Auditor Report of Sri Lakshmi Saraswathi Textiles (Arni) Ltd.

Mar 31, 2025

We have audited the accompanying financial statements of SRI LAKSHMI SARASWATI TEXTILES (ARNI)
LIMITED (“the Company”), which comprise the Balance Sheet as at March 31, 2025, the Statement of Profit
and Loss, (including Other Comprehensive Income), the Statement of Changes in Equity and Statement of
Cash Flows for the year then ended and notes to the Financial Statements, including a summary of the
Material Accounting Policy information and other explanatory information, [hereinafter referred to as I nd AS
Financial Statements].

In our opinion and to the best of our information and according to the explanations given to us, except for the
matters described in the Basis for Qualified Opinion paragraph below the aforesaid Standalone 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 Indian Accounting Standards prescribed under Section 133 of The Act read with the
companies (Indian Accounting Standards) Rules, 2015 as amended (“Ind AS”) and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31,2025, and Loss
for the year ended on that date.

Basis for Qualified Opinion

The Company''s net worth has completely eroded. The accumulated loss for the reporting period amounts
to Rs. 9,195.89 Lakhs (Previous Year Rs. 7,125.15 Lakhs). The turnover during the year ended 31^st March
2025 amounts Rs. 9,954.20 Lakhs (Previous Year Rs. 12,711.70 Lakhs) as per the books of accounts. The
statement of profit and loss account also indicates that the company has been incurring net losses for the
previous three years including the period under audit. These events indicate that a material uncertainty
exists that may cast significant doubt on the company''s ability to continue as a going concern. However, the
company''s statement of audited financial results has been prepared on going concern basis of accounting,
based on the opinion of the management that the company would generate sufficient profits in the
foreseeable future.

We have observed that, advances paid amounting to Rs. 86.07 Lakhs, which are long outstanding and
since confirmation of balances have not been received for the amount of Rs. 43.20 Lakhs, we are unable
to comment on the quality of such assets.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10)
of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities
for the Audit of the Standalone Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements
under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter paragraph.

We have observed that an advance to an extent of Rs. 39.08 Lakhs, has been given, for the purchase of
machinery which is outstanding for more than 3 years.

Our opinion is not modified with respect to the above matters.

Key Audit Matters -

Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financials statements of the current period. We have determined that there is no key audit matters
to be communicated in the report.

Information Other Than Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other information in the Annual Report, comprising
of the Director''s report and its annexures, but does not include the standalone financial statements and our
auditor''s report thereon.

Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
standalone 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 if 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 Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation and presentation of these Standalone Financial Statements
that give a true and fair view of the Standalone Financial position, Standalone Financial Performance and
Standalone Cash Flows of the Company in accordance with the Ind AS and other accounting principles
generally accepted in India. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements
that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, management is responsible for assessing the Company''s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company''s Financial reporting process.
Auditor''s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone 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 Standalone
financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also

• Identify and assess the risks of material misstatement of the Standalone 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 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 Standalone 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 Standalone Financial Statements, including
the disclosures, and whether the Standalone Financial Statements represent the underlying transactions
and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone 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.

Report on Other Legal and Regulatory Requirements

1. 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 are necessary for the purpose of our audit.

b. In our opinion, proper books of accounts as required by the law have been kept by the Company
as far as it appears from our examinations of those books

c. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement are in agreement
with the books of accounts.

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 March 2025 taken
on record by the Board of Directors, none of the directors is disqualified as on 31 March 2025
from being appointed as a director in terms of Section 164 (2) of the Act.

f. 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
requirements of Section 197(16) of the Act, as amended.

g. With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such control refer to our separate report in “Annexure
A.”

h. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:

i. The Company has no pending litigations and hence, reporting under this clause is not applicable.

ii. The Company did not have any long-term contracts including derivative contracts for which there

were any material foreseeable losses.

iii. The company is not required to transfer any amount to Investor Education and Protection Fund.

