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Auditor Report of B L Kashyap & Sons Ltd.

Mar 31, 2015

Report on the Financial Statements

We have audited the accompanying standalone financial statements of B.L.Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors' 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 there under.

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 true and fair view 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 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.

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;

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2015;

(ii) in the case of the Statement of Profit and Loss, of the loss 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.

Emphasis of Matters:-

We draw attention to the following matters in the notes to the financial statements

a) Note 3.1.1 to the financial statements regarding claims against the company not acknowledged as debt.

b) Note 3.1.2 to the financial statements regarding corporate Guarantees given.

c) Note 4(b) to the financial statements regarding shareholding of more than 5% in respect of promoter Director.

d) Note 11(b) regarding current maturities of Long Term debt.

Our opinion is not modified in respect of these matters. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2015 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013 we annexed hereto a statement on the matters specified in para 3 and 4 of the said order.

2. As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

c) The Balance Sheet, the 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 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 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

f) with respect to the other matters included in the Auditor's Report and to the best of our information and according to the explanations given to us:-

(i) The company does not have any pending litigations which would materially impact its financial position.

(ii) The company does not have any term contracts including derivative contracts for which there are any material foreseeable losses.

(iii) There has been no delay in transferring amounts to the Investor Education and Protection Fund.

Annexure to the Auditors' Report

The Annexure referred to in our Auditors' Report of even date on the accounts for the year ended 31st March, 2015 of B.L. Kashyap and Sons Limited, New Delhi in pursuance to the Companies (Auditor's Report) order, 2015 on the matters specified in paragraphs 3 and 4 of the said order.

(i). (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets once in a year, which in our opinion is reasonable, having regard to the size of the company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year end and no material discrepancies were noticed on such verification.

(ii). (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year-end.

(b) In our opinion and according to information and explanations given to us, the Procedures of physical verification of stores and material followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

(iii). The Company has granted unsecured loans, to the companies, covered in the register maintained under section 189 of the Companies Act, 2013.

(a) The receipt of principal amount and interest are as per agreed terms and conditions.

(b) As per agreed terms and conditions there are no overdraft amounts.

(iv.) In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of store materials, fixed assets and for the sale of goods and services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

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

(vi). The Central Government has specified maintenance of cost record u/s. 148(1) of the Companies Act, 2013.As per records produced and explanations given to us, the company has made and maintained cost records and accounts.

(vii). (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has following undisputed statutory dues outstanding for more than six months.

Nature of dues Undisputed Amount Arrear More Six Month (Rs.)

Service Tax 7,54,28,581

Works Contract Tax 38,25,690

Total 7,92,54,271

(b) According to the information and explanations given to us, there are no disputedamount payable towards Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Custom and duty of Central Excise, Valued added tax and cess outstanding as on the date of Balance Sheet except in the following cases:-

Name of the Statute Nature of Period to which Dues the amount relates

Income Tax Act Income Tax A. Y. 2010-11 Demand

Income Tax Act Income Tax A.Y. 2008-09 Demand

Income Tax Act Income Tax A.Y. 2012-13 Demand

Service Tax, Delhi Service Tax 10.09.2004 to Demand 16.06.2005

Service Tax, Delhi Service Tax FY. 2006-07 to Demand 2009-10

Central Excise Act Excise Demand FY. 2012-13

Value Added Tax Act, VAT Demand FY. 2006-07 West Bengal

Value Added Tax Act, VAT Demand FY. 2009-10 West Bengal

Value Added Tax Act, VAT Demand FY. 2010-11 Haryana

Value Added Tax Act, VAT Demand FY. 2011-12 Haryana

Value Added Tax Act, VAT Demand FY. 2009-10 Maharashtra

Name of the Statute Disputed Amount Not Forum where Dispute is Deposited (Rs. in lac) Pending

Income Tax Act 2.59 Commissioner of Income Tax (A)-NewDelhi

Income Tax Act 13.10 Deputy Commissioner of Income Tax, TDS, New Delhi

Income Tax Act 19.35 Commissioner of Income Tax (A)-NewDelhi

Service Tax Delhi 13.18 Tribunal Customs Excise and Service Tax, New Delhi

Service Tax Delhi 1384.83 Tribunal Customs Excise and Service Tax, New Delhi

Central Excise Act 3.50 Joint Commissioner Central Excise Gr. NOIDA

Value Added Tax Act, West Bengal 80.99 Joint Commissioner (A) Commercial Taxes, Kolkatta

Value Added Tax Act, West Bengal 37.37 Tribunal Value Added Tax, Kolkatta

Value Added Tax Act, Haryana 10.30 Tribunal Value Added Tax, Haryana

Value Added Tax Act, Haryana 44.78 Joint Excise and Taxation Commissioner (A), Faridabad

Value Added Tax Act, Maharashtra 16.00 Deputy Commissioner, Sales Tax, Pune

Total 1625.99

(c) There were no delays in transferring amounts to the Investor Education and Protection Fund.

