during our audit.

We also provide those charged with governance
with a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.

From the matters communicated with those charged
with governance, we determine those matters, if
any, that were of most significance in the audit of
the financial statements of the current period and
are therefore the key audit matters. We describe
these matters in our auditor''s report unless law or
regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated
in our report because the adverse consequences of
doing so would reasonably be expected to outweigh
the public interest benefits of such communication.

Report on Other Legal and Regulatory
Requirements

1 As required by the Companies (Auditor''s
Report) Order, 2020 (“the Order”), issued by the
Central Government in terms of sub-section (11)
of section 143 of the act, we give in ‘Annexure
A” a statement on the matters specified in
paragraphs 3 and 4 of the Order.

2 As required by Section 143 (3) of the Act, based
on our audit 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 (including Other Comprehensive
Income), the Statement of Changes in
Equity and the Statement of Cash Flows
dealt with by this Report are in agreement
with the relevant books of account.

d) in our opinion, the aforesaid financial
statements comply with the Indian
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^St
March, 2024, taken on record by the
Board of Directors, none of the directors is
disqualified as on 31^St March, 2024, from
being appointed as a director in terms of
Section 164(2) of the Act.

f) With respect to the adequacy of the
internal financial controls over financial
reporting of the Company and the operating
effectiveness of such controls, refer to our
separate Report in “Annexure B”. Our report
expresses an unmodified opinion on the
adequacy and operating effectiveness of
the Company''s internal financial controls
over financial reporting.

g) With respect to the other matters to

be included in the Auditor''s Report in

accordance with the requirements of section
197(16) of the Act, as amended:

In our opinion and to the best of our
information and according to the
explanations given to us, the remuneration
paid by the Company to its directors during
the year is in accordance with the provisions
of section 197 of the Act.

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) Rule, 2014, in our
opinion and to the best of our information
and according to the explanations given to
us :

i. The Company has disclosed the
impact of pending litigations, if any,
on its financial position in its financial
statements.

ii. The Company has made provision,
as required under the applicable law
or accounting standards, for material
foreseeable losses, if any, on long-term
contracts including derivative contracts.

iii. There has been no delay in transferring
amounts, if any, required to be
transferred, to the Investor Education
and Protection Fund by the Company.

iv. (a) The Management has represented
that, to the best of its knowledge
and belief, no funds (which are
material either individually or in the
aggregate) have been advanced
or loaned or invested (either from
borrowed funds or share premium
or any other sources or kind of
funds) by the Company to or in any
other person or entity, including
foreign entity (“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) The Management has represented,
that, to the best of its knowledge
and belief, no funds (which are
material either individually or in the
aggregate) have been received
by the Company from any person
or entity, including foreign entity
(“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;

(c) Based on the audit procedures
that have been considered

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

v. During the year, the company has not
declared / paid dividend.

vi. Based on our examination, which
included test checks, the Company
has used accounting software for
maintaining its books of account for the
financial year ended March 31, 2024
which has a feature of recording audit
trail (edit log) facility and the same has
operated throughout the year for all
relevant transactions recorded in the
software. Further, during the course of
our audit we did not come across any
instance of the audit trail feature being
tampered with.

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

FOR MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGN NO. 115832W

MANESH P MEHTA PARTNER
PLACE : MUMBAI
MEMBERSHIP NO. 36032

DATED : 9^th MAY, 2024
UDIN:- 24036032BKFCFX8763

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Mar 31, 2015

1. We have audited the accompanying financial statements of SHREE PRECOATED STEELS 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

2. 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

3. 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.

4. 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.

5. 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.

6. In making those risk assessments, the auditor considers internal financial control 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.

7. 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

8. 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, 2015;

b) in the case of the Profit and Loss Account, of the profit 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

9 As required by the Companies (Auditor's Report) Order, 2015 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act, 2015, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

10 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.

f) With respect to the other matters included in the Auditor's Report 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 did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE REFERRED TO IN PARAGRAPH 9 TO OUR REPORT ON THE ACCOUNTS FOR THE YEAR ENDED 31 ST MARCH, 2015

1. In respect of it's Fixed Assets:

(a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) These fixed assets have been physically verified by the management at reasonable intervals. Discrepancies noticed during the course of such verification are dealt with adequately in the books of accounts.

2. In respect of it's inventories:

(a) Physical verification of inventory has been conducted at reasonable intervals by the management.

(b) In our opinion and according to the explanations given to us, the procedures for physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) In our opinion and according to the explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were observed during the course of physical verification.

