Auditor Report of Velan Hotels Ltd.

Mar 31, 2024

We have audited the standalone financial statements of Velan Hotels Limited (“the Company”), which comprise
the Balance Sheet as at March 31, 2024, and the Statement of Profit and Loss, the Statement of Changes in
Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a
summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
standalone financial statements give the information required by theAct in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the
Company as at March 31,2024, and Loss, Changes in Equity and its Cash Flows for the year ended on that date,
subject to the notes given below with regard to Going Concern and other Key Audit Matters.

Basis for Qualified Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of
the Companies Act, 2013. 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 together
with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013 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.

Going Concern

We draw attention to Note No. 36 of the Financial Statement for the year ended 31st March 2024. The Company''s
borrowings were taken over by M/s. RARE Asset Reconstruction Company Limited (“ARC”) commencing from
April 1, 2017 and out of the final One-time settlement amount of Rs. 97.32 crores agreed with the ARC, the
Company has made a payment of Rs. 59.48 cr upto 31st March 2023 and during the year, the company has repaid
a further sum of Rs.75 lacs from the refund of security deposit held with M/s. Avenue Supermarts Limited on Sale
of Mall and part of multiplex Properties. The Company intends to repay the balance to the ARC from the sale of
other assets of the Company.

Further, we draw attention to Note No. 35, the Company having suspended all business operations and with no
revenue being generated, the ability of the Company to repay its debts depends on the quantum of realisation
from the sale of Assets, there exists a concern on the ability of the Company continuing as a Going Concern. In
view of the above, ouropinion is Qualified.

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 for the financial year ended March 31,2024. 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. For each matter below, our description of how our audit addressed the matter
is provided in that context.

Key audit matters identified in ourauditaresummarized asfollows:

? The ability of the Company Continuing as a Going Concern

? Confirmation of balanceof Outstanding Debt

? ImpairmentofAssets

? Delays in remittanceofstatutorydues

? Gratuityand Leave Encashment accounted for on an estimated basis

Key Audit Matter

How our audit addressed the Key Audit Matter

Abilitv of the ComDanv Continuina as a Goina Concern As at 31st March 2024, the Company has suspended all operations of the Company and there exists no revenue generation to meet the debt obligations and to continue the operations. Accordingly, it has been determined as a key audit matter.

Our audit procedures in relation to the assessment of going concern included: - Obtaining an understanding of and assessing the design, implementation and operating effectiveness of key internal controls over the existence and performance of Revenue and Receivables activities; - Audit of debt obligations as of the year ended March 31, 2024; - Estimating the extent of revenue to continue the operations on ''a Going Concern Basis'', - Assessment of the revenue-generating capacity of the Company to reasonably meet its debt obligations. Key Observation: We draw attention to Note No. 36 of the Financial statement for the year ended 31st March 2024. The Company''s borrowings were taken over by M/s. RARE Asset Reconstruction Company Limited (“ARC”) commencing from April 1,2017 and out of the final One-time settlement amount of Rs. 97.32 crores agreed with the ARC, the company has made a payment of Rs. 59.48 cr upto 31st March 2023 and during the year, the company has repaid a further sum of Rs.75 lacs from the refund of security deposit held with M/s. Avenue Supermarts Limited on Sale of Mall and part of multiplex Properties. The company intends to repay the balance to the ARC from the sale of other assets of the Company. Further, we draw attention to Note No. 35, the Company having suspended all business operations and with no revenue being generated, the ability of the Company to repay its debts depends on the quantum of realisation from the sale of Assets, there exists a concern on the ability of the Company continuing as a Going Concern. In view of the above, our opinion is Qualified.

