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Auditor Report of Consolidated Construction Consortium Ltd.

Mar 31, 2015

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

2. Management's Responsibility for the Standalone 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 and presentation 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud orerror.

3. Auditor's Responsibility

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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In case of the Balance Sheet of the state Affairs of the companyasatMarcr.31,2015,

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

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

5. Emphasis of Matter

1. We also draw your attention to Note 5.1 regarding financial condition and mitigating factors and preparation of financial statements on going concern basis by management. The financial statements do not include any adjustment in lieu of assertion in this regard.

2. We also draw your attention to Note 5.6 regarding treatment of certain items of income and expenditure amounting to Rs.2492.63 Lacs (net) as exceptional items considering their size, type and incidents so that its disclosure improves and understanding performance of the company during the current year.

Our opinion is not qualified/modified in respect of these matters.

6. Report on Other Legal and Regulatory Requirements

6.1 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, to the extent applicable.

6.2 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 it appears from our examination of those books.

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

d) In our opinion, the aforesaid 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 the written representations received from the directors as on March 31, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our 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 Note 5.14 to the financial statements;

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

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure to the Independent Auditors' Report

Referred to in paragraph 6.1 of the Independent Auditors' Report of even date to the members of Consolidated Construction Consortium Limited on the standalone financial statements 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) As explained to us, the fixed assets have been physically verified by the management in accordance with a phased programme of verification and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the company and the nature its assets.

(ii) a) As explained to us, the inventories including site materials, stores and construction aids have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.

b) As per the information given to us, the procedures of physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) a) According to the information and explanation to us, the company has granted interest free unsecured loan to its subsidiary company and Step down subsidiaries, covered in the register maintained under Section 189 of the Companies Act..

No of Parties: 3

Amounts Involved:Rs,8,46,65,317/-

Maximum Amount Outstanding : Rs, 1,00,36,83,353/-

In the absence of any specific terms of arrangement with reference to repayments, no separate comments are offered to clause 3 (iii) (a) to (b) of the said orders.

(iv) In our opinion and according to the information and explanations given to us the internal control system is commensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses other than deficiencies with respect to completion of projects within agreed time lines.

(v) The Company has not accepted any deposits from the public.

(vi) We have broadly reviewed the books of account maintained by the Company in respect of services where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (I) of section 148 of the Companies Act and are of the opinion that prime facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(vii) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is not regular in depositing the undisputed statutory dues including provident fund, employees' state insurance, income- tax, sales tax/Value Added Tax (VAT), wealth tax, service tax, customs duty, excise duty, cess and other statutory dues as applicable with the appropriate authorities. There are no arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the day the same became due.

b) The Company has not deposited either fully or partly in respect of income-tax, sales-tax/ Value Added Tax (VAT), wealth tax, service tax, customs duty, excise duty and other government dues, on account of disputes before various forums as set out here under:

Name of Statue Nature of Dispute Reference

Disallowance of certain expenditure AO dated and claims 28.12.2010

AO dated 30.12.2010

AO dated Income 21.11.2011 Tax Act, 1961 AO dated 28.03.2013

Kerala Sales made to SEZ claimed as exempt Assessment VAT (Extension of benefit in KGST Sought) No. D/753/ 06/2005-06 dated 31.07.2008

Demand Karnataka Disallowance of Margin on Notice dated VAT sub-contract portion, Security 19.10.2010 Service and Repair Service.

Order dated 19.10.2010

Inclusion of turnover of SEZ under Based on Section 6 TNVAT and Stock Transfers Sworn TNVAT Statement

Reversal of Input Tax Credit for SEZ Notice projects, Stock Transfers, Unregistered dated Purchases and schedule rate variation 28.11.2011 in RMC

O/o No. 27/2013, Appeal No. 59/2013 dt. 16/08/2013

Levy of Excise Duty on manufacture of Q/o No Ready Mix Concrete vide Notification 147/2013 Central Excise 1/2011 dated 1.3.2011 for removel from Appeal No. Act,1944 a Batching plant located outside the 17/2014 dt, project the project 03/03/2014

O/o No. 10/2013, Appeal No. 32/2013 dt.

O/o No. 02/2013, Appeal No. 31/2013 dt. 25/04/2013

SCN Levy of Excise Duty on manufacture of 03/2012 dt. Excise Ready Mix Concrete vide Notification 22/06/2012 Act,1944 a Batching plant located outside the project location and used exclusively for the project. SCN 11/2013 dt. 02/05/2013

Order in Appeal No.204 datec 09/01/2014

SCN 66/2011-12 dated 30/07/2013

SCN IV/09/94/ 2013 dated 19/06/2013

O/0 No. 09/2013 dt. 22/07/2013

SCN 843 dt. 09/04/2014

SCN 22/2014 dt. 28/04/2014

Costoms Short payment of Customs Duty of SCN 1908 Duty IMPORT OF eQUIPMENT ON DATED High Sea Sale 21.02.2013



Stay Order No 166 to 169/12 obtainted from CESTAT on 21/03/2012

Order-in- Original No. Service Tax CENVAT Credit on Capital Goods 64/2011 dt. utilized in discharging Service Tax 30/11/2011 where Notification 1/2006 is availed

ORDER -IN- Original No, 19 & 20/2015 dated 28/02/2013

Order-in- 263.70 Original No. 19 & 20/2015 dated 28/02/2013

SCN 170.58 227/2013 dt. 02.07.2011

SCN No. 19.67 243/2014 dated 27/08/2014

SCN No. 21.15 02/2015 dated 06/01/2015

Service Tax demanded on Retention ORDER -IN- monies held by client as the same is Original No 65/2011 yet to receive from Client by us, Capital dated Goods used in SEZ Zone and Wrong 30/lT/2011 a ailment of CVD in respect of 'Showing Boom Placer' and CENVAT Order -in- Credit on Capital Goods utilized in Original discharge No. 66/2011 dated 30/11/2011

Order-in- Service Tax demanded on Retention Original No, monies held by client as the same is 50 & 51 yet to receive from Client by us, -13-14 Capital Goods and Scaffolding dated Materials which are exclusively used in Airport 22/01/2014

