Nu-Tech Corporate Services Ltd Directors Report.

INDEPENDENT AUDITOR

To

The Members of NU-TECH CORPORATE SERVICES LIMITED.

Report on the Financial Statements

We have audited the accompanying financial statements of NU-TECH CORPORATE SERVICES LIMITED, which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then 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, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956. 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 o t 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;

b) in the case of the Profit and Loss Account, of the loss 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 ("the Order") issued by the Central Government of India in terms of subsection (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 sofaras appears from our examination of those books

c) The Balance Sheet, Statement of Profit and Loss, and 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 Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C)of section 211 of the Companies Act, 1956;

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.

f) Since the Central Government has not issued any notification as o t the rate at which the cess is to be paid under section 441A of the Companies Act, 1956nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

For PRASHANT WAKHARIYA & CO.
(CHARTERED ACCOUTANTS)
FRN: 114945W
(PRASHANT WAKHARIYA)
Place: Mumbai PROPRIETOR
Date: 30.05.2014 Membership No.: 048877

ANNEXURE TO THE AUDITORS REPORT TO THE MEMBERS OF NU-TECH CORPORATE SERVICES LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2014

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

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) The fixed assets, except for assets given on lease, have been physically verified by the management during the year, which in our opinion is reasonable having regard to the size of the company and nature of its business. No material discrepancies were noticed on such verification.

(c) During the year, the company has not disposed of a substantial part of the fixed assets, and hence question of affecting the going concern status of the company does not arise.

(ii) (a) According to the information and explanations give to us, and having regard to the companys business, the question of reporting on clauses 4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Companies (Auditors Report) Order, 2003 (hereinafter referred to as the said Order) does not arise.

(iii) (a) According to the information and explanations given to us, the company has not granted any loans, secured or unsecured ot companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

Accordingly, clauses 4(iii)(b), 4(iii)(c) and 4(iii)(d) of the said Order, are not applicable.

(b) According to the information and explanations given to us, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

Accordingly, clauses 4(iii)(f) and 4(iii)(g) of the said Order, are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of fixed assets. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(v) (a) In our opinion and according to the information and explanations given to us, the particulars of contracts and arrangements that need to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) Sub-clause (b) is not applicable.

(vi) Based on our scrutiny of the companys records and according to information and explanation provided by the management, in our opinion the company has not accepted any public deposits within the meaning of the provisions of the Section 58A& 58AA of the Companies Act, 1956 and rules made there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) According to the information and explanations given to us, maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956, hence the question of reporting under clause 4(viii) of the said Order does not arise.

(ix) (a) According to the records of the company, the company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, sales tax, wealth-tax, service tax, customs duty, excise duty and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth-tax, service tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31st March, 2014 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of income tax, wealth-tax, service tax, sales tax, customs duty, excise duty which have not been deposited on account of any dispute, except as stated below:

Name of the statute Nature of the dues Amount Period to which the amount relates (Rupees) Forum where dispute is pending
The Income Tax Act, 1961 Penalty 8,242,448 A. Y. 1993-94 Commissioner of Income -tax (Appeals)
-do- Interest tax & Penalty 15,282,292 A. Y. 1995-96 -do-
-do- - do- 40,899,122 A.Y 1996-97 -do-
-do- Income-tax 22,277,080 A.Y. 1993-94 Income-tax Appellate Tribunal
-do- -do- 22,286,394 A.Y. 1995-96 -do-
-do- -do- 38,853,600 A.Y. 1996-97 -do-
-do- -do- 19,294,317 A.Y. 1999-2000 -do-
- d o- -do- 18,857,022 A.Y. 2000-2001 -do-
-do- -do- 12,191,336 A.Y. 2001-2002 -do-
-do- -do- 5,878,977 A.Y. 2002-2003 -do-

(x) In our opinion, the accumulated losses of the company are more than fifty percent of its net worth. The company has incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) According to the information and explanations given to us, the company has defaulted in the repayment of bank overdraft/ working capital demand loans, including interest thereon, to banks. The period and the amount of such defaults as on the balance sheet date are as follows:

Name of the bank Due date Amount (Rs.)
1. Central Bank of India

20.03.2001

78,920,893
Interest from 20.03.2001 to 31.03.2013 118,951,300
Total 197,872,193
2. The Federal Bank Ltd.

02.01.2003

78,744,765
Interest from 02.01.2003 to 31.03.2013 160,012,942
Total 238,757,707
TOTAL (1+2) 436,629,900

(xii) According to the information and explanations given to us, 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) The company is not a chit fund or a nidhi / mutual benefit fund / society . Therefore, the provision of clause 4 (xiii) of the said Order is not applicable to the company.

(xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(xiv) of the said Order is not applicable to the company.

(xv) According to the information and explanations given to us, the company has not given any guarantees for loans taken by others from a bank or financial institution.

(xvi) During the year under consideration the company has not obtained any term loans, accordingly, the question of reporting on its application does not arise.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company where the accumulated losses oft 572,005,000 have exceeded share capital and reserves ofRs. 160,331,279 and the short term loan funds oft 436,629,900 appear to have been partly used to finance losses.

(xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

Accordingly, the question of reporting on whether the price at which such shares have been issued is prejudicial to the interest of the company does not arise.

(xix) The company has not issued any debentures.Accordingly, the question of creating a security or charge for such debentures does not arise.

(xx) The company has not raised any money by public issues during the year. Accordingly, the question of disclosure of end use of such monies does not arise.

(xxi) 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 PRASHANT WAKHARIYA & CO
Chartered Accountants
M. N0.114945W
PRASHANT WAKHARIYA
Proprietor
MUMBAI: 30th May,2014 Membership No. 048877