Auditor Report of Indo Rama Synthetics (India) Ltd.

Mar 31, 2022

Report on the Audit of the Standalone FinancialStatementsOpinion

1. We have audited the accompanying standalone financial statements of Indo Rama Synthetics (India) Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter(s)

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

5. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter	How our audit addressed the key audit matter
Recognition of deferred tax assets (Refer note 8 to the accompanying	Our audit procedures in relation to the recognition of deferred tax assets
standalone financial statements)	included, but were not limited to, the following:
As detailed in note 8 to the accompanying standalone financial statements,	•	Evaluated the design and tested the operating effectiveness of key
the Company has deferred tax assets (net) aggregating to ^258.61 crores as		controls implemented by the Company over recognition of deferred
at 31 March 2022.		tax assets based on the assessment of Company''s ability to generate
During the current year, the Company has recognised deferred tax assets		sufficient taxable profits in foreseeable future allowing the use of deferred
amounting to ^50.08 crores on the basis of improved operational and market		tax assets within the time prescribed by income tax laws.
performance achieved during the year.	•	Reconciled the future taxable profit projections to future business plans
The Company''s ability to recover the deferred tax assets is assessed by		of the Company as approved by the management.
the management at the close of each financial year which depends on the	•	Tested the assumptions used in the aforesaid future projections such
forecasts of the future results and taxable profits that Company expects to		as growth rates, expected saving, increased utilisation of plants, etc.
earn within the period by which such brought forward losses can be adjusted		considering our understanding of the business, actual historical results,
against the taxable profits as governed by the Income-tax Act, 1961.		other relevant existing conditions, external data and market conditions,
The projected cash flows involve key assumptions such as future growth		including the impact of COVID-19 pandemic on such assumptions.
rate and market conditions including considering impact of COVID-19	•	Tested the arithmetical accuracy of the calculations including those
pandemic. Any change in these assumptions could have a material impact		related to sensitivity analysis performed by the management.
on the carrying value of deferred tax assets. These assumptions and estimates	•	Performed independent sensitivity analysis to test the impact of possible
are judgmental, subjective and depend on the future market and economic		variations in key assumptions.
conditions, including industry focused trade policies, materialisation of the	•	Reviewed the historical accuracy of the cash flow projections prepared
Company''s expansion plans.		by the management in prior periods.
We have identified the recoverability of deferred tax assets recognised	•	Evaluated management''s assessment of time period available for
on carried forward tax losses and unabsorbed depreciation as a key audit		adjustment of such deferred tax assets as per provisions of the Income-
matter for the current year audit considering the materiality of the amounts,		tax Act, 1961 and appropriateness of the accounting treatment with
complexities and significant judgments involved, as described above.		respect to the recognition of deferred tax assets as per requirements of Ind AS 12, Income Taxes.
		Evaluated the appropriateness for additional recognition of deferred tax asset during the year. Evaluated the appropriateness and adequacy of the disclosures made in the standalone financial statements in respect of deferred tax assets in accordance with applicable accounting standards.

Key audit matter	How our audit addressed the key audit matter
Provisions and contingent liabilities relating to litigations (Refer note 20 and note 35 to the accompanying standalone financial statements) As detailed in note 20 and note 35 to the standalone financial statements, the Company is exposed to a large number of litigations including matters pertaining to income tax and prior years'' matters pertaining to excise, customs, sales tax, value added tax, service tax, etc., which could have a significant impact on the financial position of the Company, if the potential exposures were to materialize. Provision for such litigations amounts to ^38.30 crores as at 31 March 2022 based on its estimate of the likelihood of such liability devolving upon the Company. The amounts involved are material and the application of accounting principles as given under Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets'', in order to determine the amount to be recognised as a liability or to be disclosed as a contingent liability, in each case, is inherently subjective, and needs careful evaluation and judgement to be applied by the management. The key judgements involved are with respect to the potential exposure of each litigation and the likelihood and/or timing of cash outflows from the Company, and requires interpretation of laws and past legal rulings. Considering the significant judgments, materiality of the amounts involved, inherent high estimation uncertainty and reliance on legal and tax experts, this matter has been identified as a key audit matter for the current year audit.	Our audit procedures in relation to the assessment of litigations and provisions included, but were not limited to, the following: • Obtained an understanding of the management process for: - identification of legal and tax matters initiated against the Company, - assessment of accounting treatment for each such litigation identified under Ind AS 37 accounting principles, and - measurement of amounts involved • Evaluated the design and tested the operating effectiveness of key controls around above process including for completeness and accuracy of the list of litigations outstanding against the Company. • Obtained understanding of the developments during the year in each existing litigation, and understanding of the new litigations initiated against the Company during the year by inquiry with the management, inspection of case related documents such as notices, orders, etc. and correspondence of the Company with their external counsels handling such matters on behalf of the Company. • Conducted a critical review of the assessment done by the management with the help of its legal and tax experts for the likelihood and potential impact of each litigation, examining the available supporting documents. Tested the independence, objectivity and competence of such experts involved. • Exercised our professional judgment to assess the management''s assessment of the potential likelihood of liability devolving upon the Company with respect to each legal case. • Involved auditor''s experts to assess the Company''s interpretation and application of relevant tax laws to evaluate the appropriateness of key assumptions used and the reasonableness of estimates made in relation to uncertain tax positions, taking into account past precedents. • Reviewed significant movements in provision with supporting documents. • Tested the underlying calculations of amount of liability recognized and contingent liability disclosed in the standalone financial statements.
		Evaluated the appropriateness and adequacy of disclosures made in the standalone financial statements with respect to provisions and contingent liability in accordance with applicable accounting standards.

Information other than the Financial Statements andAuditor''s Report thereon

6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this auditor''s report.

Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged withGovernance for the Standalone Financial Statements

7. The accompanying standalone financial statements have been approved by the Company''s Board of Directors. The Company''s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

8. In preparing the financial statements, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the StandaloneFinancial Statements

10. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3) (i) of the Act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system with reference to financial statements in place and the operating effectiveness of such controls;

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s

ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern;

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation;

12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

15. As required by section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.

16. As required by the Companies (Auditor''s Report) Order, 2020 (''the Order'') issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure A a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

17. Further to our comments in Annexure A, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable, that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and

belief were necessary for the purpose of our audit of the accompanying standalone financial statements;

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 standalone financial statements dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;

e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of section 164(2) of the Act;

f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on 31 March 2022 and the operating effectiveness of such controls, refer to our separate Report in Annexure B wherein we have expressed an unmodified opinion; and

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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:

i. The Company, as detailed in note 35 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2022;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2022;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2022;

iv. a. The management has represented that, to the

best of its knowledge and belief, as disclosed in note 50(e) to the standalone financial statement, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other

sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;

b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 50(f) to the standalone financial statement, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our attention that causes us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.

v. The Company has not declared or paid any dividend during the year ended 31 March 2022.

For Walker Chandiok & Co LLP

Chartered Accountants Firm''s Registration No.: 001076N/N500013

Tarun Gupta

Partner

Membership No.: 507892 UDIN: 22507892AIDKLN9908

Place: Gurugram Date: 28 April 2022

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Mar 31, 2018

INDEPENDENT AUDITOR''S REPORT

To the Members of

Indo Rama Synthetics (India) Limited

1. Report on the Audit of the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Indo Rama Synthetics (India) Limited (“the Company”), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

2. Management''s Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the state of affairs, profit/loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.

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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

3. Auditor''s Responsibility

Our responsibility is to express an opinion on these Ind AS 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 of the Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.

We are also responsible to conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor''s report. However, future events or conditions may cause an entity to cease to continue as a going concern.

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

4. Basis for Qualified Opinion

(i) Attention is drawn to note 41(a) of the Ind AS financial statements relating to Deferred Tax Assets amounting to Rs, 95.90 crores as at 31 March 2018 recognized by the Company on the basis of future outlook of business confirming that sufficient future taxable income will be available against which these assets will be realized. In view of losses suffered in the current as well as preceding periods, and other unused tax losses available to the Company, we are not in agreement with the deferred tax assets recognized. Had such asset not been recognized, the net loss after tax for the year ended 31 March 2018 and 31 March 2017 would have been higher by Rs, 41.82 crores and Rs, 54.08 crores respectively, and other equity as at 31 March 2018 and 31 March

2017 would have been lower by Rs, 95.90 crores and Rs, 54.08 crores respectively. The matter was subject to qualification in the previous period as well.

(ii) Attention is drawn to note 39(b) of the Ind AS financial statements, which enumerates recognition of interest of Rs, 16.79 crores in the books by the Company on the insurance claim recoverable from its insurance company for the loss of certain assets and loss suffered due to business interruption at its plant in 2007-08. The said recognition of asset being contingent in nature, is not in accordance with accounting principle stated in Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets''. Had such asset not been recognized, the net loss before and after tax for the year ended 31 March 2018 and 31 March 2017 would have been higher by Rs, 2.92 crores and Rs, 2.92 crores respectively, and other equity as at 31 March 2018 and 31 March 2017 would have been lower by Rs, 16.79 crores and Rs, 13.87 crores respectively. The matter was subject to qualification in the previous periods as well.

5. Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for

the matter described in the ‘Basis for Qualified Opinion'' paragraph above, the aforesaid Ind AS 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 including Ind AS, of the state of affairs of the Company as at 31 March 2018, its loss, other comprehensive income, changes in equity and its cash flows for the year ended on that date.

6. Going Concern

We draw attention to note 41 of the Ind AS financial statements, which indicates that the Company has incurred a net loss before tax of Rs, 124.86 crores during the year ended 31 March 2018 and, as of that date, the Company''s current liabilities exceeded its current assets. Based on, and as fully explained by the management in note 41 of the Ind AS financial statements on the initiatives taken, we believe the Company shall be able to continue as a going concern.

7. Emphasis of matter

We draw an attention to note 39(a) of the Ind AS financial statements which describes the uncertainty related to the outcome of the lawsuit filed by the Company against an insurance company.

Our opinion is not modified in respect of this matter.

8. Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor''s Report) Order, 2016 (‘the Order'') issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure I”, a statement on the matters specified in paragraphs 3 and 4 of the Order.

(ii) 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. Except for the effects of the matter described in the ‘Basis for Qualified Opinion'' paragraph above, 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, the Cash Flow Statement and Statement of Changes in Equity, dealt with by this Report, are in agreement with the books of account;

d. Except for the effects of the matter described in the ‘Basis for Qualified Opinion’ paragraph, in our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act;

e. The matter described in the ‘Basis for Qualified Opinion’, ‘Going concern’ and ‘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 31 March

2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed as a director in terms of Section 164 (2) of the Act;

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

h. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure II”;

i. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer notes 37 and 39 to the Ind AS financial statements;

(ii) The Company did not have any long-term contracts, including derivative contracts outstanding as at 31 March 2018 for which there were any material foreseeable losses;

(iii) There has been no delay in transferring amounts that were required to be transferred to the Investor Education and Protection Fund by the Company; and

(iv) The disclosure in the financial statements regarding holdings as well as dealings in Specified Bank Notes during the period from 8 November 2016 to 30 December 2016 have not been made since they do not pertain to the financial year ended 31 March 2018. However, amounts as appearing in the audited financial statements for the year ended 31 March 2017 have been disclosed - Refer note 36 to the Ind AS financial statements.

(i) (a) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets (property, plant and equipment and intangible assets).

(b) According to the information and explanations given to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, certain categories of fixed assets at certain locations have been physically verified by the management during the year. As informed to us, no material discrepancies were observed on such verification.

(c) According the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company.

(ii) According to the information and explanations given to us, the inventories, except for goods in transit and stocks with third parties, have been physically verified, at reasonable interval by the management during the year. For stocks lying with third parties at the year end, written confirmations are obtained. As informed to us, no material discrepancies were noticed on such verification.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register required under section 189 of the Companies Act, 2013 (‘the Act''). Accordingly, paragraph 3(iii) of the Order is not applicable.

(iv) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no loans, investments, guarantees, and security where provisions of section 185 and 186 of the Act are required to be complied with. Accordingly, the provisions of paragraph 3(iv) of the Order is not applicable.

