ఆడిటర్ నివేదిక Prabhu Steel Industries Ltd.

Mar 31, 2024

We have audited the accompanying financial statements of PRABHU STEEL INDUSTRIES LIMITED (the
“Company”), which comprises the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss
(including the Other Comprehensive Income), the Statement of Cash Flows and the Statement of Changes in
Equity for the year ended on that date and notes to the financial statements, including a summary of material
accounting policies and other explanatory information (hereinafter referred to as “the financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid
financial statements give the information required by the Companies Act, 2013, as amended (“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 March 31, 2024, and its profit including total comprehensive income / (losses), its cash flows and the changes
in equity for the year ended on that date.

Basis of Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act. Our responsibilities under those Standards on Auditing (SAs) are further
described in the Auditor’s Responsibilities for the Audit of the financial statements section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India (“the ICAI”) together with the ethical requirements that are relevant to our audit of the
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, we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment were 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
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. For each matter below, our description of how our audit addressed the matter is provided in that
context.

We have determined the matters described below to be the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risk of material misstatement of the
financial statements. The results of our audit procedures, including the procedures performed to address the
matter below, provide the basis for our audit opinion on the accompanying financial statements. .

The Key Audit Matters	How was the matter addressed in our Audit
Revenue Recognition (Refer Note No. 1.4.(d) and 23 of the Financial Statements)
Revenue is one of the key profit drivers and is therefore susceptible to misstatements. Revenue is measured in net of any discounts and rebates. Revenue from sale of products is considered as key audit matter as there is a risk of accuracy of recognition and measurement of sales in the standalone financial statements considering the following aspects: * Determination of performance obligation for recognition of revenue. * Estimation of variable consideration in pricing. * Cut-off is the key assertion in so far as revenue recognition is concerned, since an inappropriate cut¬ off can result in material misstatement of results for the periods.	Our audit procedures with regards to revenue recognition is a combination of internal controls and substantive procedures which included the following: * Evaluated the design of internal control. * For evaluation of operating effectiveness of internal controls, tested revenue by verifying, on sample basis, agreements executed with the customers, relevant documentary evidence of satisfaction of performance obligation for timing of recognition of revenue, accuracy of revenue recognition including variable consideration included pricing, cut off transactions at the year end and tax amount of the invoices. * Performed substantive testing by verifying the sales invoice and other relevant documentary evidence on sample basis. * Obtain the balance confirmation form selected samples and verified the reconciliation, if any, for the confirmation received. * Evaluated the appropriateness of accounting policies, related disclosures made and overall presentation in the standalone financial statements.
Carrying Value of Trade Receivables

As at March 31, 2024, trade receivables constitutes	Our audit procedures included, among other the
approximately 19.04% of total assets of the Company (Refer “Note No. 9” of the financial statements). The	followings:
Company is required to regularly assess the	* Evaluated the Company’s accounting policies
recoverability of its trade receivables.	pertaining to impairment of financial assets and assessed compliance with those policies in term of Ind
The Company applied, expected credit loss (ECL) model for measurement and recognition of	AS - 109, “Financial Instruments”.
impairment loss on trade receivables. The Company	* Assessed and tested the design and operating
uses a provision matrix to determine impairment loss	effectiveness of the Company’s internal financial
allowances. The provision matrix is based on its historically observed default rates over the expected	controls over provision for expected credit loss (ECL).
life of trade receivables and is adjusted for forward	* Evaluated the management’s assumption and
looking estimates.	judgment relating to various parameters which included the historical default rates and business
This is a key audit matters as significant judgement is	environment in which the entity operates for
involved to establish the provision matrix.	estimating the amount of such provision. * Evaluated the management’s assessment of recoverability of the outstanding receivables and recoverability of the overdue / aged receivables through inquiry with the management, and analysis of the collection trends in respect of receivables. * Assessed and read the disclosures made by the Company in the financial statements.

Information Other than the Financial Statements and Auditor’s Report thereon

The Company’s Management and the Board of Directors are responsible for the other information. The other
information comprises the information included in the Management’s Discussion and Analysis, Board’s Report
including Annexure to the Board’s Report, Report on Corporate Governance, Business Responsibility Report
and Shareholder’s information, but does not include the consolidated financial statements, standalone financial
statements and our auditor’s report thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained during the course of our 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.