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
(“intermediary”), with the understanding, 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 person or entities identified in any manner whatsoever by or the like
on behalf of the Ultimate Beneficiaries:

c. Based on the audit procedures that we have considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations as provided under (a) and (b) above, contain any material misstatement.

v. I he board of directors of the company have not proposed final dividend for the year which is
subject to the approval of members at the ensuing annual general meeting.

vi. The company does not have the accounting software which has the feature of recording audit
trail (edit log) facility as applicable to the company with effect from April 1, 2023 as prescribed
under Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014.

2. As required by the Companies (Auditor''s Report) Order, 2020 (“the Order”), as amended, issued by the
Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure
B” a statement on the matters specified in the paragraphs 3 and 4 of the Order to the extent applicable.

for M/s.S B S B and Associates
Firm No.012192S
(D.SHARAT KUMAR )
Member Ship .No.024568
Partner

Place: Chennai CHARTERED ACCOUNTANTS

Date : May 24, 2025 UDIN: 25024568BMOSYP5777

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Mar 31, 2024

SRI LAKSHMI SARASWATHI TEXTILES (ARNI) LIMITED (CIN: L17111TN1964PLC005183)

Report on the audit of Standalone Ind AS Financial Statements

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the matters described in the Basis for Qualified Opinion paragraph below the aforesaid Standalone 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 Indian Accounting Standards prescribed under Section 133 of The Act read with the companies (Indian Accounting Standards) Rules, 2015 as amended (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March 2024, and Loss for the year ended on that date.

We have audited the accompanying Standalone Financial Statements of SRI LAKSHMI SARASWATI TEXTILES (ARNI) LIMITED (“the Company”) which comprises the Balance Sheet as at 31^st March 2024, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Basis for Qualified Opinion

The Company''s net worth has completely eroded. The accumulated loss for the reporting period amounts to Rs. 7,125.15 Lakhs (Previous Year Rs. 5,105.68 Lakhs). The turnover during the year ended 31^st March 2024 amounts Rs. 12,711.70 Lakhs (Previous Year Rs. 15,104.45 Lakhs) as per the books of accounts. The statement of profit and loss account also indicates that the company has been incurring net losses for the previous two years including the period under audit. These events indicate that a material uncertainty exists that may cast significant doubt on the company''s ability to continue as a going concern. However, the company''s statement of audited financial results has been prepared on going concern basis of accounting, based on the opinion of the management that the company would generate sufficient profits in the foreseeable future.

We have observed that, advances paid to suppliers amounting to Rs. 47.58 Lakhs, which were long outstanding and since confirmation of balances have not been received for the same, we are unable to comment on the quality of such assets.

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter paragraph.

We have observed that an advance to an extent of Rs 21.40 Lakhs (Previous Year 21.40 Lakhs), has been given, for the purchase of machinery which is outstanding for more than one year.

Our opinion is not modified with respect to the above matters.

Key Audit Matters -

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financials statements of the current period. These matters were addressed in the context of our

audit of the financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Information Other Than Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other information in the Annual Report, comprising of the Director''s report and its annexures, but does not include the standalone financial statements and our auditor''s report thereon.

Our opinion on the standalone 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 standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone 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 if 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 Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of these Standalone Financial Statements that give a true and fair view of the Standalone Financial position, Standalone Financial Performance and Standalone Cash Flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company''s Financial reporting process. Auditor''s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone 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 Standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also

• Identify and assess the risks of material misstatement of the Standalone 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 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 Standalone 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalone 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.

Report on Other Legal and Regulatory Requirements

1. 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 are necessary for the purpose of our audit.

b. In our opinion, proper books of accounts as required by the law have been kept by the Company as far as it appears from our examinations of those books.

c. The Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement are in agreement with the books of accounts.

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 March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

f. 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 requirements of Section 197(16) of the Act, as amended.

g. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such control refer to our separate report in “Annexure A.”

h. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has no pending litigations and hence, reporting under this clause is not applicable.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. The company is not required to transfer any amount to Investor Education and Protection Fund.

