ఆడిటర్ నివేదిక Pervasive Commodities Ltd.

Mar 31, 2025

PERVASIVE COMMODITIES LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying Standalone financial statements of Pervasive Commodities Limited (“the Company”), which comprise the balance sheet as at 31st March 2025, and the statement of profit and loss and statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements gives the information required by the Companies Act, 2013 (“the ACT”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2025, and its Profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr No	Key Audit Matters	Auditor’s Response
1.	Revenue Recognition	Principal Audit Procedures
	Revenue from the sale of goods	Our audit approach was a combination of test of
	(hereinafter referred to as “Revenue”) is	internal controls and substantive procedures
	recognized when the Company performs its obligation to its customers and the	including:
	amount of revenue can be measured	• Assessing the appropriateness of the
	reliably and recovery of the consideration	Company''s revenue recognition
	is probable. The timing of such	accounting policies in line with Ind AS
	recognition in case of sale of goods is	115 (“Revenue from Contracts with
	when the control over the same is	Customers”) and testing thereof.
	transferred to the customer, which is	• Evaluating the design and implementation
	mainly upon delivery.	of Company''s controls in respect of revenue recognition.
	The timing of revenue recognition is	• Testing the effectiveness of such controls
	relevant to the reported performance of	over revenue cut off at year-end.
	the Company. The management	• Testing the supporting documentation for
	considers revenue as a key measure for	sales transactions recorded during the
	evaluation of performance	period closer to the year end and subsequent to the year end, including examination of credit notes issued after the year end to determine whether revenue was recognized in the correct period. • Performing analytical procedures on current year revenue based on monthly trends and where appropriate, conducting further enquiries and testing.

Information other than the financial statements and Auditor’s Report Thereon

• The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor’s report thereon.

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

• In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

• If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those charged with governance for the Standalone Financial Statements

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

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

Those Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone Financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an

audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial statements.

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

• Identify and assess the risks of material misstatement of the Standalone Financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to Standalone Financial statement in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Standalone Financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

Materiality is the magnitude of misstatements in the Standalone Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced.

We consider quantitative materiality and qualitative factors (i) in planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Emphasis Of Matter:

1. Refer to Notes forming part of statement which includes the balance of Trade Receivables, Trade Payables, Loans including deposits and advances are subject to confirmation from and reconciliation with the relevant parties as on the date of balance sheet date.

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

d. In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended

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

f. With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls with reference to the Standalone Financial Statement.

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

a. The Company does not have any pending litigations which would impact its financial position

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

c. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

d. (i) The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(ii) The management has represented, that, to the best of it’s knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities

identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

(iii) Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) of the Companies (Audit and Auditors) Rules, 2014, as provided under (a) and (b) above, contain any material misstatement.

e. The company has not declared or paid any dividend during the year in contravention of the provisions of section 123 of the Companies Act, 2013.

f. Based on our examination which included test checks, we concluded that company has used accounting softwares for maintaining its books of account which have a feature of recording audit trail (edit log) facility but the same has not been operated throughout the year for all relevant transactions recorded in the respective softwares:

i. In respect of the Company, the feature of recording audit trail (edit log) facility was not enabled at the database layer to log any direct data changes for all the accounting softwares used for maintaining the books of account.

ii. In respect of the Company, in the absence of coverage of audit trail (edit log) with respect to database level in the independent auditor’s report in relation to controls at the service organization for accounting software used for preparation of financial statements, which is operated by third- party software service provider, we are unable to comment whether the audit trail feature of the database level of the said software was enabled and operated throughout the year for all relevant transactions recorded in the software. Further, where audit trail (edit log) facility was enabled and operated, we did not come across any instance of the audit trail feature beingtamperedwith.

Date : 19/05/2025 For, V S S B & Associates

Place : Ahmedabad Chartered Accountants

Firm No. 0121356W

(Vishves A. Shah) Partner M. No. 109944 UDIN: 25109944BMGPKS4123

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Mar 31, 2014

We have audited the accompanying financial statements of Starvox Electronics Limited(‘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

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") 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; Subject to.

Claims against the Company not acknowledged as debt:: a) Custom Duty on Capital Goods Rs. 89,606 b) Custom Duty on Raw Material Rs. 42,411 c) Royalty Claims by NRDC Rs. 85,000 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; and

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

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

Report on Other Legal and Regulatory Requirements

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. 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) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; except AS-2 and AS-22.

