ఆడిటర్ నివేదిక Sawant Food Products Ltd.

Mar 31, 2012

We have audited the attached Balance Sheet of SAWANT FOOD PRODUCTS LIMITED as at 31st March, 2012 and also the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date annexed thereto.

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

1. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956, we give the Annexure a statement on the matters specified in paragraph 4 of the said Order.

2. Further to our comments in the annexure referred to in paragraph 1 above and notes to accounts attached herewith we report that:

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

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

c) The Balance sheet and Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of Account.

d) The Balance sheet and the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub section 3C of section 211 of the Companies Act, 1956.

e) Based on the representations made by the Directors as on 31st March, 2012 and taken on record by the Board of Directors of the Company and the information and explanations given to us, none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

f) In our opinion and to best of our information and according to the explanations given to us the said Balance Sheet and Profit and Loss Account, read together with Significant Accounting Policies and notes thereon give the information required by The Companies Act, 1956, in the manners required and give a true and fair view in conformity with the accounting principles generally accepted in India;

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

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

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

ANNEXURE TO AUDITORS' REPORT

As required by the Companies (Auditor's Report) Order, 2003, issued by the Company Law Board in terms of section 227(4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and as per the information and explanations given to us during the course of audit, we further state that:

1. In respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars including quantities and situation of fixed assets;

(b) As per the information and explanations given to us by the management, the company has physically verified the fixed assets and no material discrepancies were noticed.

(c) In our opinion and according to the information and explanation given to us, the company not disposed off substantial part of fixed assets during the year.

2. The Physical verifications of the inventory conducted at reasonable intervals by the management.

(a) As per the information and explanation given to us the procedure of physical verification of stocks followed by the management are reasonable and adequate to the size of the company and the nature of its business.

(b) The discrepancies noticed on verification between physical stocks and the books records were not material and the same have been properly dealt with the books of account. The company does not have stock of finished goods or raw materials at the end of the year.

3. i) According to the information and explanation given to us, the company has granted loans, secured or unsecured to or from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 to one party and amount involved is Rs. 4,29,493/-.

ii) We have been informed that the rate of interest and other terms and conditions of loans given by the company, secured or unsecured, are not prima facie prejudicial to the interest of the company.

iii) The receipt of principal amount and interest are not regular.

iv) We have been informed that the company is taking reasonable steps for recovery of the principal and interest of the overdue amount of more than Rs. 1 Lakhs.

v) The Company has taken loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Act. The number of party is one and the amount involved in the transactions is Rs. 8,34,83,536/-

vi) The rates of interest and other terms and conditions of loans taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company and,

vii) The repayment of the principal amount and interest are also not regular.

4. The Company does not have any inventory nor there is any sale of goods, hence according to the information and explanations given to us, hence, we reserve our opinion on the adequacy of the internal control procedures being commensurate with the size of the Company and the nature of its business.

5. In respect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act, 1956:

a. To the best of our knowledge and belief and according to the information and explanations given to us, transactions that needed to be entered into the register have been so entered;

b. These transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from public, hence the directives issued by Reserve Bank Of India and the provisions of section 58A and 58AA of the Companies Act, 1956 and the rules framed there under are not applicable to the company.

7. The Company does not have adequate internal audit system commensurate with the size and the nature of its business.

8. We have been informed that the maintenance of cost records, prescribed by Central Government u/s 209(1)(d) of the Companies Act, 1956 are not applicable to the company.

9. According to the information and explanation given to us respect of statutory and other dues:

a. The Company has not been regular in depositing undisputed statutory dues with the appropriate authorities during the year. The extent of the arrears of outstanding statutory dues towards Employees Provident Fund and Sales Tax as at the last day of the financial year concerned for a period of more than six months from the date they became payable are Rs. 21,946/- and Rs. 5,076/- respectively.

b. We are unable to comment on the fact whether any disputed statutory dues are pending against the company.