Order-in- Original No. 50 & 51 -13-14 dated 22/01/2014



Service Tax on Works Contract Service SOD No. provided to M/s. Bangalore 237/2013 Service Metropolitan Transport Corporation, dated Tax Bangalore 10/07/2013

sod No. 29/2014 dated 09/12/2014

Short Payment of Service Tax on SCN No. Rebate Allowed by the 174/2014 Sub- Contractors Dated 23/07/2014

SOD No. 30/2014 dated 09/12/2014

Name of Amount Periods to which Forum where the Statute (Rs.in the amount disputes are lakhs) relates (F.Y) PENDING

225.68*** 2005-2006 High Court of Madras

945.77*** 2007-2008 Income Tax Appellate Tribunal

Income 414.97*** 2008-2009 Income Tax Appellate Tax ACT Tribunal

1961 458.59*** 2009-2010 Commissioner of Income Tax (Appeals)-I, Chennai

kERALA 55.10 2005-2006 Appellate Assistant VAT Commissioner, Cochin

Karnataka 35.40** 2008-2009 Joint Commissioner of VAT (from August 08) Commercial Tax (Appeals), Bangalore

34.20** 2009-2010 Joint Commissioner of Commercial Tax (Appeals), Bangalore

407.85# Jan. 2007 to Commercial Tax TNVAT March 2008 Officer, Chennai

552.56# April 2008 to Commercial Tax March 2010 Officer, Chennai 14.78 2010-2012 Commissioner of (April 2011 to Customs and Central January 2012) Excise (Appeals), Chennai

Central 1.02 2011-2012 Commissioner of Excise (February 2012 to Customs and Central Act,1944 March 2012) Excise (Appeals), Chennai

1.62 2010-2011 Commissioner of (March 2011) Customs and Central Excise (Appeals), Chennai



3.96 2011-2012 Commissioner of (July 2011 to Customs and Central March 2012) Excise (Appeals), Chennai

Central 0.11 2010-2011 The Additional Excise (March 2011) Commissioner of Central Act,1944 Excise, Maduravoyal Division, Chennai IV. Commissioner ate, Chennai

25.05 2012-2013 The Additional (April 2012 to Commissioner of March 2013) Central Excise, Chennai IV. Commissioner ate, Chennai

4.39 2011-2012 Customs, Excise and (March 2011 to Service Tax Appellate January 2012 Tribunal, Delhi

4.59 2012-13 Commissioner of (August 2012 to Central Excise, December 2012) (Appeals), Delhi

10.07 2013-2014 The Additional Commissioner of Central Excise, Mangalore

13.61 Oct 2011 to Commissioner Appeals, July 2012 Central Excise Commissionerate, Delhi-II

4.78 Jan 2013 to The Assistant June 2013 Commissioner of Central Excise, Division-VI, Nehru Place, New Delhi

16.36 Jan 2013 to The Additional June 2013 Commissioner of Central Excise, Chennai IV Commissioner ate, Chennai

2.93 2008-2009 Directorate of Revenue Intelligence, Mumbai



8,022.06 April 2006- Sep. 2008 Customs, Excise and Service Tax Appellate

1,338.46 Oct. 2008 to Tribunal Sep. 2009 (CESTAT), Chennai

462.41 Oct. 2009 to Sep. 2010

263.70 Oct. 2010 to Mar. 2011

170.58 April 2011 to Commissioner of March 2012 Service Tax,Chennai

19.67 April 2012 to Joint Commissioner of June 2012 Service Tax, Service Tax Commissioner ate, Chennai

21.15 July 2012 to Joint Commissioner of March 2013 Service Tax II Commissioner ate, Chennai

446.21 2008-2009 Customs, Excise and Service Tax Appellate

394.74 2009-2010 Tribunal ™ZVCESTAT)' Chennai

80.17 2010-2011 Customs, Excise and Service Tax Appellate Tribunal (CESTAT), 13.76 April 2011 to Chennai June 2011



93.07 Sep 2011 to Commissioner of Service Sep 2012 Service Tax, Tax Chennai

6.05 Oct 2012 to Joint Commissioner of June 2014 Service Tax II Commissioner ate, Chennai

41.07 April 2011 to Joint Commissioner of Sep 2012 Service Tax, Service Tax Commissioner ate, Chennai

20.20 Oct 2012 to Joint Commissioner of Mar 2014 Service Tax II Commissioner ate, Chennai

* Paid under protest / Paid fully ** 50% paid balance through BG

*** Adjusted against the refund due # Partly paid under protest-Writ filed in High Court.

c. There is no requirement to transfer funds to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 2013 and rules made there under.

(viii) The Company has accumulated losses as at March 31, 2015 to the tune of Rs. 19,924.32 Lakhs which is more than fifty percent of the Net worth. It has incurred cash losses in the financial year ended on that date and in the immediately preceding financial year.

(ix) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institution or banks as at the balance sheet date.

(x) The Company has extended corporate guarantee to Banks of its wholly owned subsidiary for the facilities extended by the said Banks. In our opinion and according to the information and explanations given to us, the terms & conditions of such corporate guarantee are not prejudicial to the interest of the company.

(xi) According to the information and explanations given to us, the Company has accepted term loans from the bankers which are applied for purpose for which it was 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 course of ouraudit.

For ASA & ASSOCIATES LLP

Firm Registration No: 009571N/N500006

Chartered Accountants

Place : Chennai J.Sivasankaran

Date : May 27, 2015 Partner

Membership No. 200/022103


Mar 31, 2014

We have audited the accompanying financial statements of Consolidated Construction Consortium Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss for the year then ended, and the Cash flow statement 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 notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 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 statements, the cash flows for the year ended on that date.

Emphasis of Matter

Without qualifying, we draw your attention to Note 5.1 regarding the financial condition, mitigating factors and going concern. The financial statements do not include any adjustments in view of the management''s assertion in this regard.

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 and Statement of Profit and Loss and the Cash flow statements comply with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;

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 Independent Auditors'' Report of even date to the members of Consolidated Construction Consortium Limited on the financial statements 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. As explained to us, the fixed assets have been physically verified by the management in accordance with a phased programme of verification and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c. In our opinion, a substantial part of fixed assets has not been disposed off during the year.

