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AUDITORS REPORT<br />
x. The company has no accumulated losses and has not incurred<br />
cash losses during the current financial year and in the<br />
immediately preceding financial year.<br />
xi. During the year, the company has not defaulted in<br />
repayment <strong>of</strong> its dues to financial institutions and banks.<br />
xii. In our opinion and according to the information and<br />
explanations given to us, and based on the documents and<br />
records produced to us, the Company has not granted any<br />
loans and advances on the basis <strong>of</strong> security by way <strong>of</strong> pledge<br />
<strong>of</strong> shares, debentures and other securities.<br />
xiii. In our opinion and according to the information and<br />
explanations given to us, the nature <strong>of</strong> activities <strong>of</strong> the<br />
Company does not attract any special status applicable to<br />
Chit-Fund and Nidhi / Mutual Benefit Fund/ Societies.<br />
xiv. In our opinion, the Company is not dealing or trading in<br />
shares, securities, debentures or other investments and<br />
hence, the requirement <strong>of</strong> para 4(xiv) are not applicable to<br />
the company.<br />
xv. In our opinion and according to the information and<br />
explanations given to us, the terms and conditions on which<br />
the Company has given guarantee for loans taken by its<br />
subsidiary from a bank, are not prima-facie prejudicial to the<br />
interest <strong>of</strong> the Company..<br />
xvi. In our opinion and based on information and explanations<br />
given to us by the management, term loans have been<br />
applied for the purpose for which they were obtained.<br />
xvii. According to the information and explanations given to us<br />
and on an overall examination <strong>of</strong> the balance sheet <strong>of</strong> the<br />
company, we report that no funds raised on short-term basis<br />
have been used for long-term investment except the short<br />
term temporary borrowings from banks <strong>of</strong> Rs. 800 Laksh to<br />
pay for the acquisition <strong>of</strong> Eurocor GmbH. No long-term<br />
funds have been used to finance short-term assets except<br />
permanent working capital.<br />
xviii. The Company has not made any preferential allotment <strong>of</strong><br />
shares to parties and companies covered in the register<br />
maintained under section 301 <strong>of</strong> the Companies Act, 1956<br />
during the year.<br />
xix. The company has not issued debentures during the financial<br />
year.<br />
xx. The company has not raised any money through a public<br />
issue during the year.<br />
xxi. On the basis <strong>of</strong> our examination and according to the<br />
information and explanations given by the management, we<br />
report that no fraud on or by the Company has been noticed<br />
or reported during the course <strong>of</strong> our audit.<br />
For Anand Shenoy & Co.,<br />
Chartered Accountants<br />
G C Somadas<br />
Place: Bangalore. Partner<br />
Date: 13th June 2006. M. No.18636<br />
47
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