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 paragraph 3 of our Report of even date to the members of STARVOX ELECTRONICS LIMITED for the year ended 31st March, 2014

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

1 (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

(b) We are informed that fixed assets are physically verified by the management during the year and there were no major discrepancies noticed.

(c) In our opinion, there was no substantial disposal of fixed assets during the year, which would affect the going concern of the company.

2 (a) As informed to us, the management has conducted physical verification of inventory during the year. In our opinion, the frequency of verification is reasonable.

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

(c) In our opinion and on the basis of examinations of inventory records, the company is maintaining proper records of inventory. As informed to us, no material discrepancies were noticed by the management on such physical verification.

3 (a) The company has not granted unsecured loan to parties as covered in the register maintained under section 301 of the Companies Act, 1956. The Maximum amount involved during the year was '' NIL and outstanding from such parties was'' NIL.

(b) In our opinion, the rate of interest and other terms and conditions, wherever specified, of unsecured loans granted by the company, are not prima facie prejudicial to the interest of the company as explained in the notes to accounts.

(c) The company has not taken loans from parties as listed in the register maintained under section 301 of the Companies Act, 1956, the rate of interest and other terms and conditions, wherever specified, of unsecured loans taken by the company, are not prima facie prejudicial to the interest of the company.

(d) According to the information and explanation given to us, there is no specific stipulation as to the repayment of the principal amount and is regular in the payment of interest of such loans if any;

(e) According to the information and explanations given to us, there is no overdue amount in respect of such loans.

4 In our opinion, the Company has reasonable 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. There is no continuing failure to correct major weaknesses in internal control.

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

(b) According to the information and explanation given to us, in respect of transactions exceeding the value of the five lacks rupees made with such parties during the year, each of these transactions have been made at the price which are reasonable having regard the prevailing market prices at the relevant time.

6 According to the information and explanations given to us, the company has not accepted deposits from the public within the meaning of the provisions of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

7 In our opinion, the Company has an internal audit system commensurate with the size and the nature of its business. Internal audit is carried out by an Independent firm of Chartered Accountants.

8 The Company has not maintained cost records and not obtained Cost Compliance certificate.

9 (a) As informed to us, applicable undisputed statutory dues including Income-tax, Sales-tax, have been regularly deposited by the company with the appropriate authority in all cases during the year.

(b) Following dues payable to various Government Authorities are disputed and hence not paid or provided for by the Company:

Sr. No. Particulars Amount Level at which the dispute is pending.

1. Custom duty on Capital goods. 89606 CEGAT has remanded the matter and hearing is comp- leted at department.

2. Custom duty on Raw material. 42411 Hon. Supreme Court

3. Royalty claims by NRDC. 85000 Arbitrator.

In the Current year the Dispute with SBI has been Compromised.

10 In our opinion, the accumulated losses at the end of the finnacial year are more than fifty percent of its net worth. However the company has incurred any cash losses both in current year as well as in the immediately preceding financial year.

11 According to information & explanations given to us, the company has no defaulted in repayment of dues to financial institution / bank or debenture holders.

12 In our opinion and as per information & explanation given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13 In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of this clause are not applicable to the company.

14 According to the information and explanation given to us, the company is not dealing or trading in shares, securities, debenture and other securities. Company has not made investments in equity shares of the other companies during the year.

15 According to the information & explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

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

17 According to the Cash Flow statement and other records examined by us and the information & explanation given to us, on the overall examination of the balance sheet of the company, we report that the company has not used funds raised on long-term basis for short-term investment and vice versa.

18 The company has not made any preferential allotment of share to parties or companies covered in the register maintained under section 301 of the companies act, 1956.

19 The company has not created securities by way of issue of debentures.

20 The company has not raised any money through public issue during the year.

21 Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.



