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Auditor Report of Cimmco Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Cimmco Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, 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 Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and Fairview of the financial position, financial performance and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these 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, issued by the Institute of Chartered Accountants of India, as 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 controls relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion on the financial statements.

Basis for Qualified Opinion

We draw attention to Note No. 12.2 regarding certain claims of Rs 4,695.36 lacs (Rs 4,899.34 lacs as at 31 st March 2014), net of Rs 150.00 lacs received under a guarantee given by the Company, which have been considered good and recoverable by the management. Although the management is hopeful to recover the claims in full, pending decision of the Courts/ Arbitration proceedings we are unable to comment on their recoverability and any consequential impact arising there from in these financial statements. Our audit opinion on the financial statements for the previous year was also qualified in respect of the above matter.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effect of the matter described in the Basis for Qualified Opinion paragraph above, 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, of the state of affairs of the Company as at March 31,2015, of its loss and its cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the 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 purpose of our audit;

b) Except for the possible effect of the matter described in the Basis for Qualified Opinion paragraph, 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) Except for the possible effect of the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e) The matter described in the Basis for Qualified Opinion paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;

f) On the basis of written representations received from the directors as on March 31,2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2015, from being appointed as a director in terms of Section 164 (2) of the Companies Act, 2013;

g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above;

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 6(b)(1) and 30 to the financial statements; ii. The Company did not have any long-term contracts, including derivative contracts, for which there were any material foreseeable losses; iii. There are no amounts which were required to be transferred, during the year to the Investor Education and Protection Fund by the Company.

ANNEXURE TO THE AUDITOR'S REPORT

Referred to in our report of even date to the members of Cimmco Limited as at and for the year ended March 31,2015

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

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verifying the fixed assets over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. (ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year.

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

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, the provisions of clause 3(iii)(a) and (b) of the Order are not applicable to the Company and hence not commented upon. (iv) In our opinion and according to the information and explanations given to us and having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations thereof, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness or continuing failure to correct any major weakness in the internal control system of the Company in respect of these areas. (v) The Company has not accepted any deposit from the public.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013, related to the manufacture of wagons and engineering products, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same. (vii) (a) Undisputed statutory dues including provident fund, employees ,state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues as applicable to the Company have generally been regularly deposited with the appropriate authorities. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees' state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

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

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

The Central Excise Act, Incorrect availment of cenvat 2157.68 1944 credit, non-payment of excise duty, non- maintenance of 126.28 separate records for common inputs and input services used 224.19 for production of exempted and non-exempted excisable products and non-inclusion of value of free supply in the assessable value, non-compliance with Rule 6(3A) etc.

The Customs Act, 1962 Differential Customs Duty, Penalty 32.17 for non-submission of necessary documents for consumption of imported goods

The Rajasthan Sales Differential Sales Tax 520.63

Tax Act / Central Sales and Non-submission Tax Act, 1956 of statutory forms



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

The Central Excise 1999-2000 Hon'bleCESTAT, Act,1944 and 2011-12 Delhi

1989-1994 Hon'ble High Court, Gwalior

1993-94 Hon'ble Supreme Court

The Customs Act,1962 2004-05 Hon'bleCESTAT, Delhi

The Rajasthan Slaes 1998-90 to Hon'ble High Court,

Tax Act/ Central 2000-01 Rajasthan Sales Tax Act,1956

(d) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company, during the year in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under.

(viii) Without considering the consequential effects, if any, of the matter stated in the basis for qualified opinion paragraph of our auditors ,report, the Company's accumulated losses at the end of the financial year are more than fifty percent of its net worth. The Company has incurred cash losses in the current and immediately preceding financial year.

(ix) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a bank. The Company did not have any outstanding dues in respect of a financial institution or debenture holders during the year.

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

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

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

For S.R. BATLIBOI&CO.LLP

Chartered Accountants

ICAI Firm Registration No.:301003E

per Kamal Agarwal

Place :Kolkata Partner

Date: April 18,2015 Membership No.: 58652


Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards notified under the Companies Act, 1956, read with General Circular 8/2014 dated 4th April 2014 issued by the Ministry of Corporate Affairs. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances 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 the 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.

