Auditor Report of Precious Trading & Investments Ltd.

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of M/S. PRECIOUS TRADING & INVESTMENTS LIMITED ("the Company"), which comprise the Balance Sheet as at 3lil March 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

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 financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). 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.

Auditors'' 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 of 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 of material misstatement.

An audit involves performing procedure to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on auditor''s judgment, including the assessment of the risk of the material misstatement of 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 financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall financial statement presentation.

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 gives the information required by the Company''s Act,1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

i. In the case of the Balance Sheet of the state of affairs of the company as at 31st March 2013 and

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

iii. In case of the Cash Flow Statement, of the cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order,2003 ("the Order") issued by

the centra! Government in terms of sub-section (4A) of section 277 of the Companies Act, 1956,we give in the Annexure a statement on the matters specified in paragraphs 4 & 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 purposes of our audit;

b) In our opinion, proper books of account as required by the Companies Act, 1956 have been kept by the company so far as appears from our examination of the books.

c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement comply with by this report are in agreement with the Books of Account.

d) In our opinion, Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the Directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(i),(H),(Yi),(viii),(xi),(xii),(xiii),(xiv), (XV), (xvi), (xvii), (xviii), (XIX) and (xx) of CARO 2003 a either nil or not applicable to the company.

i) In respect of the 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) The Company has granted the unsecured loan of Rs. 1060.99 Lakhs (PY Rs. 1060_99

Lacs) to a one party covered in the register maintained under Section 301 ot the Companies Act, 1956.

(b) In our opinion and according to the information and explanations given to us, the rate ot interest and other terms and conditions of the loans given by the company, are not prima - facie prejudicial to the interest of the company.

(c) The receipt of the principal amount is as per the terms of the agreement.

(d) In respect of the said loans there are no overdue amounts.

(e) The company has taken unsecured loan of Rs. 905.30 lacs. (PY Rs. 904.53 lacs.) and the maximum amount outstanding at any time during the year was Rs 905.30 lacs from one party covered in the register maintained under Section 301 of The Companies Act,1956.

(f) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by the company, are not prima - facie prejudicial to the interest of the company.

(g) The repayment of principal amount of loan and interest are in accordance with the terms of contract.

ii) 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 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 weakness in the internal control system.

iii) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanation given to us, transaction made in pursuance of contracts/arrangements entered in Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs 500000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company

iv) In our opinion, the Company has an internal audit system commensurate with the size and nature of the company''s business.

v) In respect of statutory dues:

a. According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees5 State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues as applicable to it have been generally regularly deposited with the appropriate authorities.

b. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2013 for a period of more than six months from the date they became payable.

vi) The Company has no accumulated losses as at the end of the financial year. Company has incurred a cash loss of Rs.1,01,529/- for current financial year and in the immediately preceding financial year Rs 1,14,679/-

vii) In our opinion and according to the information and explanations given to us, no material fraud on or by the company has been noticed or reported during the year.

For M. B. Agrawal & Co.

Chartered Accountants

HARSHAL AGRAWAL

PARTNER

M.No.l 09438

Firm NO.100137W

Place: Mumbai

Date: September 5th, 2013

---

Mar 31, 2011

We have audited the attached balance sheet of M/s. PRECIOUS TRADING & INVESTMENT LIMITED as at 31st march 2011,the profit and loss account and the cash flow statement for the year ended on that annexed thereon. these financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statement based on our audit.

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 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.

We report that:

i) We have obtained ail the information and explanations, which to the best of our knowledge and believe were necessary for the purposes of our audit;

ii) In our opinion, proper books of account as required by the Companies Act. 1956 have been kept by the company so far as appears from our examination of the books.

iii) The Balance of Profit and Loss Account and the cash flow statement dealt with by this report are in agreement with the Books of Account.

iv) In our opinion. Balance Sheet, Profit and Loss Account and the cash flow statement comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act. 1956,

v) On the basis of information and explanation given to us, as on March 31, 2011, none of the directors is disqualified u/s 274(1) (g) of 'the Companies Act, 1956 from being appointed as a directors.

vi) in our opinion and to the best of our information and according to the explanations given to as the said accounts read together with notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view.

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 the Profit and Loss Account of Loss for the year ended on that date.

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

As required by the Companies (Auditor's Report) Order.2003 and the Companies (Auditor's Report) (Amendment) Order,2004 issued by the central Government in terms of section 227(4A) of the Companies Act 1956.we enclose in the annexure a statement on the matters specified in paragraphs 4 & 5 of the said Order.

