Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-section (5) of section 134 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 Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014. 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 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 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 there under. 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 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 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 to the standalone financial statements.

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 and give a true and fair view in confirm 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, 2015;

(b) in the case of the Statement of Profit and Loss, of the Loss 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.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

a) Gratuity and Leave Encashment benefits are accounted for on cash basis. In the absence of actuarial valuation it is not possible to quantify the amount payable on this account and its effect on Profit and Loss of the company.

b) The Fixed assets items of which residual life remains nil as on 01.04.2014, book value of these assets has been transferred to retained earnings in accordance with the Schedule II to Companies Act/2013. Accordingly the depreciation has been less charged by Rs. 27,80,047/- in the Profit and Loss Statement and Loss is less computed by the same amount.

Our opinion is not qualified / modified in respect of these matters.

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Centre! Government of India in terms of section 143 (11) of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by Section 143 (3) of the Companies Act, 2013 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 fares 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 accounts.

(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards specified in section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 except as otherwise stated under the "Emphasis of Matters" paragraph above or specifically mentioned in Notes on Accounts.

(e) No matters found during the audit which have adverse effect on the functioning of the company except continuous generation of cash loss to the company, which in the opinion of the board, the company will now be able to recover gradually with the ongoing production and Sales.

(f) On the basis of the written representations received from the directors as on 31" 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 sub-section (2) of section 164 of the Act.

(g) In our opinion, and on the basis of audit procedures adopted, there are adequate and effectively operational internal financial control with regard to financial reporting of the company commensurate with the size of the company and the nature of its business.

(h) With respect to the other matters 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 does not have any pending litigations which would impact its financial position.

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material for seeable losses. (iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date for the year ended as on 31.03.2015)

01. a) The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

b) The management at reasonable interval during the year has physically verified Fixed Assets of the company based on phased program of verifying all the assets over a period of three years, which in our opinion is reasonable having regard to the size of the company and nature of assets and business. Further, no Material discrepancies were observed during the process of physical verification.

02. a) The Inventory/stock have been physically verified by the Management at reasonable interval during the year and /or at close of the year.

b) The procedure adopted by the company for verification of inventory is in our opinion reasonable having regard to the size of the company and nature of its current operations.

c) On the basis of our examination of the inventory records, in our opinion the company is maintaining proper records of inventory and its disposing off and no material discrepancies were noticed on physical verification of inventory.

03. The company has not granted any loan, secured or unsecured to the companies, firms and other parties cove red in the register maintained under section 189 of the companies Act, 2013.

04. In our opinion, and according to the information and explanations given to us there are adequate internal control system commensurate with the size of the company and the nature of its business with regard to purchases of inventory and Fixed Assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the aforesaid internal control systems.

05. The company has not accepted any deposits from the public and therefore, the provisions of section 73 to 76 of the Companies Act, 2013 are not applicable. Further, the provisions of Companies (Acceptance of deposits) Rules, 2014 and the order passed by Company Law Board or National Company Law Tribunal and the directive issued by the Reserve Bank of India are not applicable.

06. Based on the review of the books of accounts maintained by the company and explanations and information provided to us, we are of the opinion that provisions of Maintenance of cost records, under Section 148(1) of the Companies Act, 2013 read with Rule 3 to The Companies (Cost Records and Audit) Rule 2014, are not required on the activity being carried out by the company and accordingly the company is not required statutorily to include cost records in its books of accounts.

07. (a) The company is regular in depositing the Undisputed Statutory dues including Income Tax, Sales Tax, Service Tax, Excise Duty, Value Added Tax, Cess, Customs Duty and other statutory dues with the appropriate authorities.

(b) According to the information and explanations given to us and on the basis of records of the company, the company does not have any liability during the year towards Value Added Tax, Commercial Tax, Central Excise Duty, Service Tax or any other statutory dues, which have not been deposited on account of any dispute.

(c) There is no amount with the company which is required to be transferred to Investor Education and Protection Fund as per the provisions of section 205C of the Companies Act, 1956 and IEPF (Awareness and Protection of Investors) Rules, 2001.

08. The accumulated losses of the company are more than it's Net Worth during the period covered under audit. Also, the company has incurred cash loss in the current financial year and in the immediately preceding financial year.

09. According to the records of the company examined by us and the information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to any financial institution or bank. Further, the company has not issued any Debenture during any of the preceding years

10. According to the information and explanations given to us, the company has not given guarantee for loan taken by others from banks and financial institutions.

11.there cords examined by us and the information and explanations given to us, the company during the financial year has taken a term loan from Bank and has applied it for the purpose for which it was obtained.

12. Based up on the audit procedures performed in accordance with the generally accepted auditing practices in India, and information and explanations given by management, we report that no fraud on or by the company has been notice dare ported during the year under audit.

                                            FOR NITIN GARUD & CO.

                                            Chartered Accountants  
                                           
Place : UJJAIN

DATED : 27th May 2015                         

                                   
                                                           Sd/-

                                    CA Abizer Pithewan, Partner

                                          Membership No. 400753