Auditor Report of Dhar Textile Mills Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of THE DHAR TEXTILE MILLS LTD. which comprise the Balance Sheet as at March 31, 2014 and the Statement of Profit and Loss 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 and financial performance of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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 entity''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 the Profit and Loss Account, of the profit/ loss for the year ended on that date; and

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 account as required by law have been kept by the Company so far as appears from our examination of those books

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

d) In our opinion, the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

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

g) a) Note No.1 of schedule "O" Part B regarding non redemption of redeemable preference shares amounting to Rs. 350 lacs which fell due up to 1st February 2006 and arrears of preference dividend of Rs. 5.555 crores. (Previous year Rs.5.555 crores).

b) Note No.2 a of schedule "O" Part B regarding non payment of debts from Banks, IDBI, and Hire Purchase company amounting to Rs.185.61 Cores, due to failure of reschedulement of repayment of loans under Corporate Debt Restructuring (CDR) mechanism of RBI .

3. Subject to the foregoing, In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Significant Accounting Policies and Notes on Accounts in Schedule ''O'' and those appearing elsewhere in the accounts give the information required by the Companies Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

1. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014; and

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

3. In the case of Cash Flow Statement, of the Cash Flow for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR''S REPORT ON THE ACCOUNTS OF THE DHAR TEXTILE MILLS LTD.FOR THE YEAR ENDING 31st MARCH, 2014

As required by the Companies (Auditor''s report) Order, 2003 issued by the central Government of India in terms of section 227(4-A) of the Companies Act, 1956, we report that:

1 In respect of Fixed Assets:

(A) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

(B) As explained to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such physical verification.

(C) In our opinion the Company has not disposed off any substantial/major part of fixed assets during the year and the going concern status of the company is not affected.

2 In respect of its Inventories:

(A) As explained to us, the inventory has been physically verified by the management at regular intervals during the year.

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

(C) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company has maintained proper records of inventory. And there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3 In respect of Loans, Secured or Unsecured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956:

(A) As informed, during the year under audit the company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Act hence sub-clause (b), (c) and (d) are not applicable.

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 nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control.

5 In respect of contracts or arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

(A) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements that needed to be entered in the register maintained under section 301 of the Companies Act 1956 have been so entered. Although register maintained under section 301 are not produced before us.

(B) In our opinion and explanation given to us, the transactions exceeding the value of 5 lakh in respect of any party during the year have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time where such prices are available.

6 In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules made there under are not applicable to the Company.

7 In our opinion, the company doesn''t have an internal audit system commensurate with its size and nature of its business.

8 To the best of our knowledge the Central Government has prescribed the maintenance of cost records U/s 209(1) (d) of the Company''s Act, 1956 for the products of the company.

9 In respect of statutory dues:

According to the records of the company examined by us, in our opinion, the company is irregular in depositing undisputed statutory dues including Provident Fund Employees State Insurance, Income-Tax, Sales-Tax, and Excise Duty, except Service Tax Custom Duty, cess and any other statutory dues with the appropriate authorities. According to the records of the company examined by us, no undisputed amount payable in respect of Income Tax, Wealth Tax, Custom Duty and Excise Duty were in arrears as at 31st March 2014 for a period of more than 6 months from the date they become payable other than Employee State Insurance of Rs.55,648/-, Provident fund of Rs.2,07,543/-, Electricity duty of Rs.10,74,756/-.

The disputed statutory dues aggregating to Rs.38,46,025/- have not been deposited on account of matters pending before appropriate authorities as under, we are enclosing the annexure for the same:

S. Name of the Statue Nature of Dues Forum where dispute Amount No is pending

1 Labour Commissioner Labour Due M.P. Government 8,61,300/- (For the Labour Department Year 2011)

2 Labour Commissioner Labour Due M.P. Government 7,97,162/- (Feb - July Labour Department 2010)

3 Labour Commissioner Labour Due M.P. Government 21,87,563/- (Aug10 - Labour Department Jan 2011)

10 The company is a sick company within the meaning of Sick Industrial Companies (special Provision) Act, 1985, as its accumulated losses exceeded fifty percent of its Net Worth at the end of the financial year. The Company has incurred cash losses during the current year as also during the immediately preceding financial year. Reference file under section 15(1) of sick Industrial Companies (special Provision) Act, 1985 was registered as case no. 353/2004 vide letter No. 3 (T-22)/BC/2004 dated 30/11/2004 issued by Registrar, Board of Industrial and Financial Reconstruction, New Delhi. The bench has declared that the Company is a sick Industrial Company in terms of 3 (1) (O) of the Act w.e.f. 2.05.2006