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 (“intermediary”), with the understanding, 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 person or entities identified in any manner whatsoever by or the like on behalf of the Ultimate Beneficiaries:

c. Based on the audit procedures that we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations as provided under (a) and (b) above, contain any material misstatement.

v The board of directors of the company have not proposed final dividend for the year which is subject to the approval of members at the ensuing annual general meeting.

vi. The company does not have the accounting software which has the feature of recording audit trail (edit log) facility as applicable to the company with effect from April 1, 2023 as prescribed under Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014.

2. As required by the Companies (Auditor''s Report) Order, 2020 (“the Order”), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure B” a statement on the matters specified in the paragraphs 3 and 4 of the Order to the extent applicable.

for M/s.S B S B and Associates Firm No.012192S (D.SHARAT KUMAR ) Member Ship .No.024568

Place: Chennai ^Partner

Date : May 27 2024 CHARTERED ACCOUNTANTS

UDIN: 24024568BKCZGR8773

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Mar 31, 2015

We have audited the accompanying financial statements of Sri Lakshmi Saraswathi Textiles (Arni) Limited, (the company) which comprise the Balance Sheet as at March 31, 2015, 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 stated in Sec 134(5) of the Companies Act, 2013("the act") with respect to the preparation and presentation 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 Principals generally accepted in India, including the Accounting Standards specified under Sec 133 of the act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies making judgements and estimates, that are reasonable and prudent and the design, implementation and maintenance of adequate financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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 Sec 143 (10) of the act. Those standards require that we comply that 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 financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial control system over financial reporting and operating effectiveness of the such control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the 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 qualified audit opinion on the financial statements.

Qualified 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 Statement of Profit and Loss , of the LOSS for the year ended on that date; and

c) in the case of Cash flow Statement, of the cash flows for the year ended on that date; Report on Other Legal and Regulatory Requirements

1. 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 Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Companies Act 2013, we report that:

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

b) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as it 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) Except for the effects for the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, the Balance Sheet, Statement of Profit and Loss & the Cash flow Statement comply with the Accounting Standards specified under the Section 133 of the act, read with rule 7 in Companies (Accounts) Rules, 2014;

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

f) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Our Independent Auditors' Report to the members of the company on the financial statements for the year ended 31st March 2015, we report that

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

(b) The company has a regular program of physical verification of its fixed assets by which all fixed assets are verified in a phased manner at reasonable intervals by the management. According to the information and explanations given to us, no material discrepancies where observed by the management on such verification.

(ii) (a) The stock of inventory has been physically verified by the management at reasonable intervals during the year. In our opinion the frequency of verification is reasonable.

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

(c) The company is maintaining proper records of inventory. No material discrepancy was noticed on such physical verification.

(iii) 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 any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013. Consequently the provisions of clause (iii) (a) (b) and (c) are not applicable to the company.

(iv) In our opinion and according to the explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, with regard to purchase of inventory and fixed assets and for the sale of goods and services. We have not observed any major weakness in the internal control system during the course of the audit.

(v) The company has not accepted any deposits from the Public during the year.

(vi) Central Government has prescribed maintenance of cost records under sub- section (1) of section 148 of the Companies Act and such accounts and records have been prepared and maintained by the company.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the company, amount deducted or accrued in the books of account in respect of of undisputed statutory dues including provident fund, income-tax, sales tax, wealth tax, service tax, value added tax, cess and other material statutory dues have been regularly deposited by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employees' state insurance and duty of excise.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, income tax, sales tax wealth tax, service tax, value added tax, cess and other material statutory dues were in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no material dues of provident fund, sales tax, wealth tax, service tax, value added tax, cess which have not been deposited with the appropriate authorities on account of any dispute. However, according to the information and explanations given to us, the following dues of income tax and employees' state insurance have not been deposited by the company on account of disputes.

Name of the Nature of dues Amount Period to which the Statue Rs. amount relates

Income-tax Income tax 12,21,350 Assessment year Act 1961 1999 - 2000

Income-tax Assessment year Act 1961 Income tax 33,86,521 2000 - 2001

Total 46,07,871

Employee's Contribution 4,15,356 2000-01 State Employee's Act 1948 State Insurance Corporation

Name of the Forum where dispute Statue is pending

Income-tax IT Appeals before Act 1961 ITAT, & High Court

Income-tax IT Appeals before Act 1961 ITAT, & High Court

Employee's State High Court Insurance Act 1948

(c) According to the information and explanations given to us, the amounts which were 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 has been transferred to such fund within time.