Basis for Qualified Opinion

We draw attention to note No. 13.2 regarding certain claims ofRs 4899.34 lacs (Rs 4899.34 lacs as at 31st March 2013), net ofRs 150 lacs received under a guarantee given by the Company, which have been considered good of recovery by the management. Although the management is hopeful to recover the claims in full, pending decision of the Courts/Arbitration proceedings we are unable to comment on their recoverability Our audit opinion on the financial statements for the previous year was also qualified in respect of the above matter.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effect of the matter described in the Basis for Qualified Opinion paragraph, 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 31,2014;

(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. 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 notified under the Companies Act, 1956, read with General Circular 8/2014 dated 4th April 2014 issued by the Ministry of Corporate Affairs;

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

ANNEXURE TO THE AUDITOR''S REPORT

Referred to in our report of even date to the members of Cimmco Limited as at and for the year ended March 31,2014

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

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verifying the fixed assets over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) There was no disposal of a substantial part of fixed assets during theyear.

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

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

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such physical verification.

(iii) (a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(a) to (d) of the Order are not applicable to the Company and hence not commented upon. (b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4 (iii)(e) to (g) of the Order are not applicable to the Company and hence not commented upon. (iv) In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations thereof, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness or continuing failure to correct any major weakness in the internal control system of the Company in respect of these areas. (v) In our opinion, there are no contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(v)(b) of the Order is not applicable to the Company and hence not commented upon. (vi) The Company has not accepted any deposit from the public within the purview of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under.

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

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956, related to the manufacture of wagons and engineering products and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees''state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities.

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

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

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

The Central Incorrect availment of cenvat 2508.15 Various Excise Act, credit, non-payment of excise duty and non-maintenance of separate records for common inputs and input services used for production of exempted and non-exempted excisable products etc

The Customs Differential Customs Duty, Penalty 32.17 The details Act, 1962 for non realization of export proceeds are no

The Rajasthan " Differential Sales Tax 1321.41 1982-1983 Sales Tax Act/Central 1987-1988 Sales Tax Act, 1956 1989-1990

1996-2001

Name of the Statute Forum where dispute is pending

The Central Excie At various Appellate Authorities, High Court, Act 1994 Supreme Court, Commissioner of Central Excise

The Customs Act 1962 readily available

The Rajasthan Sales Deputy Commissioner, Jaipur Tax Act/ Central Sales Tax Act 1956

(x) Without considering the consequential effects, if any, of the matter stated in the basis for qualified opinion paragraph of our auditors'' report, the Company''s accumulated tosses at the end of the financial year are more than fifty percent of its net worth. The Company has incurred cash tosses in the current and immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a bank. The Company did not have any outstanding dues in respect of a financial institution or debenture holders during the year.

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the Company.

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

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

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

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

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

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

ForS.R. BATLIBOI&CO.LLP Firm Registration No.:301003E Chartered Accountants Per Bhaswar Sarkar Place :Kolkata Partner Date: May 29,2014 Membership No.: 55596


Mar 31, 2013

Report on the Financial Statements

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

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the 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.

Basis for Qualified Opinion

We draw attention to the following Notes on the financial statements:

i. Note No. 33 regarding demand ofRs. 1325 lacs (Rs. 1800 lacs as at 31st March 2012) plus interest thereon (amount unascertainable) made by Asset

Reconstruction Company (India) Limited (ARCIL), which is disputed by the Company and hence, no provision there against has been made in the accounts. Pending outcome of the matter, the impact, if any, of the above non provision is presently unascertainable. Our audit opinion on the financial statements for the previous year was also qualified in respect of the above matter.

ii. Note No. 13.2 regarding certain claims of Rs. 4899.34 lacs (Rs. 4899.34 lacs as at 31st March 2012), net of Rs. 150 lacs received under a guarantee given by the Company, which have been considered good of recovery by the management. Pending decision of the Courts/Arbitration proceedings, the recoverability of these claims is presently unascertainable, although the management is hopeful to recover these claims in full. This matter was covered as emphasis of matter in our audit opinion on the financial statements for the previous year.

Hi. Note No. 11 regarding recognition of net deferred tax asset (DTA) of Rs. 131.00 lacs on unabsorbed depreciation and brought forward business tosses upto 31st March 2013, based on the future profitability projections made by the management. We are unable to express an opinion on the virtual certainty of achieving these projections as required by Accounting Standard 22, Accounting for Taxes on Income, and the consequential impact, if any, of the recognition of such deferred taxasset.

Had the impact of item (Hi )stated above been considered, the loss for the year would have been Rs. 1,131.27 lacs as against the reported loss of Rs. 1,000.27 lacs and net deficit in the Statement of Profit and Loss in the Reserves and Surplus would have been Rs. 2,723.72 lacs as against the reported net deficit of Rs. 2,592.72 lacs.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters (i) and (ii) and effect of the matter (iii) described in the Basis for Qualified Opinion paragraph, 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.

