| Referred to in paragraph 3 of the Auditors' Report of even date to the members of Kesoram Industries Limited on the financial statements for the year ended 31st March, 2011 | |
| 10. | The Company has no accumulated losses as at 31st March, 2011 and it has not incurred any cash losses in the financial year ended on that date and in the immediately preceding financial year. |
| 11. | According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the Balance Sheet date. |
| 12. | The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and others securities. |
| 13 | The provisions of special statute applicable to Chit fund/Nidhi/mutual benefit fund/societies are not applicable to the Company. |
| 14 | In our opinion, the Company is not a dealer or trader in shares, securities, debentures and other investments. |
| 15 | In our opinion, and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions during the year. |
| 16 | In our opinion, and according to the information and explanations given to us, on an overall basis, the term loans have been applied for the purposes for which they were obtained. |
| 17. | On the basis of an overall examination of the Balance Sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment. |
| 18. | The Company has not made any preferential allotment of shares during the year. |
| 19. | The Company has created security or charge in respect of debentures issued and outstanding at the year-end. |
| 20. | The Company has not raised any money by public issues during the year. |
| 21. | During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instances of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management. |
| Kolkata 28th April, 2011 |
For Price Waterhouse |
