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Auditor Report of ATN International Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of ATN INTERNATIONAL LTD ( the "Company") which comprises the Balance Sheet as at 31st March 2014, 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

The Company''s 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 flow of the Company in accordance with the Accounting Standard notified under the Companies Act,1956 (the Act) read with the General Circular 15/2013 dared 13th September,2013 of the Ministry of Corporate Affair in respect of Section 133 of the Companies Act,2013 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.

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 Company''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 aforesaid 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 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 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. Emphasis of Matter

I. STATEMENT OF PROFIT AND LOSS:

During the year, the Company has not provided

a) Interest Rs 94.50 Lakhs payable to Rural Electrification Corporation Ltd (Refer Note No 4.A.2)

b) Diminutioninvalue ofInvestments Rs 461.43 Lakhs (ReferNote 11.1)

c) Deferred Tax assets not provided for the year.

d) Loss in value of inoperative Wind Power Project the amount ofloss not quantified by managements as per AS-28 And consequently the loss of the Company for the current year is understated & Reserve & Surplus is overstated by the above amount & has its resultant effect in overstatement of Investments, Loans & Advances and understatement of Current Liabilities.

II. BALANCE SHEET

a) The Company is accounting interest payment on cash basis, which has resulted in accumulated interest liability of Rs 1636.08 Lakhs to Rural Electrification Corporation Ltd., As a resultant effect, Secured/ Unsecured Loans/Liabilities are understated to that extent.

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 ofIndia 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, the Statement ofProfit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, subject to Note No- 11.1 regarding valuation of investment, Note No-4.A.2 regarding non- provision of interest & Note no- 25 for non- provision ofloss in value in wind power project, the Balance Sheet, the Statement ofProfit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Act, read with the General Circular 15/2013 dated 13 th September,2013 of the Ministry of Corporate Affair in respect of Section 133 of the Companies Act,2013.

e) On the basis of the 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 Section 274 (1)(g) of the Act.

Annexure to the Auditor''s Report (Referred to in our Report of even date on the Accounts of ATN International Ltd as on 31.03.2014)

1) 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 the phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed 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.

2) The Company does not have any inventory. Hence, clause (ii) ofPara 4 of the Order is not applicable to the Company.

3) The company has not granted nor taken loans, secured or unsecured, granted or taken by the Company to / from companies, firms or other parties covered in the register maintained under Section 301of the Companies Act, 1956. Accordingly, sub clauses (b), (c) and (d) are not applicable.

4) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in such internal control system.

5) In respect of transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956:

(a) Based on audit procedures applied by us, to the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that needed to be entered into the register maintained under Section 301 have been so entered,

(b) In our opinion and According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees five lakh has been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6) In view of matured outstanding deposits having been deposited in a separate account as per order of Company Law Board, the Company has complied with the provisions of Section 58A of the Companies Act 1956 read along with the rules framed under the Non-Banking Financial Companies (Reserve Bank) Directions, 1998 as regards to the deposits accepted from public.

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

8) To the best our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 for the products of the Company.

9) According to the records of the Company and information and explanations given to us, the company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues with the appropriate authorities during the year

10) The Company has accumulated losses exceeding fifty percent of its net worth at the end of the year. The Company has incurred cash losses during the financial year covered by our audit and also in the immediately preceding financial year.

11) Based on our audit procedures and on the basis ofinformation and explanations given by the management, we are of the opinion that the Company has not made payment against dues to financial institutions amounting to ''9,35,00,000/- and interest thereon , except'' 2,00,00,000/ paid as per court directive, as the matter is sub-judice.

12) 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.

13) 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 and nidhi/ mutual benefit fund/societies.

14) a) Based on the records examined by us and according to the information and explanations given

to us, we are of the opinion thatEthe Company is maintaining proper records of the transactions and contracts of dealing in shares, securities, debentures, and other investments and that timely entries have been made in these records.

b) Based on our audit procedures and to the best of our knowledge and belief and according to the information and explanations given to us, the shares and securities have been held by the Company in its own name.

15) 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.

16) To the best of our knowledge and belief and according to the information and explanations given to us, terms loans availed by the Company were, prima facie, applied by the Company during the year for the purpose for which the loans were obtained.