(v) According to the information and explanations given to us, the Company has not accepted any deposits covered under section 73 to 76 of the Act. Accordingly, the provisions of paragraph 3(v) of the Order is not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations

given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other material statutory dues, to the extent applicable, have generally been regularly deposited with the appropriate authorities except dues related to Provident Fund, Employees'' State Insurance, Tax Deducted at Source and Goods and Service Tax which have not generally been regularly deposited with the appropriate authorities and there has been significant delays during the year.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income tax, GST, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added tax, Cess and other material statutory dues, to the extent applicable, were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, and on the basis of the records of the Company examined by us, there are no dues of Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise and Value Added Tax, which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:

Name of the statute	Nature of dues	Amount of dispute (Rs, Crores) #	Amount paid under protest (Rs, Crores)	Period to which it relates	Forum where dispute is pending
The Central Excise Act, 1944	Duty of Excise	1.06 5.70 0.51	2.50	2002-03 2003-04 to 2005-06 March 2008-December 2010	Bombay High Court, Nagpur Bench
		59.34	5.90	1996- 97 and 200102 to 2009-10	Customs, Excise and Service Tax Appellate Tribunal
		29.44		1996-97 to 2002-03, 2004-05 to 2008-09 and 2011-12 to 2015-16	Commissioner of Central Excise and Customs (Appeals)
		6.66	0.05	1997-98 to 2012-13	Commissioner/ Assistant Commissioner/ Deputy Commissioner
Bombay Sales Tax Act,1959/ Central Sales Tax Act, 1956	Sales Tax	0.43	0.13	1998-99 to 1999-00	Joint Commissioner Sales Tax (Appeals), Nagpur
Maharashtra Value Added Tax Act, 2002	Value Added Tax	17.59	5.60	2008-09 to 2013-14
Customs Act, 1962	Duty of	214.25	-	2006-07	Supreme Court
	Customs	3.67	0.13	2014-15 and 2015-16	Customs, Excise and Service Tax Appellate Tribunal
		6.01	-	2006-07	Commissioner of Customs
		0.04	-	1997- 98 to 1998-99	Assistant Commissioner/ Deputy Commissioner
Finance Act, 1994	Service Tax	0.22	0.08	2004-05 to 2009-10	Customs, Excise and Service Tax Appellate Tribunal
		0.22	-	2002-03 to 2005-06	Commissioner, Nagpur
		0.93	0.01	2007-08, 2010-11 to 2013-14	Commissioner (Appeals), Nagpur
		0.31		1997-98, 2000-01 and 2010-11 to 2014-15	Assistant/ Deputy Commissioner Nagpur
Income tax Act, 1961 *	Income Tax	0.26	0.26	AY 2006-07	Commissioner of Income Tax (Appeals)
		0.33	-	AY 2017-18	Commissioner of Income Tax

*excluding cases where losses/unabsorbed depreciation have been adjusted by the tax authorities without raising any demands, though disputed by the Company.

# including interest/penalties, where quantified and demanded by authorities.

(viii) According to the information and explanations given to us, the Company has not defaulted in the payment of loans or borrowing to the banks, except for delays in the repayment of term loans and dues (cash credit accounts) to banks. Details of delays and amount in default outstanding as at 31 March 2018 are given below:

Bank Name	Nature of loan	Total amount delayed (Rs, Crores)	No of days	Amount outstanding as at 31 March 2018 (Rs, Crores)
Cash Credit
Bank of India		549.15	1 to 56 days	141.00
HDFC Bank		155.46	1 to 77 days	-
Punjab National Bank	............................. Overdue	154.68	1 to 65 days	26.58
State Bank of India		385.52	1 to 66 days	0.72
Oriental Bank of Commerce		271.67	1 to 84 days	17.76
Axis Bank		148.41	1 to 72 days	5.07
Term Loan
Bank of India		10.00	1 to 37 days	-
State Bank of India	Overdue	5.62	1 to 58 days	-
IKB Deutsche Bank		26.62	1 to 530 days	26.62

Further, there are no loans or borrowings from financial institutions or government and there are no dues to debenture holders during the year.

(ix) According to the information and explanations given to us, the term loan taken by the Company have been applied for the purposes for which they were raised. The Company has not raised any moneys by way of initial public offer or further public offer.

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

(xi) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the managerial remuneration has been paid/ provided in accordance with the provisions of section 197 read with Schedule V to the Companies Act, 2013 except Rs, 0.97 crores which had been paid as Managerial Remuneration by the Company to one of its directors for services rendered in excess of the amount approved by the Central Government vide approval SRN G02817724/2016-CL.VII respectively. The Company is awaiting approval of its submission filed under relevant rules.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, the provisions of paragraph 3(xii) of the Order is not applicable.

(xiii) According to information and explanations given to us and on the basis of our examination of the records of the Company, all transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in the standalone Ind AS financial statements, as required by the applicable accounting standards.

(xiv) According to information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, the provisions of paragraph 3(xiv) of the Order is not applicable.

(xv) According to information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of paragraph 3(xv) of the Order is not applicable.

(xvi) According to information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls with reference to financial statements of Indo Rama Synthetics (India) Limited (“the Company”) as of 31 March 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on ‘Audit of Internal Financial Controls over Financial Reporting’ issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditor''s Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on ‘Audit of Internal Financial Controls Over Financial Reporting’ (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgments, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls

with reference to Financial Statements

A company’s internal financial control with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial statements and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at 31 March 2018, based on the internal control over financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

For B S R and Associates

Chartered Accountants ICAI

Firm Registration Number: 128901W

Jiten Chopra

Place: Gurugram Partner

Date: 28 May 2018 Membership No.: 092894

---

Mar 31, 2016

To the Members of

Indo Rama Synthetics (India) Limited

1. Report on the Standalone Financial Statements

We have audited the accompanying financial statements ("standalone financial statements") of Indo Rama Synthetics (India) Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

2. Management’s Responsibility for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes 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.

3. Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

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

An audit involves performing procedures to obtain audit evidence about the amounts and 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.

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

4. Basis for Qualified Opinion

Attention is drawn to note 39 (b) of the standalone financial statements, which enumerates recognition of interest of '' 10.95 crores for the year ended 31 March 2016 on the insurance claim lodged by the Company with its insurance company for the loss of certain assets and loss suffered due to business interruption at its plant in 2007-08. The said recognition of asset, is not in accordance with accounting principle stated in Accounting Standard 29, ''Provisions, Contingent Liabilities and Contingent Assets''. Had such income not been recognized, the net loss before tax for the year would have been higher by RS, 10.95 crores, the net profit after tax for the year would have been lower by '' 7.16 crores and Reserves and Surplus as at 31 March 2016 would have been lower by RS, 7.16 crores.

