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Auditor Report of Ahluwalia Contracts (India) Ltd.

Mar 31, 2016

TO THE MEMBERS OF AHLUWALIA CONTRACTS (INDIA) LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Ahluwalia Contracts (India) Limited ("the Company”), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

2. 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 and presentation of these Standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows 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.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.

4. 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 provision of the Act and the Rules made there under.

5. 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.

6. 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.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at March 31, 2016, and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor’s Report) Order, 2016’ ("the order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure -A a statement on the matters specified in paragraphs 3 and 4 of the Order.

10. 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 the Cash Flow Statement 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 March 31, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B”; and

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 knowledge and belief and according to the information and explanations given to us:

i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2016, on its financial position in its financial statements -Refer note 30 & 31;

ii. The Company has made provision as at March 31,2016, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2016.

Referred to in paragraph 9 of the Independent Auditors’ Report of even date to the members of Ahluwalia Contracts India Limited on the standalone financial statements as of and for the year ended March 31, 2016

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties included in fixed assets are held in the name of the Company except given below:

LAND:

Total Number of cases

Whether leasehold/ freehold

Gross Block (as at Balance Sheet date) (Rs. in Lacs)

Net Block (as at Balance Sheet date) (Rs. in Lacs)

Remarks, if any.

1

Leasehold-

(Chattarpur, New Delhi)

13.60

13.60

Matter is pending before SDM Court

BUILDING ( KOLKATA):

Total Number of cases

Gross Block (as at Balance Sheet date) (Rs. in Lacs)

Net Block (as at Balance Sheet date) (Rs. in Lacs)

Remarks, if any.

1

136.80

117.62

Registration is pending as per State Government Directives /Bye Laws prevailing thereon.

(ii) (a) The management has conducted physical verification

of major items of inventory at reasonable intervals. No material discrepancies were noticed on physical verification of such stocks.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The company is mainly engaged in the business of civil construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

Therefore, the provisions of clause 3(iii),(iii)(a),(iii)(b),(iii)(c) of the said order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us , provisions of section 186 of the Companies Act 2013 in respect of investments made have been compiled by the Company. There are no other loans, guarantees and securities granted in respect of which provisions of section 185 & 186 of the Companies Act, 2013 are applicable.

(v) The Company has not accepted any deposits from the public within the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund, employees state insurance, income-tax, value added tax, custom duty, excise duty, service tax, cess & other material statutory dues have generally been regularly deposited with appropriate authorities except for delays in Service tax & Provident fund.

Name of the Statute

Nature of Dues

Amount (Rs. in Lacs)

Period to which the amount relates

Forum where dispute is pending

Central Excise Act,1944

Demand for Excise Duty

14.27

Mar 11 to Nov 12

Commissioner Bangalore

Indian Stamp Act

Stamp duty on Real Estate Project

57.42

1990-1991

Allahabad High Court

Value Added Tax, West Bengal,2005

VAT Demand

3.01

1998-1999

Appellate Tribunal, Kolkata

Value Added Tax Act (UP) 2015

VAT Demand

0.30

2006-2007

Appellate Tribunal Ghaziabad

Value Added Tax Act Maharashtra,2014

VAT Demand

16.43

2005-2006

Dy. Commissioner (Audit), Mumbai

Value Added Tax Act (UP) 2015

VAT Demand

79.28

2008-2009

Addl. Commissioner Appeals-IV, GZB

Value Added Tax Act 2005,West Bengal

VAT Demand

45.19

2005-2006 & 2006-2007

Directorate of Commercial Tax / Sr. Jt. Commissioner, Kolkata

Value Added Tax Act 2005,West Bengal

VAT Demand

1.54

1997-1998

Settlement Commissioner, Kolkata

Value Added Tax Act 2005,West Bengal

VAT Demand

497.15

2011-12

West Bengal Commercial Tax Appellate & Revison Law Board, Kolkata

Value Added Tax Act 2005,West Bengal

VAT Demand

422.47

2008-2009

Additonal Commissioner, Kolkata

Value Added Tax Act 2005,West Bengal

VAT Demand

1,057.73

2012-2013

Joint Commissioner, Kolkata

The Finance Act, 2004 and the Service Tax Rules

Service Tax Demand

7,361.61

2004-2009

Appeal Tribunal, CESTAT, New Delhi

Service Tax Demand

3,110.33

Oct.08 to Mar. 09

CESTAT, New Delhi

Service Tax Demand

9,631.57

Apr-09 to March 10

CESTAT, New Delhi

Service Tax Demand

1,543.79

Oct 08 to Sep 09 & Oct 09 to March 10

CESTAT, New Delhi

Service Tax Demand

2,622.25

Mar 05 to Mar 09

CESTAT, Kolkata

Service Tax Demand

3,054.05

June 07 to Sep 10

CESTAT, Allahabad

Service Tax Demand

47.75

Oct 10 to Feb 2012

CESTAT, Allahabad

Service Tax Demand

120.46

July 04 to Dec 06

CESTAT, Allahabad

Service Tax Demand

764.67

June 06 to March 08

CESTAT, Chandigarh

Service Tax Demand

59.52

2006-2009

Superintendent (AR Service Tax), Jamnagar

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, service tax, sales tax, custom duty, excise duty, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, excise duty, service tax, value added tax and cess on account of any dispute, are as follows:

(viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution and banks. The Company does not have any dues outstanding to debenture holders.