Key Audit Matter	How our audit addressed the Key Audit Matter
Confirmation of balance of Outstanding Debt: As on the date of Balance Sheet, the company has not obtained confirmation statement from ARC for Outstanding Debt.	Our audit procedures in relation to assessment of outstanding balance of debt as on 31.03.2024: - Tested the information used by management for outstanding debts. - Obtained necessary evidences to confirm the transfer of closing outstanding debts with Banks to ARC.
	Key Observation: With the final OTS offer provided by the ARC and accepted by the Company, such communication has been considered for the confirmation of the Outstanding Debt. Confirmation of balances have not obtained for Loans and Advances and Sundry Creditors and accordingly the respective figures have been stated at book values
Impairment of Assets For the Assets, which are taken over by ARC against the amount due, has been nottested for Impairment.	Ouraudit procedures in relation Impairment of Assets: - Obtained list of Fixed Assets by carrying amount, which is original bookvalue less depreciation. - Tested the carrying amount for impairment using discounted cashflows. - Adjusted the fixed assets for reduction in carrying value and recognized the loss.
	Key Observation: The test for the impairment of the assets tied to the borrowings have not been carried out as only a portion of the assets have been sold as at the year end. With the other assets still in the possession of the Company, impairment, if any, shall be quantifiable only on completion of the sale of the assets of the Company and extinguishment of the Debt. Therefore no loss is recognised on accountof potential impairment.
Delays in remittance of statutory dues: Company is delay in remittance of statutory dues to various statutory authorities.	There has been significant delays in meeting the statutory obligations, including Service Tax, Goods and Services Tax and Value Added Taxes, which are due in excess of 6 months as on the date of this Report. The Company is taking necessary steps to settle the balance Statutory Dues as and when the sale of assets are completed.

Key Audit Matter	How our audit addressed the Key Audit Matter
Gratuity and Leave Encashment	Our audit procedures in relation accounting of Gratuity and
accounted on estimated basis	Leave Encashment on Actuarial Basis:
As on the balance sheet date, the	- Tested the accuracy and completeness of data sent by
company has not made provision for	management to Actuaries in computing the provision
gratuity and leave encashment on	for Gratuity and Leave Encashment;
Actuarial Basis	- Tested the appropriateness of methods, other inputs
	and significant assumptions used by the Actuary.
	Key Observation:
	As all the operations of the Company have been suspended, all the employees except KMP have resigned, no provision for Gratuity and Leave Encashment is required. The Company shall have to re-assess the carrying liability of Gratuity and Leave Encashment to arrive at the appropriate liability. Till such time no revisions in the carrying value of Gratuity and Leave Encashment has been considered. The impact of change in profitability could not ascertained.

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

The Company''s Board of Directors is responsible for other information. The other information comprises the
information included in the financial highlights, board''s report but does not include the financial statements and
ourauditor''s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.

In Connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we
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 Responsibilityforthe 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 of these standalone financial statements that give a true and fair
view of the financial position, financial performance, changes in equity and cash flows of the Company in
accordance with the accounting principles generally accepted in India, including the Accounting Standards
specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of the financial statement
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
realisticalternativebuttodoso.

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud orerrorand 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 misstatements, 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 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 the management.

• Conclude on the appropriateness of the 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 continue as 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 going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.

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

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 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

As required by the Companies (Auditor''s Report) Order, 2020 (“the Order”), issued by the Central Government of
India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure-’A’, a
statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable. 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 ouraudit.

b) 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 agreementwith the books of account.

d) In our opinion, the aforesaid standalone 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 the written representations received from the directors as on 31st March, 2024 taken on
record by the Board of Directors, none of the directors is disqualified as on 31st 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”.

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, No remuneration is paid by the Company to its directors
during the year; and

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 disclosed the impact of pending litigations on its financial position in its financial
statements - Refer Note 37 to the financial statements;

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

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

iv. (i) The management has represented that, to the best of it''s knowledge and belief, no funds have

been advanced or loaned or invested (either from borrowed funds or share premium or any
other sources or kind of funds) by the company to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the company
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;

(ii) The management has represented, that, to the best of it''s knowledge and belief, no funds have
been received by the company from any person(s) or entity(ies), including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the
company shall, whether, directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and

(iii) Based on such audit procedures performed 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 undersub-clause(i)and (ii) contain any material misstatement.

v. No dividend is declared during the year and therefore compliance with Section 123 of the act is not
applicable forthe company

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

As proviso to Rule 3(1) of the Companies (Accounts) Rule, 2014 is applicable from 1 April 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.

