Auditor Report of Cranex Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of M/s CRANEX LIMITED ("the company"),which comprise the Balance Sheet as at 31 March 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.

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 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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 thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give 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 operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31stMarch2015, its profit/loss and its cash flows for the year ended on that date.

Emphasis of matters

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

a. It has been observed that the Company is not complying with accounting standards 22 i.e. provision of deferred tax liability either for the current year or in respect of the past.

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, to the extent applicable.

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 Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) 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) In our opinion, and to the best of our information and according to the explanations given to us, we have no observation or comments on financial transactions or matters which have any adverse effect on the functioning of the company.

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

g) In our opinion and to the best of our information and according to the explanations given to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. The Company does not have any pending litigations which would impact its financial position.

ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

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

Annexure to the Auditors' Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' of our Report of even date to the members of M/s Cranex Limited on the accounts of the company for the year ended 31st March, 2015]

On the basis of such checks as we considered appropriate and according to the information and Explanations given to us during the course of our audit, we report that:

(i) In respect of its fixed assets:

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

(b) As explained to us, fixed assets have been physically verified by the management during the year in accordance with the phased programme of verification adopted by the management which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(ii) In respect of its inventory:

a) As explained to us, the inventories of work in progress were physically verified at the end of the year by the Management. There is no inventory lying with third parties.

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

c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of stocks as compared to book records.

(iii) According to the information and explanations given to us, the Company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013; and therefore paragraph 3(iii) of the Order is 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 for the purchase of inventory, fixed assets and for the sale of goods (and/ services). During the course of our Audit, we have not observed any continuing failure to correct major weaknesses in internal control.

(v) The company has not received any public deposits during the year.

(vi) As informed to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the Company.

(vii) In respect of statutory dues:

(a) According to the records of the company and information and explanations given to us, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, employees state insurance (ESI), Investor Education and Protection Fund, Income-tax, Tax deducted at sources, Tax collected at source, Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it, with the appropriate authorities.

(b) According to the information and explanations given to us, there were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material statutory dues in arrears /were outstanding as at 31 March, 2015 for a period of more than six months from the date they became payable.

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

(viii) The accumulated losses of the company are not more than 50% of its Net Worth. The company has not incurred any Cash loss during the financial covered by our Audit and also in the immediately preceding financial year.

In arriving at the accumulated losses and net worth as above, we have considered the quantifications which are quantifiable in the audit reports of the years to which these losses pertain.

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

(x) In our opinion, and according to the information and the explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

(xi) The company has not obtained any term loan during the year, so this para of order is not applicable.

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

For P. D MITTAL & COMPANY Chartered Accountants (Firm Registration No. : 11320N)

Sd/-

(P.D Mittal) Partner (Membership No.: 009459 )

Place: New Delhi Date: 30 / 05 /2015

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Mar 31, 2014

We have audited the accompanying Financial Statements of CRANEX LIMITED ("the company") which comprises the Balance Sheet as at 31st March, 2014, and the statement of Profit and Loss and Cash Flow statement for the year then ended, and Notes to the Financial Statements comprising of 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 211of 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 controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are fair from material misstatements, 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 the material misstatement of the financial statements, whether due to error or fraud. 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 effective of entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and 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 said accounts 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:-

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

ii) In the case of Statement of Profit and Loss of the profit of the Company for the year ended on that date; and

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the order"), as amended, 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) if 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 law have been kept by the Company so far as appears from our examination of those books;

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

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting standards referred to in sub-section(3C) of section 211 of the Act, read with the General circular 15/2013 dated 13th September, 2013 of the Ministry of Corporates Affairs in respect of section 133 of the Companies Act, 2013;

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

ANNEXURE TO THE AUDITOR''S REPORT

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

REG : CRANEX LIMITED

FINANCIAL YEAR : 2013-14

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

I.b All the assets have not been physically verified by the management during the year but there is a regular programme of verification 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.

I. c During the year, the company has not disposed off a major part of the plant & machinery& accordingly the clause is not applicable to this extent.

II. a The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

II.b The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

II. c. The company is not maintaining adequate records of inventories. Further, the descripancies between the physical records & the book record hence not been taken careof.

III. a The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance of loan taken from such parties are as under:

Maximum amount involved Year end balance During the year Directors & their relatives 78702947.02 76366278

The company has not granted loan to any company, firms or director or their relative during the year under audit & there is nil balance at the end of the year.

III.b. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to companies, firms or other parties listed in the register maintained U/S 301 of the companies act,1956 are not, prima facie, prejudicial to the interest of the company.