Name of the Statute

Nature of Dues

Amount (Rs. in Lacs)

Period to which the amount relates

Forum where dispute is pending

Service Tax Demand

1,091.54

2004-2012

Asstt. Commissioner/ Commissioner (Appeal), Service Tax, Mumbai

Service Tax Demand

8.71

2007-2008

Asstt. Commissioner Service Tax, Rajkot

Service Tax Demand

33.09

March 12 to March 13

Additional Commissioner Service Tax, Noida

Service Tax Demand

20.37

Apr 08 To Aug 08

Joint Commissioner Service Tax, Kolkata

Service Tax Demand

18.51

Apr.06 to Oct.09

Commissioner (Appeal), Service Tax, Chennai

Service Tax Demand

22.42

2006-2009

Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax, Ludhiana

Service Tax Demand

11.92

2008-2009, 2009-2010

Commissioner Service Tax, Jaipur

Service Tax Demand

1,298.42

April 12 to March 2013

Commissioner ate Service Tax, Delhi

Service Tax Demand

385.54

2007-08 to 2011-12

Commissioner of Service Tax Delhi.

Service Tax Demand

778.28

April 11 to March 13

Commissioner Service Tax, Delhi

Service Tax Demand

103.48

Oct 05 To Jan 08

Commissioner Service Tax, Kolkata

Service Tax Demand

10.57

April 07 To March 2012

Commissioner Service Tax, Kolkata

Service Tax Demand

965.47

2008-09 To 2011-12

Commissioner Service Tax, Bangalore

Service Tax Demand

202.05

Apr 12 To June 12

Commissioner Service Tax, Bangalore

Service Tax Demand

0.71

2009-2014

Dy Commissioner, Service Tax, Noida

Service Tax Demand

10.05

April-10 to Dec.2014

Dy Commissioner, Service Tax, Noida

Service Tax Demand

35.87

April-12 to March-13

Dy Commissioner, Service Tax, Noida

Employees Provident Fund & Misc Provision Act,1952

Provident Fund Demand

5,457.34

2006-07 to 2008-09

Employee Provident Fund Appellant Tribunal, New Delhi

(ix) Based on the audit procedures applied by us and according to the information & explanations provided by the management, the Company has not raised any moneys by further public offer (including debt instruments) during the year. Term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

(x) 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 instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the management.

(xi) According to the records of the Company examined by us and the information and explanation given to us, the Company has paid and provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act, 2013.

(xii) In our opinion & according to the information & explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.

(xiii) According to the records of the Company examined by us and the information and explanation given to us, the company has complied with section 177 and 188 of the Companies Act 2013 in relation to transaction with related parties and the details have been disclosed in the financial statements, as required by the applicable accounting standards.

(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act ,1934.

For ARUN K GUPTA & ASSOCIATES

Firm Registration No. 000605N Chartered Accountants

(SACHIN KUMAR)

Place : New Delhi Partner

Dated: 24.05.2016 M.No. 503204


Mar 31, 2015

1. We have audited the accompanying standalone financial statements of Ahluwalia Contracts (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 Standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows 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.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statements based on our audit.

4. We have taken into account the provisions of the Act and the Rules made there under including the accounting standards and matters which are required to be included in the audit report.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.

6. 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, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. 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.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at March 31, 2015, and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by 'the Companies (Auditor's Report) Order, 2015', issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

10. 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 the Cash Flow Statement 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 March 31, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164 (2) of the Act.

f) 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 knowledge and belief and according to the information and explanations given to us:

i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2015, on its financial position in its financial statements - Refer note 31 & 32;

ii. The Company has made provision as at March 31,2015, as required under the applicable law or accounting standards, for material foreseeable losses, if any,on long-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31, 2015.

I Annexure to Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to the members of Ahluwalia Contracts India Limited on the financial statements as of and for the year ended March 31, 2015

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(ii) (a) The management has conducted physical verification of major items of inventory at reasonable intervals.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Holding Company and the nature of its business.

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) According to the information & explanations given to us,the company has granted interest free unsecured loans to its five subsidiary companies listed in the register maintained under Section 189 of the Companies Act, 2013 prior to 31/03/2014. The maximum amount involved during the year was Rs. 4,74,55,163 and the year end balance of loans granted to such companies was Rs. Nil and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and also for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) The Company has not accepted any deposits from the public within the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with appropriate authorities except for delays in Service tax & Provident fund. Based on the overall examination of the deposit of the statutory dues we have not come across any undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty. excise duty, service tax(net of cenvat credit claimed),cess and any other material undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(b) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount (in Rs.)