5. Qualified Opinion

In our opinion and to the best of our information and

according to the explanations given to us, except for the matter descried in the ''Basis for Qualified Opinion'' paragraph above, the aforesaid standalone 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 31 March 2016, of its profit and its cash flows for the year ended on that date.

6. Emphasis of matter

We draw attention to note 39 (a) of the standalone financial statements which describes the uncertainty related to the outcome of the lawsuit filed by the Company against an insurance company. Our opinion is not modified in respect of this matter.

7. Report on Other Legal and Regulatory Requirements

(i) As required by the Companies (Auditor’s Report) Order, 2016 (''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 I, a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.

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

a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. except for the effects of the matter described in the ''Basis for Qualified Opinion'' paragraph above, in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

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

d. except for the effects of the matter described in the ''Basis for Qualified Opinion'' paragraph, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e. the matter described in the ''Basis for Qualified Opinion'' and matter described under ''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, and taken on record by the Board of Directors, none of the directors

is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;

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

h. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure II"; and

i. with respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us;

i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer notes 36 and 39 to the standalone financial statements;

ii. the Company did not have any long term contracts, including derivative contracts outstanding as at 31 March 2016 for which there were any material foreseeable losses; and

iii. there has been no delay in transferring amounts that were required to be transferred to the Investor Education and Protection Fund by the Company.

(i) (a) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, certain categories of fixed assets at certain locations have been physically verified bythe management during the year. As informed to us, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties are held in the name of the Company.

(ii) According to the information and explanations given to us, the inventories, except for goods in transit and stocks lying with third parties, have been physically verified, at reasonable interval by the management during the year. For stocks lying with third parties at the year end, written confirmations are obtained. As informed to us, no material discrepancies were noticed on such verification.

(iii) According to the information and explanations given to us, the Company, during the earlier periods, had granted interest free unsecured loans to a wholly owned subsidiary company covered in the register maintained under Section 189 of the Companies Act, 2013. Further, according to information and explanations given to us:

(a) the terms and conditions of the grant of such loans are not prejudicial to the Company''s interest.

(b) the interest free loan is to be converted, on mutual agreement, into equity, quasi equity or debentures or repayable by 31 March 2017. Hence, the loan were not due for repayment in the current year in accordance with the stipulations.

(c) There is no overdue for more than ninety days.

(iv) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there are no loans, investments, guarantees, and security where provisions of section 185 and 186 of the Act are required to be complied with. Accordingly, paragraph 3(iv) of the Order is not applicable.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from public during the year.

(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether theyare accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income tax. Sales tax. Service tax. Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues, to the extent applicable, have generally been regularly deposited with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees ‘State Insurance, Income tax. Sales tax. Service tax. Duty of Customs, Duty of Excise, Value Added tax. Cess and other material statutory dues, to the extent applicable, were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, and on the basis of the records of the Company examined by us, there are no dues of Income-tax, Sales-tax, Service tax. Duty of Customs, Value Added Tax, Duty of Excise, which have not been deposited with the appropriate authorities on account of any dispute, excepts mentioned below:

Name of the Statute	Nature of dues	Amount of dispute (RS, Crores) #	Amount paid under protest ('' Crores)	Period to which it relates	Forum where dispute is pending
		1.06	-	2002-03
		0.38	-	2005-06	Bombay High Court, Nagpur
		0.51	-	March 2008-December 2010	Bench
		65.77	5.91	1996-97 to	Customs, Excise and Service Tax
The Central Excise Act, 1944	Duty of Excise			2009-10	Appellate Tribunal
		17.56	0.08	1996-97 to	Commissioner of Central Excise
				2008-09	and Customs (Appeals)
				1997-98 to 2010-11	Commissioner/ Assistant
		4.97	-		Commissioner/ Deputy Commissioner
Bombay SalesTaxAct,1959/ Central Sales Tax Act, 1956	Sales tax	0.43	0.13	1998-99 to 1999-00
Maharashtra VAT Act, 2002	VAT	22.20	5.60	2006-07, 2008-09 and 2010-11 to 2013-14	Joint Commissioner Sales Tax (Appeals), Nagpur
		214.25	-	2006-07	Supreme Court
Customs Act, 1962	Duty of	0.09	-	2002-03	Customs, Excise and Service Tax Appellate Tribunal
	Customs	6.01	-	2006-07	Commissioner of Customs
		0.04	-	1997- 98 to 1998-99	Assistant Commissioner/ Deputy
		10.68	-	2014-15 to 2015-16	Commissioner
		0.22	0.08	2004-05 to 2009-10	Customs, Excise and Service Tax Appellate Tribunal
Finance Act, 1994	Service tax	0.22	-	2002-03 to 2005-06	Commissioner, Nagpur
		0.18	-	2010-11 to 2013-14	Assistant/ Deputy Commissioner Nagpur
		0.26	-	AY 2006-07	Commissioner of Income Tax (Appeals)
Income tax Act, 19611	Income tax			AY 2002-03 to AY
		24.55	14.50	2004-05 and AY 2007-08	Income Tax Appellate Tribunal

(viii) According to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to banks. Further, there are no loans or borrowings from financial institutions or government and there are no dues to debenture holders during the year.

(ix) According to the information and explanations given to us, the term loan taken by the Company have been applied for the purposes for which they were raised. The Company has not raised any moneys by way of initial public offer or further public offer.

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

(xi) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the managerial remuneration has been paid / provided in accordance with the provisions of section 197 read with Schedule V to the Companies Act, 2013 except '' 0.62 crores which has been paid as Managerial Remuneration by the Company to one of its directors for services rendered subsequent to remuneration period approved by the Central Government vide approval SRH B61072120/4/2013-CL VII. The Company is in the process of obtaining requisite renewal of such approval subsequent to 31 March 2016.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.

(xiii) According to information and explanations given to us and on the basis of our examination of the records of the Company, all transactions with the related parties are in compliance with section 177 and 188 of the Act where applicable and the details have been disclosed in the standalone financial statements, as required by the applicable accounting standards.