3. The company has not granted any loan, secured or unsecured, to the company to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

4. There an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit no major weakness has been noticed in the internal controls.

We have not observed any failure on the part of the Company to correct major weakness in internal control system.

5. The company has not accepted deposits, 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 thereunder.

6. The Central Government has not prescribed maintenance of Cost Records under Section 148(1) of the Act in respect of the activities of the Company. We have broadly reviewed the accounts and records have been made and maintained. We have not made a detailed examination of the same.

7. a. The Company is generally regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues to the extent applicable to it. There is no outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable.

b. The Company does not have any dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute, Except the amounts involved and the forum where dispute is pending given below:-

Name of Nature of Dues Amount Year Forum where pending Statute (Rs. in Lacs)

Service Tax GTA of Services 22.85 2005 -06 Appeal has been filed in CESTAT

Service Tax Cenvat credit on 95.84 2006-07 & 2007-08 Appeal has been filed in CESTAT. Service Tax

Arbitration Damages for non 338.71 2005-06 Mumbai High Court Award Supply of goods

c. The Company has transferred the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder.

8. The Company has accumulated losses at the end of the financial year and however, it has not incurred cash losses in the current and the immediately preceding financial year.

9. In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holder.

10. In our opinion and according to the information and explanations given to us the Company has not given any guarantees for loans taken by others from banks and institutions.

11. Based on the information and explanations given to us by the Management, Term Loans obtained during the year were applied for the purpose for which the loans were obtained.

12. Based on the audit procedures performed and information and explanations given by the Management, we report that no fraud on or by the Company has been noticed or reported during the year.

FOR AND ON BEHALF OF

V. PAREKH & ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REGN NO. 107488W

Place: Mumbai RASESH V. PAREKH - PARTNER

Dated : 28th May, 2015 MEMBERSHIP NO. 38615

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Mar 31, 2014

We have audited the accompanying financial statements of "SHREE PRECOATED STEELS LIMITED,", which comprise the Balance Sheet as at 31st March 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

2. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards *referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the general circular 15/2013 dated September 13, 2013 of the ministry of corporate affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

3. Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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.

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 Profit and Loss Account, of the profit 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.

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 of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account ;

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with the general circular 15/2013 dated September 13, 2013 of the ministry of corporate affairs in respect of section 133 of the Companies Act, 2013.

e) on the basis of written representations received from the directors as on 31st March 2014, and 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 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 REFERRED TO IN PARA 5 OF OUR REPORT OF EVEN DATE

i. In respect of its Fixed Assets:

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

b. The fixed assets have been physically verified by the Management at reasonable intervals. No material discrepancies were noticed during the course of such verification.

c. The disposal of part of fixed assets, in our opinion has not affected the going concern.

ii. In respect of its inventories:

a. The physical verification of inventories has been conducted at reasonable intervals by the Management.

b. In our opinion and according to the explanations given to us, the procedures for physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were observed during the course of physical verification.

iii. a. The Company has not granted any loans to any entity covered in the register maintained under Section 301 of the Act.

b. The Company has taken interest free unsecured loans from one promoters companies covered in the register maintained under section 301 of the Act. The maximum amount involved during the year and year end balance of the loans taken from such companies was Rs. 1500.00 lacs.

c. In our opinion and according to the information and explanations given to us, the terms and conditions on which loan have been taken from companies, firm or other parties listed in the register maintained under section 301 of the Companies Act,1956 are not, prima facie, prejudicial to the interest of the company.

d. There were no stipulations as to the repayment of the loans taken as the same are repayable on demand.

iv. In our opinion, and according to the explanations given to us, the Company has adequate internal control systems commensurate with the size of the Company with regard to the purchase of inventory, fixed assets and sale of goods. During the course of our audit no major weakness has been noticed in the internals controls. We have not observed any failure on the part of the Company to correct major weakness in internal control system.

v. a) Based on the audit procedures applied by us and according to the information and explanations provided to us by the Management, we are of the opinion that the particulars of the contract or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section.

b) According to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the registers maintained under Section 301 of the Act have been made at prices which are reasonable having regard to prevailing market prices at relevant time.

vi. In our opinion and according to the explanations given to us the Company has not accepted any deposits within the meaning of Section 58A and Section 58AA or any other relevant provisions of the Act and the rules framed there under.

vii. The Company does not have any formal internal audit system.

viii. The Central Government has not prescribed maintenance of Cost Records under Section 209 (1)