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- Id) 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, except for the matter described in the Basis for Qualified Opinion paragraph; (e) On the basis of written representations received from the directors as on March 31,2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITOR''S REPORT

Referred to in our report of even date to the members of Cimmco Limited as at and for the year ended March 31,2013

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

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verifying the fixed assets over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) There was no disposal of a substantial part of fixed assets during theyear.

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

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

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on such physical verification.

(iii) (a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(a) to (d) of the Order are not applicable to the Company and hence not commented upon. (b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4 (iii)(e) to (g) of the Order are not applicable to the Company and hence not commented upon. (iv) In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations thereof, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any major weakness or continuing failure to correct any major weakness in the internal control system of the Company in respect of these areas. (v) In our opinion, there are no contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies

Act, 1956. Accordingly, the provisions of clause 4(v)(b) of the Order is not applicable to the Company and hence not commented upon. (vi) The Company has not accepted any deposit from the public within the purview of Section 58A, 58AA or any other relevant provisions of the

Companies Act, 1956 and the rules framed there under. (vii) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1 )(d) of the Companies Act, 1956, related to the manufacture of wagons and engineering products and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the same. (ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees''state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been slight delay in a few cases. (b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees''state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other material statutory dues were outstandina at the vear end, for a period of more than six months from the date thev became payable.

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

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

TheCentral Excise Act, 1944 Incorrect availment 370.15 of CENVAT credit, non-payment of excise duty etc.

The Customs Act, 1962 Differential Customs Duty, Penalty for non realization of 32.17 export proceeds

The Rajasthan Sales Tax Act/ Differential Sales Tax 1,864.24 Central Sales Tax Act, 1956

The Foreign Trade Penalty for nonfulfillment 6,452.00 Developments Regulation of export obligations Act, 1992

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

The Customs Act, 1962 Various At various Appellant Authorities, High Court, Supreme Court

The details are not readily available

The Customs Act, 1962 1982-1983 Deputy

1987-1988 Commissioner, Jaipur

1989-1990

1996-2001

The Customs Act, 1962 Various Director General of Foreign Trade

(x) The Company''s accumulated tosses at the end of the financial year are more than fifty percent of its net worth after considering the consequential effects of the matters stated in Basis of Qualified opinion in the audit report. The Company has incurred cash tosses in the current financial year but had not incurred any cash losses in the immediately preceding financial year.

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

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable to the Company.

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

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

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

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

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

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

For S.R. BATLIBOI&CO.LLP

Firm Registration No.:301003E

Chartered Accountants

per RKAGRAWAL

Place :Kolkata Partner

Date: May 20,2013 Membership No.: 16667


Mar 31, 2012

1. We have audited the attached Balance Sheet of Cimmco Limited ('the Company') as at March 31,2012 and also the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto.ThesefinancialstatementsaretheresponsibilityoftheCompany's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor's Report) Order, 2003 (as amended) ('the Order') 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 paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to above, we report that:

i. 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;

ii. 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;

iii. 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;

iv. In our opinion, the Balance Sheet, the Statement of Profit and Loss and the 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;

v. On the basis of the written representations received from the directors, as on March 31,2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2012 from being appointed as a director in terms of clause (g) of sub- section (1) of Section 274 of the Companies Act, 1956.

vi. Without qualifying our opinion, attention is drawn to Note No. 13.2A on the financial statements regarding certain claims of Rs. 4899.34 lacs (net of Rs. 150 lacs received under a guarantee given by the Company) which have been considered good of recovery since the management, based on the current status of negotiation is hopeful to recover these claims in full and accordingly no adjustments are considered necessary in these financial statements;

vii. Attention is drawn to Note No. 32 on the financial statements regarding non provision against demand of Rs. 1800 lacs plus interest thereon (amount unascertainable) made by Asset Reconstruction Company (India) Limited (ARCIL), as the management feels that no liability exists there against after ARCIL has invoked its security of pledged shares. The impact, if any, of the above non provision is presently unascertainable, pending receipt of a "No Due Certificate" from ARCIL;

The above matter hadal so caused us to qualify your audit opinion on the financial statements for the period ended March 31,2011.

viii. In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of our observation in Para vii above, 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 conform it 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 31,2012;

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

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

ANNEXURE TO THE AUDITORS'REPORT

Referred to in our report of evened ate to the members of Common Limited as at and for the year ended March 31,2012

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

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verifying the fixed assets over a period of three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

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

(ii) (a) The management they conducted physical verification of in ventory at reasonable in tervals during the year.

