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Auditor Report of Anant Raj Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Anant Raj 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.

2) MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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 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 free from material misstatement, whether due to fraud or error.

3) AUDITOR'S RESPONSIBILITY

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

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

We conducted our audit in accordance with the Standards on Auditing specified under Section 143 (10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and 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 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 to the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

4) OPINION

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.

5) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

As required by the Companies (Auditor's Report) Order, 2015 (the Order) issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 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, 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 standalone 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 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 information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer note no. 32 to the financial statements.

ii) The Company did not have any material foreseeable losses 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.

Annexure to independent auditor's report

(Annexure referred to in paragraph 5)

i) In respect of fixed assets:

(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

ii) In respect of inventory

(a) The inventory includes land, buildings, construction, work in progress, construction and development material, development rights, raw materials, stores and spares and finished goods were physically verified by the management at reasonable intervals during the year.

(b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) I n our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii) In respect of loans, secured or unsecured, granted to the parties covered in register maintained under section 189 of the Act:

(a) The Company has granted unsecured loans to 66 (sixty six)subsidiary companies and 2 (two) associates companies covered in the register maintained under section 189 of the Act.

(b) The receipts of principal amounts and interest, whenever recoverable during the year, are as per mutually agreed stipulations.

(c) In respect of aforesaid loan, there is no overdue amount more than 1 lacs.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of property and goods, and rendering of services. We have not observed any major weakness in the internal control system during the course of audit.

v) The Company has not accepted any deposits from the public within the meaning of section 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended).

vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of activities carried on by the Company and are of the opinion that, prima facie, the prescribed accounts and records maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

vii) In respect of statutory dues:

a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has been generally regular in depositing the undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, value added tax, cess and other statutory dues as applicable with the appropriate authorities except for a few instances of slight delay in deposit. Further, no undisputed amounts payable in respect thereof were outstanding at the year- end for a period of more than six months from the date they become payable.

b) The dues outstanding in respect of service tax, value added tax, income tax and excise duty on account of any dispute, are as follows:

Name of the Nature of Amount (Rs) Period to Statute dues which the amount relates

Service tax Act Service tax 13,58,07,520 FY 2009-13

Haryana General Sales tax 85,50,807* FY 2002-03 Sales tax Act, 1973

Haryana Value Value added 1,31,64,978* FY 2003-04 Added tax Act, tax 2003

Income tax Act, Income tax 2,79,12,346# AY 1997-98, 1961 1998-99, 1999-2000

Income tax Act, Income tax 90,70,735* A.Y. 2006-07 1961

The Central Excise duty 29,80,380 FY 2009-10 Excise Act, 1944

Name of the Forum where dispute is Present status as the on the Statute pending date of this report

Service tax Act Commissioner, Service tax, New Reply filed by the Company is Delhi pending before Commissioner Service tax

Haryana General Hon'ble High Court of Sales tax Act, Punjab & Writ petition filed by the 1973 Haryana, Chandigarh Company is pending before the Hon'ble High Court of Punjab & Haryana, Chandigarh

Haryana Value Hon'ble High Court of Added tax Act, Punjab & Writ petition filed by the 2003 Haryana, Chandigarh Company is pending before the Hon'ble High Court of Punjab & Haryana, Chandigarh

Income tax Act, Hon'ble High Court of 1961 Delhi, Appeal filed by the Company Delhi is pending before Hon'ble High Court of Delhi, Delhi

Income tax Act, Income tax Appellate 1961 Tribunal, Appeal filed by the Company New Delhi. is pending before the Appellate Tribunal, New Delhi.

The Central Appellate Tribunal, Excise Act, 1944 New Delhi. Appeal filed by the Company is pending before the Appellate Tribunal, New Delhi.

* Amounts are net of payments made and without considering interest for the overdue period, if any, as may be levied if demand as raised is upheld.

# Excluding interest and additional tax

c) The Company has transferred the amount required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under within the specified time.

viii) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during the financial year covered by the audit and in the immediately preceding financial year.

ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions, banks and debenture holders.

x) In our opinion, the terms and conditions on which the Company has given guarantee for loans taken by others from Bank are not, prime facie, prejudicial to the interests of the Company.

xi) In our opinion and according to the information and explanations given to us, term loans have been obtained for the purpose for which they were applied.

xii) To the best of our knowledge and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

BA-5, Stutee Building, B. Bhushan & Co.

Bank Street, Karol Bagh Chartered Accountants New Delhi - 110005 Firm Registration No. 001596N

By the hand of

Kamal Ahluwalia

May 29, 2015 Partner

New Delhi Membership No.093812


Mar 31, 2014

We have audited the accompanying financial statements of Anant Raj Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss, and the 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 ("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 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 but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. 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 information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

(b) In the case of the Statement of Profit and Loss, 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 (Auditor''s 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 Act; and

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 disqualified 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 Act.

ANNEXURE TO INDEPENDENT AUDITORS'' REPORT

i) In respect of its fixed assets:

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

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

ii) In respect of its inventories:

a) The inventory includes land, buildings, construction work-in-progress, construction and development material, development rights, raw materials, stores and spares and finished goods were physically verified by the management at reasonable intervals during the year.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories 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 has maintained proper records of inventories. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii) a) The Company has granted unsecured loans to 64 (sixty four) companies covered in the register under section 301 of the Act. The maximum amount outstanding during the year and the year-end balances were aggregating to Rs. 9,46,33,00,278 and Rs. 8,49,47,61,444 respectively.

b) The rate of interest and other term and conditions of such loans, wherever stipulated as mutually agreed, are prima facie not prejudicial to the interest of the Company.

c) The receipts of principal amounts and interest, wherever recoverable during the year, are as per mutually agreed stipulations.

d) There is no amount overdue in respect of loans granted to companies, firms or other parties listed in the register under section 301 of the Act.

e) The Company has taken unsecured loans from 2 (two) of its directors covered in the register maintained under section 301 of the Act. The maximum amount outstanding during the year and the year-end balances were aggregating to Rs. 19,72,00,000 and Rs. 16,71,25,000 respectively.

f) In our opinion and according to the information and explanations given to us, loans accepted by the Company from its directors are interest free and the other terms and conditions for such loans are not prima facie prejudicial to the interest of the Company.

g) In respect of such interest free unsecured loans taken by the Company, the loan amount is payable on demand.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of property and goods, and rendering of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems.

v) In respect of contracts or arrangements referred to in section 301 of the Act:

a) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under section 301 of the Act have so been entered.

b) Transactions made in pursuance of such contracts or arrangements and exceeding the value of Rs. 5 lacs in respect of each party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits from the public within the meaning of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under.

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

viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011, prescribed by the Central Government under section 209(1) (d) of the Act in respect of real estate operations, and are of the opinion that, prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has been generally regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues as applicable with the appropriate authorities except for a few instances of slight delay in deposit.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues were outstanding, as at March 31, 2014, for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no dues of wealth tax, service tax, custom duty, excise duty and cess that have not been deposited with appropriate authorities on account of dispute. There are dues of sales tax, value added tax and income tax that have not been deposited with appropriate authorities on account of dispute. The forum where the disputes are pending given below:

Name of Nature of Amount Period to Statute Dues (Rs.) which Amount Relates

Haryana General Sales tax 85,50,807* F.Y. 2002-03 Sales tax Act, 1973

Haryana Value Value added 131,64,978* F.Y. 2003-04 Added Tax Act, 2003 tax

Income tax Act, 1961 Income tax 2,79,12,346# A.Y. 1997-98 A.Y. 1998-99 A.Y. 1999-2000

The Central Excise Excise duty 2,980,380 F.Y. 2009-10 Act, 1944



Name of Forum where Present status as on Statute dispute is pending the date of this Report

Haryana General Hon''ble High Court Write petition filed by the Sales tax Act, 1973 of Punjab & Haryana, Company is pending before Chandigarh the Hon''ble High Court of Punjab & Haryana, Chandigarh

Haryana Value Hon''ble High Court Write petition filed by the Added Tax Act, 2003 of Punjab & Haryana, Company is pending before Chandigarh the Hon''ble High Court of Punjab & Haryana, Chandigarh

Income tax Act, 1961 Hon''ble High Court Appeal filed by the Company of Delhi, Delhi is pending before the Hon''ble High Court of Delhi

The Central Excise Appellate Tribunal, Appeal filed by the Company Act, 1944 R.K.Puram, New Delhi is pending the Appellate Tribunal, R.K. Puram, New Delhi.