KRISHAAN & CO

Chartered Accountants
FRN : 001453S

i

_Dl _. (K. SUNDARRAJAN)

Place : Tirupur '' ''

Partner

Dated : 29.05.2024 (Membership No. :208431)

UDIN : 24208431BKAJNA3534

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Mar 31, 2015

We have audited the accompanying financial statements of M/s.Velan Hotels Limited which comprise the Balance Sheet as at 31st March 2015, 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.

Management's Responsibility for the Financial Statements

The Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the company in accordance with the Accounting Principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Companies Act, 2013, 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 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 internal financial control that were operating effectively for ensuring the accuracy and completeness of 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, accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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 circumstance, but not for the purpose of expressing an opinion on whether the company has in place adequate internal control system over financial reporting and the operating effectiveness of such controls An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

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

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:-

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2015;

ii) in the case of Profit and Loss Account , of the loss for the year ended on that date; and

iii) in the case of Cash Flow Statement, of the Cash Flow 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, issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Companies Act 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

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

b. in our opinion proper books of 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 ,Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the financial statements comply with the Accounting Standards specified under section 133 of the Companies Act,2013, read with rule 7 of the Companies (Accounts) Rules, 2014.

e. on the basis of written representations received from the directors as on 31st March, 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of sub-section(2) of Section 164 of the Companies Act, 2013.

ANNEXURE

i) a) In respect of Fixed Assets :

a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) The Fixed Assets have been physically verified by the management at reasonable intervals and we are informed that no material discrepancies have been noticed on such verification.

ii) a) In respect of Inventories :

a) Stock of stores, provisions, crockeries, beverage, etc., have been physically verified by the management at reasonable intervals during the year.

b) In our opinion, the procedures of physical verification of inventories 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 have been noticed on physical verification.

iii) The Company has not granted any loans, secured or unsecured to Companies/ firms or other parties covered in the registered maintained under section 189 of the Companies Act 2013.

iv) In our opinion and according to the information and explanations given to us, 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. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

v) In respect of statutory dues:

a) The company is not generally regular in depositing the undisputed statutory dues, i.e. Provident Fund, Employees State Insurance, Income tax, Sales Tax, , Wealth Tax ,Service Tax, Duties of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues with appropriate authorities.

b) In our opinion and according to the information and explanations given to us, there are no disputed statutory dues including Income tax, Sales Tax, , Wealth Tax ,Service Tax, Duties of Customs, Duty of Excise, Value Added Tax, Cess as at the year end.

c) In our opinion and according to the information and explanation given to us , the company is not required to transfer amounts to Investor Education and Protection Fund.

vi) The accumulated losses at year end are however less than fifty percent of its networth. However during the year the company has incurred cash losses. The company has not incurred cash losses during the immediately preceding previous year.

vii) The Company has defaulted in repayment of dues to Banks, which has been classified as NPA Since 01.04.2014:

Name of Bank Balance due (Rs. Balance due in Crore) Principal (Rs. in Crore) Interest

Allahabad Bank - Tirupur Branch 42.43 8.62

Andhra Bank - Coimbatore Branch 39.74 7.04

viii) According to the information and explanations given to us, no fraud on or by the company has been reported during the year.

ix) According to information and explanation furnished to us , clauses (v) (vi) (x) and (xi) of the Order 2015 are not applicable to the entity.

P.S.KRISHNAN & CO Chartered Accountants FRN 001532S

(G.Krishnamurthi) Place : TIRUPUR Partner Date : 28.05.2015 (Membership No. 23896)

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Mar 31, 2014

We have audited the accompanying financial statements of M/s.Velan Hotels Limited which comprise the Balance Sheet as at 31st March 2014, 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.