(viii). The Company has incurred Cash Loss of Rs. 2,218.35 Lac during the year and Rs. 10,945.72 Lac in the immediately preceding financial year. The Company does not have accumulated losses at the end of the financial years.

(ix). The Company has defaulted in payment of its dues to the Bank as under:-

Name of Bank Principal & Interest Amount (Rs.) Period of Default

Union Bank of India 6,42,85,716 182 Days

Union Bank of India 74,38,897 274 Days

HDFC Bank 30,67,848 36 Days

(x). According to the information and explanations given to us, the Company has given guarantee for loans taken by others from banks or financial institutions and prima facie the terms and conditions whereof are not prejudicial to the interest of the company.

(xi). According to the information and explanation given to us, the Term Loans availed by the Company were applied for the purpose for which the loans were obtained.

(xii). According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

For Sood Brij & Associates

Chartered Accountants

Firm Regn. No. 00350N

A.K. SOOD

Place : New Delhi Partner

Dated : 28th May, 2015 Membership Number: 14372


Mar 31, 2014

We have audited the accompanying financial statements of B. L. Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of Significant Accounting Policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (''the Act''). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud, error or otherwise.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances 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 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:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

(ii) in the case of the Statement of Profit and Loss, of the Loss 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.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' Report) Order 2003 issued by the Central Government of India in terms of Sub Section 4A of Section 227 of the Companies Act, 1956. We annex hereto a statement on the matters specified in paragraph 4 & 5 of the said 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; and

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 211 of the Companies Act, 1956.

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

Annexure to the Independent Auditors'' Report

The Annexure referred to in Auditors'' Report of even date on the accounts for the year ended 31st March, 2014 of B. L. Kashyap And Sons Limited, New Delhi.

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year-end and no material discrepancies were noticed on such verification.

(c) Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern status of the Company.

2. (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year-end.

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

(c) In our opinion and according to information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the Companies Act, 1956. The number of parties involved in the transactions including interest, were three and maximum amount involved in the transactions was Rs. 39,396.97 Lakhs and the year-end closing balance was Rs. 39,229.54 Lakhs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The receipt of the principal amount and interest are as per agreed terms and conditions.

(d) The principal amounts are repayable as per agreed terms and conditions. There are no overdue amounts with respect to principal and interest amounts.

(e) The Company has taken unsecured loan from five parties covered in the register maintained under section 301of the Companies Act, 1956. The maximum amount involved was Rs. 2,114.65 Lakhs and year-end balance was Rs. 1,413.96 Lakhs.

(f) In our opinion, the terms and conditions on which loans have been taken from Directors listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fixed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

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

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

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. The Central Government has under clause (d) of sub section (1) of section 209 of the Companies Act ,1956 has prescribed the cost records to be maintained as per their notification dated 3rd June 2011, called The Companies Cost accounting Records Rules, 2011. As per management and records produced before us, the prescribed accounts and records have been maintained.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues except service tax amounting of Rs. 24.81 crores and TDS amounting to Rs. 4.85 crores outstanding for a period of more than six months.

(b) According to the information and explanations given to us, there were no disputed amounts payable towards Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and Central Excise Duty outstanding as on the date of Balance sheet except in the following cases:

10. The Company has incurred cash loss of Rs. 116.18 crores in the current financial year but no cash loss was incurred in the immediately preceding financial year. The Company does not have accumulated losses at the end of the financial year.

11. The Company has defaulted in repayment of its dues to the Banks. The default amount and period of default is as under:

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

13. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities.

However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company and its nominees.

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and financial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

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

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix) of the order is not applicable.

20 The Company has not raised any money by public issue, during the year.

21. According to the information and explanations given to us and to the best of our knowledge and belief, no fraud on or by the Company has been noticed or reported by the Company during the year.