11 Based on our audit procedures and on the basis of information and explanations given by the management, the Company has defaulted in the repayment of following dues to banks or financial institutions as at balance sheet date:

S. Name of the Bank/Financial Amount of Default Default Continued No. Institute (Rs. in Crores) since

1 State Bank of India* 113.26 30th April 04

2 Industrial Development Bank of India 62.51 30th June 04

3 State Bank of India* 53.88 30th April 04

4 Canara Bank 23.75 30th April 04

5 State Bank of Saurashtra* 18.83 30th April 04

6 Ceat Financial Services Ltd. 0.26

Total 272.49

*Standard Chartered Bank has takeover account of State Bank of India and State Bank of Saurashtra whereas Kotak Mahindra Bank Ltd. has taken over account of Industrial Development Bank of India in financial year 2006-07 & 2007-08.

During the year, Asset Reconstruction Company India Ltd. (ARCIL) and ASREC India Ltd. have takeover account of Standard Chartered Bank and Kotak Mahindra Bank Ltd., Canara Bank respectively.

12 In our opinion and according to information and explanation given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other security.

13 In our opinion the company is not a Chit Fund, Nidhi or Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(XIII) of the CARO, 2003 are not applicable to the company.

14 The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the order are not applicable.

15 In our opinion, the company has not given guarantees for loans taken by others from banks and financial institutions during the year.

16 In our opinion and according to information and explanation given to us, the Company has not availed of any term loans during the year.

17 According to the information and explanations given to us and on examination of balance sheet, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

18 The company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956, during the year. The price at which the shares have been issued is not prejudicial to the interest of the Company.

19 The Clause 13 of the order is not applicable, as the company has not issued any debentures during the year.

20 The Company has not raised money by any public issues during the year and hence the question of disclosure and verification of end use of such money does not arise.

21 In our opinion and according to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

For B.BANSAL & CO.

Chartered Accountants

FRN: 000450C

RAJENDRA BANSAL

Place: Indore ( PARTNER )

Date: 30/05/2014 Membership No. 073533

---

Mar 31, 2013

We have audited the attached Balance Sheet of THE DHAR TEXTILE MILLS LIMITED, as at 31st March, 2013 and also the Profit and Loss Account for the year ended on that date annexed thereto and also the 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.

1. 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.

2. As required by the Companies (Auditors'' Report) Order, 2003, as amended by CARO order 2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act 1956 (hereinafter referred to as the Act), we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 & 5 of the said order.

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

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

ii) In our opinion, proper books of account as required by law have been kept by the Company so far it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the offices not visited by us.

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

iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the mandatory Accounting Standards except AS 28 issued by /CAT referred to in Section (3C) of Section 211 of the Act;

v) On the basis of written representations received from the directors as on 31st March, 2013 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2013 from being appointed as a director in terms of clause (g) of section (1) of Section 274 of the Act;

4.a) Note No.l of schedule "O" Part B regarding non redemption of redeemable preference shares amounting to Rs. 35G lacs which fell due up to 1st February 2006 and arrears of preference dividend of Rs. 5.555 crores. (Previous year Rs.5.555 crores).

b) Note No.2 a of schedule "0" Part B regarding nonpayment of debts from Banks, IDBI, and Hire Purchase company amounting to Rs. 185.61 Cores, due to failure of re schedulement of repayment of loans under Corporate Debt Restructuring (CDR) mechanism of RBI.

c) Note No.4 of schedule "0" Part B regarding non provision for diminution in value of company''s investment amounting to Rs.4.69 lacs having no market value.

d) Note No. 18 of schedule "O* Part B regarding non receipt of confirmation from the respective bank in respect of self adjustment of interest on loan Rs.31.22 crores provided. (Previous Year Rs. 27.63 crores)

5. Subject to the foregoing, In our opinion and to the best of our information and according to the explanations given to us, they said accounts read together with Significant Accounting Policies and Notes on Accounts in Schedule and those appearing elsewhere in the accounts give the information required by the Companies Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR''S REPORT ON THE ACCOUNTS OF THE DHAR TEXTILE MILLS LTD.FOR THE YEAR ENDING 31st MARCH, 2013

As required by the Companies (Auditor''s report) Order, 2003 issued by the central Government of India in. terms of section 227(4-A) of the Companies Act, 1956, we report that:

1 In respect of Fixed Assets:

(A) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

(B) As explained to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such physical verification.