17) We have been informed by the management that no funds have been raised during the year and hence clause (xvii) is not applicable.

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

19) The Company has outstanding debentures amounting to Rs 18.29 Lakhs for which amount has been deposited in a separate bank fixed deposit.

20) The Company has not raised any money through a public issue during the year.

21) Based on information and explanations furnished by the management, which have been relied upon by us, there were no frauds on or by the Company noticed or reported during the year.

For SHAMBHU KEDIA & Co. Chartered Accountants Form Regd.No.319011E

Place: Kolkata. S.K.KEDIA Date:30.05.2014 Proprietor Membership No-054042


Mar 31, 2013

Report on the Financial Statements

We have audied the accompanying financial statements of ATN INTERNATIONAL LTD (the "Company") which comprise the Balance Sheet as at 31 st March 2013, the statement of profit and the loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management''s Responsibility for the Financial Statements

The Company''s 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 flow of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in Section 211 (3C) 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 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 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 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 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.

Emphasis of Matter

We draw reference to:

I. STATEMENT OF PROFIT AND LOSS: During the year, the Company has not provided

a) Interest Rs 94.50 Lakhs payable to Rural Electrification Corporation Ltd (Refer Note No 4.2)

b) Diminution in value of Investments Rs 393.43 Lakhs (Refer Note 11.1)

c) Deferred Tax assets not provided for the year.

d) Loss in value of inoperative Wind Power Project the amount of loss not quantified by managements as per AS - 28 And consequently the loss of the Company for the current year is understated & Reserve & Surplus is overstated by the above amount & has its resultant effect in overstatement of Investments, Loans & Advances and understatement of Current Liabilities.

II. BALANCE SHEET

a) The Company is accounting interest payment on cash basis, which has resulted in accumulated interest liability of Rs 1541.58 Lakhs to Rural Electrification Corporation Ltd., As a resultant effect, Secured / Unsecured Loans / Liabilities are understated to that extent.

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 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 Act.

Annexure to the Auditor''s Report

(Referred to in our Report of even date on the Accounts of ATN International Ltd as on 31.03.2013)

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

b) Fixed Assets have been physically verified by the management of the Company during the year, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets.

c) There was no substantial disposal of fixed assets during the year, which would affect the going concern of the company.

2) The Company does not have any inventory. Hence, clause (ii) of Para 4 of the Order is not applicable to the Company.

3) The company has not granted nor taken any loan, secured, or unsecured, to/from Companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956. Accordingly, sub clauses (b), (c) and (d) are not applicable.

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

5) In respect of transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956:

(a) Based on audit procedures applied by us, to the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that needed to be entered into the register maintained under Section 301 have been so entered,

(b) In our opinion and According to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees five lakh has been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6) In view of matured outstanding deposits having been deposited in a separate account as per order of Company Law Board, the Company has complied with the provisions of Section 58A of the Companies Act 1956 read along with the rules framed under the Non-Banking Financial Companies (Reserve Bank) Directions, 1998 as regards to the deposits accepted from public.

7) The Company has an internal audit system commensurate with the size and nature of its business.

8) To the best our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 for the products of the Company.

9) According to the records of the Company and information and explanations given to us, the company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues with the appropriate authorities during the year.

10) The Company has accumulated losses exceeding fifty percent of its net worth at the end of the year. The Company has incurred cash losses during the financial year covered by our audit and there was no cash loss in the immediately preceding financial year.

11) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not made payment against dues to financial institutions amounting to Rs. 9,35,00,000/- and interest thereon, except Rs. 2,00,00,000/ paid as per court directive, as the matter is sub-judice.

12) 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.

13) 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 and nidhi/ mutual benefit fund/societies.

14) a) Based on the records examined by us and according to the information and explanations given to us, we are of the opinion that the Company is maintaining proper records of the transactions and contracts of dealing in shares, securities, debentures, and other investments and that timely entries have been made in these records.

b) Based on our audit procedures and to the best of our knowledge and belief and according to the information and explanations given to us, the shares and securities have been held by the Company in its own name.

15) 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.