Management''s Responsibility for the Financial Statements

The Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the company in accordance with the Accounting Principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 1956, read with General Circular 15/2013 dated 13 September 2013, issued by 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.

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 the Management, as well as evaluating the overall presentation of the financial statements.

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

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:-

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2014;

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

(iii) in the case of Cash Flow Statement, of the Cash Flow 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, as amended, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, we give the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said 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 and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d. in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act 1956,read with General Circular 15/2013 dated 13 September 2013 in respect of Section 133 of the Companies Act,2013; and

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^) of Section 274 of the Companies Act, 1956.

Annexure

(I) In respect of Fixed Assets :

(a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) The Fixed Assets have been physically verified by the management at reasonable intervals and we are informed that no material discrepancies have been noticed on such verification.

(c) The disposal of fixed assets during the year under consideration is not substantial.

(ii) In respect of Inventories :

(a) Stock of stores, provisions, crockeries, beverage, etc., have been physically verified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories 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 have been noticed on physical verification of inventory as compared to book records.

(iii) (a) The Company has not granted any loan to companies, firms or other parties listed in the Register maintained under section 301 of the Companies Act, 1956. and hence the provisions of clause 4(iii)(b),(c)&(d) are not applicable.

(b) The company has taken loans (unsecured) from companies, firms, or other parties covered in the Register maintained u/s 301 of the Act.

1. No. of Parties : 2

2. Aggregate amount : Rs. 393.48 Lakhs

(c) In our opinion, the terms and conditions are not prima facie prejudicial to the interest of the company.

(d) The company is regular in the repayment of both the principal and the interest.

(iv) In our opinion and according to the information and explanations given to us, 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. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

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

(b) In our opinion and according to the information and explanations given to us, the transactions during the year, made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956, are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(vii) In respect of statutory dues:

(a) The company is not generally regular in depositing the undisputed statutory dues, i.e. Provident Fund, Employees State Insurance, Service Tax, Income tax, Sales tax, Cess and other statutory dues with appropriate authorities. However the delays have been made good before year end.

(b) In our opinion and according to the information and explanations given to us, there are no disputed statutory dues including Income tax, Sales tax, Service tax, and Cess as at the yearend.

(viii) The Company has not defaulted in repayment of dues to Banks, except the following :

Balance due Balance due Remarks Name of Bank (Rs in Lakhs) (Rs in Lakhs) (Delay in No of Principal Interest Months)

Allahabad Bank 138.00 381.84 6 Tirupur Branch

Andhra Bank 92.00 304.75 5 Coimbatore Branch

(ix) During the year, the term loans raised from Banks have been used for the purpose for which the same is availed.

(x) In our opinion and according to the information and explanations given to us and also on an overall examination of the Balance Sheet of the Company, the funds raised during the year on short term basis have not been used for long term investments and vice versa.

(xi) According to the information and explanations given to us, no fraud on or by the company has been reported during the year.

(xii) According to information and explanation furnished to us , clauses (v) (vii) (x) (xii) (xiii) (xiv) (xv) (xviii) (xix) & (xx) of the Order 2003 are not applicable to the entity.

Place : Tirupur for P.S.Krishnan & Co Date : 30.05.2014 Chartered Accountants FRN 001532S (G.Krishnamurthi)

Partner (Membership No: 23896)

---

Mar 31, 2012

We have audited the attached Balance Sheet of M/s. VELAN HOTELS LIMITED, TIRUPUR as at 31st March, 2012 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books.

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

(iv) In our opinion and subject to our remarks as contained above, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred in the Companies Accounting Standard Rules, 2006 read with Section 211 (3C) of the Companies Act, 1956 ;

(v) In our opinion and based on information and explanations given to us, none of the directors is disqualified as on 31st March 2012, from being appointed as directors in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956 ;

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the Significant Accounting Policies and other Notes thereon, give, subject to Clause(iv) above, 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 :

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012 ;

(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 Cash Flow Statement, of the cash flow for the year ended on that date.