(C) In our opinion the Company has not disposed off any substantial/major part of fixed assets during the year and the going concern status of the company is not affected.

2 In respect of its Inventories:

(A) As explained to us, the inventory has been physically verified by the management at regular intervals during the year.

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

(C) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company has maintained proper records of inventory. And there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3 In respect of Loans, Secured or Unsecured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956:

(A) As informed, during the year under audit the company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Act hence sub-clause (b), (c) and (d) are not applicable.

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 nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control.

5 In respect of contracts or arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

(A) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements that needed to be entered in the register maintained under section 301 of the Companies Act 1956 have been so entered. Although register maintained under section 301 are not produced before us.

(B) In our opinion and explanation given to us, the transactions exceeding the value of 5 lakh in respect of any party during the year have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time where such prices are available.

6 In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules made there under are not applicable to the Company.

7 In our opinion, the company doesn''t have an internal audit system commensurate with its size and nature of its business.

8 To the best of our knowledge the Central Government has prescribed the maintenance of cost records U/s 209(1) (d) of the Company''s Act, 1956 for the products of the company.

9 In respect of statutory dues:

According to the records of the company examined by us, in our opinion, the company is irregular in depositing undisputed statutory dues including Provident Fund Employees State Insurance, Income-Tax, Sales-Tax, and Excise Duty, except Service Tax Custom Duty, cess and any other statutory dues with the appropriate authorities. According to the records of the company examined by us, no undisputed amount payable in respect of Income Tax, Wealth Tax, Custom Duty and Excise Duty were in arrears as at 31st March 2013 for a period of more than 6 months from the date they become payable other than Employee State Insurance of Rs.8, 18,782/-, Provident fund of Rs.l,92,606/-, Electricity duty ofRs.10, 76,734/-.

The disputed statutory dues aggregating to Rs.38,46,025/- have not been deposited on account of matters pending before appropriate authorities as under, we are enclosing the annexure for the same:

S. No. Name of the Statue Nature of Dues Forum where Amount dispute is pending

1 Labour Commissioner Labour Due M.P. Government 8,61,300/- (For the Year 2011) Labour department

2 Labour Commissioner Labour Due M.P. Government 7,97,162/- (Feb - July 2010) Lahour DePartment

3 Labour Commissioner Labour Due M.P. Government 21,87,563/- (Augl 0 - Jan 2011) Labour Department

10 Accumulated losses of the Company exceeded fifty percent of its Net Worth at the end of the financial year. The Company has incurred cash losses during the current year as also during the immediately preceding financial year.

11 Based on our audit procedures and on the basis of information and explanations given by the management, the Company has defaulted in the repayment of following dues to banks or financial institutions as at balance sheet date:

S. No. Name of the Bank/Financial Amount of Default Default Continued Institute (Rs. in Crores) since

1 State Bank of India* 113.26 30th April 04

2 Industrial Development Bank of India 62.51 30th June 04

3 State Bank of India* 53.88 30th April 04

4 Canara Bank 23.75 30th April 04

5 State Bank of Saurashtra* 18.83 30th April 04

6 Ceat Financial Services Ltd. 0.26

Total 272.49

Standard Chartered Bank has takeover account of State Bank of India and State Bank of Saurashtra whereas Kotak Mahindra Bank Ltd. has taken over account of Industrial Development Bank of India in financial year 2006-07 & 2007-08.

12 In our opinion and according to information and explanation given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other security.

13 In our opinion the company is not a Chit Fund, Nidhi or Mutual Benefit Fund/ Society. Therefore, the provisions of clause 4(XIII) of the CARO, 2003 are not applicable to the company.

14 The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the order are not applicable.

15 In our opinion, the company has not given guarantees for loans taken by others from banks and financial institutions during the year.

16 In our opinion and according to information and explanation given to us, the Company has not availed of any term loans during the year.