16) To the best of our knowledge and belief and according to the information and explanations.given to us, terms loans availed by the Company were, prima facie, applied by the Company during the year for the purpose for which the loans were obtained.

17) We have been informed by the management that no funds have been raised during the year and hence clause (xvii) is not applicable.

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

19) The Company has outstanding debentures amounting to Rs. 18.29 Lakhs for which amount has been deposited in a separate account.

20) The Company has not raised any money through a public issue during the year.

21) Based on information and explanations furnished by the management, which have been relied upon by us, there were no frauds on or by the Company noticed or reported during the year.

For SHAMBHU KEDIA & CO. Chartered Accountants

Firm Reg. No. 319011E

S. K. KEDIA

Place : Kolkata Proprietor

Dated : 30th day of May, 2013 Membership No. 54042


Mar 31, 2011

We have audited the attached Balance Sheet of ATN INTERNATIONAL LTD., as at 31st March. 2011 and also the Profit and Loss Account 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.

We conducted our audit in accordance with auditing standards generally accepted in India. These 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order. 2003 as amended by Companies (Auditor's Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 and 5 ol the said Order.

Further, we report that :

1. 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;

2. 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 those books.

3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion, Subject to Note No. 7 of Schedute-17 regarding valuation of investment. Note No. 6 of Schedule-17 regarding non-provision of interest and Note No. 13 of Schedule-17 for non-provision of loss in value cf Wind Power Project, the Balance Sheet and Profit and Loss account dealt with by this report comply with the accounting standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956, to the extent applicable;

5. On the basis of the 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 ot the Companies Act, 1956;

6. We draw reference to :

I. PROFIT & LOSS ACCOUNT AND BALANCE SHEET:

During the year, the Company has not provided

a) Interest Rs 94.50 Lakhs payable to Rural Electrification Corporation Ltd. (Refer Note No. 6 of Schedule 17)

b) Diminution in value of Investments Rs. 232.05 Lakhs (Refer Note No. 7 of Schedule 17)

c) Loss in value of inoperative Wind Power Project the amount of loss not quantified by managements as per AS - 28 (Refer Note No. 14 of Schedule 17)

And consequently the loss of the Company for the current year is understated & Reserve & Surplus is overstated by the above amount & has its resultant effect in overstatement of Investments, Loans & Advances and understatement of Current Liabilities.

II. BALANCE SHEET

a) The Company is accounting interest payment on cash basis, which has resulted in accumulated interest liability of Rs 1352.58 Lakhs to Rural Electrification Corporation Ltd.

As a resultant effect, Secured / Unsecured Loans / Liabilities are understated to that extent.

Subject to statements made in paragraphs I & II above together with the other notes in Schedule - 17, in our opinion and to the best of our information and according to the explanations given to us. the said accounts give the information required by the Companies Act' 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

a. In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2011.

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

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

Annexure to the Auditor's Report (Referred to in our Report of even date on the Accounts of ATN International Ltd as on 31.03.2011)

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

b) Fixed Assets have been physically verified by the management of the Company during the year, which in our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets.

c) There was ho substantial disposal of fixed assets during the year, which would affect the going concern of the company.

2) The Company does not have any inventory. Hence, clause (ii) of Para 4 of the Order is not applicable to the Company.

3) The company has not granted nor taken any loan, secured or unsecured, to/from Companies, firms or other parties listed in the register maintained u/s 301 of the Companies Act, 1956. Accordingly, sub clauses (b), (c) and (d) are not applicable.

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

5) In respect of transactions entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956 :-

(a) Based on audit procedures applied by us, to the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that needed to be entered into the register maintained under Section 301 have been so entered.

(b) According to the information and explanations given to us and excluding certain "transactions of purchase of goods and materials of special nature for which alternate quotations are not available, in our opinion, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6) In view of amount outstanding matured deposits having been deposited in a separate account as per order of Company Law Board, the Company has complied with the provisions of Section 58A of the Companies Act, 1956 read along with the rules framed under the Non-Banking Financial Companies (Reserve Bank) Directions, 1998 as regards to the deposits accepted from public.

7) The Company has an internal audit system commensurate with the size and nature of its business.

8) To the best our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 for the products of the Company.