Annexure Referred to in Paragraph No. 3 of our Report of even date.

(i) In respect of Fixed Assets :

(a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) The Fixed Assets have been physically verified by the management at reasonable intervals and we are informed that no material discrepancies have been noticed on such verification.

(c) The Fixed assets disposed off during the year, in our opinion, do not constitute a substantial portion of fixed assets of the Company.

(ii) In respect of Inventories :

(a) Stock of stores, provisions, crockeries, beverage, etc., have been physically verified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories 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 have been noticed on physical verification of inventory as compared to book records.

(iii) (a) The Company has not granted any loan to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 and hence the provisions of clause 4(iii)(b), (c)&(d) are not applicable.

(b) The company has taken loans (unsecured) from companies, firms, or other parties covered in the register maintained u/s 301 of the Act.

1. No. of Parties : 2

2. Aggregate amount : Rs. 28.31 Lakhs

(c) In our opinion, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the company.

(d) The company is regular in the repayment of both the principal and the interest.

(iv) In our opinion and according to the information and explanations given to us, 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. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

v) (a) According to the information and explanations given to us, we are of the opinion that the particulars

of contracts and arrangements that need to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions during the year made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956, are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The company has not accepted any deposit from the public and hence clause 4(vi) of the Order is not applicable.

(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 the maintenance of cost records for the products of the company under section 209(1)(d) of the Companies Act, 1956.

(ix) In respect of statutory dues:

(a) Except in the case of Provident Fund and Employees State Insurance, the company is regular in depositing the undisputed statutory dues including Income tax, Sales tax, Wealth tax, Service tax, Customs Duty and Cess and other statutory dues with appropriate authorities.

(b) In our opinion and according to the information and explanations given to us, there are no disputed statutory dues including Income tax, Sales tax, Wealth tax, Service tax, Customs Duty and Cess as at the year end.

(x) The company has not incurred cash losses in the financial year covered by our audit and in the immediately proceeding financial year.

(xi) The Company has not defaulted in repayment of dues to Banks.

(xii) In our opinion and according to the information and explanations given to us, 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 Fund/Society and therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

(xiv) In our opinion and according to the information and explanations given to us, the company 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 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 guarantee for loans taken by others from banks/financial institutions during the year.

(xvi) During the year, term loans raised have been used for the purpose for which the loan is availed.

(xvii) In our opinion and according to the information and explanations given to us and also on an overall examination of the Balance Sheet of the Company, the funds raised during the year on short term basis have not been used for long term investments.

(xviii) In our opinion and according to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Companies Act, 1956, during the year.

(xix) The company has not issued any debentures and hence clause 4(xix) of the Companies (Auditor's Report) Order, 2003 is not applicable to the company.

(xx) We have verified the end use of money raised by public issue as disclosed in the additional notes - point no (u) to the financial statement.

(xxi) According to the information and explanations given to us, no fraud on or by the company has been reported during the year.



for P. S. Krishnan & Co. Chartered Accountants FRN. 001532S

(G. Krishnamurthi) Partner (Membership No: 23896)

Place: Tirupur Date : 30.05.2012

---

Mar 31, 2011

We have audited the attached Balance Sheet of M/s. VELAN HOTELS LIMITED.TIRUPUR as at 31st March,2011 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books.

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

(iv) In our opinion and subject to our remarks as contained above, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred in the Companies Accounting Standard Rules 2006 read with Section 211 (3C) of the Companies Act, 1956;

(v) In our opinion, and based on information and explanations given to us, none of the directors is disqualified as on 31st March 2011 from being appointed as directors in terms of Clause (g) of su-- section (1) of section 274 of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the Significant Accounting Policies and other Notes thereon, give subject to clause(vi) above 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 :-

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 st March, 2011;

(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 Cash Flow Statement, of the cash flow for the year ended on that date.

