untitled

Annexure to Auditors’ Report

(Contd.)

| Annual Report 2008-09

The Company has neither accumulated losses at the end

of the financial year nor has it incurred cash losses, both,

in the financial year under report and in the preceding

financial year;

xi. On the basis of the records examined by us and the

information and explanations given to us, the Company

has not defaulted in repayment of dues to financial

institutions, banks, or debenture holders;

xii. As explained to us, the Company has not granted any loans

or advances on the basis of security by way of pledge of

shares, debentures or any other securities;

xiii. In our opinion, the Company is not a chit fund or a nidhi |

mutual benefit fund | society. Therefore, the provisions of

clause 4(xiii) of the Companies (Auditor’s Report) Order,

2003 are not applicable to the Company;

xiv. The Company is not dealing or trading in shares, securities,

debentures and other investments;

xv. According to the information and explanations given to us,

the company has given corporate guarantee for loans taken

by other from bankers and financial institutions in

connection with central ETP project at Ankleshwar, the

terms and conditions whereof in our opinion, are not

prima-facie prejudicial to the interest of the Company;

xvi. On the basis of the records examined by us, and relying on

the information compiled by the Company for co-relating

the funds raised to the end use of term loans, we have to

state that, the Company has, prima-facie, applied the term

loans for the purposes for which they were obtained;

xvii. According to the information and explanations given to us

and on an overall examination of the financial statements

of the Company and after placing reliance on the

reasonable assumptions made by the Company for

classification of long term and short term usages of funds,

we are of the opinion that prima facie as at the close of

the year no short term funds have been utilized for long

terms investments;

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;

xix. On the basis of the records and documents examined by

us, the Company has not issued any secured debentures

during the year;

xx. The Company has not raised any money by public issue

during the year;

xxi. According to the information and explanations given to us,

and to the best of our knowledge and belief, no fraud on

or by the Company, has been noticed or reported by the

Company during the year;

For and on behalf of

Dalal & Shah

Chartered Accountants

(Ashish S Dalal)

Mumbai

Partner

June 05, 2009

Membership No 033596