ఆడిటర్ నివేదిక Lila World Wide Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Lila World Wide Ltd ( 'the company'), which comprise the Balance Sheet as at March 31,2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the Financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956('the Act'). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given 10 us, the financial statements give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(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 Statement of Profit and Loss, of the loss for the year ended on that date; and in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003("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 statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227 (3) of the Act, we report that:

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

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

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

d) our opinion, the Balance Sheet, Statement of Profit and Loss, and 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, 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.

ANNEXURE TO THE AUDITOR'S REPORT

(Referred to in our report to the members of Lila World Wide Ltd ( 'the Company ') for the year ended 31 March 2014)

On the basis of such checks as considered appropriate and in terms of the information and explanations given to us, we state as under:

1 (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 at reasonable periods by the management and as informed to us, no material discrepancies have been noticed on such verification.

(c) None of the fixed assets have been disposed off during the period.

2 (a) On the Balance sheet date there was no dosing stock with the company and hence clauses 2 (b) and 2 (c) are not applicable

3 (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 in the current year except for interest free unsecured loan which was granted in earlier year to one party covered in the register maintained under section 301 of the Companies Act, 1956 which has been repaid during the year,

(b) As per information and explanations given to us, rate of interest and other terms and conditions of the unsecured loan given by the company are not prima facie prejudicial to the interests of the company.

(c) The aforesaid loan given to the party covered In the register maintained under section 301 was repayable on demand and the same has been repaid during the year.

(d) In case of the aforesaid loan, since no overdue amount is outstanding, the question of taking reasonable steps for the recovery of the principal amount does not arise.

(e) The company has not taken any loans, from the parties covered in the register maintained under section 301 of the Companies Act, 1956.

4 In our opinion and according to information and explanation given to us during the course of our audit, there is adequate internal control procedure 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.

5 (a) In our opinion and as explained to us, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section;

(b) According to the information and explanation given to us, there are no contracts or agreements with parties referred under section 301 of the Companies Act, 1956.

6 The Company has not accepted any deposits from the public dur- ing the year hence the provisions of Section 58A, Section 58AA or any other relevant provision of the Companies Act, 1956 and the rules made there under are not applicable to the company.

7 The company does not have an interna! audit system during the year. However, the conditions mentioned for conduct of Internal Audit are not applicable during the year.

8 As informed to us, the Central Government has not prescribed the maintenance of cost records by the Company under section 209(1 )(d) of the Companies Act, 1956,

9 (a) The company is regular in depositing undisputed statutory dues including Income-tax, Sales-tax, Custom Duty, service tax and any other statutory dues with the appropriate authorities and there are no undisputed statutory dues outstanding as at 31st March 2014, for a period of more than six months from the date they became payable. According to the information and explanation made available to us the company is not liable to pay any sum towards Provident Fund, investor Education and Protection Fund, Employees' State Insurance, Wealth Tax and Excise Duty for the period covered under our audit.

(b) According to the information and explanation given to us, there are no dues of income tax, sates tax, wealth tax, service tax, customs duty and cess which have not been deposited on account of any dispute.

10 The Company has accumulated Profit of Rs.131,193,665/-as on 31st March, 2014;

11 The company has not taken any loan from any financial institution or bank and has not issued any debenture, hence this clause is not applicable.

12 Based on our examination of the records and the information and explanations given to us, the Company has not granted any loans and/or advances on the basis of security by way of pledge of shares, debentures and other securities,

13 In our opinion, the company is not a chit fund, nidhi/mutual benefit fund / society, hence the provisions of clause 4(xiii) are not applicable to the company.

14 According to the information and explanation given to us, the Com- pany is not dealing or trading in shares, securities, debentures and other investments,

15 According to the information and explanations given to us, the Com- pany has not given any guarantees for loans taken by others from bank or financial institutions.

16 According to the information and explanations given to us, during the period company has not raised any term loans.

17 On an overall examination of the balance sheet of the company and according to the information and explanations given to us, no funds raised by the company on short term basis have been used for long term investments,

18 The company has not made any preferential allotment of shares during the period.

19 During the period covered by our audit report the Company has not issued any secured debentures.

20 The Company has not raised any money by public issues during trie period covered by our report,

21 As per the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year for the company.

For K.R.MANIK & Co. (Chartered Accountants)

Place: Mumbai Date . 30/06/2014

(K.R.MANIK) (PROPRIETOR) (M.No.009550)

---

Mar 31, 2013

1. We have audited the attached Balance Sheet of Lila World Wide Ltd. as at 31st March, 2013 and also the Profit ACY- Loss Account for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor''s Report) Order, 2003 as amended by Companies (Auditor''s Report) (Amendment) Order, 2004 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 paragraph 4 and 5 of the said order to the extent applicable to the Company.