(viii) The Company has accumulated losses as at March 31, 2015 and has incurred cash loss in the financial year and there was no cash loss in the immediately preceding financial year.

(ix) The company did not have any outstanding dues to financial institutions, banks during the year.

(x) In our opinion and according to the information and explanations given to us the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xi) The Company did not have any term loans outstanding during the year.

(xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported, during the course of our audit.

17, Bishop Wallers Avenue (West), For M/s S Viswanathan CIT Colony, Mylapore, Chartered Accountant Chennai - 600 004. FRN: 004770S

Place: Chennai Date: May 26, 2015 Chella K Srinivasan Partner Membership No: .023305

---

Mar 31, 2014

Report on the Financial Statements.

We have audited the accompanying financial statements of SRI LAKSHMI SARASWATHI TEXTILES (ARNI) LIMITED, which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss, 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.

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.

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, but not for the purpose of expressing an opinion on the effectiveness of the company''s internal control. An audit also includes evaluating the appropriateness of 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.

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, 2014

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

c) in the case of Cash Flow Statement, of the cash flows 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 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.

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 accounts 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 & 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 & Cash flow statement 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 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 Act.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of SRI LAKSHMI SARASWATHI TEXTILES (ARNI) LIMITED . On the accounts of the company for the year ended 31st March, 2014.

On the basis of such checks as we considered appropriate and according to the information and explanations given to us during the course of our audit, we report that:

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

(b) Fixed assets have been physically verified by the management during the year and no material discrepancies were identified on such verification.

(c) There was no disposal of a substantial part of the fixed assets during the year.

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

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

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

(iii) (a) As informed, 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 Companies Act, 1956. Accordingly, sub-clauses (b), (c) and (d) are not applicable.

(e) The Company has taken unsecured loan from a company covered in the Register maintained under section 301 of the Companies Act, 1956. However, the terms of Repayment and Interest are not prejudicial to the interest of the company.

(f) Maximum amount of loan outstanding during the year being Rs.85,00,000/- while the loan outstanding as on 31st March, 2014 is Rs.55,00,000/-.

(g) The payment of principal amount and the interest were regular during the year.

(iv) There is 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 and no major weakness has been noticed in the internal control system.

(v) The particulars of contracts and arrangements that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(vi) The Company has not accepted any deposits from the public.

(vii) The Company has not appointed an external agency as internal auditor during the year under review.

(viii)Central Government has prescribed maintenance of Cost Records under Section 209(1)(d) of the Act and such accounts and records have been prepared and maintained.

(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Customs duty, Value Added Tax, wealth-tax, service tax, cess and other material statutory dues with the appropriate authorities and there were no undisputed amounts payable which were in arrears as at 31st March 2014 for a period more than six months from the date they became payable.

(b) According to the records of the Company, the dues outstanding of income-tax, sales- tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, are as follows:

Name of the Nature of dues Amount Period to which the Forum where dispute Statue Rs. amount relates is pending

Income-tax Act 1961 Income tax 21,52,094 Assessment year IT Appeals before ITAT, 1999-2000 & High Court

Income- tax Act 1961 Income tax 54,43,989 Assessment year IT Appeals before ITAT, 2000-2001 & High Court

Total 75,96,083

Contrib -ution to Employee''s State 4,15,356 2000-01 High Court Employ -ee''s State Insurance Act 1948 Insurance Corpor -ation

* Excludes interest and penalty.

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

(xi) The Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

(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) The Company is not a chit fund / nidhi / mutual benefit fund / society and hence, Clause (xiii) of Paragraph 4 of the Order is not applicable to the Company.

(xiv) The Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as amended) are not applicable to the Company.

(xv) The Company has not given any guarantee for loans taken by others from bank or financial institutions.