Place: Ahmedabad For, BPA & Company Date : 30th May,2014 (Chartered Accountants) Firm Reg. No. 109685W

CA. Bharat Vashi Partner Membership No. 31122

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Mar 31, 2012

1. We have audited the attached Balance Sheet of STARVOX ELECTRONICS LIMITED as at 31st March 2012 the Profit & Loss Account and also the Cash Flow Statement for the Year ended on that date annexed thereto. These financial statements are the responsibility of the Companies Management, 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, These 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 the management, as well as evaluation the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 issued by the Central Govt. Of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to 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 accounts 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 this report is 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 comply with the Accounting Standards referred to Section 211 (3C) of the Companies Act, 1956. Except AS-2 Valuation of Inventories wherein Stock-in-Trade is valued at cost. As informed to us, there is no material difference in between the market price & cost and hence, Company has decided to continue to follow the consistent Accounting Policy and AS-22 Taxes on Income).

e) On the basis of written representation received from the Directors, as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the Director is disqualified as on 31" March 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 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 said accounts subject to :

Note No.20 (I) Claims against the Company not acknowledged as debt :

a) Custom Duty on Capital Goods Rs. 89,606

b) Custom Duty on Raw Material Rs. 42,411

c) Royalty Claims by NRDC Rs. 85,000

d) Claims From SBI for loan Unascertainable give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

I. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2012

II. In the case of the Profit and Loss Account, of the profit for the Year ended on that date.

III. In the case of the Cash Flow Statement of the Cash Flow for the Year ended on that date.

Annexure to the Auditor''s Report

(Referred to in Paragraph (3) of our report of even date) 1. (a) The Company has maintained proper records showing full particulars including Quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification. The frequency of such verification was in our opinion, reasonable.

(c) In our opinion, and according to the information and explanations given to us, a substantially part of Fixed Assets has not been disposed off by the company during the year 2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) The company noticed discrepancies on verification between the physical stock and the book records and they were not material.

3 The Company has neither granted nor taken any loans, secured or unsecured from the companies, firms or other parties maintained in register under section 301.

4 In our opinion and according to the information and explanations given to us during the course of the audit, there are adequate internal control procedures commensurate with size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal controls.

5. a) According to the information and explanations given to us the particulars of contracts or arrangements referred to in Sec. 301 of The Act. have been entered in the register required to be maintained under that section. b) These transactions pursuant to such contracts are made at price which are reasonable having regard to prevailing market prices at relevant time.

6. The Company has not accepted any Deposits from the public during the period and hence question of compliance of RBI directives and provisions of Section 58A and 58AA or other provisions does not arise.

7. In our opinion, the company has an internal audit system commensurate with the size and the nature of its business. Internal Audit is carried out by an independent firm of Chartered Accountants

8. The Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956, for any of the product of the Company.

9 a) The Company is regular in depositing undisputed statutory dues such as PF, ESI, IT, ST, Central Excise Duty, Custom Duty, Wealth Tax, Service Tax, Investor Education & Protection Fund etc., with appropriate authorities and no undisputed amounts payable as on 31s; March 2012 were pending for payments. b) Following dues payable to various Government Authorities are disputed and hence not paid or provided for by the Company : Sr. Particulars Amount Rs, Level at which the dispute is pending

01 Custom Duty on Capital Goods 89606 CEGAT has remanded the matter and hearing is completed at Department.

02 Custom Duty on Raw Material 42411 Hon. Supreme Court ,

03 Royalty cairns by NRDC 85000 Arbitrator

04 Claims of interest from SBI unascertainable DRTAHMEDABAD

10 In our opinion the accumulated losses of the Company are more than 50% of M net worth.

11 In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to financial institutions or bank or debenture r,u,uurs subject to Note No. 20(1) of Notes on Accounts.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures & other securities and hence maintenance of records does not arises.

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

14. The Company is not dealing or trading in shares, securities. Debentures and other investments. Therefore the provision of clause 4 (xiv) are not applicable to the company.

15. The Company has not given any guarantee for the loans taken by others.

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

17. The Company has not used funds raised on short term basis for long term investments.

18. The Company has not made any preferential allotment of shares during the year.

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

20. The Company has not raised money from public issue during the year.

21. According to the information and explanations given to us no fraud against the Company or by the Company has been noticed or reported during the course of our audit.

For BPA& COMPANY

CHARTERED ACCOUNTANTS

(FR NO: - 109685-W)

Place ; Ahmedabad B. M. VASHI

Date : 30* MAY 2012 PARTNER

M. No. 31122

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Mar 31, 2010

1. We have audited the attached Balance Sheet of STARVOX ELECTRONICS LIMITED as at 31st March 2010 the Profit & Loss Account and also the Cash Flow Statement for the Year ended on that date annexed thereto. These financial statements are the responsibility of the Companies Management. 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. These 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 the management, as well as evaluation the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Govt. Of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order.