(d) of the Act in respect of activities of the Company. We have broadly reviewed the accounts and records have been made and maintained. We have not, made a detailed examination of the same.

ix. a. According to the information and explanations given to us the Company is regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues to the extent applicable to it.

b. In respect of Contingent dues on account of Sales tax, Service tax and Custom duty dues disputed by the Company including liability of the unit vested in to the company pursuant to Demerger and not being paid vis-à-vis forums where such disputes are pending are mentioned below:

Name of Statute Nature of Dues Amount Period to (Rs. in Lacs) which amount relates

Service Tax GTA of Services 22.85 2005-06

Service Tax Cenvat credit on Service Tax 95.84 2006-07 & 2007-08

Arbitration Award Damages for non supply of 338.71 2005-06 Goods



Name of Statute Forum where pending

Service Tax Appeal has been filed in CESTAT

Service Tax Appeal has been filed in CESTAT.

Arbitration Award Mumbai High Court



x. The Company''s accumulated losses are more than 50% of its net worth, however company has not incurred any cash losses in current as well as preceding financial year.

xi. In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holder.

xii. 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 Society. Therefore, the provisions of clause are not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of the clause are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us the Company has not given any guarantees for loans taken by others from banks and institutions

xvi. Based on the information and explanations given to us by the Management, no term Loans obtained during the year.

xvii According to the information and explanation given to us and on 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 not made any preferential allotment of shares to any of the entities/ persons covered in the register maintained under Section 301 of the Act.

xix. The Company has not issued any debentures during the year, which required creation of security or charge.

xx. The company has not raised any money by public issue during the yearended.

xxi. Based on the audit procedures performed and information and explanations given by the Management, we report that no fraud on or by the Company has been noticed or reported during the year ended.

For and on behalf of V. PAREKH & ASSOCIATES CHARTERED ACCOUNTANTS Firm Reg. No. 107488W Place : Mumbai R ASESH V. PAREKH - PARTNER Dated : 13th May, 2014 Membership No. 38615

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Mar 31, 2012

1 We have audited the attached Balance Sheet of Shree Precoated Steels Limited as at 31st March 2012, the Statement of Profit & Loss and also the Cash Flow Statements for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of Section (4A) of Section 227 of the Companies Act, 1956 of India (the "Act"), we enclose in the Annexure a statement of the matters specified in paragraph 4 and 5 of the said order.

4. Further to our comments 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 accounts as required by law have been kept by the Company so far as appears from our examination of the books of account.

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

d) In our opinion, the attached Balance Sheet, Statement of Profit & Loss and the Cash Flow Statements dealt with by this report comply with the Accounting Standards referred in Sub - Section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of the written representations received from the directors taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March, 2012 from being appointed as a director in terms of Section 274 (1)(g) of the Act.

f) In our opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read with other notes thereon give the information required by the Act, in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

iii. In the case of the Cash Flow Statements of the cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARA 3 OF OUR REPORT OF EVEN DATE

I. In respect of it's Fixed Assets:

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

b. The fixed assets have been physically verified by the Management at reasonable intervals. No material discrepancies were noticed during the course of such verification.

c. The disposal of part of fixed assets, in our opinion has not affected the going concern.

ii. In respect of it's inventories:

a. The physical verification of inventories has been conducted at reasonable intervals by the Management.

b. In our opinion and according to the explanations given to us, the procedures for physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were observed during the course of physical verification.

iii. a. The Company has not granted any loans to any entity covered in the register maintained under Section 301 of the Act.

b. The Company has taken interest free unsecured loans from three promoters companies covered in the register maintained under section 301 of the Act. The maximum amount involved during the year was Rs. 5425.21 lacs and yearend balance of the loans taken from such companies was Rs. 4806.94 lacs.

c. in our opinion and according to the information and explanations given to us, the terms and conditions on which loan have been taken from companies, firm or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

d. There were no stipulations as to the repayment of the loans taken as the same are repayable on demand.

iv. In our opinion, and according to the explanations given to us, the Company has adequate internal control systems commensurate with the size of the Company with regard to the purchase of inventory, fixed assets and sale of goods. During the course of our audit no major weakness has been noticed in the internal controls. We have not observed any failure on the part of the Company to correct major weakness in internal control system.

v. a. Based on the audit procedures applied by us and according to the information and explanations provided to us by the Management, we are of the opinion that the particulars of the contract or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section.

b. According to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the registers maintained under Section 301 of the Act have been made at prices which are reasonable having regard to prevailing market prices at relevant time.

vi. In our opinion and according to the explanations given to us the Company has not accepted any deposits within the meaning of Section 58A and Section 58AA or any other relevant provisions of the Act and the rules framed there under.

