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Auditor Report of JMC Projects (India) Ltd.

Mar 31, 2015

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

Management's Responsibility for the Financial Statements

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 flow 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 Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

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

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 March 31, 2015 and its Profit and Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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

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

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

b) 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 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 applicable Accounting Standards referred to under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

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

f) With respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 , 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 if any, of pending litigations in its financial statements- Refer Note No. 27 and 28 to the financial statements;

(ii) The Company has made provision, as required under the applicable law and accounting standards for material foreseeable losses on long term contracts including derivative contracts;

(iii) There has been no delay in transferring amount required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE TO THE AUDITORS' REPORT

(Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements of our report of even date)

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

b) As explained to us, the fixed assets have been physically verified by the management in reasonable interval and no material discrepancies have been noticed on such verification.

(ii) a) The inventory has been physically verified by the management during the year at reasonable intervals.

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

c) The Company is maintaining proper records of inventory. In our opinion, discrepancies noticed on physical verification of stocks were not material.

(iii) The Company has not granted any loan, secured or unsecured, to Companies, firms or other parties covered in the register maintained under section 189 of the Act.

(iv) In our opinion and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business of with regard to purchases of inventory and fixed assets and sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(v) The Company has complied with the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under in relation to the deposits.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government of India, regarding the maintenance of cost records 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 maintained. We have, however not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(vii) a) According to the information and explanations given to us and the records examined by us, the Company is regular in depositing with appropriate authorities the undisputed statutory dues including Provident Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and any other material statutory dues applicable to it and there are no such undisputed amount payable which are in arrears as at March 31, 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, details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of Customs, Duty of Excise, Value Added Tax and Cess which have not been deposited on account of dispute are given below.

Name of the Statute Particulars Period of which the Forum where the dispute is Amount amount relates pending ( Rs. In Lacs)

Finance Act, 1994 Service Tax 2007-08 to 2009-10 Customs, Excise and Service Tax 2898.09 Appellate Tribunal, Ahmedabad

Finance Act, 1994 Service Tax 2008-09 to 2012-13 Customs, Excise and Service Tax 2505.73 Appellate Tribunal, Ahmedabad

Finance Act, 1994 Service Tax 1997-98 Customs, Excise and Service Tax 2.18 Appellate Tribunal, Ahmedabad

The West Bengal VAT Act, 2003 VAT 2008-09 West Bengal Commercial Taxes 57.10 Appellate and Provisional Board

The West Bengal VAT Act, 2003 VAT 2009-10 West Bengal Commercial Taxes 105.80 Appellate and Provisional Board

The West Bengal VAT Act, 2003 VAT 2011-12 Dept. Commissioner Kolkata 0.37

Madhya Pradesh VAT Act, 2002 VAT 2007-08 & 2008-09 High Court 295.17

Madhya Pradesh VAT Act, 2002 VAT 2009-10 Addl. Commissioner Appeals 8.47

Madhya Pradesh VAT Act, 2002 Entry Tax 2008-09 High Court 52.05

Madhya Pradesh VAT Act, 2002 Entry Tax 2009-10 Addl. Commissioner Appeals 6.59

Gujarat VAT Act, 2003 VAT & CST 2006-07 Gujarat VAT Tribunal 261.72

Gujarat VAT Act, 2003 VAT & CST 2009-10 Asst. Commis- sioner of 125.40 Commercial Appeals

Maharashtra VAT Act, 2002 VAT 2006-07 Dept. Commis- sioner of Sales Tax 145.10

Mahara- shtra VAT Act, 2002 VAT 2007-08 Joint Commis- sioner of Sales Tax 15.10

Mahara- shtra VAT Act, 2002 VAT 2008-09 Dept. Commis- sioner of Sales Tax 789.18

Uttaran- chal VAT matter VAT 2010-11 Dept. Commis- sioner of 549.00 Commercial Tax

New Delhi VAT matter VAT 2012-13 & 2013-14 Objection Hearing Authority 521.80 Sales Tax depar- tment Delhi

Income Tax Act, 1961 Income Tax 2006-07 to 2011-12 Commissioner (Appeals) 1539.11

Tamil Nadu Minor Mineral Concession Royalty 2006-07 Principal Secretary Joint 39.87 Rules Secretary, Industries.

c) The Company has transferred the required amount to Investor Education and Protection Fund in accordance with the relevant provision of the Companies Act, 1956 and rules made there under within time.