Management’s Responsibility for the Financial Statements

The Company’s Management and the Board of Directors are responsible for the matters stated in Section 134(5)
of the Act with respect to the preparation of these financial statements that give a true and fair view of the
financial position, the financial performance including the other comprehensive income, cash flows and changes
in equity of the Company in accordance with the accounting principle generally accepted in India, including the
Indian Accounting Standards (Ind AS) as specified under Section 133 of the Act, read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended. 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 presentations

of the financial statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.

In preparing the financial statements, the Company’s Management and the Board of Directors are 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 Company’s management and Board of
Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do
so.

The Company’s Board of Directors are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibility for the Financial Statements

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

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

• Identify and assess the risks of material misstatement of the 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 controls.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Company has adequate internal financial controls system with
reference to financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Company’s Management and Board of Directors.

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

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i) 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 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 financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

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 “A”, a
statement on the matters specified in paragraph 3 and paragraph 4 of the said Order.

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, the Statement of Profit and Loss including the Other Comprehensive Income, the
Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with
the books of account;

d. In our opinion, the aforesaid 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 representation received from the directors as on March 31, 2023 taken on the
record by the Board of Directors, none of directors is disqualified as on March 31, 2023 from being appointed as
a director in term of Section 164(2) of the Act.

f. With respect to adequacy of the internal financial controls with reference to these financial statements of the
Company and the operating effectiveness of such control, refer to our separate report in Annexure “B”. Our
report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal
financial controls with reference to financial statements.

g. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements
of Section 197(16) of the Act, as amended time to time, in our opinion and to the best of our information and
explanations given to us, the remunerations paid / provided by the Company to its directors during the reporting
period is in accordance with the provision of Section 197 of the Act. The remuneration paid to any directors is
not in excess of the limit laid down under section 197 of the Act. The Ministry of Corporate Affairs (“MCA”)
has not prescribed other details under section 197(16) of the Act which are required to be commented upon by
us.

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

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial
statements - Refer “Note No. 30” of the financial statements.

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

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

iv)a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed fund or
share premium or any other sources or kind of funds) by the Company to or in any other person or entities,
including the foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or
otherwise, that the Intermediaries 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 to or on behalf of the Ultimate Beneficiaries;

b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material
either individually or in the aggregate) have been received by the Company from any person or entities,
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;

c) Based on such audit procedures 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), as provided under (a) and (b) above, contain any material misstatement.

(v) The Company has not declared or paid any dividend, during the reporting period, hence the requirement to
report on the compliance with section 123 of the Companies Act, 2013 is not furnished.

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

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 01, 2023, reporting
under Rule 11(g) of the Companies (Audit and Auditors) Rule, 2014 on preservation of audit trail as per the
statutory requirements for record retention is not applicable for the financial period ended March 31, 2024.

For MANISH N JAIN & CO.

Chartered Accountants
FRN No. 138430W
Sd/-

ARPIT AGRAWAL

Place: Nagpur Partner

Dated: May 25, 2024 Membership No. 175398

UDIN No.: 24175398BKAQOL5439

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Mar 31, 2014

We have audited the accompanying financial statements of PRABHU STEEL INDUSTRIES LIMITED , which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the 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") read with the General Circular 15/2013 dated 13 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.

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 on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 the 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 the internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

ATTENTION IS INVITED TO THE FOLLOWING

* The representation made to us by the management (which cannot be verified and hence accepted) relating to.

1. NON INCLUSION OF CONTINGENT LIABILITY OF RS. 80,00,497/- ITEM NO. 11(1) "Claim not acknoweledged as debts in Notes 13"

* Balances of sundry debtors and debit balances of sundry creditors and loans and advances are subject to confirmation.

* The Investment in shares in 2 listed company at book value of Rs. 168422/- for which no quotation is available as on 31.03.2014 whereas the management has treated such investment as "unquoted Investment" as delisted .

We report that the accounts are made without considering our above observation in paragraph (1) to (3) above, the effect of which is presently not ascertainable.

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

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

(b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date, and

(c) in the case of the Cash Flow Statement, of the cash flows of the Company 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 a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, Statement of Profit and Loss, and the 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 sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. and

(e) On the basis of the written representations received from the directors as on 31st March, 2014 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

ANNEXURE REFERRED TO IN PARAGRAPH 2 OP THE AUDITOR''S REPORT ON THE ACCOUNTS OF PRABHU STEEL INDUSTRIES LIMTED FOR THE YEAR ENDING 31st MARCH 2014

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

1. In respect of fixed assets:

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

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

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

2. In respect of its inventories:

(A) As explained to us, the inventory of stocks of raw material, trading goods & finished goods has been physically verified by the management at regular intervals during the year.