17 According to the information and explanations given to us and on examination of balance sheet, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

18 The company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956, during the year. The price at which the shares have been issued is not prejudicial to the interest of the Company.

19 The Clause 13 of the order is not applicable, as the company has not issued any debentures during the year.

20 The Company has not raised money by any public issues during the year and hence the question of disclosure and verification of end use of such money does not arise.

21 In our opinion and according to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

Place :INDORE For b.BANSAL & CO.

Date : 30/05/2013 Chartered Accountants

(RAJENDRA BANSAL)

PARTNER

Membership No: 073533

Registration No: 000450C

E-2, RATLAM KOTHI

---

Mar 31, 2012

We have audited the attached Balance Sheet of THE DHAR TEXTILE MILLS LIMITED, as at 31st March, 2012 and also the Profit and Loss Account for the year ended on that date annexed thereto and also the 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.

1. 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.

2. As required by the Companies (Auditors' Report) Order, 2003, as amended by CARO order 2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act 1956 (hereinafter referred to as the Act), we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 & 5 of the said order.

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

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

ii) In our opinion, proper books of account as required by law have been kept by the Company so far it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the offices not visited by us.

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

iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the mandatory Accounting Standards except AS 28 issued by ICAI referred to in Section (3C) of Section 211 of the Act;

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

Attention is invited to:

4. a) Note No.1 of schedule "O" Part B regarding non redemption of redeemable preference shares amounting to Rs. 350lacs which fell due up to 1st February 2006 and arrears of preference dividend of Rs. 5.555 crores (Previous year Rs.5.555 crores).

b) Note No.2 a of schedule "O" Part B regarding non payment of debts from Banks, IDBI, Sales tax deferment of State Govt. and Hire Purchase company amounting to Rs.189.18 cores, due to failure of reschedulement of repayment of loans under Corporate Debt Restructuring (CDR) mechanism of RBI .

c) Note No.4 of schedule "O" Part B regarding non provision for diminution in value of company's investment amounting to Rs.4.69 laces having no market value.

d) Note No.18 of schedule "O" Part B regarding non receipt of confirmation from the respective bank in respect of self adjustment of interest on loan Rs.27.63 crores provided. (Previous Year Rs24.44 crores)

5. Subject to the foregoing, In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Significant Accounting Policies and Notes on Accounts in Schedule 'O'and those appearing elsewhere in the accounts give the information required by the Companies Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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



ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR'S REPORT ON THE ACCOUNTS OF THE DHAR TEXTILE MILLS LTD.FOR THE YEAR ENDING 31st MARCH, 2012

As required by the Companies (Auditor's report) Order, 2003 issued by the central Government of India in terms of section 227(4-A) of the Companies Act, 1956, we report that:

1 In respect of fixed assets:

(A) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

(B) As explained to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such physical verification.

(C) In our opinion the Company has not disposed off any substantial/major part of fixed assets during the year and the going concern status of the company is not affected.

2 In respect of its inventories:

(A) As explained to us, the inventory has been physically verified by the management at regular intervals during the year.

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

(C) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company has maintained proper records of inventory. And there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3 In respect of loans, secured or unsecured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956:

(A) As informed, during the year under audit the company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Act hence sub-clause (b), (c) and (d) are not applicable.

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 nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control.

5 In respect of contracts or arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

(A) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements that needed to be entered in the register maintained under section 301 of the Companies Act 1956 have been so entered. Although register maintained under section 301 are not produced before us.

(B) In our opinion and explanation given to us, the transactions exceeding the value of 5 lakh in respect of any party during the year have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time where such prices are available.

6 In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules made there under are not applicable to the Company.

7 In our opinion, the company doesn't have an internal audit system commensurate with its size and nature of its business.

8 To the best of our knowledge the Central Government has not prescribed the maintenance of cost records U/s 209(1) (d) of the company act, 1956 for any of the products of the company.

9 In respect of statutory dues:

According to the records of the company examined by us, in our opinion, the company is irregular in depositing undisputed statutory dues including Provident Fund Employees State Insurance, Income-Tax, Sales-Tax, and Excise Duty, except Service Tax Custom Duty, cess and any other statutory dues with the appropriate authorities. According to the records of the company examined by us, no undisputed amount payable in respect of Income Tax, Wealth Tax, Custom Duty and Excise Duty were in arrears as at 31st March 2012 for a period of more than 6 months from the date they become payable other than undisputed Professional Tax of Rs.2,500/-, Employee State Insurance of Rs.14,47,396/-, Provident fund of Rs.1,64,272/-, Electricity duty of Rs.10,93,978/-.

