Management's Responsibility for the 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 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 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 internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, 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 on the financial statements.

Opinion

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 Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its profit and loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies ( Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms if sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matter specified in the paragraph 3 and 4 of the Order to the extent applicable .

2. As required by Section 143 (3) of the Act, 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, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(e) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(f) On the basis of the written representations received from the directors as on 31st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act

(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, 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 28 (c) to the financial statements.

(ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts.

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

Annexure to the Independent Auditors' Report

The Annexure referred to in paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirement" of our Independent Auditors' Report to the member of the Company on the financial statements for the year ended 31st March 2015, we report that :

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 and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification is reasonable.

2. (a) The inventories have been physically verified during the year by the management 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 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 has maintained proper records of inventory and the discrepancies noticed on verification between the physical stocks and book records were not material and have been properly dealt with in the books of account.

3. (a) The Company has not granted any loans, secured or unsecured to companies, firm or other parties covered in the register maintained under section 189 of the Companies Act, 2013 ('the Act') .Accordingly, paragraph iii(a) and iii(b) of the order is not applicable to the company.

4.. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with size of the Company and the nature of its business with regard to purchase of Inventory and fixed assets and for the sale of goods. We have not observed any major weaknesses in the internal controls system during the course of the audit.

5. The Company has not accepted any deposit from the public as governed by the provision of Section 73 to 76 or any other relevant provision of the Companies Act, 2013 and rules framed their under.

6. The Central Government has not prescribed the maintenance of cost records under section 148 (1) of the companies Act , 2013 ("the act").

7. (a) According to the information and explanation given to us and on the basis of our examination of the record of the company, amounts deducted /accrued in the books of account in respect of undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, Value added tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities..

(b) According to the information and explanations given to us, there is no undisputed amount payable in respect of income tax, sales tax, wealth tax, service tax, custom duty, excise duty, value added tax and cess and other material statutory dues were in arrears, as at 31st March 2015 for a period of more than six months from the date they become payable.

(c) According to the information and explanations given to us, there are no material dues of wealth tax, duty of customs and cess , Income -tax , Service tax ,Value added tax , Sales -tax have not been deposited with appropriate authorities on account of any dispute . However, according to information and explanation given to us , the following dues of Excise duty and Central Sales tax have not been deposited by the Company on account of disputes :

Name of Statute            Nature of       Amount          Period to
                           Dues           (in Rs.)         which
                                                           amount
                                                           relates

M.P. Excise Act 1915       Duty           632812.00        2010-11

M.P. Excise Act 1915       Penalty         45000.00        2010-11

M.P. Excise Act 1915       Duty           545400.00        2011-12

M.P. Excise Act 1915       Penalty         45000.00        2011-12

M.P. VAT                   CST            232895.00        2011-12

Name of Statute                  Forum where
                                 disputes pending

M.P. Excise Act 1915             High Court ,M.P.

M.P. Excise Act 1915             High Court ,M.P.

M.P. Excise Act 1915             High Court ,M.P.

M.P. Excise Act 1915             High Court ,M.P.

M.P. VAT                         High Court ,M.P.

(d) According to the information and explanations given to us, No amount were required to be transferred to investor education and protection fund in accordance with the relevant provision of the companies Act.

8. The Company does not have any accumulated losses at the end of the financial year and has incurred cash loss in the financial year and has not incurred cash loss in the immediately preceding financial year .

9. According to information and explanation given to us, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution and banks

10. According to information and explanations given to us, we are of the opinion that the company has not given any guarantee for loans taken by others from banks & other financial institutes

11. According to the information and explanation given to us, on an overall basis, the term loans were applied for the purpose for which they were obtained.

12. In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

                                            For : O.T. GANDHI & COMPANY
                                                  Chartered Accountants
                                        Firm's Registration No. 001120C

                                                          Sameep Gandhi
                                                                Partner
                                               Membership number 411107
Indore, May 30, 2015