III.c. The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

III.d. There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the companies act, 1956.

IV In our opinion and according to the information & 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 purchase of Inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

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

Vb. In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained U/S 301 of the companies act, 1956 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 In our opinion and according to the information & explanations given to us, the company has complied with the provisions of section 58A and 58AA of the companies act,1956 and the companies (Acceptance of Deposits) Rules,1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

VII. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

VIII The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt. for the maintenance of cost record are not applicable, hence not commented.

IXa. The company is regular in depositing with appropriate authorities, undisputed statutory dues including P.F., Investor Education Protection Fund, Empoyees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

IX .b. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31-3-2014 for the period of more than six months from the date they become payable.

IX.c According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sales tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess NIL

X In our opinion, the accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

XI In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures.

XII This clause in not applicable as the company has not granted any loan or advance 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 companies (auditor''s report) order, 2003 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. Accordingly, the provision of clauses 4(XIV) of the companies (auditors report) order, 2003 ate not applicable to the company.

XV The company has not given any guarantee for loans taken by others, from banks or financial intuition & accordingly the sub-clause in sot applicable.

XVI In our opinion the company has not raised any term-loan during this period hence the clause is not applicable.

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 the no funds raised on short term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

XVIII The company has not made any allotment of shares during this period hence the clause is not applicable.

XIX The co. has not issued any debentures during the period under audit, thus the sun-clause is not applicable.

XX The co. has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

For: P.D MITTAL & CO. CHARTERED ACCOUNTANTS

(P.D. MITTAL) PARTNER M. NO. 009459 Dated : 30.05.2014

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Mar 31, 2013

1. We have audited the attached Balance Sheet of M/s. CRANEX LIMITED as at 31st March, 2013. The statement of profit & loss & the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. The companies (Auditor''s Report) Order,2003, issued by the Central Govt, of India under sub-section (4A) of section 227 of the companies act, 1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to u, we enclosed in the Annexure a statement on the matter specified in paragraph 4 & 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 purpose of our audit.

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and the statement of profit & loss dealt 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 directors as on 31s1 March,2013, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act, 1956;

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

1) In the case of the balance sheet, of the state of affairs of the company as at 31st March 2013.

2) In the case of the statement of profit & loss, of the profit for the yearended on that date.

3) In the case of the Cash Flow statement of the cash flow for the yearended on that date.

ANNEXURE TO THE AUDITORS'' REPORT:

(Reffered to in paragraph (1) of our Report of even date)

Reg. CRANEX LIMITED

Financial Year : 2012-13

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

I.b All the assets have not been physically verified by the management during the year but there is a regular programme of verification 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.

I.c During the year, the company has not disposed off a major part of the plant & machinery& accordingly the clause is not applicable to this extent.

11.a The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

I I.b The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

Il.c. The company is not maintaining adequate records of inventories. Further, the descripancies between the physical records & the book record hence not been taken careof.

111.a The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance of loan taken from such parties are as under:

The company has not granted loan to any company, firms or director or their relative during the year under audit & there is nil balance at the end of the year.

Ill.b. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to companies, firms or other parties listed in the register maintained U/S 301 of the companies act, 1956 are not, prima facie, prejudicial to the interest of the company.

Ill.c. The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

Ill.d. There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the Companies Act, 1956.

IV In our opinion and according to the information & 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 purchase of Inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

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

Vb. In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained U/S301 of the companies act, 1956 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. In our opinion and according to the information & explanations given to us, the company has complied with the provisions of section 58A and 58AAof the companies act, 1956 and the companies (Acceptance of Deposits) Rules, 1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

VII. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

VIII The provision of section 209 (1)(d) of the companies act, 1956 read with rules made by the Cent. Govt, for the maintenance of cost record are not applicable, hence not commented.

IXa. The company is regular in depositing with appropriate authorities, undisputed statutory dues including P.F., Investor Education Protection Fund, Empoyees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

IX .b. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31-3-2012 for the period of more than six months from the date they become payable.

IX.c. According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sales tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess, NIL

X. In our opinion, the accumulated losses of the company are not more than 50% of its net worth. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceeding financial year.

XI. In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures.

XII. We are of the opinion that company maintained adequate records where the company has granted loans and advance on the basis of securities 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 companies (auditor''s report) order, 2003 are not applicable to the company.

XIV. In out opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clauses 4(XIV) of the companies (auditors report) order, 2003 ate not applicable to the company.