Annexure to the Auditor's Report

Referred to in paragraph (4) of oar report of even date an the accounts for the year ended 31st March 2011 of M/S PRECIOUS TRADING & INVESTMENTS LIMITED. Clauses

(i),(ii),(vii),(xi),(xiii),(xiv),(xvii),(xix) and (xx) of CARO 2003 are either nil or not applicable to the company.

i) a) The Company has granted the unsecured loan of Rs.969.99 Lakhs (PY Rs.569.99 Lacs) to a company cowered in the register maintained under Section 301 of The Companies Act, 1956.

(b) The rate of interest and other term s and conditions of the aforesaid loan are not prima facie prejudicial to the interest of the company.

(c) The receipt of the principal amount is as per the terms of the agreement.

(d) There arc no overdue amounts of Rupees one Lakh.

(e) The company has taken unsecured Joan of Rs,811.92 lacs. (PY Rs.411.04 lacs.) from one party covered in the register maintained under Section 301 of the Companies Act 195.

(f) The rate of interest and other terms and conditions of the aforesaid loan are not primafaeie prejudicial to the interest of the company.

(g) The repayment of principal amount of loan and interest are in accordance with the terms of contract.

ii) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures Which commensurate with the size of the Company and nature of its business with regard 10 the purchase of inventory and fixed assets, and with regard to the sale of goods and services. During the course of our audit, no major weakness has been noticed to the internal controls.

iii} a) The particulars of contracts and arrangements referred to in section 301 of the Act have been entered in the register maintained under that section.

b) In our opinion and according to information and explanation given to us, transaction made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices al the relevant time.

iv) The internal audit system commensurate with the size and nature of the company's business.

v) a) According to the records of the Company and information and explanation given to us, the company has been generally regular in depositing undisputed statutory dues including Provident Fund. Investor Education and Protection fund, Employees State Insurance Income Tax, Sale Tax, Wealth Tax, Service tax, Custom Duty, Excise Duty, Cess and other statutory dues with the appropriate authorities during the year.

b) in our opinion and according to the information and explanation given to us, there are no dues of income Tax/ Sates Tax/ Wealth Tax/ Service Tax/ Custom Duty/ Excise Duty/ Cess which are not deposited on account of any dispute.

vi) The Company has no accumulated losses as at the end of the financial year. Company has incurred a cash: loss of Rs. 1,14,743 for current financial year and in the immediately preceding financial year Rsl.20,383/-

vii) To the best our knowledge and belief and according to the information and explanation given to us, no fraud on or by the Company was noticed or reported during the year.

FOR M. B. AGRA WAL & CO.

CHARTERED ACCOUNTANTS

HARSHAI. AGRAWAL

PARTNER

M. No, 109438

Firm No.l00137W

Place: Mumbai

Date : September 8th, 2011

---

Mar 31, 2010

1. We have audited the attached balance sheet of M/S. PRECIOUS TRADING & INVESTMENTS LIMITED, as at 31st March 2010 and the profit and loss account Tor the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We condueted 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 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.

3. 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 purposes of our audit;

ii) In our opinion, proper books of account as required by the Companies Act,l956 have been kept, by the company so far as appears from our examination of the books.

iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the Books of Account.

iv) In our opinion, the Balance Sheet and Profit and Loss Account comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

v) On the basis of information and explanation given to us none of the directors is disqualified u/s 274(1) (g) of the Companies Act, 1956 from being appointed as a directors.

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 notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view;

a) In the case of the Balance Sheet of the state of affairs of the company as at 31st March 2010 and

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

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

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

Annexure to the Auditors Report

Referred to in paragraph (4) of our report of even date on the accounts for the year ended 31st March 2010 of M/S PRECIOUS TRADING & INVESTMENTS LIMITED. Clauses

(i),(ii),(vi),(viii),(xi),(xii),(xiii).(xiv), (xv), (xvi), (xvii), (xviii), (xix) and (xx) of CARO 2003 are either nil or not applicable to the company.

i) (a) The Company has granted the unsecured loan of Rs.569.99 Lakhs (PY Rs.499 Lacs) to a company covered in the register maintained under Section 301 of The Companies Act. 1956.

(b) The rate of interest and other terms and conditions of the aforesaid loan are not prima-facie prejudicial to the interest of the company.

(c) The receipt of the principal amount is as per the terms of the agreement.

(d) There are no overdue amounts of Rupees one Lakh.

(e) The company has taken unsecured loan of Rs.411.04 lacs. (PY Rs.338.52 lacs.)from one party covered in the register maintained under Section 301 of The Companies Act,1956.

(I) The rate of interest and other terms and conditions of the aforesaid loan are not prima* facie prejudicial to the interest of the company.