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

(c) The Company is maintaining proper records of inventory and nonmaterial is crepancies were notice don such physical verification.

(iii) (a) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of clauses 4(iii)(b)to(d)of the Order , are not applicable.

(b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Therefore, the provisions of clauses 4(f) and (g) of the Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, having regard to the explanation that some of the items purchased are of special nature and suitable alternative sources do not exist for obtaining comparable quotations thereof, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas and we have also not observed any continuing failure to correct major weakness in the internal control system of the Company.

(v) In our opinion and as informed to us, there are no contracts or arrangements that need to be entered in the register maintained under Section 301 oftheCompaniesAct,1956.

(vi) The Company has not accepted any deposits from the public during the year.

(vii) During the year, no internal audit was carried out and, accordingly, wearer unable to comment on the in tern laud it system.

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the Companies Act, 1956, related to the manufacture of wagons and engineering products and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty, cess and other material statutory dues have generally been regularly deposited with the appropriate authorities though there has been slight delays in a few cases.

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

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

Name of the statue Nature of dues Amount (Rs.in lacs)

The Central Excise Act, 1944 Incorrect a ailment 370.15 of CENVAT credit, non-payment of excise duty etc.

The Customs Act, 1962 Differential customs duty, penalty for non realization of 61.17 export proceeds

The Rajasthan Sales Tax Act / Differential sales tax 1,864.24 Central Sales Tax Act, 1956

The Income Tax Act, 1961 Disallowance of 2,661.00 certain tax benefits

The Foreign Trade Penalty for non fulfillment 6,423.00

Development & Regulation of export obligations Act, 1992



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

The Central Excise Various At various Appellant

Act,1944 Authorities, High Court, Supreme Court

The Customs Act,1962 The details are not readily available

The Rajasthan Sales 1982-1983 Deputy Tax Act,1956 1987-1988 Commissioner, Jaipur

1989-1990

1996-2001

The Income Tax Act,1956 2007-2008 Income Tax Appellate Tribunal

The Foreigh Trade Various Director General of Development & Regulation Foreign Trade Act,1992

(x) Without considering the consequential effects, if any, of the matter stated in Para vii of our report whose impact is presently unascertainable, the Company's accumulated losses at the end of the financial year are less than fifty per cent of its net worth and it has not incurred cash losses in the current and immediately preceding financial period.

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

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund /society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable.

(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause4(xiv)of the Order are not applicable.

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

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

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

(xviii) The Company has not made any preferential allotment of shares during the year to parties or companies covered in the register maintained underSection301 oftheCompaniesAct,1956.

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

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

For S.R. BATLIBOI&CO.

Firm Registration No.: 301003E

Chartered Accountants

per RKAGRAWAL

Place: Kolkata Partner

Date: April 28,2012 Membership No.: 16667


Jun 30, 2010

We have audited the attached Balance Sheet of Cimtnco Limited (previously known as Cimmco Birla Limited) as at 30,th June,2010 and also the Profit & Loss Account and Cash Flow Statement for the period 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.

We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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 the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

1. As required by the Companies (Auditors Report) Order, 2003 (as amended), (The Order), issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 (The Act), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

2. We report that:

The Company has written back an amount ofRs.1473.05 lakhs out of the amount payable to secured creditor based on in principle approval received from them and the same has been credited to extraordinary item (Refer note no. 13(Bj(ll) of Schedule 21). However, the receipt of a formal sanction for the same is awaited.

3. Further to our comments in the Annexure referred to in paragraphs 1 and 2 above, we report that:

(i) 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.

(ii) 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.

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

(iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards as referred to in Section 211(3C) of the Companies Act, 1956.

(v) On the basis of written representations received from the directors, as on 30" June 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 30th June,2010 from being appointed as a director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act,1956;

Had the observation made in para 2 above been considered profit after tax would have been Rs. 54209.59 lakhs as against the reported figure of Rs. 55682.64 lakhs, debit balance in Profit & Loss Account would have been Rs.4577.84 lakhs as against reported figure of Rs.3104.79 lakhs, Secured Loan would have been Rs.15892.05 lakhs as against the reported figure ofRs. 14419 lakhs.

Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with notes thereon, giye 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 30,h June,2010;

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

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

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 1 of our report of even date)

i) a) The records maintained by the Company in respect of its fixed assets are proper except in so far as the Fixed Assets Register does not contain the year of purchase of asset items, cumulative amount of depreciation and the written down value of each asset.

b) The Company has carried out the physical verification of the assets during the period in accordance with a phased programme. The system of verification was found to be adequate and no material discrepancies were noticed on such verification.

c) As per information and explanations and records made available to us, no substantial part of the fixed assets has been disposed off during the period to affect the going concern of the Company.

ii) a) The Company has carried out the physical verification of inventory during the period under audit except for the stock lying at the bonded warehouse.

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

c) The Company is maintaining proper records of inventory and no material discrepancies have been noticed on physical verification.

iii) In our opinion and on the basis of explanations and information received, the Company has neither granted nor taken any loans, secured or unsecured, to and from companies, firms or other parties as covered in the Register maintained under Section 301 of the Companies Act,1956. Accordingly, the provisions of clauses 4 (iii) (a) to (g) of the Order are not applicable.

iv) The internal control system are commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. As explained to us and as per information received there has been no continuing failure to correct major weaknesses in the internal control system.

v) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to Section 301 of the Companies Act, 1956, have been entered in the Register required to be maintained under the Section. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) In our opinion and according to the information and explanations given to us, the Company has complied, except non filing of return of deposit as at 31.03.2010, with the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under with regard to the deposits accepted. As informed to us, no Order has been passed by the Company Law Board, National Company Law Tribunal, R.B.I., any other Court or any other Tribunal in this regard.

vii) The Company does not have any internal audit system.

viii) Cost records and accounts are not required to be maintained under Section 209(1 )(d) of the Companies Act, 1956 in respect of products of the Company.

ix) (a) According to the records and information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues with the appropriate authorities for the liabilities accrued during the period under audit. However, the undisputed statutory dues payable for a period of more than six months from the date they became payable as at 30th June, 2010 are as given below :

Nature of dues Rs. Provident Fund 1,57,301

The Company has unpaid dues aggregating of Rs.61,367/- relating to Investor Education and Protection Fund as on 30th June, 2010.

However the Company has since deposited the arrear Provident Fund dues of Rs.1,57,301/-

(b) According to the records and information and explanations given to us, the following dues in respect of Excise Duty, Sales Tax, Income Tax and Custom Duty have not been deposited with the appropriate authorities on account of any dispute :

Name of Nature of Amount Forum where Dispute the Statue Dues (Rs.) is pending

Central Excise Excise Duty 29.94.482 Deputy Commissioner/ Act Appellate Authority

19,68,680 High Court, Delhi

126,28.496 High Court. Gwalior

2,24,15,000 Supreme Court

Sales Tax Act Orissa Sales 36,76,432 Assistant Commissioner; Tax Appellate Authority

MP Sales 13,07,644 High Court, Gwalior Tax

Income Tax Act Income Tax 16,00,000 Appellate Authority

Customs Act Customs Duty 36,66,535 Appellate Authority

x) The Companys accumulated losses at the end of period are more than 50% of its net worth and the Company has not incurred any cash loss in the current financial period. However in the immediately preceding financial year the Company has incurred cash loss.

xi) According to the available information and explanation received the Company has not defaulted in repayment of dues to a Financial Institution or Bank or Debenture holders during the period.

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

xiiij The Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the said Order are not applicable to the Company.

xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.

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

xvi) In our opinion, on the basis of information and explanations given to us, no term loan has been taken by the Company during the period.

xvii) On the basis of information and explanations given to us and on an overall examination of the financial statements of the Company, no funds raised during the period on short- term basis have been used for long-term investment.

xviii) The Company has made preferential allotment of shares during the period which is in accordance with the Rehabilitation Scheme sanctioned by BIFR on 11.3.2010 under Sick Industrial Companies (Special Provisions) Act,1985 at a premium decided by the order. The allottee of these shares are covered in the register maintained under Section 301 of the Companies Act,1956,

xix) The Company has paid back the entire outstanding of debentures during the period under audit in terms of the sanctioned scheme. Thus there is no security or charge pending to be created.

xx) The Company has not raised any money through public issue during the period.

xxi) During the course of our examination of the books, and records of the Company, carried out in accordance with the auditing standards generally accepted in India and on the basis of inforrhition and explanations provided by the management, we have neither come across any instance of fraud on or by th^Company, noticed or reported during the course of our audjt nor we have been informed of any such case by the management.

For L. B. Jha&Co.

Chartered Accountants

Firms Registration No. 301088E

(S. B. PATI) Place : New Delhi Partner

Dated : 30th August, 2010 Membership No. 95080

 
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