XV The Company has not given any guarantee for loans taken by others, from banks or financial intuition & accordingly the sub-clause in not applicable.

XVI. That the Company has not granted loan and advances on the basis of security by way of pledge of Share, Dividenture and other securities.

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. No long-term funds have been used to finance short-term assets except permanent working capital.

XVIII. The Assessee Company has not applied/obtain any tern loan during the period under audit hence the clause not applicable.

XIX. The Company has not issued any debentures during the period under audit, thus the sub-clause is not applicable.

XX. The Company has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI. According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

FOR P.D. MITTAL & CO.

Chartered Accountants

P.D. MITTAL

Place : New Delhi Partner

Dated: 31-05-2013 Membership No. 009459

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Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. CRANEX LIMITED as at 31st March,2012 the statement of profit & loss & the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 financial statements. An audit also includes assessing the accounting principles used the significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis forour opinion.

3. The companies (Auditor''s Report) Order,2003, issued by the Central Govt. of India under sub-section (4A) of section 227 of the companies act,1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to u, we enclosed in the Annexure a statement on the matter specified in paragraph 4 & 5 of the said order.

4. Furtherto 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 forthe purpose of ouraudit.

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and the statement of profit & loss dealt 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 directors as on 31st March,2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,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. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the companies act,1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

1) In the case of the balance sheet, of the state of affairs of the company as at 31st March,2012.

2) In the case of the statement of profit & loss, of the profitforthe year ended on that date.

3) In the case of the Cash Flow statement of the cash flow for the year ended on that date.

ANNEXURE TO THE AUDITORS'' REPORT:

(Reffered to in paragraph (1) of our Report of even date)

Reg. : CRANEX LIMITED

Financial Year : 2011-12

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

I.b All the assets have not been physically verified by the management during the year but there is a regular programme of verification 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.

I.c During the year, the company has not disposed off a major part of the plant & machinery& accordingly the clause is notapplicable to this extent.

II.a The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

II.b The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

II.c. The company is not maintaining adequate records of inventories. Further, the descripancies between the physical records & the book record hence not been taken care of.

III.a The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 &299 read with section of 301 of the companies act,1956. The maximum amount involved during the year & the year end balance of loan taken from such parties are as under:

Maximum amount involved Yearend balance

During the year

Directors & their relatives 7,50,36,400 7,18,26,399

The company has not granted loan to any company, firms or director or their relative during the year under audit & there is nil balance at the end of the year.

III.b. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to companies, firms or other parties listed in the register maintained U/S 301 of the companies act,1956 are not, prima facie, prejudicial to the interest of the company.

III.c. The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

III.d. There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S301 of the Companies Act, 1956.

IV In our opinion and according to the information & 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 purchase of Inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

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

Vb. In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained U/S 301 ofthe companies act, 1956 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. In our opinion and according to the information & explanations given to us, the company has complied with the provisions of section 58A and 58AAof the companies act,1956 and the companies (Acceptance of Deposits) Rules,1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

VII. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

VIII The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt. for the maintenance of cost record are not applicable, hence not commented.

IXa. The company is regular in depositing with appropriate authorities, undisputed statutory dues including P.F., Investor Education Protection Fund, Empoyees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

IX .b. According to the information and explanations given to us, no undisputed amounts payable in respect of

income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31-3-2012 for the period of more than six months from the date they become payable.

IX.c. According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sales tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess, NIL

X. In our opinion, the accumulated losses of the company are not more than 50% of its net worth. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceeding financial year.

XI. In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment dustcoat financial institution, bankordebentures.

XII. We are ofthe opinion that company maintained adequate records where the company has granted loans and advance on the basis of securities 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 companies (auditor''s report) order, 2003 are not applicable to the company.

XIV. In out opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clauses 4(XIV) of the companies (auditors report) order, 2003 ate notapplicable to the company.

XV. The Company has not given any guarantee for loans taken by others, from banks or financial intuition & accordingly thesub-clause in notapplicable.

XVI. That the Company has not granted loan and advances on the basis of security by way of pledge of Share, Dividenture and other securities.

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. No long-term funds have been used to finance short-term assets except permanent working capital.

XVIII. The Assessee Company has not applied/obtain any tern loan during the period under audit hence the clause notapplicable.

XIX. The Company has not issued any debentures during the period under audit, thus the sub-clause is not applicable.

XX. The Company has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI. According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

FOR P.D. MITTAL & CO.

