Meuse Kara & Sungrace Mafatlal Ltd Auditors Report.

INDEPENDENT AUDITOR

To,

The Members of,

MYNK1906 INDUSTRIES INDIA LIMITED

(Formerly Meuse Kara & Sungrace Mafatlal Limited)

Report on the Financial Statements:

We have audited the accompanying financial statements of MYNK1906 INDUSTRIES INDIA LIMITED "the Company", which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash flow statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Managements 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 and financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) 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.

Auditors 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 auditors 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 control relevant to the Companys 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 management, 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.

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 conformity 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 March 31, 2014; and

(b) In the case of the Statement Profit and Loss, of the Profit for the year ended on that date; and

(c) In the case of the Cash Flow statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditors Report) order 2003 and as amended by the Companies (Auditors Report)(Amendment) Order 2004, issued by the Central Government of India in terms of the sub-section(4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, 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 Statement of Profit and Loss dealt with by this Report are in agreement with the books of account.

d) In our opinion, the Balance Sheet and Statement of Profit and Loss comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 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; and

e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

For B R R & Associates
Chartered Accountants
FRN:013012S
B. Ravinder Rao
Place: Hyderabad Partner
Date: 30.05.2014 MNo 221298

Annexure to the Auditors Report of even date to the members of MYNK1906 INDUSTRIES INDIA LIMITED, on the financial statements for the year ended March 31, 2014

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

I. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

(b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals and no material discrepancies between the book records and the physical inventory have been noticed on such verification.

(c) The Company has not disposed off substantial part of the Fixed Assets.

II. (a) The Inventory has been physically verified during the year and in our opinion, the frequency of verifications is reasonable

(b) In our opinion, the procedures of the physical verification of inventory followed by the Management are reasonable and adequate in relation of the size of the Company and the nature of its business. However company need to take some more procedures to improve inventory controls.

(d) The Company is maintaining proper records of inventory and as explained to us, there was no material discrepancies noticed on such verification of stocks as compared to book records.

III. (a) According to the information and explanations given to us and on the basis of Our examination of the books of account, the company has granted interest free loan to one parties covered in the Register maintained under section 301 of the Companies, Act 1956.

(b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by Company, are not prima facie prejudicial to the interest of the Company except to extent interest free advance given to the directors of Company.

(c) As explained to us, principal amount and interests are also regular.

(d) In respect of the said loans and interest there on, there are no overdue amounts.

(e) According to the information and explanations given to us, the Company has received loan (interest free) from three parties covered in the register maintained under section 301 of the Companies Act, 1956.

(f) In our opinion, the rate of interest and other terms and conditions of the loans taken by the Company, are prima facie not prejudicial to the interest of the Company.

(g) The payment of principal amounts and interest in respect of such loans during the year has been regular.

IV. In our opinion and according to the information and explanations given to us, there are no sufficient adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for sale of goods and services. There is no continuing failure by the company to correct any major weaknesses in internal control.

V. (a) On the basis of the audit procedures performed by us, and according to the information, explanations and representations made to us, we are of the opinion that, there are sales/purchases transactions in which directors were interested as contemplated under section 297 and section 299 of the Companies Act, 1956 and which were required to be entered in the register maintained under section 301 of the said Act, have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 exceeding the value of rupees five lakhs in respect of any party during the year, have been made at prices which are reasonable having regard to market prices prevailing at the time.

VI. The Company has not accepted any deposits from the public and hence the applicability of the clause of directives issued by the Reserve Bank of India and provisions of section 58A, 58AA or any other relevant provisions of the Act and the rules framed there under does not arise.

VII. The Company has no a formal system of Internal Audit, but there are adequate checks & controls at All levels established by the Management.

VIII. In respect of the Company, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956.

IX. (a) According to the information and explanation given to us the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, wealth tax, service tax, customs duty, cess and other material statutory dues applicable. However the Company is not paying/filings Tax detections at source and Professional Tax on the due dates.

(b) On the basis of our examination of documents and records of the Company, and explanation provided to us, there were no disputed dues in respect of Income tax, Sales tax, Wealth tax, Service tax, Customs Duty, Excise Duty, or Cess, were in arrears, as at 31st March 2014 for the period more than six month from the date they become payable as except below

Income Tax & its Interest Due as on 31.05.2014 A Y Rs in Lakhs
2012-13 41.21

(c) According to information and explanation given to us, there is no dues of income tax, sales tax, custom duty, wealth tax, service tax, excise duty, and cess which has been deposited on account of any dispute. However for A Y 2011-12 Income tax assessments was pending with IT Dept.

X. The Company has been registered for a period of not less than 5 years, and the Company has no accumulated losses at the end of the financial year and the company has not incurred cash losses in this financial year and the immediately preceding financial year.

XI. On the basis of the information and explanation given to us, Company has not defaulted in repayment of dues to financial institutions or banks interest and installments except few delays.

XII. According to the information and explanations given to us, the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities and hence the applicability of the clause regarding maintenance of adequate documents in respect of loans does not arise.

XIII. This clause is not applicable to this Company as the Company is not covered by the provisions of special statute applicable to Chit Fund in respect of Nidhi/Mutual Benefit Fund/Societies.

XIV. According to the information and explanations given to us, the company is not dealing or trading in shares, securities, Debentures and other investments and hence the provisions of clause 4(xiv) of the Companies (Auditors Report) Order 2003, are not applicable to the Company.

XV. According to the information and explanations and management letter given to us, the Company has not given any guarantee for loans taken by others from Banks or Financial Institutions, and hence the applicability of this clause regarding terms and conditions which are prejudicial to the interest of the company does not arise.

XVI. As per the management representation received by us, the term loans obtained by the Company were applied for purpose for which such loans were obtained by the Company.

XVII. As per the management representation received by us, funds are raised by the Company on short-term basis. Hence, the short term funds being used for short term purpose only not for long term purpose.

XVIII. According to the information and explanations given to us, the Company has made a preferential allotment of Shares to parties during the year, under Zero percent convertible preference shares into equity shares.

XIX. According to the information and explanations given to us, during the year the company does not have any debentures and hence the applicability of the clause regarding the creation of security or charge in respect of debentures issued does not arise.

XX. According to information and explanations given to us, the company has not raised money by way of public issues during the year; hence the clause regarding the disclosure by the management on the end use of money raised by Public Issue is not applicable.

XXI. According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year under audit.

For B R R & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN: 013012S
Sd/-
Place: Hyderabad B. Ravinder Rao
Date: 30-05-2014 Partner
M NO 221298