(xvi) Term loans borrowed by the Company were applied for the purpose for which the loans were obtained and term loans have been closed at the end of the year.

(xvii) Funds raised on short-term basis have not been used for long-term investments.

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

(xix) The Company has not issued any debentures and hence, creation of charge does not arise.

(xx) The Company has not raised any money through public issue and hence, disclosure and verification of end use of money raised through public issues does not arise.

(xxi) According to the information and explanation given to us, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For M/s. S. VISWANATHAN

Chartered Accountants

FRN No.004770S

Place : Chennai

CHELLA K. SRINIVASAN

Date : May 29, 2014 PARTNER

Membership Number: 023305

---

Mar 31, 2013

Report on the Financial Statements.

We have audited the accompanying financial statements of Sri Lakshmi Saraswathi Textiles (Arni) Limited, which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit or Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information

Director''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. 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.

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.

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 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

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

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;

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 (3) of our report of even date)

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

b) According to the information and explanation given to us, the fixed assets have been physically verified during the year by the management at reasonable intervals. No material discrepancies were noticed on such verification.

c) During the year, the Company has not disposed off any major part of its fixed assets, affecting the going concern.

2. a) Physical verification of stocks of Finished Goods, Stores, Spare Parts and Raw materials was conducted by the management during the period, except materials lying with third parties for whom confirmation certificates have been obtained in some cases. Materials in Bond have been verified with the respective Bills of Entry. In our opinion, the frequency of verification was reasonable.

b) The procedures of physical verification of stocks followed by the management are reasonable and adequate, commensurate to the size of the company and the nature of its business.

c) On the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and were also adjusted.

3. a) The Company has not granted any loan to any party covered in the Register maintained under Section 301 of the Companies Act, 1956.

b) The Company has taken unsecured loan, from a company covered in the Register maintained under section 301 of the Companies Act 1956. However, the terms of repayment and interest are not prejudicial to the interest of the Company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures, commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to sale of goods.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the particulars of contracts and arrangements that need to be entered into the Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) The above said transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. As explained to us, the company is complying with the terms of Section 58A, 58AA and all other relevant provisions of the Companies Act, 1956, in respect of deposits accepted during the year.

7. The Company does not have a formal internal audit system during the year under review. However, the internal control procedures involve adequate internal checking of financial records.

8. Central Government has prescribed the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 and such accounts and records have been made and maintained.

9. The Company is regular in depositing its undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities.

10. The Company has not defaulted in repayment of dues to Financial Institutions or Banks.

11. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. None of the provisions of any special statute applicable to chit fund, nidhi or mutual benefit society is applicable to the Company.

13. The Company is not dealing or trading in shares, securities, debentures and other investment.

14. The company has not given any guarantee for loans taken by others from banks or financial institution.

15. The term loans have been applied for the purpose for which they were raised.

16. The funds raised by the Company on short-term basis have not been used for long-term investments.

17. 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.

18. The Company has not issued any debentures during the year.

19. The Company has not made any public issue during the year.

20. No fraud on or by the Company has been noticed or reported during the course of our audit.

21. In our opinion, the company is not dealing in or trading in Shares, Securities, debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditors'' Report) Order, 2003, as amended by the Companies (Auditors'' Report) (Amendment) Order, 2004 are not applicable to the company.

For M/s. S. VISWANATHAN

Chartered Accountants

Firm NO.004770S

Place : Chennai

Date : May29,2013 Membership Number: 023305

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Mar 31, 2012

We have audited the attached Balance Sheet of M/s. Sri Lakshmi Saraswathi Textiles (Ami) Limited as at 31st Mairch 2012 and also statement of the Profit and Loss Account of the Company for the year ended on that date annexed thereto and Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We 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 accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors' Report) Order, 2003, as amended by the Companies (Auditors' Report) (Amendment) Order, 2004, issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the annexure a statement of the matters specified in paragraphs 4 and 5 of the said Order.