(ii) a) As explained to us, the inventories including site materials, stores and construction aids have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.

b. As per the information given to us, the procedures of physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business

c. The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) a) According to the information and explanations given to us the Company has granted interest free unsecured loan to its subsidiary company and Step down subsidiaries, covered in the register maintained under Section 301 of the Act.

No of Parties: 6

Amounts Involved: Rs. 71,48,79,439/-

Maximum Amount Outstanding: Rs. 1,265,910,958/-

In the absence of any specific stipulation with reference to repayments, no separate comments are offered to clause 4 (iii) (b) to (d) of the said orders except to the extent of stating that the said loans are not prejudicial to the interest of the company.

b) According to the information and explanations given to us, the Company has taken interest free unsecured loan, from its subsidiary company covered in the register maintained under section 301 of The Companies Act, 1956.

No of Parties: 1

Amounts Involved: Rs. 21,572,319/-

Maximum Amount Outstanding: Rs. 21,572,319/-

In the absence any specific stipulation with reference to repayments, no separate comments are offered pursuant to clause 4 (iii) (f) & (g) of the said orders except to the extent of stating that the said loan is not pre-judicial to the interest of the company.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of services and for carrying out the contracts and related activities. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control systems.

(v) a. In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Act have been so entered.

b. In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order are not applicable.

(vii) In our opinion and according to the information and explanations given to us, the Company has an internal audit system, which is commensurate with the size and nature of business of the Company.

(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 construction of buildings/structures and other related activities, 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, custom duty, excise duty, cess and other material statutory dues, as applicable, have not been regularly deposited with the appropriate authorities and there have been significant delays in a large number of cases. Undisputed amounts payable in respect thereof, which were outstanding at the year- end for a period of more than six months from the date they became payable are as follows:

Name of the Nature of Amount Period to which statute the dues (Rs in Lakhs) the amount relates

Finance Act, Service 87.76 September 1994 Tax 2013

Employees Provident Provident 55.35 September Fundand Miscellaneous Fund 2013 Provisions Act, 1952

b. The company has not deposited either fully or partly in respect of Income tax, Excise duty, Cess , VAT/Sales tax ,Service tax and other Govt. dues, on account of disputes before various forums as set out here under:

Name Nature of Dispute Reference Amount of Statue (Rs. in Lakhs) Disallowance of certain AO dated 225.68*** expenditure and claims 28.12.2010

AO dated 945.77*** 30.12.2010

AO dated 414.97*** Income 21.11.2011 Tax Act, 1961

AO dated 458.59*** 28.03.2013

Kerala Sales made to SEZ claimed Assessment 55.10 VAT as exempt (Extension of No. D/753/ benefit in KGST Sought) 06/2005-06 dated 31.07.2008

Re- 170.01* Assessment order dated Right of State to levy VAT 31.01.2008 at a higher rate, in respect of declared goods (Steel) STA 577.00** No.2211 to Karnataka 2218 dated VAT 03.11.2010

Demand 35.40* Notice dated Disallowance of Margin on 19.10.2010 sub-contract portion, Security Service and Repair Service. Order dated 34.20** 19.10.2010

Inclusion of turnover of SEZ Based on 407.85# under Section 6 TNVAT and Sworn Stock Transfers Statement TNVAT

Reversal of Input Tax Credit Notice 552.56# for SEZ projects, Stock dated Transfers, Unregistered 28.11.2011 Purchases and schedule rate variation in RMC

O/o No. 14.78 27/2013, Appeal No. 59/2013 dt. 16/08/2013

O/o No. 1.02 Levy of Excise Duty on 147/2013, manufacture of Ready Mix Appeal No. Concrete vide Notification 17/2014 dt. Central 1/2011 dated 1.3.2011 for 03/03/2014 Excise removal from a Batching Act, 1944 plant located outside the Project location and used exclusively for the project. O/o No. 1.62 10/2013, Appeal No. 32/2013 dt. 26/04/2013

O/o No. 3.96 02/2013, Appeal No. 31/2013 dt. 25/04/2013

SCN 0.11 03/2012 dt. 22/06/2012

SCN 25.05 11/2013 dt. 02/05/2013

Order in 4.39 Appeal No.204 dated 09/01/2014

SCN 4.59 66/2011-12 dated 30/07/2013

SCN 10.07 IV/09/94/ 2013 dated 19/06/2013

Stay Order 8,022.06 No.166 to 169/12 dt. 21/03/2012 Order-in- 1,338.46 Original No. Finance CENVAT Credit on Capital Goods 64/2011 dt. Act, 1994 utilized in discharging 30/11/2011 (Service Service Tax where Notification Tax) 1/2006 is availed SCN 462.41 544/2011 dt. 21.10.2011

SCN 263.70 240/2012 dt. 12.07.2012

SCN 170.58 227/2013 dt. 02.07.2013

Service Tax demanded on Order-in- 446.21 Retention monies held by Original No client as the same is 65/2011 dt. yet to receive from Client 30/11/2011 by us, Capital Goods used in SEZ Zone and availment of CVD in respect of ''Schwing Boom Placer'' and Order-in- 394.74 CENVAT Credit on Capital Original No. Goods utilized. 66/2011 dt. Service 30/11/2011 Tax

Service Tax demanded on Order-in- 93.93 Retention monies held by Original No. client as the same is yet to 50 & 51 receive from Client by us, -13-14 dt. Capital Goods and Scaffolding 22/01/2014 Materials which are exclusively used in Airport.

