To, B.K.

Agrawal and Company Shifal, Kathmandu Sub: Notes and Observations for the F/Y 2069/70 Dear Sir,

5th September 2013

We have gone through the report that you sent us. We are replying on each of your observations in below paragraphs; Observation No.: 1, 2 & 3: Noted and will consider in coming years. 4: Noted and will consider in coming years. However few supporting are available. 5: Noted and will consider in coming years. However few supporting are available. 6, 7, 8, 9 and 10: Noted and will consider in coming years. 11: Noted and will consider in coming years. However few supporting are available. 12: Noted and will consider in coming years. 13: We do not have this transaction. The bill was wrong so we had reimbursed the amount. 14: Noted and will consider in coming years. 15: Noted and will consider in coming years. However few supporting are available. The amount in KPV707 has been reimbursed due to wrong entry. With reference to: Point number 3, noted and will consider in coming years. Point number 10, noted and will consider in coming years. Point number 18, noted and will consider in coming years. However, the amount for Hulas Steel Industries has changed. Full payment has been made for Shree Shyam Hardware and Radhika International. Point number 19, noted and will consider in coming years. However, full payment has been made to Hari KC and Bishnu Kumar Timilsina. Point number 20, noted and will consider in coming years. However, the account with Nabil Bank has been reconciled. Thank you for your co-operation. Sincerely,

(Authorized signature)