TO,

THE MEMBERS OF SHIVA GRANITO EXPORT LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of Shiva Granito Export Limited which comprises the Balance sheet as at 31st March, 2016, and the statement of Profit & Loss for the year then ended and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statement

The Company's 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 of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring 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 on Auditing specified under Section 143(10) of the Act. 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 the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the 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

Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's 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 on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the afore said 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:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31 st March, 2016.

b) In the case of statement of the Profit and Loss of the loss of the company for the year ended on that date.

Report on other Legal & Regulatory Requirement

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 Companies Act, 2013. We give in the Annexure statements on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.

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 purposes 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, the Statement of Profit and Loss, and dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations received from the directors as on 31/03/2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31/03/2016 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) 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, 2016.

(g) With respect to the other matters to be included in the Auditor's 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 does not have any pending litigations which would impact on its financial position.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any Material foreseeable losses,

iii. There was no amount which were required, or required to be transferred, to the Investor Education and Protection Fund by the Company.

Annexure to the Independent Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' section of our report of even date)

(1) In respect of Fixed Assets

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

(b) The Fixed assets have been physically verified by the management at reasonable intervals; According to the information and explanation given to us no material discrepancies were noticed on such verification.

(c) The land taken on lease and the title deeds held in the name of lease holder.

(2) In respect of Inventory

(a) As explained to us, inventories were physically verified during the year by the management at reasonable Intervals.

(b) In our opinion and according to the information and explanations given to us, the company has maintained Proper records of its inventories and no material discrepancies were noticed on physical verification.

(3) The Company has not granted any loans secured or unsecured to Companies, firms, limited liability Partner ships or other parties covered in the register maintained under section 189 of The Companies Act 2013. Accordingly, the provisions Of clause 3(iii)(a) to (c) of the order are not applicable.

(4) In our opinion and according to the information and explanations given to us, the company has

complied with the provisions of section 185 and 186 of the companies Act,2013 in respect of loans, investments, guarantee, and security.

(5) According to the information and explanations given to us, the company has not accepted any deposit from public during the year hence the directives issued by Reserve Ban oflndia and the provisions of section 73 to 76 or any other relevant provision of the Act and the companies( Acceptance of deposit) Rules,2015 with regard to the deposits accepted from public are not applicable.

(6) According to the information and explanations given to us, the Central Government has not prescribed

maintenance of cost records under sub-section (1) of section 148 of the Companies Act for the products of the company

(7) (a) According to the information and explanations given to us and on the basis of our examination of the books of accounts and records the Company has generally been regular in depositing undisputed statutory dues including income-tax, Sales-tax, service tax, value added tax ,custom duty, Excise duty, cess and any other statutory dues with the appropriate Authorities. .We are informed that the provisions of Employees Provident Fund Act and State Insurance Act is not applicable to the Company. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in areas as at March 31,2016 for a period of more than six months from the date on when they become payable.

(b) In our opinion and information given to us there are no other disputes pending regarding statutory due of income-tax, Sales-tax, service tax, value added tax, custom duty, Excise duty, cess.

(8) Based on our audit and according to the information and explanations given by the management, we are of the opinion that the company has not defaulted in the repayment of dues to financial institutions and Banks.

(9) Based on our audit and according to the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term oans . Accordingly, the provisions of clause 3(ix) of the order are not applicable to the company hence not commented upon.

(10) Based on our audit and according to the information and explanations given by the management, we report that no fraud by the company or on the company by its officers or employees has been notices or reported during the year.

(11) Based on our audit and according to the information and explanations given by the management, the managerial remuneration has been paid or provided in accordance with the requisite approvals by the provisions of section 197 read with schedule V to the Companies Act.

(12) In our opinion, the company is not a Nidhy Company, therefore, the provisions of clause 3(xii) of the order are not applicable to the company.

(13) In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of the Companies Act 2013 and details have been disclosed in the Financial Statements as required by the applicable accounting standards.

(14) Based on our audit and according to the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review except shares issued in exchange of capital of firms which has been acquired by the company. Accordingly, the provisions of clause 3(xiv) of the order are not applicable to the company hence not commented upon.

(15) Based on our audit and according to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause 3(xv) of the order are not applicable to the company hence not commented upon.

(16) In our opinion, the company is not required to be registered under section 45IA of the Reserve Bank of India Act, 1934 and Accordingly, the provisions of clause 3(xvi) of the order are not applicable to the company hence not commented upon.

The Independent Auditor's Report.

Referred to in paragraph 1(f) under 'Report on Other Legal and Regulatory Requirements' section of our report of even date

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 Shiva Granito Exports limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on control criteria of "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". 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 company's 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 Company's 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 auditor's 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 Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Control Over Financial Reporting

A company's 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 company's 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 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 company's 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, to the best of our information and according to the explanations given to us, 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, 2016, based on control criteria of "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 lndia.

FOR NENAWAT & ASSOCIATES.

Chartered Accountants

FRN 02148C

Place: Udaipur Sd/-

Date: 23rd April, 2016 (C.S.NENAWATI)

Partner M.No.071341