For Sood Brij & Associates Chartered Accountants Firm Regn. No. 00350N

A.K. SOOD Place : New Delhi Partner Dated : 28th May, 2014 Membership Number: 14372


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of B.L. Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31 March, 2013, the Statement of Proft and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of Signifcant Accounting Policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (''the Act''). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fnancial statements that give a true and fair view and are free from material misstatement, whether due to fraud, error or otherwise.

Auditors'' Responsibility

Our responsibility is to express an opinion on these fnancial 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 fnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements. We believe that the audit evidence we have obtained is suffcient 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 fnancial 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:

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' Report) Order 2003 issued by the Central Government of India in terms of Sub Section 4A of Section 227 of the Companies Act, 1956. We annex hereto a statement on the matters specifed in paragraph 4 & 5 of the said 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 Proft and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account; and

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

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

The Annexure referred to in Auditors'' Report of even date on the accounts for the year ended 31 March, 2013 of B.L. Kashyap And Sons Limited, New Delhi.

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fxed assets on the basis of information available.

(b) The Company has a practice of physical verifcation of its fxed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verifed fxed assets at the year-end and no material discrepancies were noticed on such verifcation.

(c) Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern status of the Company.

2. (a) As explained to us, the stores and material at different sites have been physically verifed by the management at the year- end.

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

(c) In our opinion and according to information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verifcation of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the

Companies Act, 1956. The number of parties involved in the transactions including interest, were three and maximum amount involved in the transactions was Rs. 41,922.90 Lacs and the year-end closing balance was Rs. 36,299.44 Lacs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c). The receipt of the principal amount and interest are as per agreed terms and conditions.

(d). The principal amounts are repayable as per agreed terms and conditions. There are no overdue amounts with respect to principal and interest amounts.

(e). The Company has taken unsecured loan from two Directors covered in the register maintained under section 301 of the Companies Act 1956. The maximum amount involved was Rs. 2.49 Crores and year end balance was Rs. 2.24 Crores.

(f) In our opinion, the terms and conditions on which loans have been taken from Directors listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fxed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

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

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

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. The Central Government has under clause (d) of sub section (1) of section 209 of the Companies Act ,1956 has prescribed the cost records to be maintained as per their notifcation dated 3 June, 2011, called The Companies Cost accounting Records Rules, 2011. As per management and records produced before us, the prescribed accounts and records have been maintained.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues except the Service Tax dues amounting to Rs. 7.39 Crores outstanding for a period of more than six months.

(b) According to the information and explanations given to us, there were no disputed amounts payable towards Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and Central Excise Duty outstanding as on the date of Balance sheet except in the following cases:

Name of the Statute Nature of Dues O/s Amount Under Dispute (Rs.)

Income Tax Act Income Tax Demand 22.28 Crs

Income Tax Act Income Tax Demand 32 Lacs

Income Tax Act Income Tax Demand 2.59 Lacs

Income Tax Act Income Tax Demand 13.10 Lacs

Employees Provident P.F. Demand 577.76 Crs Fund & Miscellaneous Provision Act

Service Tax, Delhi Service Tax Demand 13.18 Lacs

Service Tax, Bangalore Service Tax Demand 288 Lacs including penalty

U.P. Trade Tax Act Vat Demand 10.33 Lacs

VAT Act, Uttar Pradesh Vat Demand 506 Lacs

VAT Act, West Bengal Vat Demand 80.99 Lacs

Maharastra Sales Tax Vat Demand 275 Lacs

Name Period to which the Forum where Dispute is Pending amount relates

Income Tax Act A.Y. 2002-2003 to A.Y. CIT(A)-II, New Delhi 2008-2009

Income Tax Act A.Y. 2009-2010 CIT(A)-II, New Delhi

Income Tax Act A.Y. 2010-2011 CIT(A)-II, New Delhi

Income Tax Act A.Y. 2008-2009 DCIT, TDS, Ward 49(1), New Delhi

Income Tax Act 01.04.2005 to 31.12.2010 Employee Provident Fund Appellate Tribunal, New Delhi

Income Tax Act 10.09.2004 to 16.06.2005 Customs, Excise and Service Tax Tribunal, New Delhi

Income Tax Act 01.04.2009 to 30.09.2009 Customs, Excise and Service Tax Tribunal, Bangalore

Income Tax Act 2005-2006 Sales Tax, Appellate Tribunal, Commercial Taxes Noida

Income Tax Act 2012-13 Deputy Commissioner, Commercial Tax, Noida

Income Tax Act 2006-2007 Jt. Comm.(A) Commercial Taxes, Kolkata

Income Tax Act 2008-2009 Deputy Commissioner, Sales Tax, Pune

10. The Company has neither accumulated losses at the end of the year nor incurred cash losses in the current fnancial year covered by our audit and in the immediately preceding fnancial year.