(viii) There are no accumulated losses of the Company as on March 31, 2015. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

(x) According to the information and explanations given to us, the Company has given guarantee for loans taken by a subsidiary company from banks and financial institutions of Rs. 22.50 Crores and the terms and conditions whereof are not prejudicial to the interest of the Company.

(xi) According to the information and explanations given to us and in our opinion the term loan raised have been applied for the purpose for which they were obtained.

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

For KISHAN M.MEHTA & CO.,

Chartered Accountants

Firm's Registration No.105229W



Place : Mumbai (K.M.MEHTA)

Date : May 29, 2015 Partner

Membership No. : 13707


Mar 31, 2013

Report on the Financial Statements

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

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

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

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

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

Opinion

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

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

b) in the case of the Statement of Profit and Loss, of the 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.

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

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

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

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

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

(c) During the year, the Company has not disposed off any substantial part of fixed assets.

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

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

(c) The Company is maintaining proper records of inventory. In our opinion, discrepancies noticed on physical verification of inventory have been properly dealt with in the books of accounts.

(iii) (a) The Company has granted unsecured loan to two parties covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 93.07 lacs and year end balance of loan granted to such parties was Rs. 41.69 lacs.

(b) In our opinion the rate of interest and other terms and conditions of loans given by the Company are not prima facie, prejudicial to the interest of the Company.

(c) The parties have been regular in the payment of principal and interest as per stipulation, if any.

(d) There is no overdue amount of loan granted to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

(e) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub clause (e), (f) and (g) of clause (iii) of para 4 of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

(v) (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangement that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(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 have been made at the prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provision of Section 58A & 58AA or any other relevant provisions of the Companies Act,1956 and rules framed there under. We are informed that no order had been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any Tribunal.

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

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government of India, regarding the maintenance of cost records under Section 209(1)(d) of the Act and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have, however not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) According to the information & explanations given to us and records examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material undisputed statutory dues applicable to it and there were no undisputed material statutory dues in arrears as at March 31, 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, details of dues of Income Tax, VAT, Wealth Tax, Service Tax, Custom duty, Excise duty and Cess which have not been deposited on account of dispute are given below.

Name of the Statute Particulars Period of which the amount relates

Tamil Nadu Minor Mineral Concession Rules Royalty 2003-04

Finance Act, 1994 Service Tax 2007-08 to 2009-10

The West Bengal VAT Act, 2003 VAT 2008-09

The West Bengal VAT Act, 2003 VAT 2009-10

Madhya Pradesh VAT Act, 2002 VAT 2007-08 & 2008-09

Madhya Pradesh VAT Act, 2002 VAT 2009-10

Madhya Pradesh VAT Act, 2002 Entry Tax 2008-09

Madhya Pradesh VAT Act, 2002 Entry Tax 2009-10

Gujarat VAT Act, 2003 VAT & CST 2006-07

Rajasthan Tax on entry of Goods into Local Entry Tax 2007-08 Areas Act

Rajasthan VAT Act, 2003 VAT 2012-13

Tamil Nadu Minor Mineral Concession Rules Royalty 2006-07

Name of the Statute Forum where the dispute Amount is pending (Rs. In Lacs)

Tamil Nadu Minor Mineral Concession Rules Finance Act 1994 High Court 426.90

Customs, Excise and 2,703.37 Service Tax Appellate Tribunal, Ahmedabad

The West Bengal VAT Act 2003 West Bengal Commercial 57.10 Taxes Appellate and Revisional Board

The West Bengal VAT Act 2003 Joint Commissioner, Sales 33.54 Tax

Madhya Pradesh VAT Act, 2002 High Court 295.17

Madhya Pradesh VAT Act, 2002 Addl. Commissioner 17.03 Appeals

Madhya Pradesh VAT Act, 2002 High Court 52.05

Madhya Pradesh VAT Act, 2002 Addl. Commissioner 6.59 Appeals

Gujarat VAT Act 2003 Gujarat VAT Tribunal 249.98

Rajasthan Tax on entry of Goods into Local Areas Act Deputy Commissioner 2.89 (Appeals)

Rajasthan VAT Act 2003 Dy. Commissioner, 1.86 Commercial Tax

Tamil Nadu Minor Mineral Concession Rules Principal Secretary / Joint 39.87 Secretary, Industries.

(x) There are no accumulated losses of the Company as on 31st March 2013. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a bank, financial institution or debenture holders.

(xii) The Company has not granted any loans or advances on the basis of security, by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or nidhi mutual benefit fund / Society, therefore, the provisions of para 4 (xiii) of the Companies (Auditor''s Report) Order, 2003, are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of Para 4(xiv) of the Companies (Auditor''s Report) Order, 2003, are not applicable to the Company.

