PREMIER PLANTATIONS LIMITED ANNUAL REPORT 2006-2007 AUDITORS' REPORT TO THE MEMBERS OF PREMIER PLANTATIONS LIMITED 1. We have audited the attached Balance Sheet of M/S. PREMIER PLANTATIONS LIMITED as at 31st March 2007 and the annexed Profit and Loss Account and Cash flow Statement of the Company for the year ended on that date. these financial statements are the responsibility of the Company's management. My responsibility is to express all opinion on these financial statements based on my audit. 2. We conducted my 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. All audit includes examining on a test basis evidence supporting the amounts and disclosure 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 statements presentation. We believe that my audit provides a reasonable basis for my opinion. 3. As required by the Companies (Auditor's Report) Order, 2003 issued by the department of Company Affairs in terms of Section 227(4A) of the Companies Act 1956. We give in the Annexure, a statement of the matters specified in paragraphs 4 & 5 of tile said Order. 4. Further to my comments in the Annexure referred to above we report that: a) We have obtained all the information and explanation which, to the best of my knowledge and belief were necessary for the purpose of my audit. b) In my opinion proper books of Account as required by law, have been kept by the company so far appears from my examination of the books. c) The Balance Sheet and Profit & Loss Account dealt with by this report, are in agreement with the books of account. d) In my opinion, the Balance Sheet, Profit & Loss Account and cash flow statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956, in so far as they are applicable to the Company. e) On the basis of written representations received from the Directors and taken on record by the Board of Directors we report that none of the Directors is disqualified as on 31st March 2007 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956. f) In my opinion and to the best of my information and according to the explanations given to me, the said Accounts read together with Notes thereon, give the information required by the Companies act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i) In the case of the Balance Street, of the state of affairs of the Company as at 31st March 2007; and ii) In the case of Profit and Loss account of the Net Loss of the Company for the period ended on that date. iii) In the case of case the Cash Flow Statement, of the cash flow for the year ended on that date. Place: Aluva PRADEEP KUMAR P. Date : 01.09.2007 Chartered Accountant ANNEXURE REFERRED TO IN PARAGRAPH 3 OF MY REPORT OF EVENDATE 1) As informed to me the company had no fixed assets. 2) As informed to me there was no inventory during the year. 3) As informed to me, the Company has not granted or taken any loans, secured or unsecured to from Companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. 4) In my opinion and according to the information and explanation given to me, internal control procedures are not applicable as the company had no business with regard to the purchases of inventory, plant and machinery, equipment and other assets and with regard to the sale of goods. 5) In my opinion and to the best of my knowledge and belief and according to the information and explanations given to me, there are no transactions that need to be entered in the Register maintained under Section 301 of the Companies Act, 1956. 6) The Company has not accepted any deposit from public and consequently, the directives issued by the Reserve Bank of India, and the provisions of sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under are not applicable to the Company. 7) In my opinion and according to information given to me the company had no internal audit system as the company had no business during the year. 8) According to the information and explanations given to me the Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for any of the business of the Company. 9) According to the explanations and information given to me provisions of the Provident Fund Act and Employees State Insurance is not applicable to the Company. 10) According to the information and explanations given to me, there are no undisputed amounts payable in respect of Income Tax, Sales tax, Wealth Tax, Customs Duty, Excise Duty, Cess and any other statutory dues with the appropriate authorities were outstanding as at 31st March, 2007, for a period of more than six months from the date they became payable. 11) The accumulated losses for the Company at the end of the financial year amounted to Rs.63629338/-. 12) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 13) In my 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 (Auditors Report) Order, 2003 are not applicable to the Company. 14) The Company has not dealt in shares, securities, debentures and other investments during the year. 15) The Company has not given any guarantee for loans taken by others from bank or financial institutions. 16) The Company has not obtained any term loans during the year and there was no unutilized term loan at the beginning of the year. 17) According to the information and explanations given to me and on an overall examination of the Balance sheet of the Company, we report that no funds raised on short-term basis have been used for long term investment or vice versa by the Company. 18) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act. 19) According to the information and explanations given to me, the Company has not issued any debentures. 20) The Company has not made any public issues during the year. 21) According to the information and explanations given to me, no fraud on or by the Company has been noticed or reported during the course of my audit. Sd/- Place: Aluva Pradeep Kumar P. Date : 01.09.07 Chartered Accountant