(g) The repayment of principal amount of loan and interest are in accordance with the terms of contract.

ii) In our opinion and according to the information and explanation given to us. there are adequate internal control procedures which commensurate with the size of the Company and nature of its business with regard to the purchase of inventory and fixed assets, and with regard to the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls.

iii) a) The particulars of contracts and arrangements referred to in section 301 of the Act have been entered in the register maintained under that section.

b) in our opinion and according to information and explanation given to us, transaction made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

iv) The internal audit system commensurate with the size and nature of the companys business.

v) a) According to the records of the Company and information and explanation given to us, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund. Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty. Excise Duty, Cess and other statutory dues with the appropriate authorities during the year.

b) In our opinion and according to the information and explanation given to us. there arc no dues of Income Tax/ Sales Tax/ Wealth Tax/ Service Tax/ Custom Duty/ Excise Duty/ Cess which are not deposited on account of any dispute.

vi) The Company has no accumulated losses as at the end of the financial year. Company has incurred a cash loss of Rs.1,20,383 for current financial year and in the immediately preceding financial year Rs 1,05,277/-

vii) To the best our knowledge and belief and according to the information and explanation given to us, no fraud on or by the Company was noticed or reported during the year.

FOR M. B. AGRAWAL & CO.

CHARTERED ACCOUNTANTS

MARSHAL AGRAWAL

PARTNER

M. No. 109438

Firm No. 100137W

Place: Mumbai

Date: September 9th, 2010

---

Mar 31, 2009

1. We have audited the attached balance sheet of M/S. PRECIOUS TRADING & INVESTMENTS LIMITED, as at 31st March 2009 and the profit and loss account for the vpair ended/on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an,opinion on these, financial statements based on our audit.

2. We 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 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.

3. 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 purposes of our audit;

ii) In our opinion, proper books of account as required by the Companies Act, 1956 have been kept by the company so far as appears from our examination of the books.

iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the Books of Account.

iv) In our opinion, the Balance Sheet and Profit and Loss Account comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.

v) On the basis of information and explanation given to us none of the directors is disqualified u/s 274(1) (g) of the Companies Act, 1956 from being appointed as a directors.

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 notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view;

a) In the case of the Balance Sheet of the state of affairs of the company as at 31st March 2009 and

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

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

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

Annexure to the Auditors Report

Referred to in paragraph (4) of our report of even date on the accounts for the year ended 31st March 2009 of M/S PRECIOUS TRADING & INVESTMENTS LIMITED. Clauses (i),(ii),(vi),(viii),(xi),(xii),(xiii),(xiv), (xv), (xvi), (xvii), (xviii), (xix) and (xx) of CARO 2003 are either nil or not applicable to the company.

i) (a) The Company, has granted the unsecured loan of Rs.499 Lakhs to a company covered in the register maintained under Section 301 of The Companies Act, 1956.

(b) The rate of interest and other terms and conditions of the aforesaid loan are not prima- facie prejudicial to the interest of the company.

(c) The receipt of the principal amount is as per the terms of the agreement.

(d) There are no overdue amounts of Rupees one Lakh.

(e) The company has taken unsecured loan of Rs.33,852,300 from oneparty covered in the register maintained under Section 301 of The Companies Act, 1956.

(f) The rate of interest and other terms and conditions of the aforesaid loan are not prima- facie prejudicial to the interest of the company.

(g) The repayment of prijicipal amount of loan and interest are in accordance with the terms of contract.

ii) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures which commensurate with the size of the Company and nature of its business with regard to the purchase of inventory and fixed assets, and with regard to the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls.

iii) a) The particulars of contracts and arrangements referred to in section 301 of the Act have been entered in the register maintained under that section.

b) In bur opinion ajid according to infu itiation and explanation given to us, transaction made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

iv) The internal audit system commensurate with the size and nature of the companys business.

v) a) According to the records of the Company and information and explanation given to us, the company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund. Employees* State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty. Excise Duly. Cess and other statutory dues with the appropriate authorities during the year.

b) In our opinion and according to the information and explanation given to us. there are no dues of Income Tax/;Sales Tax/ Wealth Tax/ Service Tax/ Custom Duty/ Excise Duty/ Cess which are not deposited on account of any dispute.

vi) The Company has no accumulated losses as at the end of the financial year. Company has incurred a cash loss of Rs. 1,05,277 for current financial year and in the immediately preceding-financial year Rs75,522/-

vii) To the best our knowledge and belief and according to the information and explanation given to us, no fraud on or by the Company was noticed or reported during the year.

For M. B. Agrawal & Co. Chartered Accountants

Harshal Agrawal

Partner

M.No. 109438.

Place: Mumbai

Date: September 8, 2009