Central Excise Act Demand for Excise 14,26,506 Duty

Indian Stamp Act Stamp duty on Real 57,41,980 Estate Project

Value Added Tax, West Bengal VAT Demand 3,01,000

Value Added Tax Act VAT Demand 7,79,105 Karnataka

Value Added Tax Act GZB VAT Demand 30,000

Value Added Tax Act VAT Demand 16,42,553 Maharashtra

Value Added Tax Act VAT Demand 79,28,365 Ghaziabad

Value Added Tax Act, VAT Demand 45,19,093 West Bengal

Value Added Tax Act, VAT Demand 1,53,920 West Bengal

Value Added Tax Act, West VAT Demand 14,86,79,781 Bengal

Value Added Tax Act, Delhi VAT Demand 21,00,78,270

Value Added Tax Act, Delhi VAT Demand 57,72,34,957

Value Added Tax Act, Delhi VAT Demand 93,83,13,512

Value Added Tax Act, Delhi VAT Demand 56,02,27,045

Value Added Tax Act, M.P VAT Demand 23,24,793

Value Added Tax Act, M.P VAT Demand 57,17,874

The Finance Act 2004 and the Service Tax Demand 73,61,60,788

Service Tax Rules

Service Tax Demand 31,10,32,656

Service Tax Demand 3,85,54,216

Service Tax Demand 22,89,62,484

Service Tax Demand 7,78,28,291

Service Tax Demand 96,31,57,070

Service Tax Demand 15,43,78,707

Service Tax Demand 26,22,24,712

Service Tax Demand 18,51,036

Service Tax, Chennai Service Tax Demand 36,49,119

Service Tax Demand 11,77,89,271

Service Tax Demand 30,54,05,022

Service Tax Demand 47,75,170

Service Tax Demand 1,20,45,835

Service Tax Demand 21,99,068

Service Tax Demand 8,71,461

Service Tax Demand 22,42,128

Service Tax Demand 7,64,66,740

Service Tax Demand 11,91,697

Service Tax Demand 12,98,41,827

Service Tax Demand 1,03,47,956

Service Tax Demand 20,36,815

Service Tax Demand 10,57,250

Service Tax Demand 9,65,47,009

Service Tax Demand 2,02,04,633

Service Tax Demand 8,74,150

Service Tax Demand 5,34,242

Employees Provident Fund & Provident Fund 54,57,34,315 Misc Provision Act Demand

Name of the Statute Period to which Forum where the amount dispute is pending relates

Central Excise Act Mar 11 to Nov 12 Commissioner Bangalore

Indian Stamp Act 1990-1991 Allahabad Revenue Tribunal

Value Added Tax 1998-1999 Tribunal, Kolkata West Bengal

Value Added Tax Act 2006-2007 Tribunal Court Bangalore Karnataka

Value Added Tax Act GZB 2006-2007 Tribunal Court GZB

Vale Added Tax Act 2005-2006 Dy. Commissioner (Audit), Maharashtra Mumbai

Value Added Tax Act 2008-2009 Addl. Commissioner Ghaziabad Appeals-IV, GZB

Value Added Tax Act, West Bengal 2005-2006 & 2006- Directorate of Commercial 2007 Tax/Sr.Jt. Commissioner, Kolkata

Value Added Tax Act, West Bengal 1997-1998 Settlement Commissioner, Kolkata

Value Added Tax Act, West Bengal 2011-12 Joint Commissioner, Kolkata

Value Added Tax Act, Delhi 2006-2007 DVAT Authority and High Court

Value Added Tax Act, Delhi 2007-2008 DVAT Authority and High Court

Value Added Tax Act, Delhi 2008-2009 DVAT Authority and High Court

Value Added Tax Act, Delhi 2009-2010 DVAT Authority

Value Added Tax Act, M.P 2010-2011 Dy. Commissioner of Commercial Tax, Satna M.P

Value Added Tax Act, M.P 2011-2012 Dy. Commissioner of Commercial Tax, Satna M.P

The Finance Act 2004 and the Service Tax Rules 2004-2009 Appeal Tribunal, CESTAT, New Delhi

Oct.08 to Mar. 09 CESTAT, New Delhi

2007-08 to 2011-12 Commissioner of Service Tax Delhi.

2010-2011 CESTAT, New Delhi

April 11 to Commissioner March 13 Service Tax, Delhi

Apr-09 to March 10 CESTAT, New Delhi

Oct 08 to Sep 09 & CESTAT, New Delhi Oct 09 to March 10

Mar 05 to Mar 09 CESTAT, Kolkata Apr.06 to Oct.09 Commissioner (Appeal),

2006-2009 Superintendent (AR Service Tax),Jamnagar

2004-2012 Asstt. Commissioner/ Commissioner (Appeal), Service Tax, Mumbai

June 07 to Sep 10 CESTAT, New Delhi

Oct 10 to Feb 2012 CESTAT, New Delhi

July 04 to Dec 06 CESTAT, New Delhi

March 12 to Additional Commissioner March 13 Service Tax, Noida

2007-2008 Asstt. Commissioner Service Tax, Rajkot

2006-2009 Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax, Ludhiana

June 06 to March 08 CESTAT, New Delhi

2008-2009, Commissioner 2009-2010 Service Tax, Jaipur

April 12 to March Commissionerate 2013 Service Tax, Delhi

Oct 05 Tojan 08 Commissioner Service Tax, Kolkata

Apr 08 To Aug 08 Joint Commissioner Service Tax, Kolkata

April 07 To Commissioner March 2012 Service Tax, Kolkata

2008-09 To Commissioner 2011-12 Service Tax, Bangalore

Apr 12 To Commissioner June 12 Service Tax, Bangalore

2009-2011 Jt. Commissioner (Appeal), Jharsuguda

2009-2014 Dy Commissioner, Service Tax, Noida

Employees Provident 2006-07 to Employee Provident Fund Fund & Misc Provision 2008-09 Appellant Tribunal, Act New Delhi

c) According to the information and explanations given to us, the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 2013(1 of 2013) and rules made there under has been transferred to such fund within time.

(viii) The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current year and immediately preceding financial year.

(xi) According to the records of the Company examined by us and the information and explanation 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.

(x) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

(xi) Based on the audit procedures applied by us & according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

(xii) 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 instance of material fraud on or by the Company, noticed or reported during the year, nor we have been informed of any such case by the Management.

