SAHNI GENERAL TRADING CO. L.L.C.

DUBAI - UNITED ARAB EMIRATES MANAGEMENT REPORT FOR THE YEAR ENDED DECEMBER 31, 2012

Ref: DS/BD986/Apr13

To The Shareholders Sahni General Trading Co. L.L.C. P.O. Box 12620 Dubai - United Arab Emirates

April 10, 2013

Dear Sir,
RE: AUDIT OF SAHNI GENERAL TRADING CO. L.L.C. FOR THE YEAR ENDED DECEMBER 31, 2012

With reference to the above, we have now completed our audit and are pleased to enclose the Financial Statements and the Audit Report of your Entity duly completed. We have signed our audit opinion on the format provided upon the understanding that you will approve the accounts in the same format and sign all copies with our bound copy signed and approved by you and returned to us in due course. During the conduct of audit of accounts of your Entity, we came across certain points pertaining to internal controls, which we believe will prove useful in your assessment of the performance of the Entity during the year. Please note that these points are not exhaustive and are result of our test check. Thus, as part of our ongoing process of continuously advancing our services to our clients, we would like to bring to your attention the following points, which came to our attention during the course of study and evaluation performed in our audit for the year ended December 31, 2012.

Very truly yours,

For Horwath MAK

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SAHNI GENERAL TRADING CO. L.L.C. DUBAI - UNITED ARAB EMIRATES MANAGEMENT REPORT FOR THE YEAR ENDED DECEMBER 31, 2011 1) INTERNAL CONTROL The following are the observations and suggestions.

1. Internal Audit Observation: During the conduct of audit we observed that the entity has expanded its business and having many transactions. So there is a need to observe most of the transactions. Suggestions: We would like to suggest the management to put a internal audit in the system and doing it quarterly or half yearly so that all transactions will be scrutinized and proper internal control will be remained on the business. Management comments:

2. Slow moving inventories Observation: During the conduct of our audit, we have observed that a substantial amount of inventories have not been sold for more than 6 months. Suggestions: The Entity should make a system to indentify the slow moving or obsolete inventories from the stock and should make necessary provision for the same in the financial statements to arrive at the correct value of inventory lying with the Entity. Management comments:

2 SAHNI GENERAL TRADING CO. L.L.C.

DUBAI - UNITED ARAB EMIRATES MANAGEMENT REPORT FOR THE YEAR ENDED DECEMBER 31, 2012

2) PERFORMANCE ANALYSIS
Statement of Financial Position Ratios: 1. Current Ratio 2. Debt Equity Ratio 3. Debtors Collection period 4. Creditors Payment period 5. Inventory Turnover period Statement of Comprehensive Income Ratios: 1. Gross profit ratio 2. Net profit Ratio 2012 1.99 0.92 118 Days 23 Days 51 Days 11.90% 5.31% 2011 1.86 1.09 131 Days 21 Days 56 Days 12.32% 7.48%

3) PERFORMANCE GRAPHS
PERFORMANCE ANALYSIS
Revenue 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2012 2011 Selling & distribution expenses Administrative expenses Finance costs Am ortisation of intangible assets Total com prehensive incom e for the year Cost of Sales Gross Profit Other incom e

SAHNI GENERAL TRADING CO. L.L.C.

DUBAI - UNITED ARAB EMIRATES MANAGEMENT REPORT FOR THE YEAR ENDED DECEMBER 31, 2012

3) PERFORMANCE GRAPHS (CONTINUED):

ASSETS
Property, plant and equipm ent 120,000,000 100,000,000 80,000,000 60,000,000 Other receivables 40,000,000 Bills receivables 20,000,000 0 2012 2011 Cash and bank balances Fixed deposit Intangible assets Inventories Trade receivables

EQUITY & LIABILITIES

140000000 120000000 100000000 80000000 60000000 40000000 20000000 0 2012 2011 Total shareholders' funds Non current liabilities Vehicle loan Bank borrow ings Trade and other payable