(xv) In our opinion, the Company has not given any guarantee in respect of loans taken by others from bank or financial institutions.

(xvi) According to the information and explanations given to us, in our opinion the term loans raised during the year have been applied for the purpose for which they were raised.

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

(xviii) The Company has not made any preferential allotment of shares during the year.

(ix) The Company has not issued any Debentures during the year.

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

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

For KISHAN M. MEHTA & CO.,

Chartered Accountants

Firm''s Registration No. 105229W

Place : Mumbai (K.M. MEHTA)

Date : 16th May, 2013 Partner

Membership No. 13707


Mar 31, 2012

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

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in 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, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ('the Act') and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, 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 in paragraph 3 above, 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 purposes of our audit.

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

c. The Balance Sheet, Statement of Profit & 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 dealt with by this report comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956.

e. In our opinion and to the best of our information and according to the explanations given to us, the accounts read with the notes thereon, and subject to third party confirmations, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India:

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012;

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

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

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

Annexure

Reg: JMC PROJECTS (INDIA) LIMITED

(Referred to in paragraph 3 of our report of even date)

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

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

(c) During the year, the Company has not disposed off any substantial part of fixed assets.

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

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

(c) The Company is maintaining proper records of inventory. In our opinion discrepancies noticed on physical verification of inventory have been properly dealt with in the books of accounts.

(iii) (a) The Company has granted unsecured loan to two parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs 108.77 Lacs and year end balance of loan granted to such party was Rs 93.07 Lacs.

(b) In our opinion the rate of interest and other terms and conditions of loans given by the Company are not prima facie, prejudicial to the interest of the Company.

(c) The parties have been regular in the payment of principal and interest as per stipulation, if any.

(d) There is no overdue amount of loan granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(e) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub clause (e), (f) and (g) of clause (iii) of para 4 of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for sale of goods and services. During the course of our audit, no major weaknesses have been noticed in the internal controls in respect of these areas.

(v) (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangement that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(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 have been made at the prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provision of section 58A & 58AA or any other relevant provisions of the Companies Act,1956 and rules framed there under. We are informed that no order had been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any Tribunal.

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

(viii) The provisions of Section 209 (1) (d) of the Companies Act, 1956 regarding maintenance of cost record are not applicable to the Company.

(ix) (a) According to the information & explanations given to us and records examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other undisputed statutory dues applicable to it.

(b) According to the information and explanations given to us, details of dues which have not been deposited on account of dispute are below.

Name of the Statute Particulars Period of which the Froum where the Amount amount relates dispute is pending (Rs in Lacs)

Tamil Nadu Minor Mineral Concession Rules Royalty 2003-04 High Court 426.90

Finance Act, 1994 Service Tax 2007-08 to 2009-10 Customs, Excise and 2695.13 Service Tax Appellate Tribunal, Ahmedabad

The Central Excise Act,1944 Excise Duty 2006-07 to 2008-09 Customs, Excise and 107.88 Service Tax Appellate Tribunal, Bangalore

The West Bengal VAT Act, 2003 VAT 2008-09 Joint Commissioner, 12.01 Sales Tax, Kolkata

Madhya Pradesh VAT Act, 2002 VAT 2007-08 & 2008-09 High Court 295.17

Madhya Pradesh VAT Act, 2002 Entry Tax 2008-09 High Court 52.05

Gujarat VAT Act, 2003 VAT & CST 2006-07 Dy. Commissioner, 249.98 Commercial Tax, Ahmedabad

Rajasthan Tax on entry of Goods into Local Entry Tax 2007-08 Deputy Commissioner 2.89 Areas Act (Appeals)

(x) There are no accumulated losses of the Company as on 31st March 2012. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a bank, financial institution or debenture holders.

(xii) The Company has not granted any loans or advances on the basis of security, by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or nidhi mutual benefit fund / Society, therefore, the provisions of para 4 (xiii) of the Companies (Auditor's Report) Order, 2003, are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments.Accordingly, the provisions of para 4(xiv) of the Companies (Auditor's Report) Order, 2003, are not applicable to the Company.

(xv) The Company has given guarantees in respect of loans taken by the subsidiary Company from bank, amounting to Rs 40.00 Lacs. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantees are not prejudicial to the interest of the Company.

(xvi) According to the information and explanations given to us, in our opinion the term loans raised during the year have been applied for the purpose for which they were raised.

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

(xviii) The Company has not issued any Debentures during the year.