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

viii. The Central Government has not prescribed maintenance of Cost Records under Section 209 (1) (d) of the Act in respect of activities of the Company. We have broadly reviewed the accounts and records have been made and maintained. We have not, made a detailed examination of the same.

ix. a. According to the information and explanations given to us the Company is regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues to the extent applicable to it.

b. In respect of Contingent dues on account of Sales tax, Service tax and Custom duty dues disputed by the Company including liability of the unit vested in to the company pursuant to Demerger and not being paid vis-a-vis forums where such disputes are pending are mentioned below:

Name of Nature of Dues Amount Period Forum where Statute (Rs. in to which pending Lacs) amount relates

Service Tax GTA of Services 22.85 2005-06 Appeal has been filed in CESTAT.

Service Tax Cenvat credit 95.84 2006-07 & Appeal has on Service Tax 2007-08 been filed in CESTAT.

Custom Act Fine 15.00 2006-07 Appeal has Penalty 5.00 been filed in CESTAT.

x. As the company is registered for a period less than five years, hence the clauses related to accumulated losses and cash loss incurred are not applicable.

xi. In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holder.

xii. 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 Society. Therefore, the provisions of clause are not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of the clause are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us the Company has not given any guarantees for loans taken by others from banks and institutions

xvi. Based on the information and explanations given to us by the Management, no term Loans obtained during the year.

xvii. According to the information and explanation given to us and on 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 not made any preferential allotment of shares to any of the entities/persons covered in the register maintained under Section 301 of the Act.

xix. The Company has not issued any debentures during the year, which required creation of security or charge.

xx. The company has not raised any money by public issue during the year ended.

xxi. Based on the audit procedures performed and information and explanations given by the Management, we report that no fraud on or by the Company has been noticed or reported during the year ended.



For and on behalf of V. PAREKH & ASSOCIATES CHARTERED ACCOUNTANTS Firm Reg. No. 107488W

RASESH V. PAREKH PARTNER Membership No. 38615

Place : Mumbai Dated : 30th July, 2012

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of Shree Precoated Steels Limited as at 31st March 2011, the Profit & Loss Account and also the Cash Flow Statement for the 18 months period ended on that date annexed thereto. 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.

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

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section (4A) of Section 227 of the Companies Act, 1956 of India (the "Act"), we enclose in the Annexure a statement of the matters specified in paragraph 4 and 5 of the said order.

4. Further to our comments 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 necessaryfor the purpose of our audit.

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

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

d) In our opinion, the attached Balance Sheet, Profit & Loss Account and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred in Sub - Section (3C) of Section 211 of the Companies Act,1956.

e) On the basis of the written representations received from the directors except nominee Director and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 31st March 2011 from being appointed as a director in terms of Section 274 (1) (g) of the Act.

f) In our.opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read with other notes thereon give the information required by the Act, in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India:

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

ii. In the case of Profit and Loss Account of the Loss of the Company forthe 18 months period ended onHPthat date; and

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

i. In respect of its Fixed Assets:

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

I. The fixed assets have been physically verified by the Management at reasonable intervals. No material discrepancies were noticed during the course of such verification.

c. The transfer of Fixed Assets on account of sale of Steel Business has not affected as going concern.

ii. In respect of its inventories:

a. The physical verification of inventories has been conducted at reasonable intervals by the Management.

I. In our opinion and according to the explanations given to us, the procedures for physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were observed during the course of physical verification.

iii. a. The Company has not granted any loans to any entity covered in the register maintained under Section 301 of the Act.

I. The Company has taken interest free unsecured loans from four promoters companies covered in the register maintained under section 301 of the Act .The maximum amount involved during the period was Rs. 9006.73 lacs and period end balance of the loans taken from such companies was Rs. 5692.14 lacs. The loans from promoters are taken as per the stipulation of the lending institution and banks.

c. in our opinion and according to the information and explanations given to us, the term and conditions on which loan have been taken from companies, firm or other parties listed in the register maintained under section 301 of the Companies Act,1956 are not, prima facie, prejudicial to the interest of the company.

d. There are no stipulations as to the repayment of the loans taken as the same are repayable on demand on fulfilling of requirement of lending institutions and banks.

iv. In our opinion, and according to the explanations given to us, the Company has adequate internal control systems commensurate with the size of the Company with regard to the purchase of inventory, fixed assets and sale of goods. During the course of our audit no major weakness has been noticed in the internals controls. We have not observed any failure on the part of the Company to correct major weakness in internal control system.

v. a. Based on the audit procedures applied by us and according to the information and explanations provided to us by the Management, we are of the opinion that the particulars of the contract or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section.