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

a) We have obtained all the information and explanation 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.

c) The balance sheet and profit and loss account dealt with by this report are in agreement with the books of accounts.

d) In our opinion, the Balance Sheet and Profit and Loss Account read with Schedules and Notes thereon dealt with by this Report comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the CompaniesvAct 1956, so far as applicable.

e) On the basis of the written representation received from the directors as on 31st March 2012 we report that none of the directors is disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of subsection <1) of Section 274 of the Companies Act 1956.

f) In our opinion and to the best of our information and explanation given to us, the said accounts read with notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

i. In the case of Balance Sheet, of the state of affairs of the Company as at 3151 March 2012 and

ii. In the case of statement of Profit and Loss Account of the LOSS for 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 (3) of our report of even date)

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

b) According to the information and explanation given to us, the fixed assets have been physically verified during the year by the management at reasonable intervals. No material discrepancies were noticed on such verification. ‘

c) During the year, the Company has not disposed off any major part of its fixed assets, affecting the going concern.

2. a) Physical verification of stocks of Finished Goods, Stores, Spare Parts and Raw materials was conducted by the management during the period, except materials lying with third parties for whom confirmation certificates have been obtained in some cases. Materials in Bond have been verified with the respective Bills of Entry. In our opinion, the frequency of verification was reasonable.

b) The procedures of physical verification of stocks followed by the management are reasonable and adequate, commensurate to the size of the company and the nature of its business.

c) On the basis of our examination.of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and were also adjusted.

3. a) The Company has not granted any loan to any party covered in the Register maintained under

Section 301 of the Companies Act, 1956.

b) The Company has taken unsecured loan, from a company covered in the Register maintained under section 301 of the Companies Act 1956. However, the terms of repayment and interest are not prejudicial to the interest of the Company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures, commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to sale of goods.

5. a) Based on the audit procedures applied by us and according to the information and explanations

provided by the management, we are of the opinion that the particulars of contracts and arrangements that need to be entered into the Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) The above said transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. As explained to us, the company is complying with the terms of Section 58A, 58AA and all other relevant provisions of the Companies Act, 1956, in respect of deposits accepted during the year.

7. The Company does not have a formal internal audit system during the year under review. However, the internal control procedures involve adequate internal checking of financial records.

8. Central Government has prescribed the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 and such accounts and records have been made and maintained.

9. a) The Company is regular in depositing its undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities.

b) At the end of the financial year there were no dues of sales Tax, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess which have not been deposited on account of any dispute except as follows:

Name of the statute Nature of dues Amount Forum where dispute is pending

Income tax Income tax Rs. 1,30,76,791 IT Appeals before ITAT & CIT (A) & High Court

ESI ESI Rs. 4,15,356 High Court

10. The Company has not defaulted in repayment of dues to Financial Institutions or Banks.

11. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

12. None of the provisions of any special statute applicable to chit fund, nidhi or mutual benefit society is applicable to the Company.

13. The Company is not dealing or trading in shares, securities, debentures and other investment.

14. The company has not given any guarantee for loans taken by others from banks or financial institution.

15. The term loans have been applied for the purpose for which they were raised.

16. The funds raised by the Company on short-term basis have not been used for long-term investments.

17. 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.

18. The Company has not issued any debentures during the year.

19. The Company has not made any public issue during the year.

20. No fraud on or by the Company has been noticed or reported during the course of our audit.

21. In our opinion, the company is not dealing in or trading in Shares, Securities, debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of the Companies (Auditors' Report) Order, 2003, as amended by the Companies (Auditors' Report) (Amendment) Order, 2004 are not applicable to the company.

For M/s. S. VISWANATHAN Chartered Accountants Firm No.004770S

Place : Chennai

Date :August08,2012 CHELLA K. SRINIVASAN

PARTNER

Membership Number: 023305

---

Mar 31, 2010

We have audited the attached Balance Sheet of M/s. Sri Lakshmi Saraswathi Textiles (Ami) Limited as at 31st March 2010 and also the Profit and Loss Account of the Company for the year ended on that date annexed thereto and Cash Flow Statement for the year ended on that date. 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.

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 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 ouropinion.