* Amounts are net of payments made and without considering interest for the overdue period, if any, as may be levied if demand as raised is upheld.

# Excluding interest and additional tax.

x) The Company does not have accumulated losses at the end of the financial year. The Company has not incurred cash losses during the financial year covered by the audit and in the immediately preceding financial year.

xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks and debentures holders.

xii) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The provisions of any special statute applicable to chit fund/ nidhi/mutual benefit fund/ societies are not applicable to the Company.

xiv) According to the information and explanations given to us, the Company does not deal or trade in shares, securities or debentures. The Company has maintained proper records of the transactions and contracts in respect of the investments purchased and sold during the year and timely entries have been made therein. Also, the investments made by the Company are held in its own name.

xv) According to the information and explanations given to us, the Company has given corporate guarantee of Rs. 7,000 lacs to Allahabad Bank to secure the credit facility extended to its subsidiary company, against which outstanding amount as at March 31, 2014 is Rs. 4,901 lacs.

xvi) In our opinion and according to the information and explanations given to us, term loans have been applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, no funds raised on a short term basis have been used for long term investment.

xviii) The Company has not made any preferential allotment of shares to parties or companies covered under register maintained under section 301 of the Act.

xix) The Company had created security in respect of debentures issued.

xx) The Company has not raised any money by way of public issue during the year.

xxi) In our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

BA-5, Stutee Building B. Bhushan & co. Bank Street, Karol Bagh Chartered Accountants New Delhi - 110005. Firm Regn. No. 001596N

By the hand of

May 29, 2014 Kamal Ahluwalia Partner Membership no. 093812


Mar 31, 2013

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Anant Raj Limited ("the Company"), which comprise the Balance Sheet as at March 3 1, 2013, the Statement of Profit and Loss, and the 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 (''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 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 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 information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

(b) In the case of the Statement of Profit and Loss, 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 (Auditor''s 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 subsection (3C) of section 2II of the Act; and

e) On the basis of written representations received from the directors as on March 3I, 20I3, and taken on record by the Board of Directors, none of the directors is disqualified as on March 3I, 20I3, from being appointed as a director in terms of clause (g) of sub-section (I) of section 274 of the Act.

i) In respect of its fixed assets:

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

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.

c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

ii) In respect of its inventories:

a) The inventory includes land, buildings, construction work-in-progress,construction and development material, development rights, raw materials, stores and spares and finished goods were physically verified by the management at reasonable intervals during the year.

b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories 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 has maintained proper records of inventories. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii) a) The Company has granted unsecured loans to 65 (sixty five) companies covered in the register under section 301 of the Act. The maximum amount outstanding during the year and the year-end balances were aggregating to Rs. 11,642,759,751 & 110,659,527,278 respectively.

b) The rate of interest and other term and conditions of such loans, wherever stipulated as mutually agreed, are prima facie not prejudicial to the interest of the Company.

c) The receipts of principal amounts and interest, wherever recoverable during the year, are as per mutually agreed stipulations.

d) There is no amount overdue in respect of loans granted to companies, firms or other parties listed in the register under section 301 of the Act.

e) The Company has taken unsecured loans from 2 (two) of its directors covered in the register maintained under section 301 of the Act. The maximum amount outstanding during the year and the year-end balances were aggregating to Rs. 8,45,00,000 and Rs. 5,38,50,000 respectively.

f) In our opinion and according to the information and explanations given to us, loans accepted by the Company from its directors are interest free and the other terms and conditions for such loans are not prima facie prejudicial to the interest of the Company.

g) In respect of such interest free unsecured loans taken by the Company, the loan amount is payable on demand.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of property and goods, and rendering of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems.

v) In respect of contracts or arrangements referred to in section 301 of the Act:

a) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under section 301 of the Act have so been entered.

b) Transactions made in pursuance of such contracts or arrangements and exceeding the value of Rs. 5 lacs in respect of each party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits from the public within the meaning of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under.