9) According to the records of the Company and information and explanations given to us, the company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues with the appropriate authorities during the year. Except Service Tax of Rs. 331474/-.

10) The Company has Rs. 425.75 lacs accumulated losses at the end of the year. Considering the effect of qualifications in the Report, the Company has accumulated losses exceeding fifty percent of its net worth at the end of the year. The Company has incurred cash losses during the financial year covered by our audit and there was no cash loss in the immediately preceding financial year.

11) Based on our audit procedures and on the basis of information and explanations given by the management we are of the opinion that the Company has not made any payment against dues to financial institutions' amounting to Rs. 9,35,00,000/- and interest thereon and the matter is sub-judice.

12) 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 6ther securities.

13) 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 and nidhi/mutual benefit fund/societies.

14) a) Based on the records examined by us and according to the information and explanations given to us we are of the opinion that the Company is maintaining proper records of the transactions and contracts of dealing in shares, securities, debentures, and other investments and that timely entries have been made in these records.

b) Based on our audit procedures and to the best of our knowledge and belief and according to the information and explanations given to us, the shares and securities have been held by the Company in its own name However, some of the investments are held in the name of Managing Director and Ex-Director of the Company.

15) 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.

16) To the best of our knowledge and belief and according to the information and explanations given to us terms loans availed by the Company were, prima facie, applied by the Company during the year for the purpose for which the loans were obtained.

17) We have been informed by the management that no funds have been raised during the year and hence clause (xvii) is not applicable.

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

19) The Company has outstanding debentures amounting to Rs 18.44 Lakhs for which amount has been deposited in a separate account.

20) The Company has not raised any money through a public issue during the year.

21) Based on information and explanations furnished by the management, which have been relied upon by us there were no frauds on or by the Company noticed or reported during the year.

For SHAMBHU KEDIA & CO. Chartered Accountants S. K. KEDIA Proprietor Membership No. 54042

Place : Kolkata Dated : 28th day of May, 2011


Mar 31, 2010

We have audited the attached Balance Sheet or ATN INTERNATIONAL LTD,, as at 31st March 2010 and also the Profit and Loss Account 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 Companys management. Our responsibility is to express an opinion on these financial statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in India. These 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 audft also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order. 2003 as amended by Companies (Auditors Report) (Amendment) Order, 2004 issued by ihy Central Government of India in terms of suo-section (,4A) of Section 227 of the Companies Act 1956, we enclose in the annexure a statement on the matters specified in paragraph 4 and 5 of the said Order.

Further, we report that:

1. We have obtained all the information and explanations, which to the best of our knowtedge and belief were necessary for the purpose of our audit;

2. 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 those books.

3. The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion, Subject to Note No. 7 of Schedule-18 regarding valuation of Investment, Note No.6 of Scnedule-18 regarding non-provision of Interest and Note No.14 of Schedule-18 for non-provision of loss In value of Wind Power Project, the Balance Sheet and Prof It and Loss account dealt with by this report comply with the accounting standards referred to In sub-section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable

5. On the basis of the written representations received from The directors, as on 31 st March, 2010. and taken on record by the Board of Directors, we report that none of the directors is disnualifieldi as on 31 st 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;

& We draw reference to :

I. PROFIT & LOSS ACCOUNT AND BALANCE SHEET :

During the year, the Company has not provided

a) Interest Rs 94.50 Lakhs payable to Rural Electrification Corporation Ltd (Refer Note No G of Schedule 18)

b) Diminution in value of Investments Rs 481-07 Lakhs (Refer No 7 of Schedule18 )

c) Loss in value of inoperative Wind Power Project the amount of loss not quantified by managements as per AS - 28 (Refer Note No. 14 of Schedule 18)

And consequently the profit of the Company for the current year ft Reserve ft Surplus Is overstated by the above amount ft has its resultant effect In overstatement of investments, Loans & Advances and understatement of Current Liabilities.

IL BALANCE SHEET

a) The Company is accounting interest payment on cash basis, which has resulted In accumulated interest liability of Rs 1258.08 Lakhs to Rural Electrification Corporation Ltd.,

As a resultant effect, Secured / Unsecured Loans / Liabilities are understand to that extent.