The disputed statutory dues aggregating to Rs.45,86,025/- have not been deposited on account of matters pending before appropriate authorities as under, we are enclosing the annexure for the same:

S.No Name of the Statue Nature of Forum where Amount Dues dispute is pending

1 Labour Commissioner Labour M.P. Government 8,61,300/- Due (for Labour Department the year 2011(

2 Labour Commissioner Labour M.P.Government 7,97,162/- Due (feb- Labour Department july 2010)

3 Labour Commissioner Labour M.P. Government 21,87,563/- Due (Aug Labour Department 10-jan 2011)

4 Income Tax Act Income Tax CIT (Appeal-I) 7,40,000/- 2003-04



10 Accumulated losses of the Company exceeded fifty percent of its Net Worth at the end of the financial year. The Company has incurred cash losses during the current year as also during the immediately preceding financial year.

11 Based on our audit procedures and on the basis of information and explanations given by the management, the Company has defaulted in the repayment of following dues to banks or financial institutions as at balance sheet date:

S.No. Name of the Bank/Financial Amount of Default Continued Institute Default since (Rs. in Crores)

1 State Bank of India* 100.87 30th April 04

2 Industrial Development Bank of 54.61 30th June 04 India

3 State Bank of Indore* 47.75 30th April 04

4 Canara Bank 21.10 30th April 04

5 State Bank of Saurashtra* 16.68 30th April 04

6 Ceat Financial Services Ltd. 0.26

Total 241.27



*Standard Chartered Bank has takeover account of State Bank of India, State Bank of Indore and State Bank of Sourastra and Kotak Mahindra Bank Ltd. has taken over account of Industrial Development Bank of India in financial year 2006-07 and 2007- 08.

12 In our opinion and according to information and explanation given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other security.

13 In our opinion the company is not a Chit Fund, Nidhi or Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(XIII) of the CARO, 2003 are not applicable to the company.

14 The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the order are not applicable.

15 In our opinion, the company has not given guarantees for loans taken by others from banks and financial institutions during the year.

16 In our opinion and according to information and explanation given to us, the Company has not availed of any term loans during the year. There were no term loans outstanding as at the beginning and as at end of the year.

17 According to the information and explanations given to us and on examination of balance sheet, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

18 The company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956, during the year. The price at which the shares have been issued is not prejudicial to the interest of the Company.

19 The Clause 13 of the order is not applicable, as the company has not issued any debentures during the year.

20 The Company has not raised money by any public issues during the year and hence the question of disclosure and verification of end use of such money does not arise.

21 In our opinion and according to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

Place :INDORE For B.BANSAL & CO.

Date : 22/08/2012 Chartered Accountants

(RAJENDRA BANSAL)

PARTNER

Membership No: 073533

Registration No: 000450C

E-2, RATLAM KOTHI,

---

Mar 31, 2011

We have audited the attached Balance Sheet of THE DHAR TEXTILE MILLS LIMITED, as at 31st March, 2011 and also the Profit and Loss Account for the year ended on that date annexed thereto and also the 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.

1. 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.

2. As required by the Companies (Auditors' Report) Order, 2003, as amended by CARO order 2004 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act 1956 (hereinafter referred to as the Act), we enclose in the Annexure hereto a statement on the matters specified in paragraphs 4 & 5 of the said order.

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

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

ii) In our opinion, proper books of account as required by law have been kept by the Company so far it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the offices not visited by us.

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

iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the mandatory Accounting Standards except AS 28 issued by , ICAI referred to in Section (3C) of Section 211 of the Act;

v) On the basis of written representations received from the directors as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act;

Attention is invited to:

4. a) Note No.1 of schedule "O" Part B regarding non redemption of redeemable preference shares amounting to Rs.350lacs which fell due up to Ist February 2006 and arrears of preference dividend Rs.5.55 5 crores due.

b) Note No.2 a of schedule "O" Part B regarding non payment of debts from Banks, IDBI, Sales tax deferment of State Govt. and Hire Purchase company amounting to

c) Note No.4 of schedule "O" Part B regarding non provision for diminution in value of company's investment amounting to Rs.4.69 laces having no market value.