I. According to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the registers maintained under Section 301 of the Act have been made at prices which are reasonable having regard to prevailing market prices at relevant time.

vi. In our opinion and according to the explanations given to us the Company has not accepted any deposits within the meaning of Section 58Aand Section 58AA or any other relevant provisions of the Act and the rules framed there under.

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

viii. The Central Government has not prescribed maintenance of Cost Records under Section 209 (1) (d) of the Act in respect of activities of the Company. We have broadly reviewed the accounts and records have been made and maintained. We have not, made a detailed examination of the same.

ix. a. According to the information and explanations given to us the Company is regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues to the extent applicable to it.

b. In respect ofHPContingent duesHPon account ofHPSales tax, Service tax and Custom duty dues disputed by the Company including liability of the unit vested in to the company pursuant to Demerger and not being paid vis-a-vis forums where such disputes are pending are mentioned below:

Name of Statute Nature of Dues Amount

(Rs. in Lacs)

Service Tax GTA of Services 22.85

Service Tax Cenvat credit on

Service Tax 95.84

Service Tax Service Tax on

export 47.38

sales commission

Custom Act Fine 15.00

Penalty 5.00

Period to Forum where pending Name of the Statute which amount relates

Service Tax 2005 -06 Appeal has been filed in

CESTAT.

Service Tax 2006-07 & Appeal has been filed in

2007-08 CESTAT.

Service Tax 2004-05 & Commissioner of service

2005-06 Tax

Service Tax 2006-07 Appeal has been filed in

CESTAT.

x. As the company is registered for a period less than five years, hence the clauses related to accumulated losses and cash loss incurred are not applicable.

xi. In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution, bank orHPdebenture holder.

xii. 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 Society. Therefore, the provisions of clause are not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of the clause are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us the Company has not given any guarantees for loans taken by others from banks and institutions

xvi. Based on the information and explanations given to us by the Management, no term Loans obtained during the period.

xvii. According to the information and explanation given to us and on 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 not made any preferential allotment of shares to any of the entities/ persons covered in the register maintained under Section 301 ofHPtheHPAct.

xix. The Company has not issued any debentures during the period, which required creation of security or charge.

xx. The company has not raised any money by public issue during the period ended.

xxi. Based on the audit procedures performed and information and explanations given by the Management, we report that no fraud on or by the Company has been noticed or reported during the period ended.

For and on behalf of

V. PAREKH & ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Reg. No. 107488W

RASESH V. PAREKH - PARTNER

Membership No. 38615

Place : Mumbai

Dated : 25th April, 2011

---

Sep 30, 2009

1. We have audited the attached Balance Sheet of Shree Precoated Steels Limited (Formerly Known as Ajmera Precoated Steels Limited) as at 30th September 2009, the Profits Loss Account and also the Cash Flow Statement for the 8 month period ended on that date annexed thereto. 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.

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

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section (4A) of Section 227 of the Companies Act, 1956 of India (the "Act"), we enclose in the Annexure a statement of the matters specified in paragraph 4 and 5 of the said order.

4. Further to our comments 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 accounts as required by law have been kept by the Company so far as appears from our examination of the books of account.

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

d) In our opinion, the attached Balance Sheet, Profit & Loss Account and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred in Sub - Section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of the written representations received from the directors except nominee Director and taken on record by the Board of Directors, we report that none of the directors are disqualified as on 30th September 2009 from being appointed as a director in terms of Section 274 (1) (g) of the Act.

f) In our opinion and to the best of our information and according to the explanations given to us, the said statement of accounts read with other notes thereon give the information required by the Act, in the manner so required and gives a true and fair view in conformity with the accounting principles generally accepted in India:

i. In the case of Balance Sheet, of the state of affairs of the Company as at 30th September, 2009;

ii. In the case of Profit and Loss Account of the Loss of the Company for the 18 month period ended on that date; and

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

ANNEXURE REFERRED TO IN PARA 3 OF OUR REPORT OF EVEN DATE

i. In respect of its Fixed Assets:

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

b. The fixed assets have been physically verified by the Management at reasonable intervals. No material discrepancies were noticed during the course of such verification.

c. The disposal of part of fixed assets, in our opinion has not affected the going concern.