For ARUN K GUPTA & ASSOCIATES

Chartered Accountants

Firm Registration No. 000605N

(SACHIN KUMAR)

Place : New Delhi Partner

Dated: 21.05.2015 M.No. 503204


Mar 31, 2014

We have audited the accompanying financial statements of Ahluwalia Contracts (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

management''S ReSponSibility FoR the Financial StatementS

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956 ("the Act") read with the general circular 8/2014 dated April 4, 2014 issued by the Ministry of Corporate Affairs and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control 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.

auditoR''S ReSponSibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 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 control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufcient and appropriate to provide a basis for our audit opinion.

opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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 Balance Sheet, of the state of affairs of the company as at 31st March, 2014

b) In the case of the Profit & Loss Account, of the Profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

RepoRt on otheR legal and RegulatoRy RequiRementS

1. As required by the Companies (Auditors'' Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account

d) in our opinion, the Balance Sheet, and Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956, read with the general circular 8/2014 dated April 4, 2014 issued by the Ministry of Corporate Affairs.

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualifed as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure independent auditors'' Repor

Referred to in paragraph (1) under the heading oF "Report on other legal and Regulatory RequirementS" our Report of even date- (i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verifed by the management during the year. There is a regular programme of verifcation of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verifed by the management during the year. As informed, no material discrepancies were noticed on such verifcation.

(c) There was no substantial disposal of fixed assets during the year.

(ii) (a) The management has conducted physical verifcation of major items of inventory at reasonable intervals during the year.

(b) The procedures of physical verifcation of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difculties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verifcation of such stocks.

(iii) (a) According to the information & explanations given to us,the company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 28,25,75,138 and the year end balance of loans granted to such companies was Rs. 4,74,55,163 and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company. However, the company has made a provision/ written off Rs. 14,51,19,975/- during previous year due from a subsidiary company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) According to the information & explanations given to us, the company has taken interest free unsecured loan taken from one party listed in the register maintained u/s 301 of the Companies Act 1956 & terms & conditions of the loan are not prima facie prejudicial to the interest of the company.. However no stipulation with regard to the payment have been made hence no comments are offered whether the company is regular in repayment of principal and if there is any overdue payment. The maximum amount involved during the year was Rs. 20,66,53,887 and the year end balance of loan taken from such party was Rs. 14,08,19,350

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and also for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

(vii) In our opinion, the internal audit system needs to be strengthened with regard to its scope to commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the (Cost Accounting Records) Rules, 2011prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in Service Tax & Provident fund.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales- tax, wealth-tax, custom duty, excise duty, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable except service tax(net of cenvat credit claimed) amounting to Rs. 2,95,84,317/.

(c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of dues Amount period to (inRs.) which the amount relates

Central Excise Act Demand for Excise Duty 14,26,506 Mar 11 to Nov 12

Indian Stamp Act Stamp duty on Real 57,41,980 1990-1991 Estate Project

Value Added Tax, West Bengal VAT Demand 3,01,000 1998-1999

Value Added Tax Act VAT Demand 7,79,105 2006-2007 Karnataka

Value Added Tax Act GZB VAT Demand 30,000 2006-2007

Value Added Tax Act VAT Demand 16,42,553 2005-2006 Maharashtra

Value Added Tax Act VAT Demand 1,00,64,163 2008-2009 Ghaziabad

Value Added Tax Act, VAT Demand 45,19,093 2005-2006 & West Bengal 2006-2007

Value Added Tax Act, VAT Demand 1,53,920 1997-1998 West Bengal

Name of the Statute Forum where dispute is pending

Central Excise Act Commissioner Bangalore

Indian Stamp Act Allahabad Revenue Tribunal

Value Added Tax, West Bengal Tribunal, Kolkata

Value Added Tax Act Karnataka Tribunal Court Bangalore

Value Added Tax Act GZB Tribunal Court GZB

Value Added Tax Act Maharashtra Dy. Commissioner (Audit), Mumbai

Value Added Tax Act Ghaziabad Addl..Commissioner Appeals-IV, GZB

Value Added Tax Act, West Bengal Directorate of Commercial Tax /Sr Jt. Commissioner, Kolkata

Value Added Tax Act,West Bengal Settlement Commissioner, Kolkata

Name of the Statute Nature of dues Amount period to (inRs.) which the amount relates

The Finance Act 2004 and Service Tax Demand 73,61,60,788 2004-2009 the Service Tax Rules

Service Tax Demand 31,10,32,656 Oct.08 to Mar. 09

Service Tax Demand 3,85,54,216 2007-08 to 2011-12

Service Tax Demand 22,89,62,484 2010-2011

Service Tax Demand 7,78,28,291 Aril 11 to March 13

Service Tax Demand 96,31,57,070 Apr-09 to March 10

Service Tax Demand 15,43,78,707 Oct 08 to Sep 09 & Oct 09 to March 10

Service Tax Demand 26,22,24,712 Mar 05 to Mar 09

Service Tax Demand 61,18,14,574 April 10 to Mar 11 Service Tax Demand 21,69,98,386 April 11 to Mar 12 Service Tax Demand 18,51,036 Apr.06 to Oct. 09

Service Tax Demand 15,74,161 2006-2009

Service Tax Demand 11,77,95,189 2004-2012

Service Tax Demand 30,54,05,022 June 07 to Sep 10

Service Tax Demand 47,75,170 Oct 10 to Feb 2012

Service Tax Demand 1,20,45,835 July 04 to Dec 06

Service Tax Demand 21,99,068 March 12 to March 13

Service Tax Demand 8,71,461 2007-2008

Service Tax Demand 22,42,129 2006-2009

Service Tax Demand 7,64,66,740 June 06 to March 08

Service Tax Demand 1,03,47,956 Oct 05 To Jan 08

Service Tax Demand 20,36,815 Apr 08 To Aug 08

Service Tax Demand 9,65,47,009 2008-09 To 2011-12

Employees Provident Provident Fund Demand 54,57,34,315 2006-07 to Fund & Misc Provision 2008-09 Act

Name of the Statute Forum where dispute is pending

The Finance Act 2004 and Appeal Tribunal, CESTAT, New Delhi the Service Tax Rules

CESTAT, New Delhi

Commissioner of Service Tax Delhi.

