II. Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters 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 Standards referred to in Section 133 of the Companies Act, 2013 (hereinafter referred to as the Act), read with Rule 7 of the Companies (Accounts) Rules, 2014 and in accordance with the accounting principles generally accepted in India. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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.

III. 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give true and fair view 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 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 reasonable basis for our audit opinion.

IV. Refer the following Notes:

Basis for Qualified Opinion

(i) Note No. 8 regarding non-provision of depreciation for the year on Plant and Machinery and Factory Buildings aggregating to Rs 32.84 Lacs due to closure of plant on account of suspension of manufacturing operations and consequential overstatement of fixed assets and overstatement of profit for the year by Rs 32.84 Lacs;

Emphasis of Matter

(i) Note No. 21, regarding the preparation of financial statements of the Company on a going concern basis. In view of the matters stated therein relating to revival of operations of the Company and the recent positive developments, accompanying financial statements have been prepared under going concern assumption; and

(ii) Note No. 22 regarding non-provision in the Company's books in respect of impairment in the Company's assets as per the recommendations of Accounting Standard-28, Impairment of Assets, since in the Company's opinion, the estimated realizable values exceed the carrying values of the fixed assets and hence no impairment arises. Consequential impact of such non-provision on the carrying values as well as on the profit for the year is presently unascertainable;

(iii) Note No. 32 regarding non-compliance by the Company with the requirements Section 203 of the Act in respect of appointment of a whole-time Company secretary.

Our opinion is not qualified in respect of the above matters.

(V) Opinion

Subject to Para (IV)(i) above, 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 its cash flows for the year ended on that date.

(VI) Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we enclose in the Annexure a statement on the matters specified in paragraph 3 of the said Order, to the extent applicable to the Company during the year under review.

2. Further to our comments in the Annexure referred to in 1. Above, as per the requirements of Section 143(3) of the Act, we report as follows:

(a) We have sought and 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, the 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 the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) On the basis of written representations received from the respective directors as on 31st March 2015 and 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;

(f) 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 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 foreseeable losses; and

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

(Referred to in paragraph VI(1) of our report of even date)

In terms of the information and explanations given to us and the books and records examined by us and on the basis of such checks as we considered appropriate, we further report as under:

(i) Fixed Assets

(a) The Company has maintained fixed assets register showing full particulars including quantitative details and situation of the fixed assets.

(b) As explained to us, the management has physically verified the fixed assets in a phased manner, the periodicity of which in our opinion is reasonable.

(ii) Inventory

(a) We were explained that the management has conducted physical verification of inventories as at close of the year under review.

(b) Based on the explanations, we are of the opinion that the procedures 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) In our opinion, the Company is maintaining proper records of inventory and no material discrepancies were noticed on the physical verification of the same and upon comparison with the said records.

(iii) Loans & Advances granted

During the year under review, the Company has not granted any loans, secured or unsecured, to the parties covered in the register maintained under Section 189 of the Act.

(iv) Internal Controls

In our opinion, the Company has adequate internal control procedures commensurate with the size and the nature of its business, for the sale of goods and provision of services. We have not come across any significant weakness in the present internal control system.

(v) Public Deposits

According to the information and explanations given to us, the Company has not accepted deposits as per the directives issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under.

(vi) Cost Records

As explained to us, the coated paper products manufactured by the Company do not fall in the category prescribed by the Central Government for maintenance of cost accounts and records under Section 148(1) of the Act during the year under review.

(vii) Statutory Dues

(a) As per the records verified by us, the Company is generally regular in depositing the statutory dues including Income tax, Sales Tax, Service Ta x and Excise Duty with the appropriate authorities during the year under review. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears, as at the end of the year for a period of more than six months.

Keeping in view the present operations of the Company, statutes pertaining to Employee's State Insurance Corporation, Customs Duty, Wealth Tax, Provident Fund and Cess are not applicable to the Company during the year under review.

(b) The disputed statutory dues aggregating to Rs. 21.77 Lacs, that have not been deposited on account of disputed matters pending before appropriate authorities are as under :

Sr.  Name ofthe      Nature of        Amount          Period
No.  statute         The Dues        (Rs. inLacs) 
                                                    

1    CentralExcise   Excise Duty        3.07          01/09/1996 to 
     Act,1944        and Penalties                    31/01/1997

2    CentralExcise   Excise Duty        5.70**        October 1998 to 
     Act,1944 
                     and Penalties                    February 2000

3    CentralExcise   Excise Duty        5.36*         FY 2000-01 
     Act, 1944       and Penalties
                                                      andFY 2001-02

4    Central Excise   Excise Duty        7.64          FY 2002-03 
     Act,1944        and Penalties

Name of the statute Forum where dispute is pending

Central Excise Commissioner of Central Deputy Act.1944 Excise(Appeals), Nashik

Central Excise Central Excise and Service tax Act.1944 Appellate Tribunal, Mumbai

Central Excise Central Excise and Service Act.1944 tax Appellate Tribunal, Mumbai

Central Excise Deputy Commissioner of Central Act.1944 Excise(Appeals), Nashik

Note: * includes Rs. 0.50 Lacs deposited by the Company under protest but charged to revenue.

** includes Rs. 1.00 Lacs deposited by the Company under protest but charged to revenue.

(c) The Company has no amounts to be transferred to Investor Education and Protection Fund at any time during the year under review.

(viii) Accumulated Losses

As per the records of the Company, the accumulated losses of the Company have exceeded 50% of the Net Worth of the Company as at the end of the current financial year. The Company has, however, not incurred any cash losses during the current financial year (Previous Year Rs. 1.23 Lacs).

(ix) Dues to Financial Institutions / Banks

From the books of accounts verified by us, during the year, the Company has no dues pending to be payable to banks/ Financial Institution. The Company has not borrowed any amount through Debentures.

(x) Guarantees given

As explained to us, the Company has not given any guarantee in respect of loans taken by others from Banks / Financial Institutions.

(xi) Application of funds raised

No Term Loans were raised by the Company during the year.

(xii) Frauds

During the course of examination of the books of accounts and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanation given to us, we have not come across any fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management causing the financial statements to be materially misstated.

                                      For Shyam Malpani & Associates

                                               Chartered Accountants

                                     Firm Registration No. - 120438W

                                                       Shyam Malpani

                                                          Proprietor 

                                              Membership No. F 34171