11. The Company has defaulted in repayment of its dues to the Banks. The default amount and period of default is as under:

Party Principal (Rs.) Interest (Rs.) Period of Default

State Bank of Patiala 3,115,736 650,244 85 days each

Syndicate Bank NIL 35,274,781 59 days

Kotak Mahindra Bank Ltd NIL 2,522 21 days

HDFC Bank Ltd 15,956,114 1,997,974 85 days each

L&T Infrastructure Finance Company Ltd 41,666,667 8,452,125 59 days each

Reliance Capital Ltd 3,366,508 294,741 58 days each

SREI Equipment Finance Ltd 46,427,534 16,036,733 85 days each

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

13. The Company is not a chit fund, nidhi, mutual beneft fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities.

However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company and its nominees...

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and fnancial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix) of the order is not applicable.

20. The Company has not raised any money by public issue, during the year.

21. According to the information and explanations given to us and to the best of our knowledge and belief, no fraud on or by the Company has been noticed or reported by the Company during the year.

For Sood Brij & Associates

Chartered Accountants

Firm Regn. No. 00350N

A.K. SOOD

Place : New Delhi Partner

Dated : 30.05.2013 Membership Number: 14372


Mar 31, 2012

We have audited the accompanying financial statements of B.L. Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2012, the Statement of Profit and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of Significant Accounting Policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ('the Act'). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud, error or otherwise.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

As required by the Companies (Auditors' Report) Order 2003 issued by the Central Government of India in terms of Sub Section 4A of Section 227 of the Companies Act, 1956. We annex hereto a statement on the matters specified in paragraph 4 & 5 of the said order. 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:

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

(ii) in the case of the Statement of Profit and Loss, 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.

Report on Other Legal and Regulatory Requirements

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; and

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 211 of the Companies Act, 1956.

The Annexure referred to in Auditors' Report of even date on the accounts for the year ended 31st March, 2012 of B.L. Kashyap And Sons Limited, New Delhi.

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year-end and no material discrepancies were noticed on such verification.

(c) Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern status of the Company.

2. (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year-end.

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

(c) In our opinion and according to information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the Companies Act, 1956.The number of parties involved in the transactions including interest, were three and maximum amount involved in the transactions was Rs.31,698.61 Lakhs and the year-end closing balance was Rs. 31,400.61 Lakhs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The receipt of the principal amount and interest are as per agreed terms and conditions.

(d) The principal amounts are repayable as per agreed terms and conditions. There are no overdue amounts with respect to principal and interest amounts.

(e) The Company has not taken any loan from companies, firms and other parties covered in the register maintained under section 301of the Companies Act 1956. Consequently the requirements of clauses (iii) (f) and (iii) (g) of Paragraph 4 of the order are not applicable.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fixed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

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

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

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. The Central Government has under clause (d) of sub section (1) of section 209 of the Companies Act ,1956 has prescribed the cost records to be maintained as per their notification dated 3rd June 2011, called The Companies Cost accounting Records, Rules, 2011. As per management and records produced before us, the prescribed accounts and records have been maintained.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has been regular in depositing with appropriate authorities undisputed statutory dues for more than six months except Bonus of Rs. 2,68,31,100/- which was not paid for a period exceeding Six months.