10. In our opinion and according to the information and explanations given to us, by the management, the company has not made default in timely repayment of dues to banks after the One Time Statement (OTS) entered with its Bankers. (refer Notes to Accounts)

11. The companies has accumulated losses at the year and are not less than 50% of its net worth and it has incurred cash losses during the current and the immediately preceding financial year.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities, so, requirement of this clause is not applicable to the company.

13. The company is not a Chit Fund or Nidhi company and hence the special statute applicable to Chit Fund or Nidhi company are not applicable to the company.

14. The Company has not dealt or traded in shares, securities, debentures and other investment, so, the requirement of this clause is not applicable to the company.

15. In our opinion and according to the information and explanations given to us, the company has not given any guarantees for the loans taken by the others from banks or financial institutions.

16. The Company has not taken any fresh terms loans from the Banks or Financial Institutions.

17. According to the cash flow statement and other records examined by us and the information and explanations given to us, on an overall basis funds raised on short term basis have, prime facie, not been used during the year for long term investments.

18. We have been informed that the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act; hence the requirement of the clause is not applicable to the company.

19. During the year, the company has not issued any Debentures, so requirement of this clause is not applicable to the company.

20. The company has not raised any money by way of Public Issue, so requirement of reporting on this clause is not applicable.

21. We have been informed by the management that no cases of any fraud on or by the company has been noticed or reported during the year.

For Gupta Rustagi & Co.,

Chartered Accountants

FRN No128701W

Sd/-

Niraj Gupta

Partner

M.No.100808

Place: Mumbai

Date: 30th May, 2012

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Mar 31, 2010

We have audited the attached Balance Sheet of SAWANT FOOD PRODUCTS LIMITED as at 31st March 2010 and the profit and loss account and the Cash Flow statement of the company for the year ended on the date annexed thereto We conducted our audit on 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 misstatements .An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statement .An Audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation . we believe that our audit provides a reasonable basis for our opinion.

1.As required by the Companies (Auditors report ) Order 2003 , issued by the central Government of India in terms of section 227 (4A) of the Companies Act 156 we given the annexure a statement on the matters specified in paragraph 4 of the said Order.

2.Further to our comments in the annexure referred to in paragraph 1 above and notes to accounts attached here with we report 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 audited .

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

c) The Balance sheet and profit and loss Account and cash Flow statement dealt with by this report are in agreement with the books for Account.

d) The balance sheet and the Profit and Loss Account and the Cash flow Statement dealt with by this report comply with the accounting standards referred to in sub section 3 C of section 211 of the companies Act 1956.

e) Based on the representation made by the director as on 31st March 2010 and taken on record by the board of Director and the information and explanation given to us none of the director is disqualified as on 31st March 2010 form being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the companies Act 1956.

f) Subject to foregoing and Clause 1,3,4,7,9,10 of Companies (Auditors report) order 2003 and Note 5,6,7,15 of Schedule '13' , in our opinion and to best of our information and according to the explanations given to us the said Balance Sheet and profit and Loss Account, read together with Significant Accounting Policies and note thereon given the information require d by The companies Act 1956 in the manners required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) In the case of Balance sheet of the state of affairs of the Company as at 31st March 2010 and

ii) In the case of the profit & Loss account of the Loss form the year ended on that date.

iii) In the case of cash flow statement of the cash flow for the year ended on that date

ANNEXURE TO AUDITORS REPORT

As required by the Companies ( Auditors Report ) Order, 2003, issued by the Company Law Board in terms of section 227 (4A) of the Companies Act 1956 , and on the basis of such checks as we considered appropriate and as per the information and explanations given to us during the course of audit we further state that :

1.In respect of Fixed Assets : a) The Company has not maintained proper records showing full particulars including quantities and situation of fixed assets ;

b) As per the information and explanations given to us by the management the company has physically verified the fixed assets and no material discrepancies were notice ;

c) In our opinion and according to the information and explanation given to us the company not disposed off substantial part of fixed assets du ring the year .

2.The physical verification of the inventory conducted at reasonable intervals by the management.

a) As per the information and explanation given to us the procedure of physical verification of stocks followed by the management are reasonable and adequate to the size of the company and the nature of its business .

b) The discrepancies notice on verification between physical stocks and the books records were not material and the same have been properly dealt with the books of account. The company does not have stock of finished goods or raw materials at the end of the year .