d) Note No. 18 of schedule "O" Part B regarding non receipt of confirmation from the respective bank in respect of self adjustment of interest on loan Rs.24.44 crores provided. (Previous Year Rs.21.64 crores)

5. Subject to the foregoing, In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Significant Accounting Policies and Notes on Accounts in Schedule 'O' and those appearing elsewhere in the accounts give the information required by the Companies Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF THE AUDITOR'S REPORT ON THE ACCOUNTS OF THE DHAR TEXTILE MILLS LTD.FOR THE YEAR ENDING 31st March 2011

As required by the Companies (Auditor's report) Order, 2003 issued by the central Government of India in terms of section 227(4-A) of the Companies Act, 1956, we report that:

1. In respect of fixed assets:

a) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

b) As explained to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such physical verification.

c) In our opinion the Company has not disposed off any substantial/major part of fixed assets during the year and the going concern status of the company is not affected.

2. In respect of its inventories:

a) As explained to us, the inventory has been physically verified by the management at regular intervals during the year.

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

c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company has maintained proper records of inventory. And there were no material discrepancies noticed on physical verification of inventory as compared to the book records.

3. a)As informed, during the year under audit the company has not granted any loan, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Act hence sub-clause (b), (c) and (d) are not applicable.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedure commensurate with the size of the company and nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control.

5. In respect of contracts or arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

a) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements, that needed to be entered in the register maintained under section 301 of the Companies Act 1956 have been so entered. Although register maintained under section 301 are not produced before us.

b) In our opinion and explanation given to us, the transactions exceeding the value of 5 lakh in respect of any party during the year have been made at prices which are prima-facie reasonable having regard to prevailing market prices at the relevant time where such prices are available.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules made there under are not applicable to the Company.

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

8. We have broadly reviewed the books of accounts maintained by the company in respect of the products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

9. According to the records of the company examined by us, in our opinion, the company is irregular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales-Tax, Excise Duty, except Service Tax Custom Duty, cess and any other statutory dues with the appropriate authorities. According to the records of the company examined by us, no undisputed amount payable in respect of Income Tax, Wealth Tax, Custom Duty and Excise Duty were in arrears as at 31st March 2011 for a period of more than 6 months from the date they become payable other than undisputed Professional Tax of Rs.2,500/-, Employee State Insurance of Rs.20,11,079/-, Provident fund of Rs.25,27,757/-, Electricity duty of Rs.10,65,015/-, Income Tax Deducted at Source of Rs.5,26,056/-, which were not deposited till date.

Matters pending before appropriate authorities are as under, we are enclosing the annexure for the same:

Name of the Nature Forum where Amount S.No. Statue of Dues dispute is pending

1 Labour Labour M.P, 8,61,300 Commissioner Due Government (for the Labour year Department 2011)

2 Labour Labour M.P 7,97,162 Commissioner Due Government (Feb-July Labour 2010) Department

3 Labour Labour M.P 21,87,563 Commissioner Due Government (Aug 10- Labour Janll) Department

4 Income Tax Act Income CIT (Appeal-1) 7,40,000 Tax 2003-04

5 Employee Provident The Central 9,71,248 Provident Fund Fund Board of Act, 1952 Trustees

10. Accumulated losses of the company exceeded fifty percent of its Net Worth at the end of the financial year and the Company has not incurred cash losses during current and the immediately preceding financial year.

11. The company has defaulted in repayment of following dues of Financial Institutions or Banks as at the Balance sheet date:

S.No. Name of the Bank/Financial Default Institute Amount of Continued Default since (Rs. in Crores)

1 State Bank of India* 89.81 30th April 04

2 Industrial Development Bank of India 47.70 30th June 04

3 State Bank of Indore* 42.32 30th April 04

4 Canara Bank 18.75 30th April 04

5 State Bank of Saurashtra* 14.79 30th April 04

6 Ceat Financial Services Ltd. 0.26

Total 213.63

* Standard Chartered Bank has takeover account of State Bank of India, State Bank of Indore and State Bank of Sourastra and Kotak Mahindra Bank Ltd. has taken over account of Industrial Development Bank of India in financial year 2006-07 and 2007-08.

12. In our opinion and according to information and explanation given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other security.