(B) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company has maintained proper records of inventory. And there were no material discrepancies noticed on physical verification of inventory as compared to the book records. The discrepancies, if any, in respect of other than finished goods, trading goods and raw materials, could not be ascertained in the absence of records which should have been maintained.

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

(A) The company has granted Loans to two parties. At the year end the outstanding balance of such loans granted was Rs. NIL and the maximum amount involved during the year was Rs. 22.67 Lacs.

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

(D) Since the loans taken and granted by the company are repayable on demand, no question of overdue amounts arises.

In our opinion and according to the information and explanations given to us, there are no internal control procedures commensurate with the size of the company and nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services.

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

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

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

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

In our opinion, the company has no internal audit system commensurate with its size and nature of its business.

The maintenance of cost record has not been prescribed by the Central Government under section 209(1 )(d) of the Companies Act, 1956.

4. In respect of statutory dues:

(A) According to the information and explanations given to us, the company was generally regular in depositing dues in respect of Employees Provident Fund, Employees State Insurance Fund, and other statutory dues except in certain cases of income tax and sales tax, with the appropriate authority during the year.

(B) According to the records examined by us and the information and explanations given to us, there are no disputed amounts due in respect of income tax, wealth tax, sales tax, excise duty, Employees provident fund, Employee state insurance fund and other statutory dues at the end of the year.

The Company has accumulated losses of Rs. Nil and the company incurred cash loss of Rs. Nil during the financial year covered by our audit and Rs. NIL in the immediately preceding financial year.

5. Based on our audit procedures and on the basis of information and explanations given by the management, the Company has not defaulted in the repayment of dues to banks, financial institutions and Debentures holders during the year.

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

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

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

9. The Company has not given Guarantees for the loan taken by others from banks or financial institutions.

10. As per record of the company, the company has not received any term loans during the year.

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

12. The Company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956, during the year.

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

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

15. The Company has not given Guarantees for the loan taken by others from banks or financial institutions.

16. As per record of the company, the company has not received any term loans during the year.

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

18. The company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956, during the year.

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

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



For Lalit Jham & Co. For Prabhu Steel Industries Ltd Chartered Accountants FRN114158w

Director Director Lalit Jham Harish Agarwal Dinesh Agarwal Partner DIN 291083 DIN 291066 M.no: 040501

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Mar 31, 2013

Report on the Financial Statements ''

We have audited the accompanying financial statements of PRABHU STEEL INDUSTRIES LIMITED, which comprise the Balance Sheet as at 31st March , 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s 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 (''Hie 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 on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 the 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 the internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

ATTENTION IS INVITED TO THE FOLLOWING :-

- The representation made to us by the management (which cannot be verified and hence accepted) relating to: -

1. Various entries of recipts and issues of cheque on behalf of various parties.

2. Various adjustments between the parties account by j ournal entry.

3. NON INCLUSION OF CONTINGENT LIABILITY OF RS. 80,00497/- ITEMNO. 9(a) "Claim not acknoweledged as debts in Notes 17"

- Balances of sundry debtors and debit balances of sundry creditors and loans and advances are subject to confirmation.

- The Investment in shares in 2 listed company at book value of Rs. 360250/- for which no quotation is available as on 31.03.2013 whereas the management has treated such investment as "unquoted Investment'' as delisted (Note 15 of Schedule 17).

We report that the accounts are made without considering our above observation in paragraph (1) to (3) above, the effect of which is presently not ascertainable.

In our opinion and to the best of our infoimation and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view subject to our comments above in confoimity with the accounting principles generally accepted in India:

(a) in the caseof the Balance Sheet, ofthe state of affairs ofthe Company as at 31st March, 2013;

(b) in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date, and

(c) in the case of the Cash Flow Statement, of the cash flows ofthe Company 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 a statement on the matters specified in paragraphs 4 and 5 ofthe 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 W$>'' and belief were necessary for the purposes of our audit. ^/y

(a) 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.

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

(c) In our opinion, the 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 Act.

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

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF THE AUDITORS REPORT ON THE ACCOUNTS OF PRABHU STEELINDUSTRIES LIMTED FOR THE YEAR ENDING 31st MARCH 2013

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

1 In respect of fixed assets:

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

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

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

2 In respect of its inventories:

(A) As explained to us, the inventory of stocks of raw material, trading goods & finished goods has been physically verified by the management at regular intervals during the year.

