Super Syncotex India Ltd Auditor Reports

To The Members of SUPER SYNCOTEX INDIA LIMITED

We have audited the attached Balance Sheet of Super Syncotex India Limited as at 31st March, 2012 and Profit & Loss Account for the year ended on that date, annexed thereto, and Cash Flow Statement for the year ended on that. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

01. We have conducted our audit in accordance with Auditing Standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

02. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub section (4A) of section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 and 5 of the said order.

03. The company is registered as a sick company with BIFR. The honble BIFR has passed an order on 23/6/2009 for demerger of Spinning Unit (the industrial undertaking situated at Khari ka Lamba, Gulabpura Dist Bhilwara) into Suzuki Textiles Ltd. Accounting treatment of assets and liabilities and consequential effect thereof has been given in accordance with said order in FY 2009-10.

04. Further to our comments in the Annexure referred to in paragraph 2 above, 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, Profit & Loss Account and Cash Flow Statement referred to in this report are in agreement with the books of account.

(d) Except as otherwise stated in accounting policies and Notes on Accounts as per schedule 8, in our opinion, the profit & loss account and balance sheet complied with accounting standards specified u/s 211(3C) of the companies Act, 1956.

(e) In our opinion and based on information and explanation given to us, none of the directors are disqualified as on 31/03/2012 from being appointed as directors in terms of clause(g) of sub-section (1) of section 274 of the companies Act, 1956.

(f) In our opinion and to the best of our information and according to the explanations given to us, the said balance sheet, profit and loss account and Cash flow statement read together with the significant accounting policies and notes to accounts referred, in schedule 8 and subject to-

(i) Note No.10.1 Physical verification of inventories could not be carried out during the year. Value of inventories have been taken as stated in scheme approved by BIFR.

(ii) Note No 12.1 Bank balances being subject to reconciliation and confirmation.

(iii) Note No 5.2 and 11.2 regarding balances of sundry debtors and creditors being subject to confirmation.

give the information required by the Companies Act, 1956. In the manner so required and give a true & fair view in conformity with the accounting principles generally accepted in India.

(i) In so far as it relates to the Balance Sheet of the state of affairs, of the company as at 31st March,2012

(ii) In so far as it relates to the Profit & Loss account of the "Profit " of the company after exceptional items for the year ended on that date.

(iii) In so far as it relates to the Cash Flow Statement, of the Cash Flow of the company for the year ended on that date.

	For S.S. SURANA & COMPANY
	R.N.Goyal
PLACE : JAIPUR	Chartered Accountants
DATE : 31st May, 2012	Partner (Membership No. 070331)

ANNEXTURE TO AUDITORS REPORT

TO THE MEMBERS OF SUPER SYNCOTEX (INDIA) LTD.

I. In Respect of its fixed Assets

(a) The company has maintained proper records to show full particulars including quantitative details and situation of fixed assets on the basis of available information.

(b) As explained to us, Physical verification of fixed assets has been conducted during the year To the best of our knowledge, no material discrepancies have been noticed on such verification.

(c) The company has de merged Spinning unit (Industrial Undertaking at Khari Ka Lamba, Gulabpura) to Suzuki Textiles Limited in pursuance of the scheme approved by BIFR, which has resulted into transfer of substantial assets during Fy 2009-10 . As explained to us the management, residuary undertaking of the Company would be a going concern of the Company.

II. In respect of its inventories:

(a) As explained to us, physical verification of Inventories has not been conducted by the management.

(b) In our opinion and according to information and explanations given to us, the procedures of physical verification of inventories needs to be made adequate in relation to the size of the company and the nature of its business.

(c) On the basis of information and records made available, the Company has maintained proper records of inventories but in absence of physical verification, the discrepancies between physical inventory and book records can not be commented upon.

III. In respect of loans:

(a) As per Information and explanations given to us, the company has not granted any loans, secured or unsecured to companies, firms or parties covered the register maintained under section 301 of the companies Act, 1956. Accordingly clause (b) (c) & (d) are not applicable.