CESTAT, New Delhi

Commissioner Service Tax, Delhi

CESTAT, New Delhi

CESTAT, New Delhi

CESTAT, Kolkata

CESTAT, New Delhi

Commissioner Service Tax, Delhi Commissioner (Appeal), Service Tax, Chennai

Superintendent (AR Service Tax), Jamnagar

Asstt. Commissioner/ Commissioner (Appeal), Service Tax, Mumbai

CESTAT, New Delhi

CESTAT, New Delhi

CESTAT, New Delhi

Additional Commissioner Service Tax, Noida

Asstt. Commissioner Service Tax, Rajkot

Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax, Ludhiana

CESTAT, New Delhi

Commissioner Service Tax, Kolkata

Joint Commissioner Service Tax, Kolkata

Commissione Service Tax, Bangalore

Employees Provident Fund Employee Provident Fund Appellant & Misc Provision Act Tribunal, New Delhi

(x) The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current year however there were cash losses in the immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

(xii) According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

(xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us 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.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For Arun K Gupta & Associates Chartered Accountants FRN.-000605N

(Gireesh Kumar Goenha) Partner M.No. 096655

Place : New Delhi Dated: 30.05.2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Ahluwalia Contracts (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control 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 conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. 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 disclosures in the financial statements. The procedures selected depend on the auditors'' 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 control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, 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.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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 Balance Sheet, of the state of affairs of the company as at 31st March,2013

b) In the case of the Profit & Loss Account, of the loss for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure Independent Auditors'' Report

Referred to in paragraph (1) under the heading of "Report on Other Legal and Regulatory Requirements" our report of even date- Ahluwalia Contracts (India) Limited

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

(ii) (a) The management has conducted physical verification of major items of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) According to the information & explanations given to us,the company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 2656.20 lacs and the year end balance of loans granted to such companies was Rs. 2485.51 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) According to the information & explanations given to us,the company has taken interest free unsecured loan taken from one party listed in the register maintained u/s 301 of the Companies Act 1956 & terms & conditions of the loan are not prima facie prejudicial to the interest of the company.. However no stipulation with regard to the payment have been made hence no comments are offer whether the company is regular in repayment of principal and if there is any overdue payment. The maximum amount involved during the year was Rs.3865.00 lacs and the year end balance of loan taken from such party was Rs 752.14 lacs.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and also for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the (Cost Accounting Records) Rules, 2011prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(x) The company has no accumulated losses at the end of the financial year and it has incurred cash losses in the current year and there were no cash losses in the immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

(xii) According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given corporate guarantee of Rs. 1650 lacs for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank. In our opinion the terms & conditions are not prejudicial to the interest of the company.

(xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that the funds amounting to Rs.1515.19 lacs raised on short term basis have been used for long –term investment.

(xviii)The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For ARUN K GUPTA & ASSOCIATES

Chartered Accountants FRN.-000605N

(GIREESH KUMAR GOENKA)

Place:New Delhi Partner

Dated:30.05.2013 M.No. 096655


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. Ahluwalia Contracts (India) Limited, as at 31st March, 2012 and also the Statement of Profit and Loss of the Company for the year ended on that date annexed thereto and the cash fow statement for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with the 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 mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003, issued by Central Govt. of India in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters applicable to the company as specified in the paragraph 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to above, we report that:

a) We have 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 accounts as required by law, have been kept by the company so far as appears from our examination of the books except for as referred to in point No.(i)(a) of the Annexure to the report;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in section 211(3C) of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2012 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 our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and notes there on give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012;

ii) in the case of Statement of Profit and Loss, of the Loss of the Company for the year ended on that date; and

iii) in the case of Cash Flow statement of the cash fow for the year ended on that date.

Annexure referred to in paragraph 3 of our report of even date

Ahluwalia Contracts (India) Limited

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

(ii) (a) The management has conducted physical verification of major items of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) The company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 594.55 lacs and the year end balance of loans granted to such companies was Rs. 594.55 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) As informed to us, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause 4(iii) (e, f and g) of the companies (Auditor's Report) order, 2003 are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and also for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the (Cost Accounting Records) Rules, 2011prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Lacs)

Central Excise Act Demand for Excise 46.37 Duty

Indian Stamp Act Stamp duty on Real 57.42 Estate Project

Work Contract Tax Works Contract Tax 15.26 Act, Delhi Demand

Work Contract Tax Works Contract Tax 3.01 Act, West Bengal Demand

Value Added Tax Act VAT Demand 5.93 Haryana

Value Added Tax Act VAT Demand 7.79 Karnataka

Value Added Tax Act VAT Demand 92.49 Karnataka

Value Added Tax Act VAT Demand 16.43 Maharashtra

Value Added Tax Act VAT Demand 473.40 Punjab

Value Added Tax Act VAT Demand 20.06 Ghaziabad

Value Added Tax Act, VAT Demand 12597.39 Delhi

Value Added Tax Act, VAT Demand 45.19 West Bengal

Value Added Tax Act VAT Demand 19.57 Punjab

Value Added Tax Act, VAT Demand 1.54 West Bengal

The Finance Act Service Tax Demand 7361.61 2004 and the Ser- Service Tax Demand 211.95 vice Tax Rules