(B) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the Company has maintained proper records of inventory. And there were no material discrepancies noticed on physical verification of inventory as compared to the book records. The discrepancies, if any, in respect of other than finished goods, trading goods and raw materials, could not be ascertained in the absence of records which should have been maintained.

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

(A) The company has granted Loans to two parties. At the year end the outstanding balance of such loans granted was Rs. 22.67 Lacs and the maximum amount involved during the year was Rs. 23.33 Lacs.

(B) In our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other the terms and #%y conditions are not prima-facie prejudicial to the interest of the company. 3ra^ I

(C) In respect of loans taken and granted by the company, the interest payment 8b receipt is regular and the principal amount is repayable on demand.

(D) Since the loans taken and granted by the company are repayable on demand, no question of overdue amounts arises.

In our opinion and according to the information and explanations given to us, there are no internal control procedures commensurate with the size of the company and nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services.

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

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

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

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

In our opinion, the company has no internal audit system commensurate with its size and nature of its business.

The maintenance of cost record has not been prescribed by the Central Government under section 209(l)(d) of the Companies Act,1956.

In respect of statutory dues:

(A) According to the information and explanations given to us, the company was generally regular in depositing dues in respect of Employees Provident Fund, Employees State Insurance Fund, and other statutory dues except in certain cases of income tax and sales tax, with the appropriate authority during the year.

(B) According to the records examined by us and the information and explanations given to us, there are no disputed amounts due in respect of income tax, wealth tax, sales tax, excise duty, Employees provident fund, Employee state insurance fund and other statutory dues at the end of the year. Silll

10 The Company has accumulated losses of Rs. Nil and the company incurred P cash loss of Rs. Nil during the financial year covered by our audit and Rs. 16.86.000 in the immediately preceding financial year.

11 Based on our audit procedures and on the basis of information and explanations given by the'' management, the Company has not defaulted in the repayment of dues to banks, financial institutions and Debentures holders during the year.

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

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

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

15 The Company has not given Guarantees for the loan taken by others from banks or financial institutions.

16 As per record of the company, the company has not received any term loans during the year.

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

18 The company has not made any preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956, during the year.

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

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

For Prabhu Steel Industries Ltd

Chartered Accountants

FRN114158w

Lalit Jham Director Director

Partnet

M.no: 040501

---

Mar 31, 2011

1) WE HAVE AUDITED THE ATTACHED BALANCE SHEET OF PRABHU STEEL INDUSTRIES LTD. NAGPUR, AS AT 31 ST MARCH, 2011 AND ALSO THE PROFIT AND LOSS ACCOUNT AND THE CASH FLOW STATEMENT FOR THE YEAR ENDED ON THAT DATE ANNEXED THERE TO. THE FINANCIAL STATEMENTS ARE THE RESONSIBILITY OF THE COMPANY'S MANAGEMENT. OUR RESPONSIBILITY IS TO EXPRESS AN OPINION ON THESE FINANCIAL STATEMENTS BASED ON OUR AUDIT.

2) WE CONDUCTED OUR AUDIT IN ACCORDANCE WITH AUDITING STANDARDS GENERALLY ACCEPTED IN INDIA. THOSE STANDARDS REQUIRE THAT WE PLAN AND PERFORM THE AUDIT TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE: FINANCIAL STATEMENTS ARE FREE OF MATERIAL Misstatement AN AUDIT INCLUDES EXAMINING, ON A TEST BASIS, EVIDENCE SUPPORTING THE AMOUNTS AND DISCLOSURES IN THE FINANCIAL STATEMENTS. AN AUDIT ALSO INCLUDES ASSES SING THE ACCOUNTING PRINCIPLES USED AND SIGNIFICANT ESTIMATES, MADEBYTHE MANAGEMENT, AS WELL AS EVALUTING 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, AS AMENDED BY THE COMPANIES (AUDITOR'S REPORT) (AMENDMENT) ORDER, 2004, (THE ORDER') ISSUED BY THE CENTRAL GOVERNMENT OF INDIAIN TERMS OF SUB SECTION (4A) OF SECTION 227 OF THE COMPANIES ACT, 1956, WE ENCLOSE IN THE ANNEXURE A STATEMENT ON THE MATTERS SPECIFIED IN PARAGRAPHS '4' AND '5' OF THE SAID ORDER.

