Sri Arumuga Enterprise Ltd Auditor Reports

To

The Members of

Sri Arumuga Enterprise Limited Report on the Financial Statements

We have audited the accompanying financial statements of Sri Arumuga Enterprise Limited (‘the Company) which comprise the Balance sheet as at 31^st March 2017 and the statement of profit & loss for the year ended and a summary of significant accounting policies and other explanatory information.

Managements Responsibility for the financial statements

The Companys Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act 2013 ( the act) with respect to the preparation and presentation of these financial statements that give a true and fair view of the financial position, financial performance of the company in accordance with the Generally Accepted Accounting Principles (GAAPs) in India, including the accounting standards specified u/s 133 of the Act, read with rule 7 of the Companies (Accounts) Rules,2014 .This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate policies making judgements and estimates that are reasonable and prudent ;and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for insuring 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 of 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 financial statements. The procedures selected depend on the auditors judgment, including the assessment of 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 companys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls systems over financial reporting and the operating effectiveness of such controls. An Audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companys 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.

Emphasis of Matter

We draw your attention to

1. Note No. 26 wherein it is reported that the Company has not Complied the Provision of Section 123, 124 of Companies Act 2013 in respect of Payment of Dividend and Dividend Distribution Tax .

Our opinion is not modified in respect of above matter.

OPINION:

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31 March 2017 and its profit and its 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 2016 ("the Order), issued by the Central Government of India in terms of Subsection (11) of section 143 of the Act, we give in the Annexure a Statement on the matters specified in paragraphs 3 and 4 of the order to the extent applicable.

2. As required by Section 143(3) of the Act, 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 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 it appears from our examination of those books

c) The Balance Sheet, Statement of Profit & Loss Account dealt with in this Report are in agreement with the Books of Account;

d) In our opinion the aforesaid financial statements comply with the Accounting Standards specified u/s 133 of the act read with rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representation received from the Directors as of 31^st March, 2017 and taken on record by the Board of Directors, We report that none of the Directors is disqualified as of 31^st March, 2017 from being appointed as a Director in terms of u/s 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate report in "Annexure A" and

g) With respect to the other matters to be included in the auditors 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 did not have any pending litigations that would impact the financial positions in its financial statements.

II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

III. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

IV. The company has provided adequate disclosure as to the holding as well as dealings in specified bank notes during the period from 08.11.2016 to 30.12.2016 and these are in accordance with Books of accounts maintained by the company. Refer (No.Sch 15 forming part of accounts)

As required by the Companies (Auditors Report) Order, 2016 ("the order") issued by the Central Government of India, in terms of Sub-section (11) of Section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraph 3 and 4 of the Order.

For S.LAKSHMINARAYANAN ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REG. NO.06609S

(CA.L.KAMESH)

Membership No. 209388

PARTNER.

Place: Coimbatore

Dated: 28-02-2018

Annexure -B to the Auditors Report:

The Annexure referred to in our report to the members of Sri Arumuga Enterprise Limited (‘the Company)for the year ended 31^st March 2017. We report that:

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

(b) The Fixed assets of the Company have been physically verified by the Management during the year in accordance with the regular program of the verification which in our opinion provides for physical verification of fixed assets at reasonable intervals and no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, the title deeds of immovable properties are held in the name of the company.

2. The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stock and book records were not material.

3. The Company has granted loans to One body corporate covered in the register maintained under section 189 of the Companies Act, 2013 (‘the Act). The maximum amount outstanding during the year was Rs. 60.99 Lacs and the year-end balance of such loan amounted to 60.99 Lacs.

(a) No interest has been charged to the loans given to the One body corporate

(b) There are no overdue amounts in respect of the loan granted to One body corporate listed in the register maintained under section 189 of the Act

4. In our opinion and according to the information and explanations given to us, the company has compiled with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

5. The company has not accepted any deposits from the Public.

6. The Central Government has not prescribed the maintenance of Cost Records u/s 148(1) of the Act for any of the services rendered by the company.

7. (a) According to the information and explanations given to us and on the basis of our examination of the records of the company, amounts deducted/ accrued in the books of accounts in respect of undisputed statutory dues excluding Income Tax, Dividend, Dividend Distribution tax , ESI and PF other Material Statutory dues have been regularly deposited during the year by the company with the appropriate authorities. According to the information and explanations given to us on the basis of our examination of the records of the company, no undisputed amounts were payable except dividend distribution tax , Listing Fee and Income

Tax as detailed below as at 3^1st march 2017 for a period of more than 6 months from the date they became payable.

FINANCIAL YEAR	SECTION CODE	PARTICULARS	AMOUNT
2008-09	154	INCOME TAX	53430
2009-10	1431a	INCOME TAX	721630
2011-12	1431a	INCOME TAX	1061560
2014-15	115-O	DIVIDEND DISTRIBUTION TAX	122148
2013-14	115-O	DIVIDEND DISTRIBUTION TAX	169950
2015-16	Clause 38 of Listing Agreement	Listing Fee	253762

(b) According to the information and explanations given to us on the basis of our examination of the records of the company, there are no material dues of income tax which have not been deposited with the appropriate authorities on account of any dispute.

8. Based on our audit procedures and on the basis of information and explanations given by the management, the Company did not have any outstanding debentures or dues to the financial institution during the year. Based on our audit procedures and according to the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to banks.

9. Based on information and explanations given to us and records of the Company examined by us, in our opinion, the term loans have been applied for the purpose for which they were obtained.

10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.

11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/ provided for managerial remuneration in accordance with the prerequisite approvals mandated by the provisions of section 197 read with schedule V of the Act.

12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into noncash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For S. LAKSHMINARAYANAN ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REGN. NO.06609S

(L.KAMESH)

Membership No. 209388

PARTNER

Place: Coimbatore

Dated: 28-02-2018

Annexure - A to the Auditors Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Sri Arumuga Enterprise Limited ("the Company") as of 31 March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that: (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For S. LAKSHMINARAYANAN ASSOCIATES

CHARTERED ACCOUNTANTS

FIRM REGN. NO.06609S

(L.KAMESH)

Membership No. 209388

PARTNER

Place: Coimbatore

Dated: 28.02.2018