Subject to statements, made in paragraphs I & II above together with the other notes in Schedule-18, in our opinion and to the best of our information and according to the explanations ginon to us, the said accounts give the information required by the Companies Act 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

a.In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2010.

b. In the case ot the Profit and Loss Account, of the loss for the year ended on that date.

c. In the case of the Cash Row Statement of the Cash Flows for the year ended on that date.

Annexure to the Auditors Report (Referred to In our Report of even date on the Accounts of ATN International Ltd as on 31.03.2010)

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

b) Fixed Assets have been physically verified by the management of the Company during the year, which In our opinion is reasonable having regard to the size of the Company and the nature of its fixed assets.

c) There was no substantial disposal of fteed assets during the year, which would affect the going concern of the company.

S) The Company does not have any Inventory. Hence, clause (II) of Para 4 of the Order is not applicable to the Company.

3) The company has not granted nor taken any loan, secured or unsecured, to/from Companies, firms or other parties listed in the register maintained u/s 30 of the Companies Act, 1956, Accordingly, sub clauses {b), (c) and (d) are not applicable.

4) In our opinion and according to the information and explanation given to us, there are adequate Internal control systems commensurate with the size of the Company and nature of Its business with regard to The purchase of inventory and fixed assets.

5) In respect of transactions entered In the register maintained in pursuance of Section 301 of the Companies Act, 1956:

(a) Based on audit procedures applied by us, to the best of our knowledge and belief and according to the information and explanations given to us, we are of the & opinion that the transactions that needed to be entered Into the register maintained under Section 301 have been so entered.

(b) According to the information and explanations given to us and excluding certain transactions of purchase of goods and materials of special nature for which alternate quotations are not available, in our opinion, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time,

6) In view of amount outstanding matured deposits having been deposited In a separate account as per order of Company Law Board, the Company has complied with the provisions of Section 58A of the Companies Act 1956 read along with the rules framed under the Non-Banking Financial Companies (Reserve Bank) Directions, 1998 as regards to the deposits accepted from public

7) The Company has an internal audit system commensurate with the size and nature of its business.

B} To the best our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act. 1956 for the products of the Company.

9) According to the records of the Company and Information and explanations given to us, the company has been regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues with the appropriate authorities during the year. Except Service Tex of Rs. 3314744/-

10) The Company has Rs 336.02 lacs accumulated losses at the end of the year Considering the effect of qualifications In the Report, the Company has accumulated losses exceeding fifty percent of Its net worth at the end of the year. The Company has not Incurred cash losses during the financial year cove red by our audit and here was cash loss in the Immediately preceding financial year,

11) Based on our audit procedures and on the basis of information and explanations given by the management, we are of the opinion that the Company has not made any payment against dues to financial Institutions amounting to Rs 9,35,00,000/- and interest thereon and the matter Is sub- judlca.

12) 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.

13) 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 and nldhi/mutual benefit fund/societies.

14) a) Based on the records examined by us and according to the information and explanations given to us,

we are of the opinion that the Company is maintaining proper records of the transactions and contracts of dealing In shares, securities, debentures, and other investments and that timely entries have been made in these records,

b) Based on our audit procedures and to the best of our knowledge and belief and according to the Information and explanations given to us, the shares and securities have been held by the Company in its own name.

15) According to the information and explanations given to us, the company has not given any guarantea for loans taken by others from banks and financial Institutions,

16) To the best of our knowledge and belief and according to the Information and explanations given to us, terms loans availed by the Company were, prima facie, applied by the Company during the year for the purpose for which the loans were obtained.

17) We have been Informed by the management that no funds have been raised during the year and hence clause (xvii) is not applicable.

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

19) The Company has outstanding debentures amounting to Rs 18.44 Lakhs for which amount has boon deposited in a separate account.

20) The Company has not raised any money through a public issue during the year.

21) Based on information and explanations furnished by the management, which have been relied upon by us, there were no frauds on or by the Company noticed or reported during the year,

For Shambhu Kedfai & Co. Chartered Accountants

Firm Registration No, 31901 1E

6-K.Kedla

Place: Kolkata Proprietor

Date :28th day of May. 2010 Membership No. 54042

 
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