Chartered Accountants

P.D. MITTAL

Place : New Delhi Partner

Dated: 25-06-2012 Membership No. 009459

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. CRANEX LIMITED as at 31st March, 2010 the profit & loss account & the cash flow statement for the ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. The companies (Auditors Report) Order 2003, issued by the Central Govt. of India under sub-section (4A) of section 227 of the companies act 1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to us, are enclosed in the Annexure as statement of the matter specified in paragraph 4 & 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 purpose of our audit.

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and profit & loss account statement dealt 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 Directors an on 31st March, 2010 and taken on record by the Board of Directors we report that none of the directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act, 1956.

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the companies act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in India.

(i) In the case of the balance sheet, of the state of affairs of the company as at 31st March, 2010.

(ii) In the case of the profit & loss account, of the profit for the year ended on that date.

(iii) In the case of the Cash Flow statement fo the cash flow for the year ended on that date.

AUDITORS REPORT ANNEXURE TO THE AUDITORS REPORT : (Refer to in paragraph (1) of our Report of even date)

Reg. : CRANEX LIMITED

Financial Year : 2009-2010

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

(b) All the assets have not been physically verified by the management during the year but there is a regular program of verification 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) During the year, the company has not disposed off a major part of the plant & Machinery & accordingly the clause not applicable to this extent.

II (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures for physical verification during the year 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 not maintaining adequate records of inventories. Further, the discrepancies between the physical records & the book record hence not been taken in record.

III (a) The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance loan taken from such parties are as under :

Maximum amount involved Year end balance During the year

Companies Nil Nil

Firms Nil Nil

Directors & their relatives 5,85,12,222 5,85,12,222

The company has not granted loan to any company, firms or director of their relative during the year under audit & there is nil balance at the end of the year.

(b) In our opinion, the rate of interest and other terms and condition on which loans have been taken from/granted to companies, firms of other parties listed in the register maintained U/S 301 of the companies act, 1956 are not, prima facie, prejudicial to the interest of the company.

(c) The company is regular in repaying the principal amounts as stipulated and have been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

(d) There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the companies act, 1956.

IV. In our opinion and according to the information & 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 purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

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

(b) In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts of arrangements entered in the register maintained U/S 301 of the companies act, 1956 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. In our opinion and according to the information & explanations given to us, the company has complied with provisions of section 58A and 58AA of the companies act, 1956 and the companies (acceptance of Deposits) Rules, 1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

VII. In our opinion, the company has an internal audit system commensurate with the size and nature of the business.

VIII. The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt. for the maintenance of cost record are not applicable, hence not commented.

IX. (a) The company is regular in depositing with appropriate authorities (undisputed statutory P.F., Investor Education protection funds, Employs State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty, excise duty and cess were in arrears as at 31-3-2010 for the period of more than six months from the date they become payable.

(c) According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sale tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess NIL

X. The company had accumulated losses in the preceding financial year and is a sick industrial company in terms of section 3(1)(0) of the sick industrial companies (Special Provisions) Act 1985. The company has incurred cash loss in the current year under audit.

XI. In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures.

XII. We are of the opinion that company maintained adequate records where the company has granted loans and advance on the basis of securities by way of pledge shares, debentures and other securities.

XIII. In our opinion, the company is not chit fund or nidhi mutual benefit fund/society. Therefore, the provisions of class 4 (XIII) of the companies (auditors report) order 2003 or not applicable to the company.

XIV. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4 (XIV) of the companies (auditors report) 2003 or not applicable to the company.

XV. The company has not given any guarantee for loans taken by others from banks financial institutions and accordingly the sub clauses is not applicable.

XVI. The Co. has not granted loans and advances on the basis of securities by way of Share, Dividenture and other securities.

XVII. According to information and explanations given to us, and on an overall examination of the balance sheet of the company, we report that the no funds raised on short term basis have been used for long-term investment. No long-term funds have been used to finance short-terms assets.

XVIII. The assessee company has not applied / obtained any term loan during the period under audit hence the clause not applicable.

XIX. The Co. has not issued any debentures during the period under audit, thus the sub-clause in not applicable.

XX. The Co. has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI. According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

XXII. According to the information & explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For P.D. Mittal & Co.

Chartered Accountants

P.D. Mittal

(Partner)

M. No. 009459

Place : New Delhi

Date : 16-08-2010

---

Mar 31, 2009

1 We have audited the attached Balance Sheet of M/s. CARNEX LIMITED as at 31st March, 2009 the profit & loss account & the cash flow statement for the ended on that date ennexed thereto. These financila 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 wheather the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in financial statements. An audit also includes assessing the accounting principles used the significant estimates made by management, as well as evaluating the overall financial statements presentation, We believe that our audit provides a reasonable basis for our opinion.