(xiv) According to information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.

(xv) According to information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.

(xvi) According to information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("the Act”)

We have audited the internal financial controls over financial reporting of Indo Rama Synthetics (India) Limited ("the Company") as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and

maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on ''Audit of Internal Financial Controls Over Financial Reporting'' issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on ''Audit of Internal Financial Controls Over Financial Reporting'' (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence

about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on ''Audit of Internal Financial Controls Over Financial Reporting'' issued by the Institute of Chartered Accountants of India.

For B S R and Associates

Chartered Accountants

ICAI Firm registration number: 128901W

Jiten Chopra

Place: Gurgaon Partner

Date: 18 May 2016 Membership No.: 092894

---

Mar 31, 2015

We have audited the accompanying financial statements ("standalone financial statements") of Indo Rama Synthetics (India) Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2015, 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.

2. Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes 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.

3. Auditors' Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 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 the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

4. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31 March 2015 and of its loss and its cash flows for the year ended on that date.

5. Emphasis of matter

We draw attention to the following matters in the Notes to the standalone financial statement:

a) Note 42 of the standalone financial statements, which explains the early application, since the year 2010-11, of Accounting Standard 30, "Financial Instruments- Recognition and Measurement", issued by the Institute of Chartered Accountants of India. An amount of Rs. 4.69 Crores has been recognised as expense (previous year expense of Rs. 10.40 Crores) in the financial statements for the year ended 31 March 2015 and included in exceptional items as an adjustment on the said application of Accounting Standard 30.

b) Note 41 of the standalone financial statements, which explains the management's position regarding utilisation of Minimum Alternate Tax credit aggregating Rs. 57.33 Crores as at 31 March 2015. Based on the management's assumptions and future business plans, no provision has been considered in the books of account in respect of Minimum Alternate Tax credit.

Our opinion is not modified in respect of this matter.

6. Report on Other Legal and Regulatory Requirements

(i) 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 said Order, to the extent applicable.

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

a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

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

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

d. in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

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

f. with respect to the other matters to be included in the Auditors' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer notes 36 and 39 to the standalone financial statements;

ii. the Company did not have any long term contracts, including derivative contracts outstanding as at 31 March 2015 for which there were any material foreseeable losses; and

iii. there has been no delay in transferring amounts that were required to be transferred to the Investor Education and Protection Fund by the Company.

Annexure referred to in paragraph 6 of the Independent Auditors' Report to the Members of Indo Rama Synthetics (India) Limited on the Standalone financial statements for the year ended 31 March 2015.

(i) (a) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, certain categories of fixed assets at certain locations have been physically verified by the management during the year. As informed to us, no material discrepancies were noticed on such verification.

(ii) (a) According to the information and explanations given to us, the inventories, except for goods in transit and stocks lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year end, written confirmations are obtained.

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

(c) According to the information and explanations given to us, and on the basis of our examination of the records of inventories, we are of the opinion that the Company is maintaining proper records of inventories. As informed to us, the discrepancies noticed on physical verification of inventories as compared to the book records were not material and have been properly dealt with in the books of account.

(iii) (a) According to the information and explanations given to us, the Company, during the previous year had granted interest free unsecured loans to a wholly owned subsidiary company covered in the register maintained under Section 189 of the Companies Act, 2013.

(b) According to the information and explanations given to us, in case of loans granted to a wholly owned subsidiary company listed in the register maintained under Section 189 of the Companies Act, 2013, the loans were not due for repayment in the current year in accordance with the stipulations.

(c) According to the information and explanations given to us, there is no overdue amount of more than Rupees one lakh in respect of loans granted to a wholly owned subsidiary company listed in the register maintained under section 189 of the Companies Act, 2013.

(iv) According to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to the sale of goods. The activities of the Company do not involve sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control system.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from public during the year.

(vi) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under sub section (1) of section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Duty of Customs, Duty of Excise, Cess and other material statutory dues, to the extent applicable, have generally been regularly deposited with the appropriate authorities, except in respect of Value Added Tax, where there were few serious delays in depositing the same with the appropriate authorities, though the same have been deposited before the year end.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Duty of Customs, Duty of Excise, Value Added tax, Cess and other material statutory dues, to the extent applicable, were in arrears as at 31 March 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, and on the basis of the records of the Company examined by us, there are no dues of Income-tax, Sales-tax, Wealth-tax, Service tax, Duty of Customs, Value Added Tax, Duty of Excise and Cess, which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below: Name of the Statute Nature of dues Amount of Amount paid dispute under protest (Rs. Crores)# (Rs. Crores)

The Central Excise Act, 1944 Duty of Excise 1.44 -

64.29 5.90

6.75 0.08

3.81 -

Bombay Sales Tax Act, 1959/ Sales tax 0.43 0.13 Central Sales Tax Act, 1956

Maharashtra VAT Act, 2002 VAT 13.64 3.60

214.25 -

0.08 -

Customs Act, 1962 Duty of Customs

6.01 -

0.04 - Finance Act, 1994 Service tax 0.22 0.08

0.22 -

Income tax Act, 1961 * Income tax 0.26 -

24.55 14.50

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

The Central Excise Act, 1944 2002-03 and Bombay High Court, 2005-06 Nagpur Bench

1996- 97 to Customs, Excise and 2008-09 Service Tax Appellate Tribunal

1996-97 to Commissioner of Central 2008-09 Excise and Customs (Appeals)

1997-98 to Commissioner/ Assistant 2010-11 Commissioner/ Deputy Commissioner

Bombay Sales Tax Act, 1959/ 1998-99 to Joint Commissioner Sales Central Sales Tax Act, 1956 1999-00 Tax (Appeals), Nagpur

Maharashtra VAT Act, 2002 2006-07 to 2008-09 and Joint Commissioner sales 2010-11 to 2013-14 tax (Appeals), Nagpur

2006-07 Supreme Court 2002-03 Customs, Excise and Service Tax Appellate Tribunal Customs Act, 1962 2006-07 Commissioner of Customs

1997- 98 to Assistant Commissioner/ 1998-99 Deputy Commissioner

Finance Act, 1994 2002-03 to Customs, Excise and 2009-10 Service Tax Appellate Tribunal

2002-03 to 2005-06 Commissioner, Nagpur Income tax Act, 1961 * AY 2006-07 Commissioner of Income Tax (Appeals)

AY 2002-03 to Income Tax Appellate AY 2004-05 and Tribunal AY 2007-08

* excluding cases where losses / unabsorbed depreciation have been adjusted by the tax authorities without raising any demands, though disputed by the Company.