Customs Short payment of Customs Duty SCN 1908 2.93 Duty for import of Equipment on dated High Sea Sale 21.02.2013

Name Periods to which Fourm where the of Statue the Amount disputes are relates (F.Y.) pending 2005-2006 High Court of Madras 2007-2008 Income Tax Applicate Tribunal

2008-2009 Income Tax Applicate Income Tribunal Tax Act, 1961 2009-2010 Commissioner of Income Tax (Appeals)-I, Chennai

Kerala 2005-2006 Appellate Assistant VAT Commissioner, Cochin 2006-2007 Joint Commissioner of Commercial Tax (Appeals), Bangalore 2007-2008 Karnataka Appellate Tribunal Karnataka VAT 2008-2009 Joint Commissioner of (from August 08) Commercial Tax 2009-2010 Joint Commissioner of Commercial Tax (Appeals), Bangalore

Jan. 207 to Commercial Tax March 2008 Officer, Chennai TNVAT 2010-2012 April 2008 to Commercial Tax March 2010 Officer, Chennai

2010-2012 Commissioner of (April 2011 to Customs and Central January 2012) Excise (Appeals), Chennai 2011-2012 Commissioner of (February 2012 to Customs and Central March 2012) Excise (Appeals), Chennai Central Excise Act, 1944 2011-2012 Commissioner of (July 2011 to Customs and Central March 2012) Excise (Appeals), Chennai 2010-2011 The Additional (March 2011) Commissioner of Central Excise, Maduravoyal, Chennai IV. Commissionerate, Chennai

2012-2013 The Additional (April 2012 to Commissioner of March 2013) Central Excise, Chennai IV. Commissionerate, Chennai

2011-2012 Customs, Excise and (March 2011 to Service Tax Appellate January 2012 Tribunal, Delhi 2012-13 Commissioner of (August 2012 to Central Excise, December 2012) (Appeals), Delhi 2013-2014 The Additional Commissioner of Central Excise, Mangalore

April 2006 - Customs, Excise and Sep. 2008 Service Tax Appellate Oct. 2008 to Tribunal Sep. 2009 (CESTAT), Chennai

Finance Act, 1994 (Service Tax) Oct. 2009 to Commissioner of Sep. 2010 Service Tax, Chennai

Oct. 2010 to Commissioner of Mar. 2011 Service Tax, Chennai

April 2011 to Commissioner of March 2012 Service Tax, Chennai

2008-2009 Customs'' Excise and 2009-2010 Tribunal (CESTAT) Service Tax

2010-2011 Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Chennai Customs 2008-2009 Directorate of Revenue Duty Intelligence, Mumbai

* Paid under protest / Paid fully ** 50% paid balance through BG

*** Adjusted against the refunds due # Partly paid under protest- Writ filed in High Court.

(x) The Company has accumulated losses as at March 31, 2014 to the tune of Rs.450,140,965/-, and has incurred cash losses during the current financial year to the tune of Rs. 3,077,712,696/- and Rs.744,997,289/- in the immediately preceding financial year.

(xi) The Company has defaulted in repayment of dues to debenture-holders during the year amounting to Rs 2 Crores which has become due for redemption on November 22, 2013 and the Company has been pleading the debenture trustees to get them included under the Corporate Debt Restructuring (CDR) scheme, sanctioned by the Bankers. In respect of loans/ line of credit from Banks, the Company has been sanctioned the CDR scheme effective from October 1, 2013.

(xii) On the basis of records of the Company examined by us and 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. Accordingly, the provisions of clause 4(xii) of the Order are not applicable.

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

(xiv) According to the information and explanations given to us and the records of the company examined by us, 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.

(xv) The Company has extended corporate guarantee to the Bankers of its wholly owned subsidiary and Associates for the facilities extended by the said Bankers. In our opinion and according to the information and explanations given to us, the terms & conditions of such corporate guarantee are not prejudicial to the interest of the company.

(xvi) In our opinion, the Company has applied the term loans for the purpose for which these loans were obtained.

(xvii) In our opinion, no funds raised on short-term basis have been used for long-term investments.

(xviii) During the year, the Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Act. Accordingly, the provisions of clause 4 (xviii) of the Order are not applicable.

(xix) The Company has created security in respect of debentures issued and outstanding.

(xx) The Company has not raised any money by public issues during the year. Accordingly, the provisions of clause 4(xx) of the Order are not applicable.

(xxi) During the course of our examination of the Books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, no fraud on or by the company noticed or reported during the year, nor we have been informed of such case by the management.

For ASA & ASSOCIATES LLP Firm Regn. No. : 009571N Chartered Accountants

K. VENKATRAMAN Place : Chennai Partner Date : May 28, 2014 Membership No.: 200/21914


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Consolidated Construction Consortium Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss for the year then ended, and the Cash flow statement 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 fair presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

c) in the case of the Cash flow statements, 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 and Statement of Profit and Loss and the Cash flow statements 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 March 31,2013 and taken oh 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.

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

b. As explained to us, the fixed assets have been physically verified by the management in accordance with a phased programme of verification and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c. The Company has not disposed of a substantial part of fixed assets during the year so as to affect the going concern status of the company.

(ii) a) As explained to us, the inventories including site materials, stores and construction aids have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.

b. As per the information given to us, the procedures of physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

c. The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) a) According to the information and explanations given to us the Company has granted interest free unsecured loan to its subsidiary company and Step down subsidiaries, covered in the register maintained under Section 301 of the Act.

No of Parties: 5

Amounts Involved: Rs. 15,93,21,344/-

Maximum AmountOutstanding: Rs.1,25,41,63,088/-

In the absence of any specific stipulation with reference to repayments, no separate comments are offered to clause 4 (iii) (b) to (d) of the said orders except to the extent of stating that the said loans are not prejudicial to the interest of the company.

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

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of services and for carrying out the contracts and related activities. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control systems

(v) a. In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Act have been so entered.

b. In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58 A and 58AA of the Act. and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order are not applicable.

(vii) In our opinion and according to the information and explanations given to us, the Company has an internal audit system, which is commensurate with the size and nature of business of the Company.

(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 construction of buildings / structures and other related activities, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

(ix) a. The Company is regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employee''s state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues, as applicable, with the appropriate authorities. Further, no undisputed amounts payable in respect thereof were outstanding at the year- end for a period of more than six months from the date they become payable.

b. The company has not deposited either fully or partly in respect of Income tax, Excise duty, Cess, VAT/Sales tax ,Service tax and other Govt. dues, on account of disputes before various forums as set out here under:

Name Nature of Dispute Reference Amount (Rs. in Lakhs)

Disallowance of certain expenditure AO dated 225.68*** and claims 28.12.2010

AO dated 124.03*** 30.12.2010

AO dated 945.77*** Income 30.12.2010 Tax

AO dated 414.97*** 21.11.2011

AO dated 458.59*** 28.03.2013

Kerala Sales made to SEZ claimed as exempt Assessment 55.10 VAT (Extension of benefit in KGST Sought) No. D/753/ 06/2005-06 dated 31.07.2008