(b) The Company has taken loans from 7 parties covered in the register maintained under section 301 of the companies Act, 1956, Maximum amount outstanding was Rs.1331672/- and year end balance was Rs.1331672/-

(c) As explained to us, the unsecured loans have been taken interest free, as such are prima facie not prejudicial to the interest of the company.

(d) As explained to us, there are no stipulations for repayment of interest and principal.

IV. In our opinion and according to information and explanations given to us, there are inadequate internal control procedures commensurate with the size of the company and nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit we have observed continuing failure to ascertain the value of inventories and exercising internal control for maintaining the usefulness of such inventories . However, there was no purchase and sale of inventories during the year.

V. a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the contract or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanation given to us, there were no transactions made in pursuance of contracts or arrangements entered in the registers maintained under Section 301 and exceeding the value of five lakh rupees in respect of any party during the year.

VI. The Company has not taken deposits during the year within meaning of section 58A and 58AA or any other relevant provisions of the Act and Rules framed there under. However, the company has taken unsecured loan of Rs. 6.81 lacs from directors and their relatives and Rs. 1.00 lacs is continued from others to meet out the expenses. No order has been passed by Company Law Board, RBI or any other Court or any other Tribunal in respect of unsecured loan accepted by the company.

VII. In our opinion and according to information and explanations given to us, the internal audit system of the Company was not commensurate with its size and nature of its business.

VIII. As explained to us, The Central Government has not prescribed maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 and since demerger of Khari Ka Lamba Unit.(Textile Unit) the company has not yet started any manufacturing of the product so as to attract the provisions of section 209(1)(d).

IX. In respect to Statutory Dues:

(a) During the year, the company is regular in depositing undisputed statutory dues wherever applicable including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other statutory dues , with appropriate authorities wherever applicable to the company. There was no arrear of outstanding stautory dues as at the last day of financial year for a period of more than six months from the date they become payable.

(b) As explained to us, there was disputed statutory dues which have not been deposited by the company after demeger of Khari Ka Lamba Unit transfer to Transferee company M/s Suzuki Textiles Ltd.

X. The company has been declared as sick company by BIFR vide its order dated 3.1.2006 in terms of section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985. The company has accumulated losses of Rs.555.15 lacs as on 31.3.2012 and has not incurred cash losses during the current financial year, however it has incurred cash losses in the immediately preceding financial year.

XI. According to the information given to us, the company has not defaulted in repayment of dues to financial institutions, banks and debenture holders during the year.

XII. According to information and explanation given to us, the company has not given any loans and advances on the basis of security by way of pledge of shares, debentures and other securities and hence maintenance of adequate records for this purpose is not applicable.

XIII. In our opinion, the company is not chit fund or a Nidhi/mutual benefit fund/ society. Therefore, the provisions of clause 4(Xiii) of the companies (Auditors Report) order, 2003 are not applicable to the company

XIV. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investment. Accordingly, the provisions of clause 4(xiv) of the companies (Auditors Report) order, 2003 are not applicable to the company.

XV. In our opinion, the company has not given any guarantee for loans taken by others from bank or financial institution.

XVI. The company has not taken any term loan during the year.

XVII. According to information and explanation given to us the company has not raised fund on short term basis as such there is no utilization for long term investment.

XVIII According to information and explanation given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the companies Act, 1956.

XIX. As explained to us, the company has not issued and debentures and has not created security or charge during the year.

XX. The company has not raised any money by way of public issue during the year.

XXI To the best of our knowledge and belief and according to the information and explanation given to us, no fraud on or by the company has been noticed or reported during the year.

	For S.S. SURANA & COMPANY
	Chartered Accountants
	(R.N.Goyal)
PLACE : JAIPUR	Partner
DATE : 31st May, 2012	Membership No.-70331