3. i) According to the information and explanation given to us the company has granted loans secured or unsecured to or from companies firms or other parties covered in the register maintained under section 301 of the Companies Act 1956 to two parties and amount involved Rs 450,993/-

ii) We have been informed that the rate of interest and other terms and conditions of loans given by the company secured or unsecured are not prima facie prejudicial to the interest of the company .

iii) The receipt of principle amount and interest are not regular

iv) We have been informed that the company is talking reasonable steps for recovery of the principle and interest of the overdue amount of more than Rs.1 Lakhs

v) The Company has taken loans secured or unsecured from companies firms or other parties covered in the register maintained under section 301 of the Act.

The number of party is one and the amount involved in the amount involved in the transaction is RS 8,34,00,201/-

vi) The rate of interest and other terms and conditions of loans taken by the company , secured or unsecured are prima facie prejudicial to the interest of the company and

vii)The repayment of the principal amount and interest are also not regular

4. The Company does not have inventory nor their is any sale of goods hence according to the information and explanation given to us hence we reserve our opinion on the adequacy of the internal control procedures being commensurate with the size of the Company and the nature of its business 5.Inrespect of transactions entered in the register maintained in pursuance of section 301 of the Companies Act 1956:

a. To the best of our knowledge and belief and according to the information and explanation given to us transaction that needed to be entered into the register have been so entered ;

b. These transaction have been made at price which are reasonable having regard to the prevailing market price at the relevant time .

6. In our opinion and according to the information and explanation given to us the Company has not accepted any deposits from public hence the directives issued by reserve Bank of India and the provision of section 58 A and 58 AA of the Companies Act 1956 and the rules framed there under are not applicable to the company.

7.The Company does not have adequate internal audit system commensurate with the size and the nature of its business .

8.We have been informed that the maintenance of cost records prescribed by central Government u/s 209 (a)(d) of the Company Act 1956 are not applicable to the company.

9.According to the information and explanation given to us respect of statutory and other dues ;

a. The Company has not been regular in depositing undisputed statutory dues with the appropriate authorities during the year .The extent of the arrears of outstanding statutory dues towards Employees Provident Fund and Sales Tax as at the last day of the financial year concerned for a period of more than six month from the date they become payable are Rs 64,047/- and Rs 5,076/- respectively.

b. We have been informed by management of the company that there are no disputed statutory dues pending against the company

10. The company has accumulated losses at the year and are not less than 50% of its net worth and it has incurred cash losses during the current and the immediately preceding financial year

11. In our opinion and according to the information and explanations given to us by the management the company has not made default in timely repayment of due banks after the one Time Statement (OTS) entered with its Bankers (refer Note No 6 of the Notes to Accounts)

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares debentures and other securities so requirement of this clause is not applicable to the company

13. The company is not a Chit Fund or Nidhi company and hence the special statute applicable to Chit Fund or Nidhi company are not applicable to the company. 14. The Company has not dealt or traded in shares securities debentures and other investment so the requirement of this clause is not applicable to the company

15. In our opinion and according to the information and explanations given to us the company has not given any guarantees for the loans taken by the others from banks or financial institutions

16. The company has not taken any fresh terms loans from the Banks or financial institution

17. According to the cash flow statement and other records examined by us and the information and explanations given to us on an overall basis funds raised on short term basis basis have prime facie not been used during the year for long term investment During the year major amounts were written off and written back and there were no other activities 18. We have been informed that the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act hence the requirement of the clause is not applicable to the company

19. During the year the company has not issued any Debentures so requirement of this clause is not applicable to the company.

20. The company has not raised any money by way of public Issue so requirement of reporting on this clause is not applicable .

21.We have been informed by the management that no cases of any fraud on or by the company has been noticed or reported during the year .

For Gupta Rustagi & Co.,

Chartered Accountants

FRA No :128701W

Niraj Gupta

Partner

M.No ;-100808 Place : Mumbai

Date :24th August 2010