# including interest/ penalties, where quantified and demanded by authorities.

According to the information and explanations given to us, and on the basis of the records of the subsidiary companies examined by us, there are no dues of Sales tax, Wealth Tax, Service tax, Duty of Customs, Duty of Excise, Value Added tax, Income tax and Cess, which have not been deposited with the appropriate authorities on account of any dispute.

(c) According to the information and explanations given to us, the Holding Company has transferred the required amount to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 and rules made thereunder within the stipulated time.

The subsidiary companies did not have any dues on account of Investor Education and Protection Fund.

(viii) The Holding Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

Further, the subsidiary companies were incorporated and registered for a period of less than five years. Thus, the provisions of clause 3(viii) of the Order are not applicable to the subsidiary companies.

(ix) According to the information and explanations given to us, the Holding Company has not defaulted in the repayment of dues to financial institutions or banks. Further, the Company has not issued any debenture during the year.

According to the information and explanations given to us, the subsidiary companies did not have any outstanding dues to any financial institution or banks or debenture holders during the year.

(x) According to the information and explanations given to us, the Holding Company and the subsidiary companies have not given any guarantees for loans taken by others from banks and financial institutions, except the guarantees given by IRRL which are in respect of loans taken by a wholly owned subsidiary company. We are of the opinion that the terms and conditions on which guarantees have been given to lenders are not prejudicial to the interest of IRRL.

(xi) According to the information and explanations given to us, term loans have been applied for the purpose for which such loans were obtained.

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

For B S R and Associates Chartered Accountants ICAI Firm registration number: 128901W

Kaushal Kishore

Place : Gurgaon Partner

Date : 18 May 2015 Membership No.: 090075

---

Mar 31, 2013

1. Report on the Financial Statements

We have audited the accompanying financial statements of Indo Rama Synthetics (India) Limited ("the Company"), which comprise the Balance Sheet as at 31 March 2013 and 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.

2. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal controls 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.

3. Auditors'' Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 controls 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.

4. Opinion

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

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

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

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

5. Emphasis of matter

Attention is drawn to note 45 to the financial statements, which explains the early application, since the year 2010-11, of Accounting Standard 30 "Financial Instruments- Recognition and Measurement", issued by the Institute of Chartered Accountants of India. An amount of Rs. 21.11 Crores has been recognized as income in these financial statements for the year ended 31 March 2013 and included in exceptional items as an adjustment on application of Accounting Standard 30. Our opinion is not qualified in respect of this matter.

6. Report on Other Legal and Regulatory Requirements

i. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

ii. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

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

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

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

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 referred to in paragraph 6 of the Independent Auditors'' Report to the Members of Indo Rama Synthetics (India) Limited on the accounts for the year ended 31 March 2013.

(i) (a) According to the information and explanations given to us, the Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, certain categories of fixed assets at certain locations have been physically verified by the management during the year. As informed to us, no material discrepancies were noticed on such verification.

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

(ii) (a) According to the information and explanations given to us, the inventories, except for goods in transit and stocks lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year end, written confirmations have been obtained.

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

(c) According to the information and explanations given to us, and on the basis of our examination of the records of inventories, we are of the opinion that the Company is maintaining proper records of inventories. As informed to us, the discrepancies noticed on physical verification of inventories as compared to the book records were not material and have been properly dealt with in the books of account.

(iii) (a) According to the information and explanations given to us, the Company has granted an interest free loan to a wholly owned subsidiary company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 28.01 Crores and the year end balance of such loans was Rs. 28.01 Crores.

(b) According to the information and explanations given to us and considering that the interest free loan has been given to a wholly owned subsidiary company, we are of the opinion that the terms and conditions on which the above loan has been granted to a subsidiary company listed in the register maintained under Section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

(c) According to the information and explanations given to us, in case of loan granted to a subsidiary company listed in the register maintained under Section 301, the loan is repayable on demand and has not been recalled during the year.

(d) According to the information and explanations given to us, there is no overdue amount of more than Rupees one lakh in respect of loan granted to a subsidiary company listed in the register maintained under section 301.

(e) According to the information and explanations given to us, the Company has not taken any loans from Companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(iv) According to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to the sale of goods. The activities of the Company do not involve sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control system.

(v) (a) According to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding Rs. 5 lacs 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) According to the information and explanations given to us, the Company has not accepted any deposits from the public during the year.

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

(viii) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under section 209(1)

(d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.

(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues, to the extent applicable, have generally been regularly deposited except in respect of sales tax/ value added tax dues which have not been regularly deposited with the appropriate authorities and there have been serious delays in several case which have been deposited before the year end.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues were in arrears as at 31 March 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, and on the basis of the records of the Company examined by us, there are no dues of Income-tax, Wealth-tax, Service tax, Sales-tax, Customs duty, Cess and Excise duty which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:

Name of the Statute Nature of Amount of Amount paid dues dispute* under protest (Rs. Crores) (Rs. Crores)

The Central Excise Act, Excise duty 1.06 - 1944 63.47 4.82

7.87 1.20

3.26 -

1.03 -

Bombay Sales Tax Sales tax 0.43 0.13 Act,1959/ Central Sales Tax Act, 1956

Maharashtra VAT Act, VAT 18.24 1.70 2002

Customs Act, 1962 Customs 92.15 duty

137.98 13.45#

6.01 -

0.04 -

Finance Act, 1994 Service tax 0.22 -

0.22 -

Income Tax Act, 1961 Income tax 0.31 0.31

24.24 14.19

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

The Central Excise Act, 1944 2002-03 Bombay High Court, Nagpur Bench

1996- 97 to Customs, Excise and Service Tax 2008-09 Appellate Tribunal

1996-97 to Commissioner of Central Excise 2008-09 and Customs (Appeals)