4. Further to our comments in the Annexure referred to 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 accounts 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 this report is 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 comply with the Accounting Standards referred to Section 211 (3C) of the Companies Act, 1956. Except AS-2 Valuation of Inventories wherein Stock-in-Trade is valued at cost. As informed to us, there is no material difference in between the market price & cost and hence, Company has decided to continue to follow the consistent Accounting Policy and AS-22 Taxes on Income (Refer Note No. 12).

e) On the basis of written representation received from the Directors, as on 31st March 2010 and taken on record by the Board of Directors, we report that none of the Director 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 Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts subject to :

/. Note No. 7 (a) to (e) relating to non provision of:

a) Custom Duty on Capital Goods Rs. 89,606

b) Custom Duty on Raw Material Rs. 42,411

c) Royalty Claims by NRDC Rs. 85,000

d) Claims From SBI for loan Unascertainable

give the information required by the Companies Act, 1956, in the manner so required and givea 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 2010.

II. In the case of the Profit and Loss Account, of the profit for the Year ended on that date.

III. In the case of the Cash Flow Statement of the Cash Flow for the Year ended on that date.



Annexure to the Auditors Report (Referred to in Paragraph (3) of our report of even date)

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

(b) All the assets have been physically verified by the management during the year. No material discrepancies were noticed on such verification. The frequency of such verification was in our opinion, reasonable.

(c) In our opinion, and according to the information and explanations given to us, a substantially part of Fixed Assets has not been disposed off by the company during the year.

2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b) The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and nature of its business.

c) The company noticed discrepancies on verification between the physical stock and the book records and they were not material.

3. The Company has neither granted nor taken any loans, secured or unsecured from the companies, firms or other parties maintained in register under section 301.

4. In our opinion and according to the information and explanations given to us during the course of the audit, there are adequate internal control procedures commensurate with size of the . company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal controls.

5. a) According to the information and explanations given to us the particulars of contracts or arrangements referred to in-Sec. 301 of The Act have been entered in the register required to be maintained under that section.

b) These transactions pursuant to such contracts are made at pice which are reasonable having regard to prevailing market prices at relevant time.

6. The Company has not accepted any deposits from the public during the period and hence question of compliance of RBI directives and provisions of Section 58A and 58M or other provisions does not arise.

7. In our opinion, the company has an internal audit system commensurate with the size and the nature of its business. Internal Audit is carried out by an independent firm of Chartered Accountants.

8. The Government has not prescribed maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956, for any of the product of the Company.

9. a) The Company is regular in depositing undisputed statutory dues such as PF, ESI, IT, ST, Central Excise Duty, Custom Duty, Wealth Tax, Service Tax, Investor Education & Protection Fund etc., with appropriate authorities and no undisputed amounts payable as on 31st March 2010 were pending for payments b) Following dues payable to various Government Authorities are disputed and hence not paid or provided for by the Company :

Sr. Particulars Amount Rs. Level at which the dispute is pending 01 Custom Duty on Capital Goods 89606 CEGAT has remanded the matter and hearing is completed at Department.

02 Custom Duty on Raw Material 42411 Hon. Supreme. Court

03 Royalty claims by NRDC 85000 Arbitrator

04 Claims of SBI for loan unascertai- nable DRT AHMEDABAD

10. The accumulated losses of the Company are more than 50% of its net worth. The Company has incurred cash losses during the financial year covered by our audit.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions or bank or debenture holders subject to Note No. 7 of Notes on Accounts.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures & other securities and hence maintenance of records does not arises.

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

14. The Company is not dealing or trading in shares, securities. Debentures and other investments. Therefore the provision of clause 4 (xiv) are not applicable to the company.

15. The Company has not given any guarantee for the loans taken by others.

16. The Company has taken term loan for car.

17. The Company has not used funds raised on short term basis for long term investments.

18. The Company has not made any preferential allotment of shares during the year.

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

20. The Company has not raised money from public issue during the year.

21. According to the information and explanations given to us no fraud against the Company or by the Company has been noticed or reported during the course of our audit.



For BPA & COMPANY

CHARTERED ACCOUNTANTS

Place : Ahmedabad B. M. VASHI

Date : 30th May 2010 PARTNER

M. No. 31122