4) ATTENTIONS INVITED TO THE FOLLOWING.

a) THE AGGREGATE OF BALANCES IN THE ACCOUNT OF PARTIES, TO WHOM LOANS OR ADVANCES (UNSECURED WITHOUT BEARING INTEREST) IN THE NATURE OF LOAN HAVE BEEN MADE, EXCEED THE LIMITS PRESCRIBED UNDER SECTION 370 OF THE COMPANIES ACT, 1956.

b) THE REPRESENTATION MADE TO US BY THE MANAGEMENT (WHICH CANNOT BE VERIFIED AND HENCE ACCEPTED) RELATING TO: -

i. VARIOUS ENTRIES OF RECEIPTS AND ISSUES OF CHEQUES ON BEHALF OF VARIOUS PARTIES

ii. VARIOUS ADJUSTMENTS BETWEEN THE PARTIES ACCOUNT BYJOURNAL ENTRIES

iii. NON INCLUSION OF CONTINGENT LIABILITIES OF RS. 2583952/- LACS ITEM NO. 9(a) "CLAIM NOT ACKNOWLEDGED AS DEBTS "IN SCHEDULE"17".

c) BALANCES OF SUNDRYDEBTORST AND DEBIT BALANCES , SUNDRY CREDITORS AND LOANS AND ADVANCES AND DEPOSITS ARE SUBJECT TO CONFIRMATION [NOTE NO 13 OF SCHEDULE 17}.

d) THE INVESTMENTS IN EQUITY SHARES IN 2 LISTED COMPANY AT BOOK VALUE OF RSJ6025QA FOR WHICH NO QUOTATION IS AVAILABLE AS ON 31-03-2011 WHEAREAS THE MANAGEMENT HAS TREATED SUCH .INVESTMENT AS "UNQUOTED . INVESTMENT" AS DELISTED (NOTE 15 OF SCHEDULE; 17).

e) REMUNERATION TO MANAGING DIRECTOR [NOTEJ NO. 17 OF SCHEDULE 17]

2) IN OUR OPINION, THE CASHFLOW STATEMENTS,THE PROFIT AND LOSS ACCOUNT AND THE BALANCE SHEET COMPLY WIETHE ACCOUNTING STANDARDS REFERRED TO IN SUB- SECTION 111 OF THE COMPANIES ACT, 1956.

3) SUBJECT TO OUR CO,,ENTS IN PARA 4,5 AND AND IN THE ANNEXURE REFERRED TO INPARA '3'AB0VE :-

i. WE HAVE OBTAINED ALL THE INFORMATION AND EXPLANATIONS, WHICH TO THE BEST OF OUR KNOWLEDGE AND BELIEF WERE NECESSARYFOR THE PURPOSE OF OUR AUDIT.

ii. IN OUR OPINION, PROPER BOOKS OF ACCOUNT AS REQUIRED BY LAW HAVE BEEN KEPT BY THE COMPANY SO FAR AS APPEARS FROM OUREXAMINATION OF THOSE BOOKS.

iii. THE BALANCE SHEET, PROFIT AND LOSS ACCOUNT AND CASH FLOW STATEMENT DEALT WITH BY THIS REPORT ARE IN AGREEMENTWITH THE BOOKS OF ACCOUNT.

iv. ON THE BASIS OF WRITTEN REPRESENTATION RECEIVED FROM DIRECTORS AS ON 31-03-2011 AND TAKEN ON RECORD BY THE BOARD OF DIRECTORS, WE REPORT THAT NONE OF THE DIRECTORS IS DISQUALIFIED AS ON 31st MARCH, 2011 FROM BEING APPOINTED AS A DIRECTOR UNDER CLAUSE, (g) OF SUB- SECTION(l)OF SECTION 2740F THE COMPANIES ACT 1956.

v. IN OUR OPINION AND TO THE BEST OF OUR INFORMATION AND ACCORDING TO THE EXPLANATIONS GIVEN TO US, THE SAID ACCOUNTS READ WITH THE NOTES THEREON, GIVE THE INFORMATION REQUIRED BY THE COMPANIES ACT, 1956, IN THE MANNER SO REQUIRED AND GIVE A TRUE AND FAIR VIEW IN CONFIRMITY WITH THE ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN.INDIA.

a) IN THE CASE OF THE BALANCE SHEET, OF THE STATE OFJAFFAIRS OF THE COMPANY AS AT 31ST MARCH, 2011,

b) IN THE CASE OF THE PROFIT & LOSS ACOUNT, OF THE PROFIT FOR THE YEAR ENDED ON THAT DATE, AND

c) IN THE CASE OF CASH FLOW STATEMENT, OF CASH FLOW FOR THE YEAR ENDED ON THATDATE.