(xix) The Company has not raised money by way of public issue during the year.

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

For KISHAN M. MEHTA & CO

Chartered Accountants

Registration No. 105229W

(KISHAN M MEHTA)

Partner

Mem. No.13707

Ahmedabad

DATED: 19th May, 2012


Mar 31, 2010

1. We have audited the attached Balance Sheet of the JMC PROJECTS (INDIA) LIMITED ("the Company") as at 31st March, 2010 and also the Profit & Loss Account and cash flow statement 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, issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 (the Act) and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, 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 in paragraph 3 above, 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 purposes of our audit.

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

c. The Balance Sheet and Profit 8c Loss Account and cash flow statement dealt with by this report are in agreement with the books of account.

d. In our opinion, the Balance Sheet and Profit and Loss Account and cash flow statement dealt with by this report comply with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956.

e. On the basis of written representation received from directors and taken on record by the board of directors, we report that none of the directors 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.

5. In our opinion and to the best of our information and according to the explanations given to us, the accounts read with the notes thereon, and subject to third party confirmations, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India:

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;

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

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

Reg: JMC PROJECTS (INDIA) LIMITED

(Referred to in paragraph 3 of our report of even date)

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

assets.

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

(c) During the year, the Company has not disposed off any substantial part of fixed assets.

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

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

(c) The Company is maintaining proper records of inventory. In our opinion discrepancies noticed on physical verification of inventory have been properly dealt with in the books of accounts.

(iii) (a) The Company has granted unsecured loan to two parties covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 132.22 Lacs and year end balance of loan granted to such party was Rs. 95.29 Lacs.

(b) In our opinion the rate of interest and other terms and conditions of loans given by the Company are not prima facie, prejudicial to the interest of the Company.

(c) The parties have been regular in the payment of principal and interest as per stipulation, if any.

(d) There is no overdue amount of loan granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(e) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Therefore the provisions of sub clause (e), (f) and (g) of clause (iii) of para 4 of the Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for sale of goods and services. During the course of our audit, no major weaknesses have been noticed in the internal controls in respect of these areas.

(v) (a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangement that need to be entered into the Register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(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 have been made at the prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provision of section 58A & 58AA or any other relevant provisions of the Companies Act, 1956 and rules framed there under. We are informed that no order had been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any Tribunal.

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

(viii) The provisions of section 209 (1) (d) of the Companies Act, 1956 regarding maintenance of cost record are not applicable to the Company.

(ix) (a) According to the information & explanations given to us and records examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education

and Protection Fund, Employees State Insurance, Income Tax, VAT, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other undisputed statutory dues applicable to it.

(b) According to the information and explanations given to us, details of dues which have not been deposited on account of dispute are below.

Name of the Statute Particulars Period of which the Forum where the Amount

amount relates dispute is pending (Rs. In Lacs)

Tamilnadu Minor Mineral Royalty 2003-04 High Court 426.90

Concession Rules

Karnataka State VAT Act VAT 2005-06 Appellant Tribunal for 854.29

to quantum and High Court writ

2008-09 petition on point of law

Income Tax Act, 1961 Income Tax 2006-07 Commissioner of Income Tax 16.71

(Appeal)

(x) There are no accumulated losses of the Company as on 31/03/2010. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to bank. The Company does not have any dues to a financial institution or debenture holders.

(xii) The Company has not granted any loans or advances on the basis of security, by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or nidhi mutual benefit fund / Society, therefore, the provisions of para 4 (xiii) of the Companies (Auditors Report) Order, 2003, are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of para 4(xiv) of the Companies (Auditors Report) Order, 2003, are not applicable to the Company.

(xv) The Company has given guarantees in respect of loans taken by the subsidiary Company from bank and non banking financial company amounting to Rs. 151.07 Lacs. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantees are not prejudicial to the interest of the Company.

(xvi) According to the information and explanations given to us, in our opinion the term loans raised during the year have been applied for the purpose for which they were raised.

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

(xviii) The Company has not made any preferential allotment of shares during the year.

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

(xx) The Company has raised money byway of Right issue of the equity shares amounting to Rs 3,990.86 lacs during the year.

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

For SUDHIR N. DOSHI & CO For KISHAN M. MEHTA & CO Chartered Accountants Chartered Accountants Registration No. 110496W Registration No. 105229W

(SUDHIR N. DOSHI) (KISHAN M. MEHTA) Proprietor Partner Mem. No. 30539 Mem. No. 13707 Ahmedabad Ahmedabad DATED: 29th May, 2010 DATED: 29th May, 2010

 
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