As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Company Law Board in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the annexure a statement of the matters specified in paragraphs 4 and 5 of the said Order.

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

a) We have obtained all the information and explanation 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.

c) The balance sheet and profit and loss account dealt with by this report are in agreement with the books of accounts.

d) In our opinion, the Balance Sheet and Profit and Loss Account read with Schedules and Notes thereon dealt with by this Report comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act 1956, so far as applicable.

e) On the basis of the written representation received from the directors as on 31st March 2010 we report that none of the directors is disqualified as oh 31s! March 2010 from being appointed as a director in terms of clause (g) of subsection (1) of Section 274 of the Companies Act 1956.

f) In our opinion and to the best of our information and explanation given to us, the said accounts read with notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

i. In the case of Balance Sheet, of the state of affairs of the Company as at 31stMarch 2010 and ii. In the case of Profit and Loss Account of the LOSS for 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 (3) of our report of even date)

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

b) According to the information and explanation given to us, the fixed assets have been physically verified during the year by the management at reasonable intervals. No material discrepancies were noticed on such verification.

c) During the year, the Company has not disposed off any major part of its fixed assets, affecting the going concern.

2. a) Physical verification of stocks of Finished Goods, Stores, Spare Parts and Raw materials was conducted by the management during the period, except materials lying with third parties for whom confirmation certificates have been obtained in some cases. Materials in Bond have been verified with the respective Bills of Entry. In our opinion, the frequency of verification was reasonable.

b) The procedures of physical verification of stocks followed by the management are reasonable and adequate, commensurate to the size of the company and the nature of its business.

c} Oh the basis of our examination of the records of inventory, we are of the opinion that the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and were also adjusted.

3. a) The Company has not granted any foan to any party covered in the Register maintained under Section 301 of the Companies Act, 1956.

b) The Company has taken unsecured loan, from a company covered in the Register maintained under section 301 of the Companies Act 1956 and from a Director. However, the terms of repayment and interest are not prejudicial to the interest of the Company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures, commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to sale of goods.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the particulars of contracts and arrangements that need to be entered into the Register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) The above said transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. As explained to us, the company is complying with the terms of Section 58A, 58AA and all other relevant provisions of the Companies Act, 1956, in respect of deposits accepted during the year.

7. The Company does not have a formal internal audit system during the year under review. However, the internal control procedures involve adequate internal checking of financial records.

8. Central Government has prescribed the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 and such accounts and records have been made and maintained.

9. a) The Company is regular in depositing its undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State insurance, Income Tax, Sales Tax, Wealth.Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities.

b) At the end of the financial,year there were no dues of Sales Tax, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess which have not been deposited on account of any dispute except as follows:

Name of the statue Nature of dues Amount Forum where dispute is pending

Income tax Income tax Rs. 1,30,76,791 IT Appeals before

ITAT & CIT(A) & High Court

ESI ESI Rs. 4,15,356 Labour Court



10.The Company does not have accumulated losses. However, the Company has incurred cash loss during the financial year 2009-10 and in the previous financial year.

11.The Company has not defaulted in repayment of dues to Financial Institutions or Banks.

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

13.None of the provisions of any special statute applicable to chit fund, nidhi or mutual benefit society is applicable to the Company.

14.The Company is not dealing or trading in shares, securities, debentures and other investment.

15.The company has not given any guarantee for loans taken by others from banks or financial institution.

16.The term loans have been applied for the purpose for which they were raised.

17.The funds raised by the Company on short-term basis have not been used for long term investments.

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.

19.The Company has not issued any debentures during the year.

20.The Company has not made any public issue during the year.

21.No fraud on or by the Company has been noticed or reported during the course of our audit.

22.in our opinion, the company is not dealing in or trading in Shares, Securities, debentures and other investments. Accordingly, the provisions-of clause 4 (xiv) of the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004 are not applicable to the company.

For M/s. S. VISWANATHAN

Chartered Accountants

Firm NO.004770S

CHELLAK.SRINIVASAN

Place : Chennai PARTNER

Date : May 28, 2010 Membership Number:23305