Re- 170.01* Assessment3 order dated

Right of State to levy VAT at a 31.01.2008 higher rate, in respect of declared goods (Steel) STA 577.00** No.2211 to Karnataka 2218 dated VAT 03.11.2010

Demand 35.40* Notice dated Disallowance of Margin on 2010 sub-contract portion, Security Service and Repair Service. Order dated 34.20** 19.10.2010

Name Periods to which Fourm where the the amount disputes are relates (F.Y.) pending

Income tax 2005-2006 High Court of Madras (Departmental Appeal)

2006-2007 Commissioner of Income Tax (Appeals) -III, Chennai

Income 2007-2008 Commissioner of Income Tax (Appeals) -III, Chennai

2008-2009 Commissioner of Income Tax (Appeals) -III, Chennai

2009-2010 Commissioner of Income Tax (Appeals) -III, Chennai

2005-2006 Appellate Assistan Commissioner, Cochin

2006-2007 Joint Commissioner of Commercial Tax (Appeals), Bangalore

Karnataka 2007-2008 Karnataka Appellate Tribunal

2008-2009 Joint Commissioner of (from August 08) Commercial Tax (Appeals), Bangalore

2009-2010 Joint Commissioner of Commercial Tax (Appeals), Bangalore

(xiv) According to the information and explanations given to us and the records of the company examined by us, 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.

(xv) The Company has extended corporate guarantee to the Bankers in respect of its wholly owned subsidiaries and Associates for the facilities extended by the said Bankers. In our opinion and according to the information and explanations given to us, the terms & conditions of such corporate guarantee are not prejudicial to the interest of the company.

(xvi) In our opinion, the Company has applied the term loans for the purpose for which these loans were obtained.

(xvii) In our opinion, no funds raised on short-term basis have been used for long-term investments.

(xviii) During the year, the Company has not made any preferential allotment of shares to parties or companies covered in the register maintained

under Section 301 of the Act. Accordingly, the provisions of clause 4(xviii) of the Order are not applicable.

(xix) During the year, The Company has issued Non convertible debentures, in respect of which security has been created.

(xx) The Company has not raised any money by public issues during the year. Accordingly, the provisions of clause 4(xx) of the Order are not applicable.

(xxi) During the course of our examination of the Books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, no fraud on or by the company noticed or reported during the year, nor we have been informed of such case by the management.

For ASA & ASSOCIATES

Firm Regn. No.: 009571N

Chartered Accountants

K. VENKATRAMAN

Place : Chennai Partner

Date : May 25, 2013 Membership No.: 200/21914


Mar 31, 2012

1. We have audited the attached Balance Sheet of CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED ('the company') as at 31st March, 2012 and the related statements of Profit & Loss and Cash Flows for the year ended, prepared in conformity with the accounting principles generally accepted in India. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our Audit.

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

3. 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.

4. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements

a) Give the required information by the Companies Act, 1956 in the manner so required.

b) Give a true and fair view of the state of affairs of the Company as at March 31, 2012 and of its related statements of profit & loss and cash flows for the year then ended, in conformity with the accounting principles generally accepted in India.

c) Further, the Balance Sheet and statement of Profit and Loss comply with the Accounting Standards referred to in Section 211(3C) of the Act and are in agreement with the Books of Account.

d) In our opinion, the Company has maintained proper Books of Account as required by law in so far as appears from our examination of those Books.

5. On the basis of information and explanations given to us, and representations obtained by the Company and taken on record by the Board of Directors, as on March 31, 2012 none of the Directors are disqualified from being appointed as Directors in terms of Section 274(1)(g) of the Companies Act.

6. As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditors' Report) (Amendment) Order, 2004, and according to the information and explanations given to us during the course of the audit and on the basis of such checks as were considered appropriate, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

ANNEXURE REFERRED TO IN PARAGRAPH 6 OF OUR REPORT OF EVEN DATE

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

b) As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, which, in our opinion, is reasonable, considering the size and the nature of the business. The frequency of verification is reasonable and no material discrepancies were noticed on such physical verification.

c) The Company has not disposed of a substantial part of fixed assets during the year so as to affect the going concern status of the company.

(ii) a) As explained to us, the inventories including site materials, stores and construction aids have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.

b) As per the information given to us, the procedures of physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) a) According to the information and explanations given to us, the company has granted unsecured loans to its subsidiary company, covered in the register maintained under Section 301 of the Companies Act, 1956. No Interest is charged on the above loan. Further, in the absence of any stipulated schedule, the aspect of receipt of principal amount and as well overdue doesn't arise. On the basis of check and verification, the said loan being unsecured, is not prima facie prejudicial to the interests of the company.

i. No. of parties involved - 6

ii. Amount involved - Rs. 29,89,29,431/-

b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured, from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, paragraphs 4(iii)(c) and (d) of the Order are not applicable.

(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 with regard to the purchase of Site materials, etc., fixed assets and for carrying out the contracts and related activities. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control systems.

(v) a. In our opinion and according to the information and explanations given to us, the contracts or arrangements referred to in 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 such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the Public and accordingly the provisions of Section 58A and 58AA of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, related to the construction of buildings / structures and other related activities, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.

(ix) a. According to the information and explanations

given to us and the records of the Company examined by us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Customs Duty, Cess, Excise duty and other material statutory dues as applicable with the appropriate authorities.

b. According to the information and explanations given to us and the records of the company examined by us, there are no dues of Income tax, Wealth Tax, Cess, Excise Duty, Customs Tax, which have not been deposited on account of any dispute. The particulars of Sales Tax, Service Tax and Income Tax, as at March 31, 2012 which have not been deposited on account of the disputes as under.

Nature of Nature of the Amount Periods to Statute disputed dues (Rs. in Lakhs) which the amount relates

Income Provision made in respect of Managerial 25.4* 2004-05 Tax Act, 1961 Remuneration for which approval was obtained subsequent to Balance Sheet date but before finalization of Accounts.