ANNEXURE TO THE AUDITORS REPORT OF PRABHU STEEL INDUSTRIES LTD. REFERRED TO IN PARAGRAPH (3) OF OUR REPORT OF EVEN DATE ON THE ACCOUNT SAT 31ST MARCH 2011.

1)A. THE COMPANY HAS MAINTAINED PROPER RECORDS SHOWING FULL PARTICULARS INCLUDING QUANTITATIVE DETAILS AND GENERAL LOCATION OF FIXED ASSETS.

B. THE FIXED ASSETS HAVE BEEN PHYSICALLY VERIFIED BY THE MANAGEMENT AT THE YEAR END. WE ARE INFORMED THAT NO MATERIAL DECREASE HAVE BEEN NOTICED BY THE MANAGEMENT ON SUCH VERIFICATION AS COMPARED WITH THE RECORD OF FIXED ASSETS MAINTAINED BY THE COMPANY

C. THE COMPANY HAS NOT DISPOSED OFF ANY FIXED ASSETS DURING THE YEAR.

2) A. THE PHYSICAL VERIFICATION OF STOCKS OF RAW MATERIAL, TRADING GOODS AND FINISHED GOODS WAS CONDUCTED AT THE YEAREND ONLY

B. IN OUR OPINION AND ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US, THE PROCEDURES OF PHYSICAL VERFICATION ADOPTED BY THE COMPANY NEEDS TO BE FURTHER STRENGTHENED IN VIEW OF THE NATURE OF ITS BUSINESS AND SIZE OF THE CQMPANY.

C. THE COMPANY IS MAINTAINING PROPER RECORDS OF INVENTORY OF FINISHEDGOODS, TRADING GOODS AND RAW MATERIALS ONLY, BUT NOT FOR STORES AND CONSUMABLES. THE DISCREPANCIES WHICH WERE NOT MATERIAL BETWEEN THE PHYSICAL STOCKS AND BOOK RECORDS, FOR FINISHED GOODS, TRADING GOODS AND RAW MATERIAL HAVE BEEN PROPERLY DEALT WITH IN THE BOOKS OF ACCOUNTS.

THE DISCREPANCIES, IF ANY, IN RESPECT OF OTHER THAN FINISHED GOODS, TRADING GOODS AND RAW MATERIALS, COULD NOT BE ASCERTAINED IN THE ABSENCE OF RECORDS WHICH SHOULD HAVE BEEN MAINTAINED.

3) THE COMPANY HAS TAKEN AS WELL AS GRANTED LOANS FROM/TO COMPANIES, FIRMS OR OTHER PARTIES COVERED IN THE REGISTER MAINTAINED UNDER SECTION 301 OF THE COMPANIES ACT. THE RATE OF INTEREST AND OTHER TERMS AND CONDITIONS ARE PRIMA FACIAL PREJUDICIAL TO THE INTEREST OF COMPANY.

4) IN OUR OPINION, AND ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US, AND ON THE BASIS OF SUCH CHECKS AS WE CONSIDERED APPORPORIATE STATE THAT THE COMPANY HAS NO INTERNAL PROCEDUIRIES INCLUDING RECORDING, OF TRANMEFIEKS, SUPPORTING EVIDENCES, PURCHASES OF STOCKS COAL RAW MATERIALS, TRADING MATERIALS AND' FOR THE SALE OF GOODS AND SERVICES COMMENSURATE WITH THE OF COMPANY AND THE NATURE OF ITS BUSINESS.

5) ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US, COMPANY US COMPANY HAS ENTERED TRANSACTIONS WHICH NEED TO BE ENTERED IN TH REGISTER MAINTAINED UNDER SECTION 301 OFTHE COMPANIES ACT, 1956

6) IN OUR OPINION AND ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US THE COMPANY HAS NOT A ACCEPTED ANY DEPOSITS FROM THE PLUC TO WHICH T&E DIRECTIVES ISSUED BY RESERVEBANK OF INDIAANDTHI PROVISIONS OF SECTION 58-AAND 58-AA OF THE COMPANIES ACT, 1956 AND RULES MADE THEREUNDER AREAPPLICABLE.