13. In our opinion the company is not a Chit Fund, Nidhi or Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(XIII) of the CARO,2003 are not applicable to the company.

14. The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the order are not applicable.

15. In our opinion, the terms and conditions on which the company has not given guarantees for loans taken by other from banks and financial institutions during the year.

16. In our opinion and according to information and explanation given to us, the Company has not availed of any term loans during the year. There were no term loans outstanding as at the beginning and as at end of the year.

17. According to the information and explanations given to us and on examination of balance sheet, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

18. The company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956, during the year. The price at which the shares have been issued is not prejudicial to the interest of the Company.

19. The Clause 13 of the order is not applicable, as the Company has not issued any debentures during the year.

20. The Company has not raised money by any public issues during the year and hence the question of disclosure and verification of end use of such money does not arise.

21. In our opinion and according to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

For B.Bansal & Company

(Chartered Accountants)

Place: -Indore B.L.Bansal

Date : -16th August 2011 (Partner)

---

Mar 31, 2010

We have audited the attached Balance Sheet of the THE DHAR TEXTILE MILLS LIMITED, as at 31st March 2010 and also the profit and Loss Account for the year ended on that date annexed thereto and also the 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 in our audit.

1. We conducted our Audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misplacements. 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 find significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis fur our opinion.

2. As required by the Companies (Auditors' Report) Older. 2003,as amended by CARO order 2004 issued by the Central Government of in terms of section 227(4A) of the Companies Act. 1956 (hereinafter referred to as the Act), we enclose in ihe Annexure hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

3. Further to our comments in the annxure referred to above; we report that:

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

ii. In our opinion Proper books of accounts as required by the Law have been kept by the company so far it appears from our examination of those books and proper return adequate for the purpose of audit have been received from the offices not visited by us.

iii. The Balance Sheet and the profit and Loss account and Cash flow statement dealt with by this report are in agreement with the book of accounts.

iv. In our opinion the balance sheet and Profit and Loss account dealt with by this report comply with the mandatory Accounting Standards except AS-13 and AS-28 issued by ICAI referred to in Section (3C) of Section 211 of the Act.

v. On the basis of writen renumeration received from the directors as on 31st March 2010 and taken on record by the Board of Directors, we report that none of ihe directors is disqualified as on 31st March 2010 from being appointed as a director in terms of clause(g) of sub-section (1) of Section 274 of the act,

4.a) Note No.I of Schedule "O" Part B regarding non redemption of redeemable preference shares amounting to Rs,350 lacs. Which fell due up to lst feb, 2006 and arrears of preference dividend Rs 5.555 crores, due (previous year Rs 5.0475 crores)

(b) Note No.2 of schedule "O" Part B regarding nonpayment of debts from Banks. JDBT, Sales tax determent of State govt. and Hire Purchase company amounting to Rs. 167.55 crores. due to failure of rescedul -ement of repayment of loans under Corporate Debt Restructuring (CDR) mechanism of RBI.

(c)Note No.4 of schedule "O" Part B regarding non provision for diminution in value of company's investment amounting to Rs, 4.69 lacs having no market value.

(d) Note No.14 of schedule "'O" Part B regarding non receipt of confirmation from the respective bank in respect of self adjustment of interest on loan Rs 2l.64 crores (Previous Year 18.95 crores.)

5. To the best of our information and according to the explanations given to us. The said accounts read together with Accounting Standards as prescribed by ICAI and notes on Accounts in schedule 'O' subjected to the above qualifications gives a true and fair view:-

a)In the case of Balance Sheet of the state of affairs of the Company as at 31st'March. 2010,and

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

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

Annexure to the Auditors' Report (Referred to in paragraph of thereof our report of even date)

1. The Company is maintaining proper records showing full particular including quantitative details and situation of fixed assets. As per explanations given to us, fixed assets are physically verified by Ihe management, which in our opinion is reasonable having regard lo the size of the company and the nature of its assets. As informed to us no material discrepancies between the book records and the physical inventory have been noticed. In our opinion, the Company has not disposed off a subsiantial part of fixed assets during the year,

2. As explained to us, inventory has been physically verified by the management during the year. In our opinion, the frequency and procedure of verification is reasposible and adequate in relation to size and nature of the business, on the basis of our examination of the inventory records, the company is maintaining proper record of inventor y.The discrepancies noticed on physical verification as compared to books of records were not material.