Annexure Referred to in Paragraph No.3 of our Report of even date.

(i) In respect of Fixed Assets:

(a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) The Fixed Assets have been physically verified by the management at reasonable intervals and we are informed that no material discrepancies have been noticed on such verification.

(c) During the year, there is no disposal of any substantial portion of fixed assets of the Company.

(ii) In respect of Inventories:

(a) The stock of stores, provisions, crockeries, beverage, etc., have been physically verified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories 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 have been noticed on physical verification of inventory as compared to book records.

(iii) (a) The Company has not granted any loan to companies, firms or other parties listed in the Register maintained under section 301 of the Companies Act, 1956. and hence the provisions of clause 4(iii)(b),(c)&(d) are not applicable.

(b) The company has taken loans (unsecured) from companies, firms, or other parties covered in the Register maintained u/s 301 of the Act.

1. No. of Parties : 3

2. Aggregate amount : Rs. 68.67 Lakhs

(c) In our opinion, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the company.

(d) The company is regular in the payment of both the principal and the interest.

(iv) In our opinion and according to the information and explanations given to us, 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. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

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

(b) In our opinion and according to the information and explanations given to us, the transactions during the year, made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956, are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The company has not accepted any deposit from the public and hence clause 4(vi) of the Order is not applicable.

(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 the maintenance of cost records for the products of the company under section 209(1)(d) of the Companies Act, 1956.

(ix) In respect of statutory dues:

(a) Except in the case of Provident Fund and Employees State Insurance, the company is regular in depositing the undisputed statutory dues including Income tax, Sales tax, Wealth tax, Service tax, Customs Duty and Cess and other statutory dues with appropriate authorities.

(b) In our opinion and according to the information and explanations given to us, there are no disputed statutory dues including Income tax, Sales tax, Wealth tax, Service tax, Customs Duty and Cess as at the year end.

(x) The company has not incurred cash losses in the financial year covered by our audit and in the immediately proceeding financial year.

(xi) The Company has not defaulted in repayment of dues to Banks.

(xii) In our opinion and according to the information and explanations given to us, 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 Fund/Society and therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order 2003 are not applicable to the company.

(xiv) In our opinion and according to the information and explanations given to us, the company 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 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 guarantee for loans taken by others from banks/financial institutions during the year.

(xvi) Duringtheyear new term loans have been used for the purpose for which the loan is availed.

(xvii) In our opinion and according to the information and explanations given to us and also on an overall examination of the Balance Sheet of the Company, the funds raised during the year on short term basis have not been used for long term investments.

(xviii) In our opinion and according to the information and explanations given to us, the company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act, 1956, during the year.

(xix) The company has not issued any debentures and hence clause 4(xix) of the Companies (Auditor's Report) Order 2003, is not applicable to the company.

(xx) During the year, the company has not raised any money by way of public issue

(xxi) According to the information and explanations given to us, no fraud on or by the company has been reported during the year.

for P.S.Krishnan & Co Chartered Accountants FRN 001532S

(G.Krishnamurthi) Partner (Membership No: 23896)

Place: Tirupur Date : 28.06.2011

---

Mar 31, 2010

We have audited the attached Balance Sheet of M/s. VELAN HOTELS LIMITED,TIRUPUR as a 31st March,2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on tha date annexed thereto. These financial statements are the responsibility of the Companys management. Ou responsibility is to express an opinion on these financial statements based on our audit.

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

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in term of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books.