ii. In respect of its inventories:

a. The physical verification of inventories has been conducted at reasonable intervals by the Management.

b. In our opinion and according to the explanations given to us, the procedures for physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.

c. In our opinion and according to the explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were observed during the course of physical verification.

iii a. The Company has not granted any loans to any entity covered in the register maintained under Section 301 of the Act.

b. The Company has taken interest free unsecured loans from five companies and fourteen promoters covered in the register maintained under section 301 of the Act. The maximum amount involved during the period was Rs. 30836.39 lacs and period end balance of the loans taken from such companies and promoters was Rs. 9006.73 lacs. The loans from promoters are taken as per the stipulation of the lending institution and banks.

c. in our opinion and according to the information and explanations given to us, the term and conditions on which loan have been taken from companies, firm or other parties listed in the register maintained under section 301 of the companies Act,1956 are not, prima facie, prejudicial to the interest of the company.

d. There are no stipulations as to the repayment of the loans taken as the same are repayable on demand on fulfilling of requirement of lending institutions and banks.

iv. In our opinion, and according to the explanations given to us, the Company has adequate internal control systems commensurate with the size of the Company with regard to the purchase of inventory, fixed assets and sale of goods. During the course of our audit no major weakness has been noticed in the internals controls. We have not observed any failure on the part of the Company to correct major weakness in internal control system.

v. a. Based on the audit procedures applied by us and according to the information and explanations provided to us by the Management, we are of the opinion that the particulars of the contract or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section.

b. According to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements entered in the registers maintained under Section 301 of the Act have been made at prices which are reasonable having regard to prevailing market prices at relevant time.

vi. In our opinion and according to the explanations given to us the Company has not accepted any deposits within the meaning of Section 58A and Section 58AA or any other relevant provisions of the of the Act and the rules framed there under.

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

viii. The Central Government has not prescribed maintenance of Cost Records under Section 209 (1) (d) of the Act in respect of activities of the Company. We have broadly reviewed the accounts and records have been made and maintained. We have not, made a detailed examination of the same.

ix. a. According to the information and explanations given to us the Company is regular in depositing with appropriate authorities, undisputed statutory dues including provident fund, investor education fund, employees state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues to the extent applicable to it.

b. In respect of Contingent dueson account of sales tax, service tax and custom duty dues disputed by the Company including liability of the unit vested into the company persuant to demerger and not being paid vis-a-vis forums where such disputes are pending are mentioned below:

Name of Statute Nature of Dues Amount (Rs. in Lacs)

West Bengal Ex- Parte Order passed 1.00 Sales Tax Act.

Service Tax GTA of Services 22.85

Service Tax Cenvat credit on 95.84 Service Tax

Service Tax Service Tax on export 47.38 sales commission

Custom Act Fine Penalty 15.00 5.00

Name of the Statue Period to Forum where pending which amount relates

West Bengal Sales Tax Act. 1997-98 & The Company is in the 1998-99 process of filing appeal

Service Tax 2005 - 2006 Appeal has been filed in CESTAT.

Service Tax 2006 - 2007 & Appeal has been filed in 2007 - 2008 CESTAT.

Service Tax 2004 - 2005 & Commissioner of 2005 - 2006 service Tax

Custom Act 2006 - 2007 Appeal has been filed in CESTAT.

x. As the company is registered for a period less than five years, hence the clauses related to accumulated losses and cash loss incurred are not applicable.

xi. In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holder.

xii. 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 Society. Therefore, the provisions of clause are not applicable to the Company.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly the provisions of the clause are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us the Company has not given any guarantees for loans taken by others from banks and institutions

xvi. Based on the information and explanations given to us by the Management, term Loans obtained during the year were applied for the purpose for which the loans were obtained.

xvii. According to the information and explanation given to us and on 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 not made any preferential allotment of shares to any of the entities/ persons covered in the register maintained under Section 301 of theAct. However share capital issued during the period is based on the demerger scheme (refer note no 4 of schedule 17).

xix. The Company has not issued any debentures during the period, which required creation of security or charge.

xx. The company has not raised any money by public issue during the period ended.

xxi. Based on the audit procedures performed and information and explanations given by the Management, we report that no fraud on or by the Company has been noticed or reported during the period ended.

For and on behalf of

V. PAREKH & ASSOCIATES CHARTERED ACCOUNTANTS

Place : Mumbai RASESH V. PAREKH - PARTNER

Dated : 19th December 2009 Membership No. 38615