Service Tax Demand 802.43

Service Tax Demand 13483.26

Service Tax Demand 4203.88

Service Tax Demand 965.47

Service Tax Demand 1434.97

Service Tax Demand 472.02

Service Tax Demand 25.55

Service Tax Demand 15.74

Service Tax Demand 942.80

Service Tax Demand 1647.62

Service Tax Demand 8.71

Name of the Statute Period to which the Forum where dispute is amount relates pending

Central Excise Act 1998-1999 & 2000- CESTAT, New Delhi 2001

Indian Stamp Act 1990-1991 Allahabad Revenue Tribunal

Work Contract Tax Act, Delhi 2004-2005 Hon'ble Delhi High Court

Work Contract Tax Act, West Bengal 1998-1999 Tribunal, Kolkata

Value Added Tax Act Haryana 2005-2006 VAT Tribunal Chandigarh

Value Added Tax Act Karnataka 2006-2007 Tribunal Court Bangalore

Value Added Tax Act Karnataka 2006-2010 Joint Commissioner (Ap- peal-3), Karnataka

Value Added Tax Act Maharashtra 2005-2006 Dy Commissioner (Audit), Mumbai

Value Added Tax Act Punjab 2006-2008 High Court, Chandigarh

2006-2008 Addl..Commissioner Value Added Tax Act Appeals-IV / Tribunal-I, Ghaziabad

Value Added Tax Act, Delhi 2006-2009 Commissioner, DVAT, New Delhi

Value Added Tax Act, West Bengal 2005-2006 & 2006- Directorate of Commercial 2007 Tax /Sr. Jt. Commissioner, Kolkata Value Added Tax Act Punjab 2005-06 DETC(A), Ludhiana

Value Added Tax Act, West Bengal 1997-1998 Settlement Commissioner, Kolkata

The Finance Act 2004 and the Service Tax Rules 2004-2009 CESTAT, New Delhi

2004-2008 CESTAT, New Delhi

Oct.08 to Sept. 09 CESTAT, New Delhi

2008-2010 CESTAT, New Delhi

2010-2011 Commissioner Service Tax, New delhi

2008-2012 Commissioner of Service Tax, Karnatak

Sept. 04 to Jan 08 & Asst Commissioner/Commis- Apr 08 to Aug 08 sioner Service Tax, Kolkata

2006-2009 Commissioner/Asst. Com- missioner Service Tax, Ludhiana

Apr.06 to Oct.09 Additional Commissioner, Chennai.

2006-2009 Superintendent (AR Service Tax), Jamnagar

2004-2009 Asstt. Commissioner,/Com- missioner (A), Service Tax, Mumbai

July 2004 to Febru- Asstt. Commissioner,/Com- ary 2012 missioner S.Tax, Noida

2007-2008 Asstt. Commissioner Service Tax, Rajkot

(x) The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

(xii) According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given guarantee for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank amounting to Rs. 27.00 crore. In our opinion the terms & conditions are not prejudicial to the interest of the company.

(xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that the funds amounting to Rs. 5,158.47 lacs raised on short term basis have been used for long -term investment.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For Arun K. Gupta & Associates

Firm Registration No. 000605N

Chartered Accountants

Gireesh Kumar Goenka

Place : New Delhi Partner

Date : 30-05-2012 M.No. 96655


Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s. Ahluwalia Contracts (India) Limited, as at 31st March, 2011 and also the Profit and Loss Account of the Company for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with the 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 mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors’ Report) Order, 2003, issued by Central Govt. of India in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters applicable to the company as specified in the paragraph 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to above, we report that:

a) We have 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 accounts as required by law, have been kept by the company so far as appears from our examination of the books except for as referred to in point No.(i)(a) of the Annexure to the report;

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in section 211(3C) of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on 31st March 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 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 our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and notes there on in schedule 19 give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

ii) in the case of Profit and Loss Account, of the Profit of the Company for the year ended on that date; and

iii) in the case of Cash Flow statement of the cash flow for the year ended on that date.

Annexure to Auditors’ Report Annexure referred to in paragraph 3 of our report of even date Ahluwalia Contracts (India) Limited

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

(ii) (a) The management has conducted physical verification of major items of inventory at reasonable intervals during the year.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) The company has granted interest free unsecured loans to its five subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.472.25 lacs and the year end balance of loans granted to such companies was Rs.472.25 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) As informed to us, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause 4(iii) (e, f and g) of the companies (Auditor’s Report) order, 2003 are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and also for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) The Central Government has not prescribed for maintenance of cost records under Section 209 (I) (d) of the Companies Act, 1956, for the Company.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount Period to (Rs.in Lacs) which the amount relates