Disallowance of Trade License Fee 225.68*** 2005-2006 (Samruddhi Holdings)

Disallowance of Trade License Fee 124.03*** 2006-2007 (Samruddhi Holdings), Disallowance of Additional Depreciation on RMC Batching Plant, Disallowance u/s 14A for income on 945.77*** 2007-2008 mutual fund and Disallowance of ROC Expenses 414.97 2008-2009



Service Tax Applicability of Rate consequent to change 4.97 2007-2008 in rate of Service (Up to Mar.08) Tax under Works Composition Scheme

3.17 2008-2009

(Upto Sep.08) Utilization of Cenvat Credit in excess of 20% 637.20 2007-2008 of Service Tax payable and wrong a ailment of Input service on Initial Public Offer (IPO) related service

Non-payment of service tax on Construction 18.40 2007-2008 of British High Commission & sub-contractor Technip Karaikkal.

CENVAT Credit on Capital Goods utilized in 1338.46 2008-2009 discharging Service Tax where Notification (from Oct.08)

1/2006 is availed 8022.06 2006-2007,

2007-2008 & 2008-2009 up to Sep 2008 462.41 Oct. 09 to Sep. 10

Service Tax on retention monies held, 446.21 2008-09 capital goods used in SEZ and wrong 394.74 2009-10 a ailment of CVD in " Schwing Boom Placer" and Cenvat Credit on capital goods utilized.

Applicability of Service Tax on BMTC 970.71 2008-09 to Project-Bangalore 2011-12

Central Excise Levy of Excise Duty on manufacture of 14.78 2011-12 RMC vide Notification 1/2011 dated 1.3.2011 (Apr.11 to Jan.12)

1.46 2011-12

(Apr.11 to Dec.11)

4.73 2011-12

(Apr.11 to Sep.11)

Nature of satute Forum where the disputes are pending Income Tax Act,1961 ITAT, Chennai

Madras High Court

Commissioner of income Tax(Appeals) -III,Chennai

Commissioner of income Tax (Appeals) - III, Chennai

Commissioner of income Tax (Appeals) -III, Chennai

Service Tax Central Excise service Tax Appeals Tribunal (CESTAT)

Joint Commissioner of Service Tax

Commissioner of service Tax

Commissioner of service Tax

Commissioner of service Tax

Central Excise service Tax

Appellate Tribunal (CESTAT)

Commissioner of service Tax

Customs, Excise and service Tax Appellate Tribunal (CESTAT)

Commissioner of service Tax, Chennai

Central Excise Additional Commissioner of central Excise, Chennai

Assistant commissioner of central Excise, Chennai

Deputy Commissioner of central Excise, New Delhi



Nature of Nature of the Amount Periods to Statute disputed dues (Rs. in Lakhs) which the amount relates

Karnataka Right of State to levy VAT at a higher rate, in 170.01* 2006-2007 VAT respect of declared goods (Steel) 577.00** 2007-2008

Disallowance of Margin on sub-contract 35.40* 2008-2009 portion, Security Service and Repair (from Aug.08)

34.2** 2009-2010



Kerala VAT Sales made to SEZ claimed as exempt 55.10 2005-2006 (Extension of benefit in KGST Sought)

Andhra Service Tax portion to be Pradesh VAT included in the Andhra taxable turnover and reversal of labour 101.24* 2010-2011 involved in unregistered sub contractors

Penalty @25% on Rs.49,83,168/- 12.46* 2010-2011





Nature of statute Forum where the disputes are pending

Karnataka VAT Joint commissioner of commercial Tax (Appellate), Bangalore

Karnataka Appellate Tribunal

Joint Commissioner of commercial Tax (Appeals), Bangalore

Joint commissioner of commercial Tax (Appeals), Bangalore

Kerala VAT Appellate Assistant Commissioner

Andhra Pradesh VAT DCTO, Kurnool

DCTO, Kurnool

* Paid under protest / Paid fully ** 50% paid balance through BG *** Adjusted against the Income Tax refund to the extent of Rs.685.05 Lacs.

(x) The Company has neither accumulated losses as at March 31, 2012 nor incurred cash losses in the current financial year and in the immediately preceding financial year.

(xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or banks as at the balance sheet date. There are no debenture holders for the company.

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

(xiii) The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not applicable to the Company.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in shares, securities, debentures and other investments.

(xv) The Company has given corporate guarantee to the Bankers of its wholly owned subsidiary and AOP for the facilities extended by the said Bankers. In our opinion and according to the information and explanations given to us, the terms & conditions of such corporate guarantee are not prejudicial to the interest of the company.

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

(xvii) According to the information and explanations given to us and on the basis of our examination of the Accounts, we report that no funds raised on short-term basis have been used for long-term investments.

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

(xix) During the year, the company has not issued any shares through public offerings.

(xx) During the year, the company has not raised any money by public issue.

(xxi) During the course of our examination of the Books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, no fraud on or by the company noticed or reported during the year, nor we have been informed of such case by the management.

For ASA & ASSOCIATES

Firm Regn. No.: 009571N

Chartered Accountants



K. VENKATRAMAN

Place : Chennai Partner

Date : May 12, 2012 Membership No.: 200/21914


Mar 31, 2011

1. We have audited the attached Balance Sheet of CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED (the company) as at 31st March, 2011 and the related statements of Profit & Loss and Cash Flows for the year ended, prepared in conformity with the accounting principles generally accepted in India. 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 our opinion.

3. 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.

4. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements:-

a) Give the required information by the Companies Act, 1956 in the manner so required.

b) Give a true and fair view of the state of affairs of the Company as at March 31,2011 and of its related statements of profit & loss and cash flows for the year ended, in conformity with the accounting principles generally accepted in India.

c) Further, the Balance Sheet and statement of Profit and Loss comply with the Accounting Standards referred to in Section 211(3C) of the Act and are in agreement with the Books of Account.

d) In our opinion, the Company has maintained proper Books of Account as required by law in so far as appears from our examination of those Books.

5. On the basis of information and explanations given to us, and representations obtained by the Company and taken on record by the Board of Directors, as on March 31,2011 none of the Directors are disqualified from being appointed as Directors in terms of Section 274(1)(g) of the Companies Act.

6. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004, and according to the information and explanations given to us during the course of the audit and on the basis of such checks as were considered appropriate, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

ANNEXURE REFERRED TO IN PARAGRAPH 6 OF OUR REPORT OF EVEN DATE

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

b) As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, which, in our opinion, is reasonable, considering the size and the nature of the business. The frequency of verification is reasonable and no material discrepancies were noticed on such physical verification.

c) The Company has not disposed of a substantial part of fixed assets during the year so as to affect the going concern status of the company.