3. (a) As informed, during the year under audit the company has not granted any loan. secured or unsecured, Lo companies, firms or other parties covered in the register maintained under sections 301 of the Act hence sub-clause (b)(c) and (d) are not applicable.

4. In our opinion, there are an adequate internal control procedures commensurate with the size of the company and the nature of its business for purchase of inventory and fixed assets and for the sale of goods and services, carried out in accordance with ihe auditing standard generally accepted in India, we have not observed any continuing failure to correct major weakness in the aforesaid internal control procedures.

5. In our opinion and according to the information and explanations given to us, transactions that needed to be entered into the register maintained in pursuance of section 301 of the Companies Act. 1956 have been so entered. In our opinion and as per the information and explanations given to us ihe transactions made in pursuance of contracts and arrangements entered in the register, exceeding the value of Rupees five Lacks in respect of parties entered in the register have been made at the prices prevailing in tbe market at relevant time

6. The company has not accepted any deposits from the public attracting the provision of sections 58A and 58AA or any other relevant provisions of the Act.

7. In our opinion, the company has its own internal audit system, commensurate with the size and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the company in respect of the products where, pursuant to the rules made by the Central Government of India, The maintenance of cost records has been prescribed under clause (d) of sub section (1) of Section 209 of the act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however made a detailed examination of the records with a view to determine whether they arc accurate or complete.

9. According to the records of the company examined by us, in our opinion the company is irregular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees; State Insurance, Income Tax, Sales Tax. Wealth Tax, Custom Duty, Excise Duty, cess and any other slatutory dues with the appropriate authorities. According to records of the company examined by us, there are no undisputed amount payable in respect of Income tax, Wealth Tax- Custom Duly. Fxcise Duly were in arrears as at 31st' March 2010 for a period of more than 6 months from the date they become payable other than undisputed professional Tax of Rs. 107.3048 Employee State Insurance of Rs.35,96,902 Provident fund of Rs.104,98,175 Electricity duty of Rs. 717254 income Tax Deducted at source of Rs, 19,14,153 which were not deposited till date.

10.The disputed statutory dues aggregating to Rs. 35,39,579. have not been deposited on account of matters pending before appropriate authorities as under :

Sl.No. Name of the Nature of Amount Forum where statute the dues pending

1 Central Excise Excise Duty 18,28,131 Cegat Act 1994 1996-97

2 Income Tax Income Tax 7,40,000 CIT Act 2003-04 (Appeal-1)

3 Employee Provident 9,71,248 The Central Provident Fund Board of Fund Act Trustees 1952

11. Accumulated losses of the Company exceeded fifty percent of its Net Worth at ihe end of the financial year. The Company has incured cash losses during the financial year as also during the immediately preceding financial year.

12. Tbe company has defaulted in repayment of following dues of Financial Institutions or Banks us at the Balance sheet date

Sl.No Name of the bank Amount of Default Financial Institute Default continued (Rs in since Croces)

1 State Bank of India 79.99 30th April 04

2 Industrial Developme -nt Bank of India* 41.66 30th June 04

3 State Bank of Indore* 37.51 30th April 04

4 Canara Bank 16.66 30th April 04

5 State Bank of Saurastra 13.11 30th April 04

6 Ceat Financial Services Ltd 0.26

Total 189.19



*Standard Chartered Bank has taken over account of State Bark of India. State Bank of Indore and State Bank ofSaurashtra and Kotak Mahindra Bank Ltd. has taken over account of Industrial Development Bank of India in Financial year 2006-07 and 2007-OS

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

14. In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments.

15. The Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

16. The Company has not obtained any new term loans during the year.

17. On the basis of an overall examination of the Balance sheet of the Company, in our opinion, there are no funds raised on a short term basis, which have been used for long term investment.

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 Act during the year,

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

20. The Company has not raised any money by public issues during the year.

21. In our opinion and according to the information and explanation given to us. no fraud on or by the company has been noticed or reported during the year, nor we have been informed of such case by the management that causes the financial statements in he materially misstated.

For B.BANSAL & CO. Chartered Accountants

(B.I. BANSAL) PARTNER Membership No: F-7032 Registration No: 000450C E-2,RATLAM KOTHI,

Place: INDORE Date: 14th August, 2010