Central Excise Act Demand for Excise Duty 46.37 1998-1999 & 2000-2001

Income Tax Act Income Tax Demand 1.37 2008-2009

Indian Stamp Act Stamp duty on Real Estate 57.42 1990-1991 Project

Work Contract Tax Act, Works Contract Tax Demand 15.26 2004-2005 Delhi

Work Contract Tax Act, Works Contract Tax Demand 3.01 1998-1999

West Bengal Value Added Tax Act, VAT Demand 5.93 2005-2006 Haryana

Value Added Tax Act, VAT Demand 7.79 2006-2007 Karnataka

Value Added Tax Act, VAT Demand 305.75 2006-2010 Karnataka

Value Added Tax Act, VAT Demand 16.43 2005-2006 Maharashtra

Value Added Tax Act, VAT Demand 492.98 2005-2008 Punjab

Value Added Tax Act, VAT Demand 31.59 2006-2007 Ghaziabad

Value Added Tax Act, VAT Demand 12597.39 2006-2009 Delhi

Name of the Statute Forum where dispute is pending

Central Excise Act CESTAT, New Delhi

Income Tax Act Commissioner of Income Tax (Appeal), New Delhi

Indian Stamp Act Allahabad Revenue Tribunal

Work Contract Tax Ac Delhi Hon’ble Delhi High Court

Work Contract Tax Ac West Bengal Tribunal, Kolkata

Value Added Tax Act, Haryana VAT Tribunal, Chandigarh

Tribunal Court, Bangalore

Value Added Tax Act, Karnataka Joint Commissioner (Appeal-3), Karnataka

Value Added Tax Act, Maharashtra Dy. Commissioner (Audit), Mumbai

Value Added Tax Act, Punjab High Court, Chandigarh

Value Added Tax Act, Ghaziabad Commissioner Appeals-IV / Tribunal-I, Ghaziabad Value Added Tax Act, Delhi Commissioner, DVAT, New Delhi



Name of the Statute Nature of Dues Amount Period to (Rs.in Lacs) which the amount relates

Value Added Tax Act, VAT Demand 56.66 2004-2005 West Bengal & 2006-2007

Value Added Tax Act, VAT Demand 1.54 1997-1998 West Bengal

The Finance Act 2004 Service Tax Demand 7309.99 2004-2009 and the Service Tax Rules

Service Tax Demand 211.95 2008-2009

Service Tax Demand 7078.83 2008-2010

Service Tax Demand 829.80 2008-2009

Service Tax Demand 1434.97 Sept.04 to Jan & Apr 08 to Aug 08 Service Tax Demand 99.09 2006-2009

Service Tax Demand 15.74 2006-2009

Service Tax Demand 1240.99 2004-2008

Service Tax Demand 1381.42 July 2004 to March 2008

Service Tax Demand 8.71 2007-2008

Name of the Statute Forum where dispute is pending

Value Added Tax Act, Directorate of Commercial Tax/ West Bengal Jt. Commissioner, Kolkata

Value Added Tax Act, Settlement Commissioner, West Bengal

The Finance Act 2004 Appeal Tribunal, CETATE, and the Service Tax Rules Tribunal, CESTATE, New Delhi Commissioner Service Tax, Delhi

Commissioner Service Tax, Gurgaon

Commissioner Service Tax, Kolkata Commissioner / Joint Commissioner Service Tax, Ludhiana

Superintendent (AR Service Tax), Jamnagar Asstt. Commissioner, Division- III, Service Tax, Mumbai Superintendent, Service Tax, Range-27, Noida Asstt. Commissioner Service Tax, Rajkot

(x) The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

(xii) According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given corporate guarantee for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank amounting to Rs.27.00 crores. In our opinion the terms & conditions are not prejudicial to the interest of the company.

(xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet and cash flow statement of the company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For Arun K. Gupta & Associates

Firm Registration No. 000605N

Chartered Accountants

Gireesh Kumar Goenka

Place : New Delhi Partner

Date : 30.05.2011 M.No. 96655


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. Ahluwalia Contracts (India) Limited, as at 31st March, 2010 and also the Proft and Loss Account of the Company for the year ended on that date annexed thereto and the cash fow statement for the year ended on that date. These fnancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these fnancial statements based on our audit.

2. We have conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fnancial statements are free of material mis-statement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fnancial statements. An audit also includes assessing the accounting principles used and signifcant estimates made by management, as well as evaluating the overall fnancial statement. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors’ Report) Order, 2003, issued by Central Govt. of India in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters applicable to the company as specifed in the paragraph 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to above, we report that:

a) have 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 accounts as required by law, have been kept by the company so far as appears from our examination of the books except for as referred to in point No.(i)(a) of the Annexure to the report;

c) The Balance Sheet, Proft and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Proft and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in section 211(3C) of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on

31st March, 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualifed as on 31st March, 2010 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 our opinion and to the best of our information and according to the explanations given to us, the said accounts read with signifcant accounting policies and notes there on in schedule 19 give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of Balance Sheet, of the state of afairs of the Company as at 31st March, 2010;

ii) in the case of Proft and Loss Account, of the Proft of the Company for the year ended on that date; and

iii) in the case of Cash Flow statement of the cash fow for the year ended on that date.

Annexure to Auditors Report Annexure referred to in paragraph 3 of our report of even date Ahluwalia Contracts (India) Limited

(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fxed assets except for shuttering and scafolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

b) All fxed assets have not been physically verifed by the management during the year. There is a regular programme of verifcation of fxed assets except for shuttering and scafolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fxed assets have been physically verifed by the management during the year. As informed, no material discrepancies were noticed on such verifcation.

c) There was no substantial disposal of fxed assets during the year.

(ii) a) The management has conducted physical verifcation of major items of inventory at reasonable intervals during the year.

b) The procedures of physical verifcation of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is mainly engaged in the business of construction. In view of multifarious jobs at diferent sites spread at diferent locations and practical difculties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verifcation of such stocks.

(iii) a) The company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1027.34 lacs and the year end balance of loans granted to such companies was Rs. 472.25 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

b) The aforesaid loan is repayable on demand & there is no repayment schedule.

c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

d) As informed to us, the company has not taken any loans, secured or unsecured from companies, frms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause 4(iii) (e, f and g) of the companies (Auditor’s Report) order, 2003 are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fxed assets and also for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

(v) a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

(vii) In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

(viii) The Central Government has not prescribed for maintenance of cost records under Section 209 (I) (d) of the Companies Act, 1956, for the Company.

(ix) a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Lacs)

Central Excise Act Demand for Excise Duty 46.37

Indian Stamp Act Stamp dutyonReal Estate 57.42 Project

Work Contract Tax Act, Delhi Works Contract Tax Demand 15.26

Service Tax (DGCEI) Service Tax Demand 423.90

Service Tax (AE), Delhi Service Tax Demand 7214.73

Service Tax, Jamnagar Service Tax Demand 33.33

Service Tax, Rajkot Service Tax Demand 8.71

Haryana Value Added Tax Act VAT Demand 5.93

Karnataka Value Added VAT Demand 7.79 Tax Act

Service Tax, Bangalore Service Tax Demand 255.92

Service Tax, Mumbai Service Tax Demand 441.71

Name of the Statute Period to Forum where which the dispute is pending amount relates Central Excise Act 1998-1999 & CESTAT, New Delhi 2000-2001

Indian Stamp Act 1990-1991 Allahabad Revenue Tribunal

Work Contract Tax Act, 2004-2005 Honble Delhi High Court

Service Tax (DGCEI) 2008-2009 Tribunal, CETATE, New Delhi

Service Tax (AE), Delhi 2004-2009 Appeal Tribunal, CETATE, New Delhi

Service Tax, Jamnagar 2006-2009 Superintendant (AR Ser vice Tax), Jamnagar

Service Tax, Rajkot 2007-2008 Asstt. Commissioner Ser vice Tax, Rajkot

Haryana Value Added 2005-2006 Joint Commissioner, Exc ise & Tax (Appeals), Faridabad

Karnataka Value Added 2006-2007 Tribunal Court Bangalore

Service Tax, Bangalore 2006-2008 Asstt. Commissioner (Audit), Bangalore

Service Tax, Mumbai 2004-2008 Asstt. Commissioner, Division-III, Service Tax, Mumbai

Name of the Statute Nature of Dues Amount (Rs. in Lacs)

Maharashtra Value Added VAT Demand 16.43 Tax Act

Punjab Value Added Tax Act VAT Demand 132.14

Punjab Value Added Tax Act VAT Demand 360.84

Service Tax, Ludhiana Service Tax Demand 0.87 Service

Service Tax, Noida Service Tax Demand 76.98

Service Tax, Kolkata Service Tax Demand 1311.12

Work Contract Tax Act, VAT Demand 3.01

West Bengal

Commercial Taxes Andhra VAT Demand 0.87 Ofcer, Hyderabad

Service Tax Rajkot Service Tax Demand 8.71

Service Tax Gurgaon Service Tax Demand 835.86

Service Tax Ludhiana Service Tax Demand 12.60

Value Added Tax Ghaziabad VAT Demand 63.17

Service Tax Kolkata Service Tax Demand 123.85

Value Added Tax, West VAT Demand 44.97 Bengal

Value Added Tax, VAT Demand 11.47 West Bengal

Value Added Tax, West VAT Demand 1.75 Bengal

Name of the Statute Period to Forum where which the dispute is pending amount relates

Maharashtra Value 2005-2006 Dy. Commissioner (Audit), Mumbai

Punjab Value Added 2005-2008 High Court, Chandigarh

Punjab Value Added 2006-2007 High Court, Chandigarh

Service Tax, Ludhiana 2007-2009 Asstt. Commissioner, Tax, Ludhiana

Service Tax, Noida July 2004 to Superintendent, Service March 2007 Tax, Range-27, Noida

Service Tax, Kolkata Sep. 2004 to Commissioner, Service Tax Work Contract Tax Act, Jan 2007 Kolkata

Commercial Taxes Andhra 1998-1999 Tribunal, Kolkata

Service Tax Rajkot 2009-2010 Deputy Commercial Tax Hyderabad

Service Tax Gurgaon 2007-2008 Commissioner (Appeal), Rajkot

Service Tax Ludhiana 2008-2009 Commissioner Service Tax, Delhi

Value Added Tax 2008-2009 Commissioner Service Tax, Ludhiana

Service Tax Kolkata 2006-2007 Joint Commissioner Appeals, Ghaziabad

Value Added Tax, West Oct 05 to Jan 08 Commissioner Service Tax, & Apr 08 to Kolkata Aug 08

Value Added Tax, 2006-2007 Directorate of Comme rcial Tax, Kolkata

Value Added Tax, West 2004-2005 Sr. Jt. Commissioner, Paraganas, West Bengal

Value Added Tax, 1997-1998 Settlement Commissioner, Kolkata

(x) The company has no accumulated losses at the end of the fnancial year and it has not incurred cash losses in the current and immediately preceding fnancial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a fnancial institution or banks.

(xii) According to the information and explanations given to us and based on the documents and records produced to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual beneft fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and

explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given guarantee for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank amounting to Rs. 27.00 crore. In our opinion the terms & conditions are not prejudicial to the interest of the company.

(xvi) Based on information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet and cash fow statement of the company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the fnancial statements and as per the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the course of our audit.

For Arun K. Gupta & Associates

Firm Registration No. 000605N

Chartered Accountants

Gireesh Kumar Goenka Place:New Delhi Partner Date:29-05-2010 M.No. 96655