1997-98 to Commissioner/ Assistant 2010-11 Commissioner/ Deputy Commissioner

2008-10 Additional Commissioner Nagpur

Bombay Sales Tax Act, 1959 1998-99 to Joint Commissioner Sales Tax 1999-00 (Appeals), Nagpur

Maharashtra VAT Act, 2002 2006-07 to Joint Commissioner Sales tax 2009-10 (Appeals), Nagpur

Customs Act, 1962 2002-03 and Customs, Excise and Service Tax 2006-07 Appellate Tribunal

2006-07 to Commissioner of Central Excise 2010-11 and Customs (Appeals)

2006-07 Joint Directorate General of Foreign Trade, Bhopal

1997-98 to Assistant Commissioner/ Deputy 1998-99 Commissioner

Finance Act, 1994 2002-03 to Customs, Excise and Service Tax 2009-10 Appellate Tribunal

2002-03 to Commissioner, Nagpur 2005-06

Income Tax Act, 1961 AY 2007-08 Commissioner of Income Tax (Appeals)

AY 2002-03 to Income Tax Appellate Tribunal AY 2004-05

* Excluding cases where losses / unabsorbed depreciation have been adjusted by the tax authorities without raising any demands, though disputed by the Company.

# Includes amount adjusted against refund by the authorities and protested by the Company.

(x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

(xi) According to the information and explanations given to us, the Company has delayed in repayment of dues aggregating Rs. 44.88 Crores for a period ranging from 40 days to 92 days to a bank. However, there are no overdue amounts outstanding to banks and financial institutions as at the year end.

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

(xiii) According to the information and explanations given to us, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

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

(xvi) According to the information and explanations given to us, term loans have been applied for the purpose for which such loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company at the end of the year, we report that, the Company has used short term funds to the extent of Rs.237.85 Crores for long-term investments, primarily towards fixed assets and investments.

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

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

(xx) The Company has not raised any money by public issues during the year.

(xxi) Based on the audit procedures performed and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For B S R and Associates

Chartered Accountants

Firm registration number: 128901W

Kaushal Kishore

Place: Gurgaon Partner

Date: 10 May 2013 Membership No.: 090075

---

Mar 31, 2012

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

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

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

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

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

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

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

(iv) in our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956, to the extent applicable;

(v) on the basis of the written representations received from the directors as on 31 March 2012, and taken on record by the Board of Directors, we report that none of the directors of the Company is disqualified as on 31 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; and

(vi) 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 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 31 March 2012;

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

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

Annexure to the Auditors' Report

annexure referred to in paragraph 3 of the auditors' Report to the members of indo Rama Synthetics (India) limited on the accounts for the year ended 31 march 2012.

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

(b) As explained to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, certain categories of fixed assets at certain locations have been physically verified by the management during the year. As informed to us, no material discrepancies were noticed on such verification.

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

(ii) (a) According to the information and explanations given to us, the inventories, except goods in transit and stocks lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year end, written confirmations have been obtained.

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

(c) According to the information and explanations given to us, and on the basis of our examination of the records of inventories, we are of the opinion that the Company is maintaining proper records of inventories. As informed to us, the discrepancies noticed on physical verification of inventories as compared to the book records were not material and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, Paras 4 (iii) (b) to (g) of the Order are not applicable.

(iv) According to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to the sale of goods. The activities of the Company do not involve sale of services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control system.

(v) (a) According to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding Rs.5 lacs in respect of any party during the year, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

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

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

(viii) We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.

(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of 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 and other material statutory dues, to the extent applicable, have generally been regularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor education and Protection Fund, employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs duty, excise duty and other material statutory dues were in arrears as at 31 March 2012 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, and on the basis of the records of the Company examined by us, there are no dues of Income tax, Wealth tax, Service tax, Sales tax, Customs duty, excise duty and cess which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:

Name of the Nature of amount amount Period to Statute dues of paid under Which it dispute* protest relates

The Central excise excise duty 3.91 - 2002-03 to Act, 1944 2004-05

55.67 4.04 1996-97 to 2008-09

11.76 1.98 1996-97 to 2008-09 to

0.33 - 1997-98 to 2010-11

1.03 - 2008-10

Bombay Sales Tax Sales tax 0.43 0.13 1998-99 to 1999-00 Act,1959/ Central Sales Tax Act, 1956

Maharashtra VAT VAT 18.24 1.70 2006-07 to 2009-10 Act, 2002

Customs Act, 1962 Custom 0.08 - 2002-03 to duty 15.79 1.12 2010-11

25.72 1.97 2006-07

0.04 - 1997-98 to 1998-99

Finance Act, 1994 Service Tax 3.06 - 2002-03 to 2009-10

Name of the Statute Forum where dispute is which it pending

The Central Excise Act, 1944 Bombay High Court, Nagpur Bench

Customs, excise and Service Tax Appellate Tribunal Commissioner Appeal

Assistant Commissioner/

Deputy Commissioner

Additional Commissioner Nagpur

Bombay Sales Tax Act, 1959 / Central Sale Tax Act, 1956 Joint Commissioner Sales Tax (Appeals), Nagpur

Maharashtra VAT Act, 2002 Joint Commissioner Sales tax (Appeals), Nagpur

Customs Act, 1962 Customs, excise and Service Tax Appellate Tribunal Commissioner Appeal Joint Directorate General of

Foreign Trade, Bhopal Assistant Commissioner/

Deputy Commissioner_

Finance Act, 1994 Commissioner Appeals



* excluding cases where losses / unabsorbed depreciation have been adjusted by the tax authorities without raising any demands, though disputed by the Company.

(x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

(xi) According to the information and explanations given to us, the Company has delayed in repayment of dues aggregating Rs.94.87 Crore (for delays ranging up to one year) and Rs.41.36 Crore (for delays ranging from one year to two years) to a bank. As informed to us, the said delays were caused due to inconclusive negotiations as to their reschedulement. During the year, out of the total overdue amounts as above, the Company has paid Rs.115.86 Crore to the said bank and the overdue amounts of Rs.20.37 Crore are outstanding as at the year end, which are overdue for a period within three months.

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

(xiii) According to the information and explanations given to us, the Company is not a chit fund or a nidhi / mutual benefit fund / society.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

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

(xvi) According to the information and explanations given to us, term loans have been applied for the purpose for which such loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company at the end of the year, we report that, based on the maturity profile of assets and liabilities, the Company has used short term funds to the extent of Rs.307.47 Crore for long-term investments, primarily towards fixed assets.