(b) According to the information and explanations given to us, there are no disputed amount payable towards Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and Central Excise Duty outstanding as on the date of Balance sheet except in the following cases:

Name of Nature of Outstanding the Statute Dues Amount in Rs. Under Dispute

Income Tax Act Income Tax Demand 59.00 Crores

Income Tax Act Income Tax Demand 32.00 Lacs

Income Tax Act Income Tax Demand 13.10 Lacs

Employees Provident Fund Provident Fund 577.76 Crores And Misc. Provision Act Demand

Service Tax Delhi Service Tax Demand 13.18 Lacs

U.P. Trade Tax Act VAT Demand 9.28 Lacs

U.P. Trade Tax Act VAT Demand 10.13 Lacs

VAT Act, West Bengal VAT Demand 80.99 Lacs

Name of the Statute Period to which Forum where the Amount Dispute is Pending Relates

Income Tax Act A.Y.2002-2003 to A.Y. 2008-09 CIT (A) -II, New Delhi

Income Tax Act A.Y.2009-2010 CIT (A) -II, New Delhi

Income Tax Act A.Y. 2008-2009 DCIT, TDS, Ward 49 (1), New Delhi

Employees Provident Fund And Misc, Provision Act 1-4-2005 to 31-12-2010 Employees Provident Fund Appellate Tribunal, New Delhi

Service Tax Delhi 10.09.2004 to 16.06.2005 Tribunal CESTAT, New Delhi

U P Trade Tax Act 2009-2010 Sales Tax Appellate Tribunal Commercial Taxes, Noida.

U P Trade Tax Act 2005-2006 Addl. Comm. (A), Commercial Tax Noida.

VAT Act, West Bengal 2006-2007 Jt. Comm (A) Commercial Taxes ,Kolkata

10. The Company has neither accumulated losses at the end of the year nor incurred cash losses in the current financial year covered by our audit and in the immediately preceding financial year.

11. The Company has defaulted in repayment of its dues to the Banks. The default amount and period of default is as under:

Party Principal Interest Period of Defaults

Banks 6,07,67,566/- 3,00,39,390/- 89 Days

Other Financial Institution 6,24,78,428/- 38,14,125/- 121 Days

For Details refer Note No.6 of the Balance sheet.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

13. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities. However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company and its nominees.

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and financial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix) of the order is not applicable.

20. The Company has not raised any money by public issue, during the year.

21. According to the information and explanations given to us and to the best of our knowledge and belief, no fraud on or by the Company has been noticed or reported by the Company during the year.

For Sood Brij & Associates

Chartered Accountants

Firm Regn. no. 00350N

A.K. Sood

Place: New Delhi Partner

Dated : 30th May, 2012 Membership No. 14372


Mar 31, 2010

1. We have audited the attached Balance Sheet of B.L. Kashyap And Sons Limited, New Delhi (the Company) as at March 31,2010, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. 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.

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 ouropinion.

3. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

(b) in our opinion, proper books of 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, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

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

(e) based on the representations made by the Directors of the Company and information and explanation given to us, we report that none of the directors is disqualified as on March 31,2010 from being appointed as a director in terms of Section 274(1 )(g) of the Companies Act, 1956;

(f) in our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the notes thereon, 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;

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2010; and

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

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

Annexure to the Auditors Report

The Annexure referred to in paragraph 3 of our Auditors Report of even date on the accounts for the year ended 31 st March, 2010 of B.L. Kashyap And Sons Limited, New Delhi.

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year-end and no material discrepancies were noticed on such verification.

(c) Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern status of the Company.

2. (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year end.

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

(c) In our opinion and according to information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the Companies Act, 1956.The number of parties involved in the transactions including interest, were three and amount involved in the transactions was Rs.29054.55 Lakhs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The receipt of the principal amount and interest are as per agreed terms and conditions.

(d) The principal amounts are repayable on demand. There are no overdue amounts.

(e) The Company has not taken any loan from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act 1956. Consequently the requirements of clauses (iii) (f) and (iii) (g) of Paragraph 4 of the order are not applicable.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fixed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

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

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

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58Aand 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub section (1 )of Section 209 of the Companies Act, 1956.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has been regular in depositing with appropriate authorities undisputed statutory dues.

(b) According to the information and explanations given to us, there are no disputed amounts that have not been deposited with the appropriate authorities on account of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty Central Excise Duty and Cess outstanding as at 31 st March 2010 for a period exceeding six months.

10. The Company has neither accumulated losses at the end of the year nor incurred cash losses in the current financial year covered by our audit and in the immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to banks or financial institutions or debenture holders.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii)of the Order is not applicable.

13. The Company is not a chit fund. nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities.

However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company.

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and financial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix)of the order is not applicable.

20. The Company has not raised any money by public issue, during the year.

21. According to the information and explanations given to us and to the best of our knowledge and belief, no fraud on or by the Company has been noticed or reported by the Company during the year.



 
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