(ii) a) As explained to us, the inventories including site materials, stores and construction aids have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.

b) As per the information given to us, the procedures of physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) a) According to the information and explanations given to us, the company has granted unsecured loans to its subsidiary company, covered in the register maintained under Section 301 of the Companies Act, 1956. No Interest is charged on the above loan. Further, in the absence of any stipulated schedule, the aspect of receipt of principal amount and as well as overdue doesnt arise. On the basis of check and verification, the said loan being unsecured, is not prima facie prejudicial to the interests of the company.

i. No. of parties involved - 5

ii. Amount involved - Rs. 152,19,71,091/-

b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured, from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, paragraphs 4(iii)(c) and (d) of the Order are not applicable.

(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 with regard to the purchase of Site materials, fixed assets etc., and for carrying out the contracts and related activities. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control systems.

(v) a. In our opinion and according to the information and explanations given to us, the contracts or arrangements referred to in Section 301 of the Companies Act, 1956, have been so entered.

b. In our opinion and according to the information 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) The Company has not accepted any deposits from the Public and accordingly the provisions of Section 58A and 58AA of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

(viii) As the company is in the service industry, no cost records have been prescribed under the Provisions of Section 209(l)(d) of the Companies Act, 1956.

(ix) a. According to the information and explanations given to us and the records of the Company examined by us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Customs Duty, Cess, Excise duty and other material statutory dues as applicable with the appropriate authorities.

b. According to the information and explanations given to us and the records of the company examined by us, there are no dues of Income tax, Wealth Tax, Cess, Excise Duty, Customs Duty, which have not been deposited on account of any dispute. The particulars of Sales Tax, Service Tax and Income Tax, as at March 31,2011 which have not been deposited on account of the disputes are as under.

Nature of Statute Nature of the Amount disputed dues (Rs. in Million)

Income Tax Act, 1961 Provision made in respect of 2.54 (*) Managerial Remuneration for which approval was obtained subsequent to Balance sheet date but before finalization of Accounts

Disallowance of Trade Licence 22.57 Fee (Samruddhi Holdings) Disallowance of Trade Licence 12.40 (Samruddhi Holdings), Disallowance of Additional

Depreciation on RMC Batching Plant Disallowance u/s l4A for income 94.58 on mutual fund and Disallowance

Service Tax Applicability of Rate consequent 4.97 to change in rate of Service Tax under Works Composition Scheme 3.17

Utilisation of Cenvat Credit in 63.72 excess of 20% of Service Tax payable and wrong availment of Input service on Initial Public Offer (IPO) related service

Non-payment of service tax on 1.84 Constructon of British High Commission & sub-contractor Technip Karaikkal.

Service Tax demand on retention 43.65 monies held by client. Though it is not received by us, it forms part of gross amount.

Capital Goods landed in SEZ for 0.97 which duty discharged and correspondingly Input Credit taken

CENVAT Credit on Capital Goods 133.84 utilized in discharging Service Tax where Notification 1/2006 is availed

802.20

Karnataka VAT Right of state to levy VAT at a 17.01* higher rate, in respect of declared goods (Steel) 57.70

Karnataka VAT Disallowance of Margin on 3.54 sub-contract portion, Security Service and Repair Service. 3.42**

West Bengal VAT Disallowance for charges and expenses 0.09 towards labour service and other related charges

Kerala VAT Sales made to SEZ claimed 5.51 as exempt (Extension of Commissioner benefit in KGST sought)

Nature of Statute Periods to Forum where the disputes are pending which the amount relates

Income Tax Act, 1961 2004-05 Commissioner of Income Tax (Appeals) - V Chennai

2005-05 Commissioner of Income Tax (Appeals)- III, Chennai

2006-2007 Commissioner of Income Tax (Appeals)- III, Chennai

2007-2008 Commissioner of Income Tax (Appeals)- III, Chennai

Service Tax 2007-2008 Central Excise Service Tax Appellate Tribunal (CESTAT) (upto Mar.08)

2008-2009 Joint Commissioner of (upto Mar.08) Service Tax

2007-2008 Commissioner of Service Tax

2008-2009 Commissioner of Service Tax

2008-2009 Commissioner of Service Tax

2008-2009 Commissioner of Service (from Oct.08) Tax

2006-2007 Central Excise Service 2007-2008& Tax Appellate Tribubal 2008-2009 upto Sep.2008 (CESTAT)

KarnatakaVAT 2006-07 Joint Commissioner of Commercial Tax (Appeals), Bangalore

2007-08 Karnataka Appellate Tribunal

Karnataka VAT 2008-09 Joint Commissioner of (from Aug.08) Commercial Tax (Appeals), Bangalore

2009-2010 Joint Commissioner of Commercial Tax (Appeals), Bangalore

West Bengal VAT 2007-2008 Senior Joint Commissioner



KeralaVAT 2005-06 Appellate Assistant Commissioner

(x) The Company has neither accumulated losses as at March 31, 2011 nor incurred cash losses in the current financial year and in the immediately preceding financial year.

(xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or banks as at the Balance Sheet date. There are no debenture holders for the Company.

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

(xiii) The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not applicable to the Company.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in shares, securities, debentures and other investments.

(xv) The Company has given Corporate Guarantee to the Bankers of its Wholly Owned Subsidiary and AOP for the facilities extended by the said Bankers. In our opinion and according to the information and explanations given to us, the terms & conditions of such Corporate Guarantee are not prejudicial to the interest of the company.

(xvi) In our opinion and according to the information and explanations given to us, the Term Loans have been applied for the purposes for which they were obtained.

(xvii) According to the information and explanations given to us and on the basis of our examination of the Accounts, we report that no funds raised on short-term basis have been used for long-term investments.

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

(xix) During the year, the company has not issued any shares through public offerings.

(xx) During the year, the company has not raised any money by public issue.

(xxi) During the course of our examination of the Books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, no fraud on or by the company have been noticed or reported during the year, nor we have been informed of such case by the management.

For ASA & ASSOCIATES Chartered Accountants

K. VENKATRAMAN Partner Membership No.: 200/21914 Firm Regn. No.: 009571N

Place : Chennai Date: April 28, 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of CONSOLIDATED CONSTRUCTION CONSORTIUM LIMITED (the company) as at 31st March, 2010 and the related statements of Profit & Loss and Cash Flows for the year ended, prepared in conformity with the accounting principles generally accepted in India. 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 our opinion.