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

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

(xx) The Company has not raised any money by public issues during the year.

(xxi) Based on the audit procedures performed and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For B S R and Associates

Chartered Accountants

Firm registration number: 128901W

Kaushal Kishore

Place: Gurgaon Partner

Date: 25 April 2012 Membership No.: 090075

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of Indo Rama Synthetics (India) Limited ("the Company") as at 31 March 2010 and also the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

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

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

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

ii. in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

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

iv. in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, to the extent applicable;

v. on the basis of the written representations received from the directors as on 31 March 2010, and taken on record by the Board of Directors, we report that none of the directors of the Company is disqualified as on March 31, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; and

vi. 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 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 31 March 2010;

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

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

ANNEXURE TO THE AUDITORS REPORT

Annexure referred to in paragraph 3 of the Auditors Report to the Members of Indo Rama Synthetics (India) Limited on the accounts for the year ended 31 March 2010.

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

b. As explained to us, the fixed assets are physically verified by the management in accordance with a phased programme designed to cover all items of fixed assets over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and nature of its fixed assets. In accordance with this programme, certain categories of fixed assets at certain locations have been physically verified by the management during the year. As informed to us, no material discrepancies were noticed on such verification.

c. Fixed assets disposed off during the year were not substantial and, therefore, do not affect the going concern assumption.

ii. a. According to the information and explanations given to us, the inventories, except goods in transit and stocks lying with third parties, have been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. For stocks lying with third parties at the year end, written confirmations have been obtained.

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

c. On the basis of our examination of the records of inventories, we are of the opinion that the Company is maintaining proper records of inventories. As informed to us, the discrepancies noticed on physical verification of inventories as compared to the book records were not material and have been properly dealt with in the books of account.

iii. According to the information and explanations given to us, the Company has neither granted nor taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, paras 4 (iii) (b) to (g) of the Order are not applicable.

iv. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to the sale of goods and services. Further, on the basis of our examination and according to the information and explanations given to us, we have neither come across nor have been informed of any instances of major weaknesses in the aforesaid internal control system.

v. a. In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

b. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding Rs. 5 lacs in respect of any party during the year, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

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

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

viii. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government, the maintenance of cost records has been prescribed under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such records with a view to determine whether they are accurate or complete.

ix. a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of 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 and other material statutory dues, to the extent

applicable, have been regularly deposited during the year by the Company with the appropriate authorities.

There were no dues on account of Cess under section 441A of the Companies Act, 1956 since the date from which the aforesaid section comes into force has not yet been notified by the Central Government.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income tax, Sales tax, Wealth tax, Service tax, Customs duty, Excise duty and other

material statutory dues were in arrears as at 31 March 2010 for a period of more than six months from the date they became payable.

b. According to the information and explanation given to us, and on the basis of the records of the Company examined by us, there are no dues of Income tax, Wealth tax, Service tax, Sales tax, Customs duty and Excise duty which have not been deposited with the appropriate authorities on account of any dispute, except as mentioned below:

(Rs. 000)

Name of the Statute Nature of dues Amount of Amount paid Period to which Forum where dispute

dispute under protest it rela tes is pending

The Central Excise Excise duty 6,220 1,400 2004-05 to Supreme Court

Act, 1944 2008-09

31,793 3,759 2002-03 Settlement Commission

494,635 40,609 1994-95 to Customs, Excise and Service tax

2009-10 Appellate Tribunal

44,012 823 2003-04 to Commissioner Appeal

2008-09

517 - 2004-05 to Deputy Commissioner

2006-07

Bombay Sales Tax Act, Sales tax 6,986 - 1998-99 Deputy Commissioner Sales

1959 / Central tax (Appeals), Nagpur

Sales Tax Act, 1956

Mahar ashtra VAT 40,331 - 2008-09 Joint Commissioner Sales tax

VAT Act, 2002 (Appeals), Nagpur

Customs Act, 1962 Custom duty 1,500 - 1999-2000 Customs, Excise and Service tax

Appellate Tribunal

Income Tax Act, 1961 Income tax 18,092 - Assessment year Commissioner of Income tax

2002-03 (appeals)

Income tax 47,606 - Assessm ent year Commissioner of Income tax

2003-04 (appeals)

Income tax 1,017 - Assessment year Commissioner of Income tax

2007-08 (appeals)

In respect of Cess, refer to our comment in para (ix) (a) above.

x. The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the financial year and in the immediately preceding financial year.

xi. According to the information and explanations given to us, the Company has defaulted in repayment of dues to certain lenders as per the details below, though these have been repaid either during the year or subsequent to the year end:

Category Amount Delays (considered

involved upto the respective (Rs 000) date of payment)

Banks 574,712 1 to 464 days

Financial institutions 240,457 1 to 390 days

Debentures 34,712 1 to 20 days

Further, with regard to the following delays in repayment of dues to lenders, the Company has obtained in-principle reschedulement approvals from the respective lenders and the Company is either in the process of complying with the underlying conditions of reschedulement or has approached such lenders for renegotiations of conditions:

Category Amount Delays

involved (upto the

(Rs 000) year end)

Banks 1,271,646 1 to 350 days

Financial institutions 186,583 1 to 274 days

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

xiii. According to the information and explanations given to us, the Company is not a chit fund or a nidhi / mutual benefit fund/ society.

xiv. According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

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

xvi. According to the information and explanations given to us, term loans have been applied for the purpose for which such loans were obtained.

xvii. According to the information and explanations given to us and on overall examination of the balance sheet and cash flow statement of the Company, we report that the Company has used short term funds to the extent of Rs. 1,362,614 thousand for long term investments, mainly for acquisition of fixed assets.

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

xix. According to the information and explanations given to us, the Company has created adequate security or charge in respect of privately placed debentures issued in the earlier years. However, subsequent to the year end, the charge has been vacated on account of redemption of debentures during the year.

xx. The Company has not raised any money by public issues during the year.

xxi. Based on the audit procedures performed and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

For B S R and Associates

Chartered Accountants

Firm Registration No.: 128901W

Kaushal Kishore

Place : Gurgaon Partner

Date : 25 September 2010 Membership No.: 090075