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

viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011, prescribed by the Central Government under section 209(1) (d) of the Act in respect of real estate operations, and are of the opinion that, prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has been generally regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues as applicable with the appropriate authorities except for a few instances of slight delay in deposit.

According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues were outstanding, as at March 3 1, 2013, for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, there are no dues of wealth tax, service tax, custom duty, excise duty and cess that have not been deposited with appropriate authorities on account of dispute. There are dues of sales tax, value added tax and income tax that have not been deposited with appropriate authorities on account of dispute.

x) The Company does not have accumulated losses at the end of the financial year. The Company has not incurred cash losses during the financial year covered by the audit and in the immediately preceding financial year.

xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks and debentures holders.

xii) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.

xiv) According to the information and explanations given to us, the Company does not deal or trade in shares, securities or debentures. The Company has maintained proper records of the transactions and contracts in respect of the investments purchased and sold during the year and timely entries have been made therein. Also, the investments made by the Company are held in its own name.

xv) According to the information and explanations given to us, the Company has given corporate guarantee of Rs. 7,000 lacs to Allahabad Bank to secure the credit facility extended to its subsidiary company, against which outstanding amount as at March 3I, 20I3 is Rs. 2,527 lacs.

xvi) In our opinion and according to the information and explanations given to us, term loans have been applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, no funds raised on a short term basis have been used for long term investment.

xviii)The Company has not made any preferential allotment of shares to parties or companies covered under register maintained under section 301 of the Act.

xix) The Company had created security in respect of debentures issued.

xx) The Company has not raised any money by way of public issue during the year.

xxi) In our opinion and according to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

303, Padma Tower-II

Rajendra Place

New Delhi - 110008.

May 29, 2013

B.Bhushan & Co.

Chartered Accountants

Firm Regn. No. 001596N

By the hand of

Kamal Ahluwalia

Partner

Membership no. 093812


Mar 31, 2012

1. We have audited the annexed Balance Sheet of Anant Raj Industries Limited as on March 31, 2012, the Statement of Profit and Loss and also the Cash Flow Statement for the year ended on that date annexed thereto. 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 conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditors' Report) (Amendment) Order, 2004, [Order], issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 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 4 and 5 of the said Order.

4. Further to our comments in Annexure referred to in paragraph 3 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 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 dealt with by this report 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 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2012 from being appointed as a director in the 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 financial statements read together with accounting policies and notes thereon and attached thereto give in the prescribed manner the information required by the Companies Act, 1956, give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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

Annexure To Auditor's Report

[Referred to in paragraph 3 of the Auditors' Report of even date to the members of Anant Raj Industries Limited on the financial statements for the year ended March 31, 2012]

i) In respect of fixed assets:

a) The Company is maintaining proper fixed assets records showing full particulars, including quantitative details and situation of fixed assets.

b) The fixed assets were physically verified by the management at reasonable intervals during the previous year and no material discrepancies were noticed on such verification as compared to book records.

c) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

ii) In respect of inventories:

a) The inventory includes land, buildings, construction work-in-progress, construction and development material, development rights, raw materials, stores and spares and finished goods were physically verified by the management at reasonable intervals during the year. The verification of raw materials lying in loose form like clay was carried out based upon parameters of volume and weight.

b) In our opinion, 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 maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of account.

iii) a) The Company has granted unsecured loans to 62 (sixty two) companies covered in the register under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year and the year-end balances were aggregating to Rs. 10,04,71,62,186 and Rs. 7,31,39,54,290 respectively.

b) The rate of interest and other term and conditions of such loans, wherever stipulated as mutually agreed, are prima facie not prejudicial to the interests of the Company.

c) The receipts of the principal amounts and interest, where recoverable during the year, are as per mutually agreed stipulations.

d) There is no amount overdue in respect of loans granted to companies, firms or other parties listed in the register under section 301 of the Companies Act, 1956.

e) The Company has taken unsecured loans from two directors covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year and the year-end balances were aggregating to Rs. 9,73,50,000 and Nil respectively.

f) In our opinion and according to the information and explanations given to us, loans accepted by the Company from its directors are interest free and the other terms and conditions for such loans are not prima facie prejudicial to the interest of the Company.

g) In respect of such interest free unsecured loans taken by the Company, the loan amount is payable on demand.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and 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 systems.

v) In respect of contracts or arrangements referred to in section 301 of the Companies Act, 1956:

a) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under section 301 of the Companies Act, 1956, have so been entered.

b) Transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits from public within the meaning of sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under.