7) IN OUR OPINION, THE COMPANYHAS NO INTERNAL AUDIT SYSTEM.

8) THE MAINTAINENCE OF COST RECORDS HAS NOT BEEN PRESCRIBED BY THE CENTRAL GOVERNMENT UNDER SECTION 209(1) (d) OF THE COMPANIES ACT, 1956.

9) THE COMPANY IS GENERALLY REGULAR IN DEPOSITING WITH APPROPRIATE AUTHORITIES UNDISPUTED STATUTORY DUES INCLUDING PROVIDENT FUND, INVESTOR EDUCATION AND PROTECTION FUND, EMPLOYEES STATE INSURANCE, INCOME TAX, SALES TAX, WEALTH TAX, SERVICE TAX, CUSTOMS DUTY, EXCISE DUTY, CESS AND ANY OTHER STATUTORY DUES APPLICABLE TO IT. ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVENTO US, THERE WERE NO UNDISPUTED AMOUNTS PAYABLE IN RESPECT OF PROVIDENT FUND, INVESTOR EDUCATION AND PROTECTION FUND, EMPLOYEES STATE INSURANCE, SALES TAX, WEALTH TAX, SERVICE TAX, CUSTOMS DUTY, EXCISE DUTY AND CESS WERE OUTSTANDING AS AT 31st MARCH, 2011, FOR A PERIOD OF MORE THAN SIX FROM THE DATE THEY BECOME PAYABLE EXCEPTFOR

10)ACCORDING TO THE RECORDS OF THE COMPANY, THE COMPANY HAS NO ACCUMULATED LOSSES ATTHE END OF FINANCIAL YEAR THE COMPANY HAS INCURRED CASH LOSSES IN CURRENT FINANCIAL YEAR. THERE WAS NO CASH LOSS IN THE IMMEDIATELY PRECEDINGFINANCIALYEAR.

11) ACCORDING TO THE RECORDS, THE COMPANY HAS NOT DEFAULTED IN THE IN THE REPAYMENT OF DUES TO AFINANCIALINS INSTITUTION OR BANK.

12) ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US, THE COMPANY HAS NOT GRANTED ANY LONS AND ADVANCES ON THE BASIS OF SECURITY PLEDGE OF SHARES, DEBENTURES AND OTHER Scuttles. :.

13) ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US, THE COMPANY ISNOT ACHIT FUJSIDOR ANIDHI/MUTUAL BENEFIT FUND/SOCIETY THEREFORE, THE PROVISIONS OF CLAUSE 4(Xiii) OF THE COMPANIES (AUDITORS REPORT) ORDER, 2003 ARE NOT APPLICABLE TO THE COMPANY.

14) ACCORDING TO THE RECORDS OF THE COMPANY, THE COMPANY IS NOT DEALING IN OR TRADING IN SHARES, SECURITIES, DEBENTURES AND OTHER INVESTMENTS.

15) ACCORDING TO THE INFORMATION AND EXPLANATIONS GIVEN TO US, THE COMPANYHAS NOT

16) GIVEN ANY GUARANTEE FOR LOANS TAKEN BY OTHERS FROM BANK ORFINANCIAL INSTITUTIONS.

17) AS PER RECORDS OF THE COMPANY, THE COMPANY HAS NOT RECEIVED ANY TERMS LOANS DURING THE FINANCIAL YEAR

18) ACCORDING TO THE INFORMATION AND EXPLANATION GIVEN TO US, AND THE RECORDS OF THE COMPANY EXAMINED BY US AND ON AN OVERALL BASIS, WE REPORT THAT NO FUNDS HAS BEEN RAISED ON SHORTBASIS DURING THE FINANCIAL YEAR.

19) THE COMPANY HAS NOT MADE ANY PREFERENTIAL ALLOTMENT OF SHARES DURING THE AIR. :

20) THE COMPANY HAS KOT ISSUED ANY DEBENTURES DURING THE YEAR.

21) THE COMPANY HAS NOT RUN WAY MONEY BY PUBLIC ISSUE during the year.

22) according to information and explanations given to us, no fraud on or by the company has noticed or reported during the year.

FORLALIT JHAM& CO

CHARTERED ACCOUNTANTS

FRN114158W

PLACE: NAGPUR LALITJHAM

DATED.31/08/2011 PROPRIETOR (M. NO. 040501)