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 flow of the company in accordance with the accounting principles generally accepted in India, including accounting standards referred to in sub-section 3(C) 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.

Auditor's 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 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 (Referred to in paragraph 1 under "Report on Other Legal and Regulatory Requirements" in the Independent Auditors' Report of even date to the members of MAGNA INDUSTRIES & EXPORTS LTD. On the financial statements for the year ended 31st March 2013)

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 the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. As required by section 227(3) of the Act, we report that:

I. (a) The company is maintaining proper records to show full particulars, including quantitative details and situation of Fixed Assets.

(b) According to the information and explanations given to us, the company has formulated regular program of verification by which all the assets of the company shall be verified in a phased manner, which is in our opinion, is reasonable having regard to the size of the company and nature of its Assets. To the best of our knowledge, no material discrepancy was noticed on verification conducted during the year as compared with the book records.

(c) There was no disposal of substantial part of fixed assets.

II. (a) The management has conducted physical verification in respect of finished goods, stores, spare parts & raw materials intervals. In our opinion, the frequency of verification is reasonable.

(b) In our opinion, the procedure of physical verification of Inventory followed by the Management is reasonable and adequate in relation to the size of the company and nature of the business.

(c) On the basis of examination of inventory records, in our opinion, the company is maintaining proper records of Inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regards to the size of the operations of the company. The discrepancies noticed have been properly dealt with the books of accounts of the company.

III. (a) The company has not granted unsecured loans to other parties covered in the register maintained under section 301 of the Companies Act 1956. The maximum amount involved during the year was NIL and the year end balance of loan granted to such parties was Rs. NIL.

(b) The rate of interest and other condition of unsecured loans given by the companies are prima facie not prejudicial to the interest of the company.

(c) The parties have repaid regularly the principal amount and interest thereon wherever applicable.

(d) There is no overdue balance for principal amount and interest.

(e) The Company has taken unsecured loans from other parties covered under section 301 of the Companies Act, 1956.

(f) The rate of interest and other conditions for unsecured loans taken by the Companies are prima facie not prejudicial to the interest of the company.

(g) The company is regular in paying the principal amount of interest thereon as stipulated.

IV. In our opinion and according to the information and explanation given to us, there is adequate internal control system commensurate with size of the Company and nature of its business, for purchase of inventory, fixed assets and sale of goods & services. We are neither come across not have been informed of any continuing failure to correct major weakness in the aforesaid internal control procedures.

V. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into the Register in pursuance of Section 301 of the Act have been so entered.

(b) In our opinion and according to the information and explanation given to us, for purchase of services made in pursuance of contracts or arrangements entered into the register in pursuance of Section 301 of the Act and exceeding the value of Rupees Five Lacs in respect of each party during the year, have been made at price which are reasonable having regard to prevailing market prices at the relevant time.

VI. According to the information and explanations given to us, the Company has not accepted deposits from the public during the year covered by our audit report. Accordingly clause (vi) of order is not applicable to the company.

VII. our opinion, the Company's present internal audit system is commensurate with its size and the nature of its business.

VIII. The Central Govt. has not prescribed for the maintenance of Cost records under Section 209 (1) (d) of the Act for any of the product of the company.

IX. (a) According to the information and explanation given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income tax, service tax, sales tax, wealth tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities in India.

(b) According to the information and explanation given to us and the records of the Company examined by us, there are not any disputed matter pending in respect of dues of sales tax, income tax, service tax, customs duty, wealth tax, excise duty and cess as at March 31, 2014.

X. The Company has no accumulated losses as at the end of the year covered by our audit. The company has not incurred cash losses in the said financial year and the immediately preceding financial year.

XI. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank during the year under audit.

XII. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

XIII. In our opinion and according to the information and explanations given to us, the company is not a chit fund or a nidhi / mutual benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the Company.

XIV. In our opinion, the Company has not dealt in trading of shares, securities, debentures and other investments. Accordingly clause 4(xiv) of the Order is not applicable to the company.

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

XVI. In our opinion and according to the information and explanations given to us, the term loans have been prima facie applied for the purposes for which the loans were obtained.

XVII. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that no funds raised on short-term basis have been used for long-term investment.

XVIII. The Company has not made any preferential allotment of shares to parties and companies in the Register maintained under Section 301 of the Act during the year.

XIX. The Company has not issued any debentures during the year.

XX. The Company has not raised any money by public issue during the year.

XXI. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the management.

FOR P.BOHRA & COMPANY CHARTERED ACCOUNTANTS Firm Registration No: 003264C

(PRAKASH BOHRA) PROPRIETOR. Membership No: 72366

Place: Mumbai. Date: