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Auditor Report of Kalpataru Power Transmissions Ltd.

Mar 31, 2015

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

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.

Auditor''s Responsibility

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose 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.

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 31st March, 2015, and its profit and its 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 in terms of Section 143(11) 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 purposes of our audit.

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

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

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

(e) On the basis of the written representations received from the directors as on 31st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 28 to the financial statements.

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

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

Annexure to the Auditor''s Report on the Standalone Financial Statements

(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date on the standalone financial statements for the year ended 31st March, 2015)

1. In respect of its fixed assets :

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

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

2. In respect of its inventory :

(a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals.

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

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

3. According to the information and explanations given to us, the Company has granted unsecured loans to companies covered in the Register maintained under Section 189 of the Companies Act, 2013. In respect of such loans

(a) The receipt of principle amounts and interest have been regular as per stipulation. ,

(b) There is no overdue amount in excess of Rs. 1 Lakh remaining outstanding as at the year end.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services and during the course of our audit we have not observed any major weaknesses in such internal control system.

5. According to the information and explanations given to us, the Company has not accepted any deposits in terms of the provisions of Section 73 and 76 of the Act or any other relevant provisions of the Act.

6. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

7. According to the information and explanations given to us in respect of statutory dues:

(a) The Company has generally been regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to it.

(b) There were no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2015 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax and Cess which have not been deposited as on March 31, 2015 on account of disputes are given below:

Sr. Name of the statute Nature of Year No dues

1 The Finance Act, 1994 Service Tax 2006-07

2 The Finance Act, 1994 Service Tax 2007-08 to 2011-12

3 The Finance Act, 1994 Service Tax 2003-04

4 The Central Exise Act,1994 Excise 2007-08 to 2011-12

5 The West Bengal VAT Act, 2003 VAT 2004-05

6 The Karnataka VAT Act, 2003 VAT 2009-10

7 The Madhya Pradesh VAT Act, VAT 2007-08 2002

8 The Gujarat VAT Act, 2003 VAT 2005-06

9 Maharashtra VAT Act, 2002 VAT 2007-08

10 Maharashtra VAT Act, 2002 VAT 2008-09

11 The Gujarat VAT Act, 2003 VAT 2010-11

12 The Bihar VAT Act, 2005 VAT 2004-05 & 2005-06

13 The Customs Act, 1962 Customs 2010-11 & Duty 2011-12

14 The Customs Act, 1962 Customs 2012-13 Duty

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

The Finance Act,1994 1.01 Commissioner (Appeal)

The Finance Act, 1994 1,837.00 Customs, Excise and Service Tax Appellate Tribunal

The Finance Act, 1994 1,757.70 Customs, Excise and Service Tax Appellate Tribunal

The Central Excise Act, 1944 6.39 Commissioner (Appeal)

The West Bengal VAT Act,2003 12.33 West Bengal Appellate and Provisional Board

The Karnataka VAT Act, 2003 7.80 Appellate Tribunal - Karnataka

The Madhya pradesh VAT Act2002 2.88 Assistant Commissioner - Satna

The Gujarat VAT Act, 2003 138.35 Gujarat Sales Tax Tribunal

Maharashtra VAT Act, 2002 47.74 Appellate Tribunal - Maharashtra

Maharashtra VAT Act, 2002 63.37 Appellate Tribunal - Maharashtra

The Gujarat VAT Act, 2003 Joint Commissioner of Commercial 117.38 Tax

The Bihar VAT Act, 2005 17.27 The Deputy Commissioner of Commercial Taxes Kisanganj- Bihar

The Customs Act, 1962 23.18 CESTAT, Chennai

The Customs Act, 1962 47.79 Commissioner (Appeal), Ahmadabad

For the above purpose, only statutory dues payable in India have been considered.

(d) The Company has been generally regular in transferring amounts to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under within time.

8. The Company does not have accumulated losses at the end of the financial year and the Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

10. In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks and financial institutions are not, prima facie, prejudicial to the interests of the Company.

11. In our opinion and according to the information and explanations given to us, the term loans have been applied by the Company during the year for the purposes for which they were obtained.

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

For Deloitte Haskins & Sells,

Chartered Accountants

(Firm''s Registration No. 117365W)



(Gaurav J. Shah)

Place: Mumbai Partner

Date: 30th May, 2015 (Membership No. 35701)


Mar 31, 2014

We have audited the accompanying financial statements of KALPATARU POWER TRANSMISSION LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March , 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 ("the Act") (which continues to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2003 dated 13th September, 2013 of the Ministry of Corporate Affairs) and in accordance with the accounting principles generally accepted in India. 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.

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 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 control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014,

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

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 in terms of Section 227(4A) 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 purposes of our audit.

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

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

(d) In our opinion, the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards notified under the Act (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate affairs).

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

Annexure to the Auditors'' Report

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

1. Having regard to the nature of the Company''s business / activities / results during the year, clauses (vi), (xii), (xiii), (xiv), (xviii), (xix), (xx) of paragraph 4 of the Order are not applicable to the company.

2. In respect of its fixed assets :

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

(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of veri- fication which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

(c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Com- pany and such disposal has, in our opinion, not affected the going concern status of the Company.

3. In respect of its inventory :

(a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals.

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

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

4. In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties covered in the Register under Section 301 of the Companies Act, 1956, according to the information and explanations given to us:

(a) The Company has granted loans aggregating to Rs. 1,989 Lacs to two parties during the year. At the year-end, the outstanding balances of such loans granted aggregated to Rs. 18,657 Lacs for two parties and maximum amount involved during the year was Rs. 18,657 Lacs.

(b) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interest of the Company.

(c) The receipts of principal amounts and interest have been regular/as per stipulations.

(d) In respect of the said loans and interest thereon, there are no overdue amounts.

(e) The Company has not taken any loan during the year from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

5. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of audit, we have not observed any major weakness in such internal controls system.

6. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under the said Section have been so entered.

(b) Where each of such transaction, excluding loans reported under paragraph (iii) above, is in excess of Rs. 5 lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

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

8. We have broadly reviewed the cost records maintained by the Company pursuant to the companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. According to the information and explanations given to us in respect of statutory dues:

(a) The Company has been generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it.

(b) There were 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, Cess and other material statutory dues in arrears as at March 31, 2014 for a period of more than six months from the date they became payable.

(c) Details of dues of Sales Tax, Service Tax and Custom Duty which have not been deposited as on March 31,2014 on account of disputes are given below:

Sr. No Name of the statute Nature of dues Year

1. Finance Act,1994 Service Tax 2003-04 & 2004-05

Penalty for Input 2006-07 service tax

2 Customs Act, 1962 Custom Duty 2012-13

3 West Bengal VAT Act, VAT 2004-05 2003

4 Haryana VAT Act, VAT 2007-08 2003

5 Gujarat VAT Act, VAT 2005-06 2005

6 Karnataka VAT Act, VAT 2009-10 2003

Sr No Name Of the Statute Amount Forum where dispute is pending (Rs. in Lacs) 1 Finance act 1994 1,757.69 Customs, Excise and Service Tax Appellate Tribunal

1.01 Commissioner (Appeals)

2 Custom act,1962 47.79 Department of Revenue Intelligence

3 West bengal VAT Act 2003 12.33 West Bengal Appellate and Revisional Board

4 Haryana VAT Act 2003 1.87 Joint Excise & Taxation Commissioner(Appeals)

5 Gujarat VAT Act 2005 138.35 Gujarat Sales Tax Tribunal

6 Karnataka VAT Act 2003 13.30 Karnataka Appellate Tribunal

There were no dues of Income-tax, Wealth Tax, Excise Duty and Cess which have not been deposited as on March 31, 2014 on account of disputes.

10. There are no accumulated losses of the Company as at March 31, 2014. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

12. The Company has not given any guarantee for loan taken by others from banks or financial institution. However, the Company has given undertaking to lender of subsidiary company. The terms and conditions of such undertaking are not prima facie prejudicial to the interest of the Company.

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

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

15. In our opinion and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For Deloitte Haskins & Sells Chartered Accountants (Registration No 117365W)

Gaurav J. Shah Partner (Membership No. 35701)

Mumbai, May 29, 2014


Mar 31, 2013

Report on the Financial Statements

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

Management''s Responsibility for the Financial Statements

The Company''s 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 Section 211 (3C) of the Companies Act, 1956 ("the Act") and in accordance with the accounting principles generally accepted in India. 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.

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 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 control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the 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 aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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 in terms of Section 227(4A) 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 purposes of our audit.

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

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

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

(e) On the basis of the written representations received from the directors as on 31st March, 2013 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2013 from being appointed as a director in terms of Section 274(1) (g) of the Act.

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

1. In respect of its fixed assets :

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

(b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company

2. In respect of its inventory :

(a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals.

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

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

3. In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties covered in the Register under Section 301 of the Companies Act, 1956, according to the information and explanations given to us:

(a) The Company has given loans to two companies aggregating to Rs. 332.64 lacs during the year. In respect of said loans the maximum amount involved during the year is Rs. 16,828.25 lacs and the year end balance is Rs. 16,696.51 lacs.

(b) The rate of interest and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interest of the Company,

(c) The receipts of principal amounts and interest have been regular/as per stipulations,

(d) In respect of the said loans and interest thereon, there are no overdue amounts,

(e) The Company has not taken any loan during the year from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. Consequently, the requirements of Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not applicable,

4. 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 the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal controls in respect of these areas,

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to in Section 301 that needed to be entered in the Register maintained under the said Section have been so entered,

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts / arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs 5,00,000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of provisions of Section 58A and 58AA or any relevant provisions of the Companies Act, 1956 and rules made thereunder,

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

8. We have broadly reviewed the cost records maintained by the Company pursuant to the companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1 )(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. According to the information and explanations given to us in respect of statutory dues:

(a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees'' state insurance, income-tax, sales tax, wealth tax, service tax, custom duty, excise duty, Cess and other material statutory dues applicable to it.

(b) There were no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees'' state insurance, Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2013 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on March 31,2013 on account of disputes are given below:

Sr. Name of the Nature of No statute dues Year

1. Finance Act,1994 Service Tax 2003-04 & 2004-05

Penalty for 2006-07 Input service tax

2. Madhya Pradesh Entry Tax 2005-06 Entry Tax Act, 1976

3. Rajasthan VAT Act, VAT 2004-05 2003

4. West Bengal VAT VAT 2004-05 Act, 2003

5. Andhra Pradesh VAT 2006-07 VAT Act, 2005

VAT 2009-10

6. Haryana VAT Act, VAT 2007-08 2003

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

Finance Act 1994 1757.69 Customs, Excise and Service Tax Appellate Tribunal

1.01 Commissioner (Appeals)

Madhya Pradesh Entry Tax Act 1976 6.54 Joint Commissioner (Appeals), Commercial Taxes

Rajasthan VAT Act 2003 37.09 Deputy Commissioner of Commercial Tax (Appeal)

West Bengal VAT Act 2003 12.33 West Bengal VAT Appellate Tribunal

Andhra Pradesh VAT Act 2005 10.56 Deputy Commissioner,Commercial Taxes

49.04 Deputy Commissioner (Apeal)

Haryana VAT Act 2003 37.38 Joint Commissioner (Appeals)

10. There are no accumulated losses of the Company as at March 31, 2013. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year

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

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

13. As per the information and explanations given to us, 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.

14. As per the information and explanations given to us, 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

15. In our opinion and according to the information and explanations given to us, the terms and conditions of the letter of comfort given by the Company for loans taken by Company''s subsidiary from banks are not prima facie prejudicial to the interests of the Company.

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

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long- term investment.

18. The Company has not made any preferential allotment of shares during the year,

19. The Company has not issued any debentures during the year,

20. We have verified the end use of money raised through Qualified Institutional Placement, as disclosed in note 41 to the Financial Statement.

21. In our opinion and according to the information and explanations given to us, no material fraud by the Company and no material fraud on the Company was noticed or reported during year.

For DELOITTE HASKINS & SELLS

Chartered Accountants

(Firm Registration No. 117365W)

(Gaurav J Shah)

(Partner)

(Membership No. 35701)

Plalce: Mumbai

Date : May 16, 2013


Mar 31, 2012

TO THE MEMBERS OF KALPATARU POWER TRANSMISSION LIMITED

1. We have audited the attached Balance Sheet of KALPATARU POWER TRANSMISSION LIMITED ("the Company") as at March 31, 2012, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both 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, (CARO), issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956 ('the Act'), we give 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 :

(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 such 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 are in compliance with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956;

(v) in our opinion and to the best of our information and according to the explanations given to us, the said 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 March 31, 2012;

ii. in the case of the Statement of Profit and Loss, of the profit of the Company for the year ended on that date; and

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

5. On the basis of written representations received from the Directors as on March 31, 2012 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 Section 274(1)(g) of the Companies Act, 1956;

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

1. In respect of its fixed assets :

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

(b) As explained to us, the assets have been physically verified by the management in accordance with a phased program 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) In our opinion, the Company has not disposed off a substantial part of its fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of its inventory :

(a) As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals.

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

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

3. In respect of loans, secured or unsecured, granted by the Company to companies, firms or other parties covered in the Register under Section 301 of the Companies Act, 1956, according to the information and explanations given to us:

(a) The Company has given loans to two companies. In respect of said loans the maximum amount involved during the year is Rs 15,175.93 lacs and the year end balance is Rs 15,175.93 lacs.

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

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

(d) In respect of the said loans and interest thereon, there are no overdue amounts.

(e) The Company has not taken any loan during the year from companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. Consequently, the requirements of Clauses (iii) (f) and (iii) (g) of paragraph 4 of the Order are not applicable.

4. 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 the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal controls in respect of these areas.

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

(a) The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under the said Section have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts / arrangements entered in the Register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rs 5,00,000 in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

7. In our opinion, the internal audit functions carried out during the year by firm(s) of Chartered Accountants appointed by the Mangement have been commensurate with the size of the Company and the nature of its business.

8. We have broadly reviewed the cost records maintained by the company pursuant to the companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete

9. According to the information and explanations given to us in respect of statutory dues:

(a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees' state insurance, income-tax, sales tax, wealth tax, service tax, custom duty, excise duty, Cess and other material statutory dues applicable to it.

(b) There were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2012 for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and Cess which have not been deposited as on March 31,2012 on account of disputes are given below:

Sr. Name of the statute Nature of dues Year Amount (Rs. In Forum where dispute is pending No.

1. Finance Act,1994 Service Tax 2003-04 1,759.48 Customs, Excise and Service Tax & 2004-05 Appellate Tribunal

Penalty for 2006-07 1.01 Commissioner (Appeals) Input service tax

2. Madhya Pradesh Entry Tax Entry Tax 2005-06 6.54 Joint Commissioner (Appeals), Act, 1976 Commercial Taxes

3. Rajasthan VAT Act, 2003 VAT 2004-05 6.36 Deputy Commissioner, Commercial Taxes (Appeals)

4. West Bengal VAT Act, 2003 VAT 2004-05 12.33 West Bengal VAT Appellate Tribunal

5. Chattisgargh VAT Act, VAT 2005-06 9.77 Assessing Officer

6. West Bengal VAT Act, 2003 VAT 2008-09 192.73 Joint Commissioner (Appeals)

7. Andhra Pradesh VAT Act, 2005 VAT 2006-07 10.56 Deputy Commissioner, Commercial Taxes

8. Bihar VAT Act, 2005 VAT 2004-05, 2005-06, 109.56 Deputy Commissioner, Commercial 2007-08, 2008-09 Taxes & 2011-12

9. Haryana VAT Act, 2003 VAT 2005-06 & 2006-07 19.27 Deputy Commissioner (Appeals)

2007-08 37.38 Joint Commissioner (Appeals)

10. There are no accumulated losses of the Company as at March 31, 2012. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

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

13. As per the information and explanations given to us, 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.

14. As per the information and explanations given to us, 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.

15. In our opinion and according to the information and explanations given to us, the terms and conditions of the letter of comfort given by the Company for loans taken by Company's subsidiary from banks are not prima facie prejudicial to the interests of the Company.

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

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short-term basis have not been used during the year for long- term investment.

18. The Company has not made any preferential allotment of shares during the year.

19. The Company has not issued any debentures during the year.

20. We have verified the end use of money raised through Qualified Institutional Placement (QIP), as disclosed in note 40 to the Notes on Financial Statement. Pending utilisation of the funds raised through QIP, a sum of Rs 9,500 lacs have been temporarily deployed in mutual funds and fixed deposit with banks.

21. In our opinion and according to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during year.

For Deloitte Haskins & Sells

Chartered Accountants

(Registration No 117365W)

Gaurav J. Shah

Partner

(Membership No. 35701)

Place: Mumbai

Date : May 21, 2012


Mar 31, 2010

1. We have audited the attached Balance Sheet of KALPATARU POWER TRANSMISSION LIMITED ("the Company") as at March 31,2010, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, both 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, (CARO), 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 as follows:

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

(d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this report are in compliance with the Accounting Standards referred to in Section 211(3C) 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 said 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 March 31,2010;

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

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

5. On the basis of written representations received from the Directors as on March 31, 2010 and taken on record by the Board of Directors, none of the Directors is disqualified as on March 31,2010 from being appointed as a director in terms of Section 274(1) (g) of the Companies Act, 1956;



(Referred to in paragraph 3 of our report of even date on the accounts of Kalpataru Power Transmission Limited)

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

(b) As explained to us, the assets have been physically verified by the management in accordance with a phased program 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 substantial part of fixed assets.

2. (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 stocks have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to two companies covered in the register maintained under section 301 of the

CompaniesAct, 1956. The maximum amount involved during the year and the year end balance is 12696.18 lacs.

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

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

(d) There is no overdue amount in respect of loans 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 4 (iii) of the Order are not applicable to the Company.

4. 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 the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal controls in respect of theses areas.

5. (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.

6. According to the information and explanations given to us the Company has not accepted any deposits during the year from public within the meaning of the provisions of Section 58A and 58AA or any relevant provisions of the Companies Act, 1956 and rules made thereof.

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

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company in respect of generation of electricity from agriculture residue pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

9. (a) According to the information and explanations given to us and the records examined by us, the Company is generally

regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it and no undisputed amounts payable in respect of such dues were outstanding as at March 31,2010 for a period of more than six months from the date they became payable.

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

Sr. Name of the statute Nature of dues Year Amount Forum where dispute is pending No (Rs. In Lacs) 1. Finance Act,1994 Penalty for 2005-06 120.29 Customs, Excise delay and Service Tax payment of Service Tax Appellate Tribunal 2. Rajasthan Tax on EntryEntry Tax 2005-06 10.49 High Court of Rajasthan of Goods in Local Area Act, 1999 3. Rajasthan VAT Act, VAT 2005-06 84.34 Deputy Commissioner 2003 Commercial Taxes (Appeals) 4. Mumbai Stamp Act Additional Stamp duty 2005-06 7.56 Deputy Collector of Stamps 1958 on land Duty 5. Madhya Pradesh VAT VAT 2006-07 13.63 Deputy Commissioner Act 2002 Commercial Taxes 2007-08 18.211

10. There are no accumulated losses of the Company as at March 31, 2010. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

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

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

13. As per the information and explanations given to us, 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.

14. As per the information and explanations given to us, 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.

15. The Company has given guarantees and letters of comfort in respect of loans taken by the Companys subsidiary companies from banks and financial institution. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantees and letters of comfort are not prejudicial to the interest of the Company.

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

17. According to the information and explanations given to us and on an overall examination 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.

18. The Company has not made any preferential allotment of shares during the year.

19. According to the information and explanations given to us, during the year, the Company had issued 700 debentures of Rs. 1,000,000 each aggregating to Rs. 7,000 lacs and the Company is in the process of creating security in respect of the debentures issued.

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

21. We have been informed by the Company that a supervisor, in collusion with persons of the contractors prepared forged weighment slips and goods received notes of input material at the Collection Center of the bio mass division resulting into a loss of Rs. 10.66 lacs during the year under audit. The said loss has been accounted for in the books of account and a police complaint has been lodged for which investigations are in progress. Other than this, based on 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., For Deloitte Haskins & Sells, Chartered Accountants Chartered Accountants (Registration No.l05229W) (Registration Mo 117365W) Kishan M. Mehta GauravJ. Shah Partner Partner (Membership No. 13707) (Membership No. 35701) Place: Ahmedabad Place: Ahmedabad Date: May 29,2010 Date: May 29,2010

 
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