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Auditor Report of Foundry Fuel Products Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Foundry Fuel Products Limited ("the Company"), which comprise the Balance Sheet as at 31stMarch, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (together referred to as financial statements).

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and 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 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 or error.

Auditor's Responsibility

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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing 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 of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 inIndia, of the state of affairs of the Company as at 31stMarch, 2015, and itsloss and its cash flows for the year ended on that date.

Emphasis of matter

We draw attention to the following matters in the notes to the financial statement:

a) Note 25 to the financial statements in respect of the Company's business which was dependent on the commencement of mining operation by its holding company. In view of the Hon'ble Supreme Court's order cancelling coal block allocations of various companies including the holding company, the Company is planning to initiate the process of searching another project. Further, in the opinion of the management, fixed assets are sufficiently and substantially depreciated / amortized and hence no adjustment would be required to its carrying value. For the purpose of payment to the trade liabilities, Company will be able get sufficient funds from holding company. Considering the same, accounts are prepared on going concern basis.

b) Note 27 to the financial statementsregarding pending appointment of Chief financial officer and Company secretary (key managerial personnel) as required by Section 203 of the Companies Act, 2013.Also the Company is in process of appointing woman director in accordance with Section 149 of the Companies Act, 2013.

Our opinion is not modified in respect of above matters.

Report on Other Legal and Regulatory Requirements

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

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

a) We have sought and obtained all the information and explanations which to the best of ourknowledge 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 faras 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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)Rules, 2014;

e) The going concern matter described in Emphasis of Matter paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

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

g) 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 ourinformation and according to the explanations given to us:

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

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

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

Annexure to Independent Auditor's Report for the year ended 31st March 2015

[Referred to in paragraph 1under the heading "Report on other legal and regulatory requirements" of our report of even date]

(i) In respect of fixed assets:

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

(b) Fixed assets have been physically verified during the year by the management. In our opinion, the frequency of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(ii) The Company does not hold any inventory. Therefore, clause (ii) (a), (b) and (c) of paragraph 4 of the Order relating to inventory is not applicable.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Act. Therefore, the requirement of clause (iii)(a) and (iii)(b) of paragraph 3 of the Order is not applicable to 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 nature of its business. During the year, activities of the Company did not involve purchase of inventory, purchase of fixed assets, the sale of goods and sale of services. During the course of our audit, we have not observed any continuing failure to correct major weakness in aforesaid internal control system.

(v) In our opinion and according to the explanations given to us, the Company has not accepted any deposits. Therefore, question of reporting compliance with directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and rules framed there under does not arise. We are informed that no order relating to the Company has been passed by the Company law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

(vi) As informed to us, the Central Government has prescribed the maintenance of cost records under Section 148 (1) of the Companies Act, 2013 in respect of coke manufacturing. However, there was no production of coke during the year and hence no cost records have been maintained and hence question of our comment on maintenance of these records does not arise.

(vii) In respect of statutory dues:

(a) According to the information and explanations given to us and on the basis of our examination of records of the Company, in respect of amounts deducted / accrued in the books of account, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues, as applicable to the Company, during the year with the appropriate authoritiesexcept few delays in payment of Tax Deducted at Source. There are no undisputed statutory dues payable in respect to above statues, outstanding as at 31st March 2015 for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us, there is no disputed dues of Income Tax, Sales-tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, and Cess as on 31st March, 2015 which have not been deposited on account of any dispute.

(c) According to the information and explanations given to us, there were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

(viii) The Company's accumulated losses as at the year-end is more than 50% of its net worth. The Company has incurred cash loss of Rs. 4,787,701during the current financial year. The Company had not incurred cash loss in the immediately preceding financial year.

(ix) The Company has neither taken any loan from financial institution / bank nor issued any debentures. Accordingly clause (ix) of paragraph 3 the Order is not applicable to the Company.

(x) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. Accordingly clause (x) of paragraph 3 of the Order is not applicable to the Company.

(xi) According to the information and explanations given to us, no term loans were raised during the year by the Company and therefore the question of utilization for stated purpose does not arise.

(xii) During the course of our examination of the books of account and records of the Company, carried out in accordance with generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any incidence of fraud on or by the Company noticed or reported during the year, nor have we been informed of any such case by the management.

For N.A. Shah Associates

Chartered Accountants

Firm's registration number : 116560W

Sd/-

Sandeep Shah

Partner

Membership number : 037381

Place : Mumbai

Date : 30th May, 2015


Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") read with 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 presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 3 F March 2014; (ii) in the case of the Statement of Profit and Loss, of the loss for year ended on that date and (iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Emphasis of matter

Reference is invited to note 28 of financial statements. Company''s business is dependent on the commencement of mining operation by its holding company which currently is uncertain. We are informed that Company will take up another project in case the holding company is not able to start its operation. Further the fixed assets are sufficiently and substantially depreciated / amortized and hence no adjustment would be required to its carrying value. Company''s current assets are sufficient to repay its current liabilities. Considering the same, accounts are prepared on going concern basis. Our opinion is not qualified in respect of this matter.

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 sub-section 3 of Section 227 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, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards notified under the Act read with General Circular 15/2013 dated 13* September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013; and

e. on the basis of the written representations received from the directors as on 31st March 2014 and taken on record by the Board of Directors, none of the directors are 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

The Annexure referred to in our Report to the members of Foundry Fuel Products Limited (''the Company'') for the year ended 31st March 2014. We report that:

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

(b) The fixed assets of the Company are to be physically verified by the management every year, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, fixed assets have been physically verified by the management during the year and no discrepancies were noticed on such verification.

(c) During the year, the Company has not disposed off any fixed assets. Therefore clause (i) (c) of paragraph 4 of the Order relating to fixed asset is not applicable.

ii. The Company does not hold any inventory. Therefore, clause (ii) (a), (b) and (c) of paragraph 4 of the Order relating to inventory is not applicable.

iii. a. According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms, or parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, clause (iii) (b), (iii) (c) and (iii)

(d) of paragraph 4 of the said Order are not applicable.

b. According to the information and explanations given to us, the Company has taken unsecured loans from companies covered in the register maintained under section 301 of the Companies Act, 1956. The details of which are as follows:

(Amount in Rs.) Nature of No. of Opening Amount relationship parties balance taken

Company having 2 350,000 2,440,000 common directors

Nature of Amount Closing Maximum relation ship repaid balance Outstanding Balance

Company having 2,550,000 240,000 2,440,000 Common directors

Other than above, the Company has not taken loan from other parties as listed in the register maintained under section 301 of the Companies Act, 1956.

c. As per the information and explanations given, loans taken are interest free and terms for repayment have not been specified in writing. Considering the same, loans taken are not prima facie prejudicial to the interest of the Company.

d. According to the information and explanations given to us, the loans are interest free and do not have any terms and conditions regarding repayment of principal. In absence of repayment terms, principal amount is considered as repayable on demand. As informed to us, principal amounts have been repaid as and when demanded. Considering the same, Company is regular in repayment of principal.

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 nature of its business for the purchase of fixed assets. There are no transactions entered during the year for purchase of inventory and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in aforesaid internal control system.

v. In our opinion and according to the information and explanations given to us, there are no transactions pertaining to contracts or arrangements that need to be entered into a register in pursuance of Section 301 of the Act. Therefore, clause (v) (b) of paragraph 4 of the Order is not applicable regarding our comment on whether prices are reasonable having regard to the prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanation given to us the Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. We are informed that no order relating to Company has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

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

viii. As informed to us, the Central Government has prescribed the maintenance of cost records under Section 209(l)(d) of the Companies Act, 1956 in respect of coke manufacturing. However, there was no production of coke during the year and hence no cost records have been maintained and hence question of our comment on maintenance of these records does not arise.

ix. (a) According to the information and explanations given to us and on the basis of our examination of records of the Company, in respect of amounts deducted / accrued in the books of accounts, the Company has been generally regular in depositing 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 any other material statutory dues as applicable to the Company, during the year with the appropriate authorities. There are no undisputed statutory dues payable in respect to above statutes, outstanding as at 31st March 2014 for a period of more than six months from the date they became payable.

(b) According to the records of the Company and information and explanations given to us, there are no dues of income tax, sales tax, service tax, customs duty, wealth tax, excise duty and cess which have not been deposited with appropriate authorities on account of any dispute.

x. The Company s accumulated losses as at the year-end is more than 50% of its net worth.

The Company has not incurred cash loss during the current financial year. The Company had incurred cash loss ofRs. 3,281,093 in the immediately preceding financial year.

xi. The Company has neither taken any loan from financial institution / bank nor issued any debentures. Therefore clause (xi) of paragraph 4 of the Order is not applicable.

xii. According to information and explanation given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore, clause (xii) of the paragraph 4 of the Order relating to maintenance of documents and records is not applicable.

xiii. In our opinion, the company is not a chit fund or a Nidhi / mutual benefit fund/society. Therefore, clause (xiii) of paragraph 4 the Order is not applicable.

xiv. According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Therefore, the clause (xiv) of paragraph 4 of the Order is not applicable to the Company. All the investments are held in Company''s name except as per the exemption given under section 49 of the Act.

xv. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. Accordingly, the provisions of clause (xv) of Paragraph 4 of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company

xvi. The company has not raised any term loans. Therefore, provisions of Clause 4(xvi) of the Order are not applicable to the Company.

xvii. In our opinion and according to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that funds raised on short-term basis have not been used for long-term investment by the Company.

xviii. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act.

xix. The Company has neither issued nor has outstanding debentures and therefore, clause (xix) of para 4 of the order regarding creation of securities or charge is not applicable.

xx. The Company has not raised any money by way of public issues.

xxi. During the course of our examination of the books of account and records of the Company, carried out in accordance with generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any incidence of fraud on or by the Company noticed or reported during the year, nor have we been informed of any such case by the management.

For N. A. Shah Associates Chartered Accountants Firm Registration No. 116560W

sd/- Sandeep Shah Place: Mumbai Partner Date : 30th May, 2014 Membership No. 37381


Mar 31, 2013

Report on Financial Statements

We have audited the accompanying financial statements of Foundry Fuel Products Limited (the ''Company''), which comprise the Balance Sheet as at 31 March 2013, the Statement of Profit and Loss and 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

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 main- tenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclo- sures in the financial statements. The procedures selected depend on the auditor''s judgment, includ- ing 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:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2013; (ii) in the case of the Statement of Profit and Loss, of the loss for 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.

Other matters

st The financial statements of the Company as on 31 March, 2012 were audited by another auditor whose report dated 2 July 2012 expressed an unmodified opinion. We have relied on the said financial statement for the purpose of confirming the opening balances of assets and liabilities as on 1 April, 2012 in respect of the year under audit.

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 sub-section 3 of Section 227 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 Com- pany 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 subsection (3C) of section 211 of the Companies Act, 1956; and

st

e. on the basis of written representations received from the directors as on 31 March

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

Annexure to the Auditors'' Report

The Annexure referred to in our Report to the members of Foundry Fuel Products Limited (''the Company'') for the year ended 31 March 2013. We report that:

1. a. The Company has maintained the fixed asset register showing full particulars including

quantititative details and situations of its fixed assets.

b. As per information and explanation given to us, the Company has physically verified substantial part of the fixed assets subsequent to year end. In our opinion, the frequency for physical verification of fixed assets is reasonable. As explained to us no material dis- crepancies were noticed on such verification.

c. In our opinion and according to the information and explanations given to us, the Com- pany has not disposed off substantial part of its fixed assets during the year and there- fore do not affect going concern status.

2. Since the Company does not hold any inventory, in our opinion, clause (ii) (a) (b) & (c) of paragraph 4 of the Order is not applicable

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

* Loan converted to equity share capital pursuant to BIFR Order.

Other than above, the Company has not taken loan from other parties as listed in the register maintained under section 301 of the Companies Act, 1956.

c. As per the information and explanations given, loans taken are interest free and terms for repayment have not been specified in writing. Considering the same, loans taken are not prima facie prejudicial to the interest of the Company.

d. According to the information and explanations given to us, the loans are interest free and do not have any terms and conditions regarding repayment of principal. In absence of repayment terms, principal amount is considered as repayable on demand. As informed to us,

principal amount in respect of Group Company has been repaid as and when demanded. Further loan taken from director was converted into equity share capital pursuant to BIFR order during the year.

4. Though there were no transactions for the purchase of inventory & fixed assets and sale of goods and services during the year, 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 nature of its business for such transactions. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control system of the Company.

5. a. According to information and explanations given to us, the particulars of contracts or Arrangements referred to in section 301 of the Companies Act, 1956 which needs to be entered in the register required to be maintained under that section have been so entered.

b. According to the information and explanation given to us in respect of transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 does not exceed Rs. 500,000/- in respect of any party, Therefore, provisions of the clause (v)(b) of paragraph 4 of the Order are not applicable to the Company.

6. The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under. We are informed that no order relating to Company has been passed by the Company law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal.

7. The Company has appointed a firm of chartered accountants to carry out concurrent audit function pursuant to BIFR order. In our opinion, internal audit system is commensurate with the size of the Company and nature of its business

8. As informed to us, the Central Government has prescribed the maintenance of cost records under Section 209( 1 )(d) of the Companies Act, 1956 in respect of coke manufacturing. How- ever, there was no production of coke during the year and hence no cost records have been maintained and hence question of our comment on maintenance of these records does not arise.

9. a. According to the information and explanations given to us and on the basis of our exami- nation of records of the company, in respect of amounts deducted / accrued in the books of account, the Company is regular in depositing the undisputed statutory dues including investor education & protection fund, provident fund, income-tax, wealth tax, customs duty, cess and any other material statutory dues as applicable with the appropriate au- thorities except minor delays in depositing of service tax and tax deducted at source. There were no undisputed amounts outstanding as at 31 March, 2013 for a period of more than six months from the date when they became payable.

b. According to the information and explanations given to us, there were no dues in respect of Income Tax, Sales Tax, Service Tax, Customs Duty, Wealth Tax, Excise Duty or Cess that have not been deposited on account of dispute.

10. The Company''s accumulated losses as at the year-end is more than 50% of its net worth. The Company has incurred cash loss during the current financial year of Rs. 3,281,093. The Company had not incurred any cash losses in the immediately preceding financial year.

11. Based on our audit procedures and the information and explanations given by the management, the Company has not taken any loans from banks / financial institutions / debenture holders during the year. Therefore clause (xi) of paragraph 4 of the Order is not applicable.

12. According to information and explanation given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities and accordingly clause (xii) of the paragraph 4 of the said Order relating to main- tenance of documents and records is not applicable.

13. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause (xiii) of the paragraph 4 of the said Order relating to compliance with the provisions of special statute relevant 10 chit fund and nidhi/mutual benefit/societies are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accord- ingly, provisions of clause (xiv) of the paragraph 4 of the said Order relating to the main- tenance of proper records and timely entries are not applicable to the Company. All the in- vestments are held in Company''s name except as per the exemption given under section 49 of The Companies Act, 1956.

15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions. Therefore Clause (xv) of the paragraph 4 of the order is not applicable to the Company.

16. According to the information and explanations given to us, the Company has not taken any term loan. Therefore, clause (xvi) of the paragraph 4 of the Order regarding use of term loan is not applicable to the Company.

17. According to the information and explanations given to us and on an overall examination of the balance sheet and cash flow statement of the Company, we report that during the year, the Company has not utilised funds raised on short term basis for the purpose of long term investments.

18. During the year, the Company has made the preferential allotment of shares to a party covered under register maintained under section 301 of the Companies Act, 1956 in ac- cordance with BIFR Order. In our opinion, the prices at with shares have been issued is not prejudicial to the interest of the company.

Other than above, the Company has not made preferential allotment to companies listed in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures and hence no securities are required to be created.

20. The Company has not raised any money by way of public issue. Therefore, the provisions of clause (xx) of paragraph 4 of the aforesaid Order are not applicable.

21. During the course of our examination of the books of account, carried out in accordance with generally accepted auditing practices in India, and according to the information and ex- planations given to us, we have neither come across of any incidence of fraud on or by the Company which is noticed or reported during the year, nor have we been informed of any such case by the management.

For N.A.Shah Associates

Chartered Accountants

Firm Registration No.: 116560W

sd/-

Sandccp Shah Partner

Membership No. 37381

Place: Mumbai

Dated: 29th May, 2013


Mar 31, 2012

We have audited the attached Balance Sheet of M/s Foundry Fuel Products Ltd. as at 31st March 2012 and also the Profit and Loss Account for the year ended on that date annexed thereto and Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have 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 that 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.

As required by the Companies (Auditors Report) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(iii) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as on 31s1 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 and Notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

(b) in the case of the Profit and Loss Account, of the Loss for the year ended on that date.

(c) In the case of Cash Flow Statement of the Cash flows of the company for the year ended on that date.

Annexure

Referred to in paragraph 3 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 on the basis of available information.

(b) All the fixed 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.

(c) In our opinion, the company has not disposed off substantial part of fixed assets during the year and the going concern status of the company is not affected.

(ii) According to information and explanations given to us, there was no inventory. Therefore, the provisions of clause 4(ii) of the Companies (Auditors Report) Order, 2004 are not applicable to the company.

(iii) (a) The Company has not granted any loan secured or Unsecured to the companies, Firm or other parties covered in registered maintained u/s. 301 of the Companies Act 1956. Accordingly clause (iii) (b) to (iii) (d) of paragraph 4 of the Order are not applicable to the company for the current year.

(b) The company has taken interest free un-secured loan from one party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 95.00 Lacs and the year-ended balance of loans taken from such Party was Rs. 95.00 Lacs.

(c) In our opinion and according to the information and explanation given to us, the rate of Interest and other terms and conditions on which loan have been taken are not, prima facie prejudicial to the interest of the company.

(d) There was no stipulation for repayment of the above loan but the same was stated to be repayable on demand .

(iv) In our opinion and according to the information and explanations given to us, there are ad- equate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to 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 controls system.

(v) (a)(b) In our opinion and according to the information and explanations given to us, the trans- actions made in pursuance of contacts or arrangements, that needed to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered. In our opinion and according to the information and explanations given to us, there are no transaction in pursuance of contract or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or more in respect of any party in the said financial year.

(vi) According to information and explanations given to us, the company has not accepted any deposits from public; hence the provisions of sections 58A and 58AA of the Companies Act, 1956 and rules framed there under are not applicable.

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

(viii) As informed to us the Central Government has not prescribed the maintenance of cost records under section 209(1) (d) if the Companies Act, 1956 for the company. .

(ix) (a) In our opinion and according to information given to us the company is generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. No statutory dues were in arrears, as at 31.03.2012 for a period of more than six months from the date they became payable. .

(b) According to the information and explanation given to us, there are no dues of sale tax, income tax, wealth tax, service tax, customs duty, excise duty and cess which have not been deposited on account of any dispute.

(x) Accumulated losses of the company are more than 50% of its net worth. The company has not incurred cash losses during the financial year covered by our audit and also not incurred cash losses in immediately preceding financial year.

(xi) Based on our audit procedures and as per the information & explanation given by the management, the company has not taken any amount during the year from any financial institutions or banks and the company has not issued any debentures. Therefore, the provisions of clause 4(xi) of the Companies (Auditors Report) Order, 2004 are not applicable to the company

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

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. There- fore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2004 are not applicable to the company.

(xiv) According to the information and explanations given to us the company has not entered in any transactions or contracts in respect of trading in shares, securities, debentures and other investments.

(xv) According to the information and explanations given to us the company has not given guarantees for loan taken by others from banks or financial institutions.

(xvi) In our opinion, the company has not taken any term loan.

(xvii) According to the information and explanations given to us and overall examination of the Cash Flow Statement and Balance Sheet of the Company, in our opinion, the fund raised on short term basis have, prima facie, not been used for long term Investment..

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act, 1956.

(xix) According to the information and explanations given to us, the company has not is- sued any secured debentures during the period covered by our report. Accordingly provisions of Clause 4 (xix) of the Companies (Auditors Report) Order 2004 are not applicable to the company.

(xx) During the period covered by our audit report, the company has not raised any money by way of public issues during the year.

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

For ASHOK KEDIA & COMPANY,

CHARTEREDACCOUNTANTS,

Regn. No. 323330E

4, Gangadhar Babu Lane,

Kolkata-700 012.

Dated the 2nd day of July, 2012. CA. A.K. KEDIA

PARTNER

M. No. 050510


Mar 31, 2010

We have audited the attached Balance Sheet of M/s Foundry Fuel Products Ltd. as at 31st March 2010 and also the Profit and Loss Account for the year ended on that date annexed thereto and Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have 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 assur- ance that the financial statements are free of material misstatement. An audit includes examin- ing, 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.

As required by the Companies (Auditors Report) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

(iii) The Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the directors, as 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 ap- pointed 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 expla- nations given to us, the said accounts read with Notes to the account in Schedule No. 11 give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

(b) in the case of the Profit and Loss Account, of the Loss for the year ended on that date.

(c) In the case of Cash Flow Statement of the Cash flows of the company for the year ended on that date.

Annexure Referred to in paragraph 3 of our report of even date.

i) (a) The company has maintained proper records showing full particulars including quan- titative details and situation of fixed assets on the basis of available information.

(b) All the fixed 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 reason- able 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 of any fixed assets.

(ii) According to information and explanations given to us, there was no inventory. Therefore, the provisions of clause 4(ii) of the Companies (Auditors Report) Order, 2004 are not applicable to the company.

(iii) (a) The Company has not granted any loan secured or Unsecured to the companies, Firm or other parties covered in registered maintained u/s. 301 of the Companies Act 1956. Accordingly clause (iii) (b) to (iii) (d) of paragraph 4 of the Order are not applicable to the company for the current year.

(e) The company has taken interest free un-secured loan from one party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 95.00 Lacs and the year-ended balance of loans taken from such Party was Rs. 95.00 Lacs.

(f) In our opinion and according to the information and explanation given to us, the rate of Interest and other terms and conditions on which loan have been taken are not, prima facie prejudicial to the interest of the company.

(g) Loans taken by the company is repayable on demand.

(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 purchases of inventory, fixed assets and with regard to 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 controls system.

(v) (a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contacts or arrangements, that needed to be entered in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transaction in pursuance of contract or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- or more in respect of any party in the said financial year.

(vi) According to information and explanations given to us, the company has not accepted any deposits from public; hence the provisions of sections 58 A and 58AA of the Compa- nies Act, 1956 and rules framed there under are not applicable.

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

(viii) As informed to us the Central Government has not prescribed the maintenance of cost records under section 209(1) (d) if the Companies Act, 1956 for the company.

(ix) (a) The Company has been generally regular in depositing income-tax, sales tax and cess with the appropriate authorities. The provisions relating to provident fund, in- vestor education and protection fund, employees state insurance, wealth tax, service tax, custom duty and excise duty are not applicable to the Company.

According to the information & explanation given to us, there is no undisputed amount payable in respect of income-tax, sales tax and cess which were outstanding at the year end, for a period of more than six months from the date they become payable. The provisions relating to provident fund, employees state insurance, wealth tax, service tax, custom duty and excise duty are not applicable to the Company.

(b) As at 31st March 2010, according to the records of the company and information & explanation given to us, the disputed statutory dues aggregating Rs.72,30,746.32, that have not been deposited on account of disputed matters pending before appro- priate authorities arc as under.

Period to Name of Nature of dues Amount which the statute in Rs. amount relates

Sales Tax Law Central Sales Tax 323,762.00 Year Ended 31.03.1986

Sales Tax Law Central Sales Tax 97405.00 Year Ended 31.03.1987

Sales Tax Law Central Sales Tax 3,14,413.64 Year Ended Jharkhand Sales Tax 1,44,412.68 31.03.1995

Sales Tax Law Central Sales Tax 10,71,905.00 Year Ended

Jharkhand Sales Tax 156,586.00 31.03.1997

Sales Tax Law Central Sales Tax 54932.00 Year Ended 31.03.1999

Sales Tax Law Central Sales Tax 2,09,875.00 Year Ended

Jharkhand Sales Tax 69,493.00 31.03.2000

Sales Tax Law Central Sales Tax 71,373.00 Year Ended 31.03.2001

Sales Tax Law Central Sales Tax 11,56,995.00 Year Ended 31.03.2002

Sales Tax Law Central Sales Tax 10,75,838.00 Year Ended 31.03.2003

Sales Tax Law Central Sales Tax 9,30,420.00 Year Ended 31.03.2004

Sales Tax Law Central Sales Tax 12,96,892.00 Year Ended 31.03.2005

Sales Tax Law Central Sales Tax 1,68,338.00 Year Ended

Jharkhand Sales Tax 88,106.00 31.03.2006

Name of Forum where statute dispute is pending

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

Sales Tax Law DCCT, Dhanbad

(x) Accumulated losses of the company are more than 50% of its net worth. The company has incurred cash losses during the financial year covered by our audit but not incurred cash losses in immediately preceding financial year.

(xi) Based on our audit procedures and as per the information & explanation given by the management, the company has not taken any amount during the year from any financial institution and bank and the company has not issued any debentures. Therefore, the provisions of clause 4(xi) of the Companies (Auditors Report) Order, 2004 are not applicable to the company

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

(xiii) In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2004 are not applicable to the company.

(xiv) According to the information and explanations given to us the company has not entered in any transactions or contracts in respect of trading in securities, debentures and other investments.

(xv) According to the information and explanations given to us the company has not given guarantees for loan taken by others from banks or financial institutions.

(xvi) In our opinion, the company has not taken any term loan.

(xvii) According to the information and explanations given to us and overall examination of the Cash Flow Statement and Balance Sheet of the Company, in our opinion, the fund raised on short term basis have, prima facie, not been used for long term Investment..

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register main- tained under section 301 of the Act, 1956.

(xix) According to the information and explanations given to us, the company has not issued any secured debentures during the period covered by our report. Accordingly provi- sions of Clause 4 (xix) of the Companies (Auditors Report) Order 2004 are not appli- cable to the company.

(xx) During the period covered by our audit report, the company has not raised any money by way of public issues during the year.

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

For ASHIOK KEDIA & COMPANY, CHARTERED ACCOUNTANTS

CA. A.K. KEDIA PARTNER M. No. 050510

4, Gangadhar Babu Lane, Kolkata-700012.

Dated the 21st day of July, 2010.