4. Further to our comments in the annexure referred in paragraph 3 above, we report that:

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

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 these books ADs-

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

d) In our opinion, the Balance Sheet, Profit ACY- Loss Account and Cash Flow statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956.

e) We are unable to comment as we have not received any written representation from the directors of the company as on 31st March 2013 regarding disqualification as directors of the company under section 274(1 )(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit ACY- Loss Account and Cash Flow statement read together with the Significant Accounting Policies and Notes thereon and attached thereto give in the prescribed manner the information required by the ''Act'' and also give respectively, 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 March 31, 2013 and

(ii) in the case of the Profit and Loss Account, of the Profit 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.

Referred to in paragraph 3 of our report of even date,

1) (a) The Company has maintained proper records showing

full particulars of fixed assets. As explained to us, the Fixed Asset Register is under compilation.

(b) All the assets have been physically verified by the manage- ment during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no substantial part of fixed assets has been disposed off by the Company during the year.

2) (a) The inventories have been physically verified during the year by the management, in our opinion, the frequency of verification is reasonable.

(b) 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) On the basis of our examination of the records of inventory, in our opinion, the Company is maintaining proper records of inventory. No discrepancies have been noticed on physical verification of stocks as compared to the books records.

3) (a) The Company has not granted or taken loans from parties covered in the register maintained under section 301 of the Act. In view of the above sub clause (b), (c), (d), (e), (f) and (g) of clause iii of para 4, are not applicable.

4) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures com- mensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for sale of goods. Further, on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedures.

5) (a) In our opinion and according to the information and explana- tions given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Act, have been so entered.

(b) In our opinion and according to the information and explana- tions given to us, there are no transactions made in pursu- ance of the contract or arrangements with the parties to be specified in register maintained u/s 301 exceeding the value of rupees five lacs during the year or more.

6) In our opinion and according to the information and explanations given to us, the Company has not accepted deposit within the meaning of the provisions of Sections 58A and 58AA of the Com- panies Act, 1956 and the Rules made there under.

7) In our opinion, the Company has no formal internal audit system.

8) As explained to us, maintenance of cost records has not been prescribed by the Central Government u/s 209 (i)(d) of the Com- panies Act, 1956.

9) (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Income-Tax, Sales- Tax, Value Added Tax, Custom Duty, Cess and other statutory dues applicable to it with the appropriate authorities.

(b) According to the information and explanations given to us and on the basis of records of the Company examined by us, there are no disputed dues outstanding in respect of Income-Tax, Sales-Tax, Provident Fund, Custom Duty and Cess as at 31st March, 2013 for a year of more than six months from the date of becoming payable.

10) The Company has accumulated Profit of Rs.131,114,975/-as on 31 st March, 2013.

11) According to the records of the Company examined by us and the information and explanations given by the management, the Com- pany has not defaulted in repayment of dues to a bank, holders as at the Balance Sheet date and the company has not issued any debentures.

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

13) The provisions of any special statute applicable to chit fund/nidhi/ mutual benefit fund / societies are not applicable to the Company.

14) The company has maintained proper records of transactions and contracts in respect of trading in securities, debentures and other investments and timely entries have been made therein. All shares, debentures and other investments have been held by the company in its own name.

15) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16) The Company has not taken any term loans for the year under consideration.

17) Based on the information and explanations given to us and on an overall examination of Balance Sheet of the Company, in our opin- ion, funds raised on a long term basis have not been used for short term investment or vice versa.

18) The Company has not made preferential allotment of shares to par- ties and companies covered under Section 301 of the Companies Act, 1956.

19) The Company has not issued any debentures.

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

21) During the course of our examination of the books and records of the Company carried out in accordance with the generally ac- cepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company noticed or reported dur- ing the year, nor have we been informed of such case by the management.

For K.R.MANIK ACY- Co.

(Chartered Accountants)

Place: Mumbai

Date : 20/05/2013

(K.R.MANIK)

(PROPRIETOR)

(M.No.009550)

---

Jul 31, 2012

1. We have audited the attached Balance Sheet of Vatsa Music Ltd. as at 31st July, 2012 and also the Profit & Loss Account for the year ended on that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor's Report) Order, 2003 as amended by Companies (Auditor's Report) (Amendment) Order, 2004 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 paragraph 4 and 5 of the said order to the extent applicable to the Company.

4. Further to our comments in the annexure referred in paragraph 3 above, we report that :

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

b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of these books;

c) The Balance Sheet, Profit & Loss Account 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 & Loss Account and Cash Flow statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

e) We are unable to comment as we have not received any written representation from the directors of the company as on 31st July 2012 regarding disqualification as directors of the company under section 274(1)(g) of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit & Loss Account and Cash Flow statement read together with the Significant Accounting Policies and Notes thereon and attached thereto give in the prescribed manner the information required by the 'Act' and also give respectively, 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 July 31, 2012 and

(ii) in the case of the Profit and Loss Account, of the profit 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.

For K. R. MANIK & Co. (Chartered Accountants)

Sd/- (K. R. MANIK) (PROPRIETOR) (M. No. 009550)

Place : Mumbai Date : 10-08-2012