3. The companies (Auditors Report) Order 2003, issued by the Central Govt, of India under sub-section (4A) of section 227 of the companies act 1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to u, we enclosed in the Annexure a statement of the matter specified in paragraph 4 & 5 of the ssd 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 purpose of our audit.

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and profit & loss account statement dealt 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 directors an on 31 st March, 2009 and taken on record by the Board of Directors we report that none of the directors is disqualified as on 31 st March, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act, 1956

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the companies act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in India.

(i) In the case of the balance sheet, of the state of affairs of the company as at 31 st March, 2009

(ii) In the case of the profit & loss account, of the profit for the year ended on that date.

(iii) In the case of the Cash Flow statement fo the cash flow for the year ended on that date.

AUDITORS REPORT

ANNEXURE TO THE AUDITORS REPORT: (Refer to in paragraph (1) of our Report of even date)

Reg. CRANEX LIMITED

Financial Year 2008-2009

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

(b) All the assets have not been physically verified by the management during the year but there is a regular program of verification 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) During the year, the company has not disposed off a major part of the plant & Machinery & accordingly the clause not applicable to this extent.

II (a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) The procedures for physical verification during the year 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 not maintaining adequate records of inventories. Further, the discrepancies between the physical records & the book record hence not been taken in record.

III (a) The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance loan taken from such parties are as under:

Maximum amount involved Year end balance During the year

Companies 6875722 6875722

Firms Nil Nil

Directors & their relatives 56929554 56929554

The company has not granted loan to any company, firms or director of their relative during the year under audit & there is nil balance at the end of the year.

(b) In our opinion, the rate of interest and other terms and condition on which loans have been taken from/granted to companies, firms of other

(c) The company is regular in repaying the principal amounts as stipulated and have been regular in the payment of interest.

(d) There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the companies act, 1956.

IV In our opinion and according to the information & 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 purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

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

(b) In oUr opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts of arrangements entered in the register maintained U/S 301 of the companies act, 1956 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 In our opinion and according to the information & explanations given to us, the company has complied with provisions of section 58Aand 58AAof the companies act, 1956 and the companies (acceptance of Deposits) Rules, 1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed the company law board.

VII In our opinion, the company has an internal audit system commensurate with the size and nature of the business.

VIII The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt, for the maintenance of cost record are not applicable, hence not commented.

IX (a) The company is not regular in depositing with appropriate authorities, undisputed statutory dues. We have observed inordinate delay/default while depositing the undisputed statutory dues. These delays & defaults if any are being shown in the separate annexure forming part of tax audit report/this report.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty, excise duty and cess were in arrears as at 31-3-2009 for the period of more than six months from the date they become payable.

(c) According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sale tax NIL

Income tax Nil

Excise duty Nil

Custom duty NIL

Wealth tax NIL

Cess NIL

X The company had accumulated losses in the preceding financial year and is a sick industrial company in terms of section 3(1 )(0) of the sick industrial companies (Special Provisions) Act 1985. However, the company has not incurred any cash loss in the current year under audit and has reported a cash profit.

XI In our opinion and according to the information and explanations given to us the company has defaulted in the repayment of dues to a financial institutions, Banks all debentures. The Co. has made a reference to BIFR according to the provisions of the law and has offered PICUP to pay of the terms loan dues in terms of RBI guidelines.

XII we are of opinion that company maintained adequate record where the company has guaranteed loans & advances on the basis of security by way of pledge of shares, Debenture & other security.

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 companies (auditors report) order, 2003 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. Accordingly, the provision of clause 4(XIV) of the companies (auditors report)order, 2003 are not applicable to the company.

XV The company has not given any guarantee for loans take by others, from banks or financial intuition & accordingly the sub-clause is not applicable.

XVI that the company has not granted loan & advances on the basis of security by way of pledge of shares Debenture or any other security.

XVII According to the information and explanations given to us, and on overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long term investment. NO long terms funds have been used to finance short term asset except permanent working capitals.

XVIII The Aassessee Company have not applied obtained in any terms loan during the period under audit hence the clause is not applicable.

XIX The Company has not issued any debentures during the period under audit, thus the sum-clause is not applicable.

XX The Company has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI According to the information & explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For P.D. Mittal & Co.

Charted Accountants

P.D. Mittal Place : New Delhi Partner

Date : 01-09- 2009 Membership No. 009459