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

(iv) In our opinion and subject to our remarks as contained above, the Balance Sheet, Profit & Los Account and Cash Flow Statement dealt with by this report comply with the accounting standard referred in the Companies Accounting Standard Rules 2006 read with Section 211 (3C) of the Companies Act, 1956 ;

(v) In our opinion, and based on information and explanations given to us, none of the Directors is disqualified as on 31st March 2010 from being appointed as Directors in terms of Clause (g) of sub section (1) of section 274 of the Companies Act, 1956 ; (vi) Attention is invited to Note No:14 of the Notes forming part of the accounts in respect non-disclosure o information required under Micro, Small and Medium Enterprises Development Act,2006

(vii) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the Significant Accounting Policies and other Notes thereon, give subjec to clause(vi) above 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 :-

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 st March, 2010 ;

(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 Cash Flow Statement, of the cash flow for the year ended on that date.

Annexure Referred to in Paragraph No.3 of our Report of even date.

(i) In respect of Fixed Assets :

(a) The Company is maintaining proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) The Fixed Assets have been physically verified by the Management at reasonable intervals and we are informed that no material discrepancies have been noticed on such verification.

(c) During the year, there is no disposal of any substantial portion of fixed assets of the Company. (ii) In respect of Inventories :

(a) The stock of stores, provisions, crockeries, beverage, etc., have been physically verified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories 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 have been noticed on physical verification of inventory as compared to book records.

(iii) (a) The Company has not granted any loan to companies, firms or other parties listed in the Register maintained under section 301 of the Companies Act, 1956. and hence the provisions of clause 4(iii)(b),(c)&(d) are not applicable.

(b) The company has taken loans (unsecured) from companies, firms, or other parties covered in the Register maintained u/s 301 of the Act.

1. No. of Parties : 4

2. Aggregate amount : Rs. 193.52 Lakhs

(c) In our opinion, the rate of interest and other terms and conditions are not prima facie prejudicial to the interest of the Company.

(d) The company is regular in the payment of both the principal and the interest.

(iv) In our opinion and according to the information and explanations given to us, 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. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

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

(b) In our opinion and according to the information and explanations given to us, the transactions during the year, made in pursuance of contracts or arrangements entered in the Register maintained under Section 301 of the Companies Act, 1956, are at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The company has not accepted any deposit from the public and hence clause 4(vi) of the Order is not applicable.

(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 the maintenance of cost records for the products of the Company under section 209(1)(d) of the Companies Act, 1956.

(ix) In respect of statutory dues:

(a) Except in the case of Provident Fund and Employees State Insurance, the Company is regular in depositing the undisputed statutory dues including Income tax, Sales tax, Wealth tax, Service tax, Customs Duty and Cess and other statutory dues with appropriate authorities.

(b) In our opinion and according to the information and explanations given to us, there are no disputed statutory dues including Income tax, Sales tax, Wealth tax, Service tax, Customs Duty and Cess as at the year end.

(x) The company has not incurred cash losses in the financial year covered by our audit and in the immediately proceeding financial year.

(xi) The Company has not defaulted in repayment of dues to Banks.

(xii) In our opinion and according to the information and explanations given to us, 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 Fund/Society and therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

(xiv) In our opinion and according to the information and explanations given to us, the Company 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 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 guarantee for loans taken by others from banks/financial institutions during the year.

(xvi) During the year new term loans have been used for the purpose for which the loan is availed.

(xvii)In our opinion and according to the information and explanations given to us and also on an overall examination of the Balance Sheet of the Company, the funds raised during the year on short term basis have not been used for long term investments.

(xviii)In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act, 1956, during the year.

(xix) The company has not issued any debentures and hence clause 4(xix) of the Companies (Auditors Report) Order 2003, is not applicable to the Company.

(xx) During the year, the company has not raised any money by way of public issue

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been reported during the year.

Place: Tirupur for P.S.Krishnan & Co

Date : 23.07.2010 Chartered Accountants

FRN 001532S

(G.Krishnamurthi)

Partner

(Membership No: 23896)

P.S.Krishnan & Co 40A,Appachinagar Main Road ,

Chartered Accountants Tirupur 641 607.

Phones: 0421 - 2227526 (5 Lines)