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

viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has been generally regular in depositing the undisputed statutory dues including provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues as applicable with the appropriate authorities except for a few instances of slight delay in deposit.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues were outstanding, as at March 31, 2012, for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us, there are no dues of wealth tax, service tax, custom duty and cess that have not been deposited with appropriate authorities on account of dispute. There are dues of sales tax, value added tax, income tax and excise duty that have not been deposited with appropriate authorities on account of dispute. The forum where the disputes are pending given below:

Name of the Nature of Amount Period to Statute dues Rs. which amount relates

Haryana Sales tax 85,50,807* 2002-03 General Sales tax Act, 1973

Haryana Value added 131,64,978* 2003-04 Value Added tax Tax Act, 2003

Income tax Income tax 2,79,12,346# 1997-98 Act, 1961 1998-99 1999-2000

Central Excise Excise duty 2,980,380 2009-10 Act, 1944



Name of the Forum where dispute Present status as on the date of is pending this Report

Haryana Hon'ble High Court of Writ petition fled by the Company is General Sales tax Act, 1973 Punjab & Haryana, pending before the Hon'ble High Chandigarh Court of Punjab & Haryana, Chandigarh

Haryana Hon'ble High Court of Writ petition filed Value Added by the Company is Tax Act, 2003 Punjab & Haryana, pending before the Hon'ble High Chandigarh Court of Punjab & Haryana, Chandigarh

Income tax Hon'ble High Court Appeal fled by the Company is Act,1961 of Delhi, Delhi pending before the Hon'ble High Court of Delhi

Central Excise Commissioner of Appeal fled before the Act,1944 Central Excise (Appeals), Commissioner of Central Excise Gurgaon, Haryana (Appeals), Gurgaon, Haryana

* Amounts are net of payments made and without considering interest for the overdue period, if any, as may be levied if demand as raised is upheld.

# Excluding interest and additional tax.

x) The Company has no accumulated losses as at the end of the year and it has not incurred any cash losses in the current and in the 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 institutions of bank or to debentures holders as at the Balance Sheet Date.

xii) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The provisions of any special statute applicable to chit fund/nidhi/mutual benefit fund/ societies are not applicable to the Company.

xiv) According to the information and explanations given to us, the Company does not deal or trade in shares, securities or debentures. The Company has maintained proper records of the transactions and contracts in respect of the investments purchased and sold during the year and timely entries have been made therein. Also, the investments made by the Company are held in its own name.

xv) According to the information and explanations given to us, the Company has given corporate guarantee of Rs. 7,000 lacs to Allahabad Bank to secure the credit facility extended to its subsidiary company, against which outstanding amount as at March 31, 2012 is Rs. 1,000 lacs.

xvi) In our opinion and according to the information and explanations given to us, term loans have been applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, no funds raised on a short term basis have been used for long term investment.

xviii) During the year, the Company has not made any preferential allotment of shares to parties or companies covered under register maintained under section 301 of the Companies Act, 1956.

xix) According to the information and explanations given to us, the Company had issued during the year 2,500 redeemable non-convertible debentures of Rs. 10,00,000 each. The Company has created security in respect of debentures issued.

xx) The Company has not raised any money by way of public issue during the year.

xxi) During the course of our examination of the books and record 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 fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

117, New Delhi House B. Bhushan & Co.

27, Barakhamba Road Chartered Accountants

New Delhi. Firm Regn. No. 001596N

By the hand of

May 30, 2012 Kamal Ahluwalia

Partner

Membership no. 093812

 
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