3. 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.

4. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements:-

a) Give the required information by the Companies Act, 1956 in the manner so required.

b) Give a true and fair view of the state of affairs of the Company as at March 31,2010 and of its related statements of profit & loss and cash flows for the year then ended, in conformity with the accounting principles generally accepted in India.

c) Further, the Balance Sheet and statement of Profit and Loss comply with the Accounting Standards referred to in Section 211(3C) of the Act and are in agreement with the Books of Account.

d) In our opinion, the Company has maintained proper Books of Account as required by law in so far as appears from our examination of those Books.

5. On the basis of information and explanations given to us, and representations obtained by the Company and taken on record by the Board of Directors, as on March 31,2010 none of the Directors are disqualified from being appointed as Directors in terms of Section 274(l)(g) of the Companies Act.

6. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004, and according to the information and explanations given to us during the course of the audit and on the basis of such checks as were considered appropriate, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

ANNEXURE REFERRED TO IN PARAGRAPH 6 OF OUR REPORT OF EVEN DATE

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

b) As explained to us, the assets have been physically verified by the management in accordance with a phased programme of verification, which, in our opinion, is reasonable, considering the size and the nature of the business. The frequency of verification is reasonable and no material discrepancies were noticed on such physical verification.

c) The Company has not disposed of a substantial part of fixed assets during the year so as to affect the going concern status of the company.

(ii) a) As explained to us, the inventories including site materials, stores and construction aids have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable.

b) As per the information given to us, the procedures of physical verification of inventory followed by the management are, in our opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material.

(iii) a) According to the information and explanations given to us, the company has granted unsecured loans to a subsidiary company, covered in the register maintained under Section 301 of the Companies Act, 1956. No Interest is charged on the above loan. Further, in the absence of any stipulated schedule, the aspect of receipt of principal amount and as well overdue doesnt arise. On the basis of check and verification, the said loan being unsecured, is not prima facie prejudicial to the interests of the company.

i. No. of parties involved - 2

ii. Amount involved - Rs.10,76,23,667/-

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

(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 with regard to the purchase of Site materials, etc., fixed assets and for carrying out the contracts and related activities. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control systems.

(v) a. In our opinion and according to the information and explanations given to us, the contracts or arrangements referred to in Section 301 of the Companies Act, 1956, have been so entered.

b. In our opinion and according to the information 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) The Company has not accepted any deposits from the Public and accordingly the provisions of Section 58A and 58AA of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 are not applicable.

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

(viii) As the company is in the service industry, no cost records have been prescribed under the Provisions of Section 209(l)(d) of the Companies Act, 1956.

(ix) a. According to the information and explanations given to us and the records of the Company examined by us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Service Tax, Customs Duty, Cess, Excise duty and other material statutory dues as applicable with the appropriate authorities.

b. According to the information and explanations given to us and the records of the company examined by us, there are no dues of Income Tax, Wealth Tax, Cess, Excise Duty, Customs Duty, Service Tax, Sales Tax(VAT) which have not been deposited on account of any dispute other than the following particulars as at March 31,2010.

Nature of Statute Nature of the Amount disputed dues (Rs. in Million)

Service Tax Availment of cenvat 559.30 (Finance Act, 1994) credit on capital goods in respect of services rendered under Notification 1/2006

Income Tax Act, 1961 i. Provision made 2.54 (*) in respect of Managerial Remuneration for which approval was obtained subsequent to Balance Sheet date but before finalization of Accounts

ii. Disallowance of 57.3 certain expenses.

KarnatakaVAT i. Right of state to levy VAT at a 17.21 (**) higher rate,in respect of declared goods (Steel) 44.39 iii. Right of state to levy VAT at a 57.70 higher rate,in respect of declared goods (Steel)

iii. Disallowance of Margin on 2.97 sub-contract portion, security service and repair service.

Kerala VAT Sales made to SEZ claimed 5.51 as exempt (Extension of benefit in KGST sought)

DelhiVAT ii. Value of work certified shall be 8.35 considered as taxable turnover in lieu of receipt basis.



Nature of Statue Periods to Forum where the which the dispute are pending amount relates

Service Tax (Finance Act, 1994) 2006-07 & Commissioner of part of Service Tax, 2007-08 Chennai for Adjudication

Income Tax Act, 1961 2004-05 Commissioner of Income Tax (Appeals)-V Chennai

2005-06 Commissioner of Income Tax (Appeals) - III

Karnataka VAT 2006-07 Joint Commissioner of Commercial Tax Part of (Appeals), Bangalore

2007-08 Karnataka Appleate Tribunal

Part of 2008-09 Joint Commissioner of Commercial Tax (Appeals), Bangalore

Kerala VAT 2005-06 Appellate Assistant Commissioner

Delhi VAT 2007-08 Commissioner of Commercial Tax DVAT

(*) Paid on account / under protest. (**) Paid on account / under protest Rsl7.21 Million

(x) The Company has neither accumulated losses as at March 31, 2010 nor incurred cash losses in the current financial year and in the immediately preceding financial year.

(xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution or banks as at the balance sheet date. There are no debenture holders for the company.

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

(xiii) The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not applicable to the Company.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in shares, securities, debentures and other investments.

(xv) The Company has given corporate guarantee to the Bankers of its wholly owned subsidiary and AOP for the facilities extended by the said Bankers. In our opinion and according to the information and explanations given to us, the terms & conditions of such corporate guarantee are not prejudicial to the interest of the company.

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

(xvii) According to the information and explanations given to us and on the basis of our examination of the Accounts, we report that no funds raised on short-term basis have been used for long-term investments.

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

(xix) During the year, the company has not issued any secured debentures.

(xx) During the year, the Company has not issued any shares through Public Issue.

(xxi) During the course of our examination of the Books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, no fraud on or by the company noticed or reported during the year, nor we have been informed of such case by the management.

For MURALI ASSOCIATES Chartered Accountants

K. VENKATRAMAN

Partner

Membership No.: 200/21914

Firm Regn. No.: 002164S

Place: Chennai Date : April 28, 2010

 
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