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Auditor Report of Kirloskar Ferrous Industries Ltd.

Mar 31, 2016

We have audited the accompanying financial statements of KIRLOSKAR FERROUS INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31 st March, 2016, 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 Financial Statements:

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

Auditors'' Responsibility:

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

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

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

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

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

Opinion:

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 st March, 2016, and its profits 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, 2016 ("the Order"), issued by the Central Government of India in terms of Sub-Section (11) of Section 143 of the Act, we give in the Annexure-A, 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 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B"; and

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 37 to the financial statements;

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

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

The Annexure referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31st March, 2016, we report that:

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

(b) As informed to us, the fixed assets have been physically verified by the Management at reasonable intervals in a phased manner and the discrepancies noticed during such physical verification were not material.

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

(ii) As informed to us, the physical verification of inventory has been conducted by the management at reasonable intervals and the discrepancies noticed during such physical verification were not material. Stocks lying with third parties at the year-end have been confirmed.

(iii) The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act.

(iv) In our opinion and according to the information and explanations given to us, the Company has not given loans, made investments or given guarantees which are covered by the provisions of Section 185 and 186 of the Act.

(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits and hence the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Act and the rules framed there under are not applicable to the Company.

(vi) The Central Government has specified maintenance of cost records under Sub-Section (1) of Section 148 of the Act and we are of the opinion that prima facie such accounts and records are made and maintained. We have not, however, 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 on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, Income Tax, Sales Tax, Value Added Tax, Duty of Customs, Service Tax, Cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. According to information and explanation given to us, no undisputed amounts payable in respect of statutory dues were in arrears, as at 31 st March, 2016 for a period of more than six months from the date they became payable.

b) According to information and explanation given to us, there are amounts of Excise Duty, Customs Duty, Value Added Tax, Service Tax and Income Tax which have not been deposited on account of dispute as listed below:

SI. Name of the statute Nature of the dues Amount No inRs,

1 The Central Excise Duty on pattern 342,068 Act, 1944 development charges

2 The Central Excise Interest on refund 341,496 Act, 1944

3 The Central Excise Cenvat Credit issues 1,420,241 Act, 1944

4 The Central Excise Cenvat Credit availed 9,570,486 Act, 1944 on Steel

5 The Central Excise Cenvat Credit availed 268,737 Act, 1944 on Steel

6 The Central Excise Cenvat Credit availed 94,084 Act, 1944 on Steel 7 The Central Excise Cenvat Credit issues 467,910 Act, 1944

8 The Central Excise Cenvat Credit issues 39,304 Act, 1944

9 The Central Excise Cenvat Credit on 1,023,603 Act, 1944 write-offs

10 The Central Excise Valuation of excisable 1,876,214 Act, 1944 goods

11 The Central Excise Refund of Interest 714,462 Act, 1944

12 The Finance Cenvat Credit utilized 7,585,734 Act, 1994 for Service Tax payment

13 The Finance Cenvat Credit issues 772,188 Act, 1994

14 The Finance Penalty on Freight 2,992,835 Act, 1994 Outward

15 The Finance Cenvat Credit i ssues 161,633 Act, 1994

16 The Finance Service Tax demand 11,496,454 Act, 1994 on Interest

17 The Finance Service Tax demand 1,887,734 Act, 1994 on Interest

18 The Finance Service Tax demand 420,371 Act, 1994 on since charges

Name of the Financial Forum where dispute is stutus year to pending which the amount relates

The Central Excise 1997-98 CESTAT, Bangalore Act 1944

the Central excise 2004-05 Assistant Act 1944 Commission of Central Excise duty Bellary

The Central Excise 2007-08 to Assistant Act 1944 2015-16 Commissioner, Central Excise, Bellary

The Central Excise 2004-05 to CESTAT, Bangalore 2009-10 Act 1944

The Centrol Excise 2009 -10 Commissioner of Central Act 1944 Excise (Appeals), Mysore

The Centrol Excise 2010-11 Assistant Act 1944 Commissioner, Central Excise, Bellary

The Central Excise Act 1944 2012-13 Commissioner of Central Excise, Belgaum

The Central Excise 2013-14 Commissioner of Central Act 1944 Excise (Appeals), Mysore

The central Excise 2009-10 Additional Act 1944 Commissioner, Central Excise, Belgaum,

The Central Excise 2000-01 CESTAT, Mumbai Act 1944

The Central Excise 2010-11 Hon''ble High Court, Mumbai Act 1944 The Finance 2006-07 Commissioner of Central Excise, Belgaum Act 1994

The Finance 2009-10 to Assistant Act 1994 2010-11 Commissioner, Central Excise, Bellary

The Finance 2013-14 CESTAT, Bangalore act 1994 2011-12 Assistant Commissioner of Central Excise, Bellary

The FInance 2012-13 CESTAT, Bangalore Act 1994

The Finance 2014-15 Commissioner, Central Excise, Belgaum Act 1994

The Finance 2015-16 Assistant Act 1994 Commissioner of Central Excise, Bellary

SI. Name of the statute Nature of the dues Amount No inRs,

19 The Finance Service Tax demand 505,659 Act, 1994 on usance charges 20 The Finance Cenvat Credit availed 30,120,653 Act,1994 on Input Services

21 The Customs Refund of customs 337,883 Act, 1962 duty

22 The Income Tax Minimum Alternate 112,215 Act, 1961 Tax

23 The Income Tax Minimum Alternate 5,181,762 Act, 1961 TAx

24 The Income Tax Disallowance of 72,579,929 Act, 1961 expenses

25 The Income Tax Disallowance of 5,258,434 Act, 1961 expenses

26 The Karnataka Input tax credit on 52,730,556 VAT Act, 2003 purchases

27 The Maharashtra VAT set off 183,941 VAT Act,2002 disallowed

Name of the Financial Forum where dispute statute is year to pending which the amount relates

The finance 2015-16 Joint Commissioner, Act 1994 Central Excise, Belgaum

The finance 2015-16 Commissioner, Central Act 1994 Excise, Belgaum

The Customs 2010-11 Commissioner of Custom act 1962 (Appeals), Bangalore

The Income Tax 2004- 05 Hon''ble High Court Act 1961 Mumbai

The Income Tax 2005- 06 Hon''ble High Court Act 1961 Mumbai

The Income Tax 2009-10 Commissioner of Act 1961 Income Tax (Appeals) Pune

The Income Tax 2010-11 Commissioner of Act 1961 Income Tax (Appeals), Pune

The karnataka 2013-14 Local Vat Officer, Koppal Vat Act 2003

The maharastra 2008-09 Joint Commissioner of Sales Tax, Kolhapur VAT Act 2002

(viii) The Company has not defaulted in repayment of loans or borrowings to banks / financial institutions. The Company has not borrowed funds from Government and has not issued any debentures.

(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). As informed to us, the term loans were applied for the purposes for which those are raised.

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

(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.

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

(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

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

(xvi) As informed to us, the Company is not required to be registered under Section 45 -IA of the Reserve Bank of India Act, 1934.

ForM/sP.G.Bhagwat

Chartered Accountants

Firm Registration No. 101118W

S.B.Pagad

Partner

Pune: 29th April, 2016 Membership No.206124


Mar 31, 2015

We have audited the accompanying financial statements of KIRLOSKAR FERROUS INDUSTRIES 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 Financial Statements:

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility:

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

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls 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 financial statements.

Opinion:

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its profits 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 of India in terms of sub-section (11) of Section 143 of the Companies Act, 2015, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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

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

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

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

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

(e) In our opinion, there are no financial transactions or other matters which have an adverse effect on the functioning of the Company.

(f) 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.

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of 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 37 to the financial statements;

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

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

Referred to in paragraph 1 under the heading, "Report on Other legal and Regulatory Requirements" of our report on even date:

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

(b) As informed to us, the fixed assets have been physically verified by the Management at reasonable intervals and the discrepancies noticed during such physical verification were not material and the same have been properly dealt with in the books of account.

(ii) (a) Physical verification of inventory has been conducted at reasonable intervals by the Management. In our opinion, the frequency of verification is reasonable. Stocks lying with third parties at the year-end have been confirmed;

(b) 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 and as informed to us no material discrepancies were noticed on physical verification.

(iii) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section189 of the Act.

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

(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits and hence the provisions of Sections 73 to 76 of the Act are not applicable to the Company.

(vi) The Central Government has specified maintenance of cost records under sub-section (1) of Section 148 of the Act, and we are of the opinion that prima facie such accounts and records are made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax or cess and any other statutory dues with the appropriate authorities. According to information and explanation given to us, no undisputed amounts payable in respect of statutory dues were in arrears, as at 31st March, 2015 for a period of more than six months from the date they became payable.

b) According to information and explanation given to us, there are amounts of Excise Duty, Value Added Tax, Service Tax and Income Tax which have not been deposited on account of dispute as listed below:

Sl. Name of the statute Nature of the dues Amount (Rs.) No

1 The Central Excise Duty on pattern 342,068 Act,1944 development charges

2 The Central Excise Interest on refund 341,496 Act,1944

3 The Central Excise Cenvat Credit issues 1,117,174 Act,1944

4 The Central Excise Cenvat credit availed on 9,933,307 Act,1944 Steel

5 The Central Excise Cenvat Credit issues 467,910 Act,1944

6 The Central Excise Cenvat Credit issues 87,726 Act,1944

7 The Central Excise Cenvat Credit on 1,023,603 Act,1944 writeoffs

8 The Finance Act,1994 Cenvat Credit utilised for 14,856,255 Service Tax payment

9 The Finance Act,1994 Cenvat Credit issues 772,188

10 The Finance Act,1994 Penalty on Freight 2,992,835 Outward

11 The Finance Act,1994 Service Tax Credit on 20,734 Expenses

12 The Finance Act,1994 Cenvat Credit issues 161,633

13 The Finance Act,1994 Service Tax demand on 11,496,454 Interest

14 The Finance Act,1994 Service Tax demand on 1,887,734 Interest

15 The Customs Refund of customs duty 337,883 Act,1962

16 The Income Tax Act, Prior period Expenses 4,250,990 1961 disallowed

17 The Income Tax Act, Levy of Penalty 4,228,469 1961

18 The Income Tax Act, Royalty and Depreciation 94,873,362 1961 allowance

19 The Karnataka VAT Interest on Input tax 1,479,449 Act, 2003 credit on purchases

20 The Karnataka VAT Input tax credit on 52,730,656 Act, 2003 purchases

21 The Central Excise Valuation of excisable 1,876,214 Act,1944 goods

22 The Central Excise Refund of Interest 714,462 Act,1944

23 The Maharashtra VAT set off disallowed 183,941 VAT Act, 2002

Name of the Statute Forum where dispute is pending

The Central Excise Act,1944 CESTAT, Bangalore

The Central Excise Act,1944 Assistant Commissioner of Central Excise, Bellary

The Central Excise Act,1944 Assistant Commissioner, Central Excise, Bellary

The Central Excise Act,1944 CESTAT, Bangalore

The Central Excise Act,1944 Commissioner of Central Excise, Belgaum

The Central Excise Act,1944 Commissioner of Central Excise (Appeals), Mysore

The Central Excise Act,1944 Additional Commissioner, Central Excise, Belgaum,

The Finance Act,1994 Commissioner of Central Excise, Belgaum

The Finance Act,1994 Assistant Commissioner of Central Excise, Bellary

The Finance Act,1994 CESTAT, Bangalore

The Finance Act,1994 Commissioner of Central Excise (Appeals), Mysore

The Finance Act,1994 Assistant Commissioner of Central Excise, Bellary

The Finance Act,1994 CESTAT, Bangalore

The Finance Act,1994 Commissioner of Central Excise, Belgaum

The Customs Act 1962 Commissioner of Custom (Appeals), Bangalore

The Income Tax Act, 1961 Hon''ble High Court Mumbai

The Income Tax Act, 1961 Commissioner of Income Tax (Appeals), Pune

The Income Tax Act, 1961 Commissioner of Income Tax (Appeals), Pune

The Karnataka VAT Act, 2003 The Karnataka Appellate Tribunal, Bangalore

The Karnataka VAT Act, 2003 Local Vat Officer, Koppal

The Central Excise Act,1944 CESTAT, Mumbai

The Central Excise Act,1944 CESTAT, Mumbai

The Maharashtra VAT Act, 2002 Joint Commissioner of Sales Tax, Kolhapur

(c) The amounts required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act,1956 and rules made there under have been transferred to such fund within time.

(viii) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year 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 its bankers. The Company did not have any outstanding debentures or any outstanding loans from financial institution during the year;

(x) As informed to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions;

(xi) In our opinion, the term loans were applied for the purpose for which the loans were obtained;

(xii) According to information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For M/s P. G. Bhagwat Chartered Accountants Firm Registration No. 101118W

S.B. Pagad Partner Pune : 28th April, 2015 Membership No.206124


Mar 31, 2013

We have audited the accompanying financial statements of KIRLOSKAR FERROUS INDUSTRIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 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 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 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 31st March, 2013, and 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 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.

ANNEXURE TO THE AUDITORS'' REPORT

Referred to in paragraph 1 of 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 informed to us, the fixed assets have been physically verified by the Management at reasonable intervals. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the Books of Account.

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

(ii) (a) The inventory was physically verified during the year by the Management. In our opinion, the frequency of verification is reasonable. Stocks lying with third parties at the year-end have been confirmed.

(b) 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. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) The Company has neither granted nor taken any loans, secured or unsecured, to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, clauses 4(iii) (a) to (g) of the Order are not applicable to the Company and hence not commented upon.

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

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

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding Rs. five lakhs in respect of any party during the period have been made at prices, which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted deposits from public and hence the provisions of Clause (vi) are not applicable.

(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 in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

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

According to information and explanation given to us, no undisputed amounts payable in respect of statutory dues were in arrears, as at 31st March, 2013 for a period of more than six months from the date they became payable.

(b) According to information and explanations given to us, there are amounts of Excise Duty, Value Added Tax, Service Tax , Electricity Tax and Income Tax which have not been deposited on account of dispute as listed below:

Name of the statute Nature of the dues Amount Rs. Forum where dispute is pending

The Central Excise Interest on refund 341,496 Assistant Commissioner of Act,1944 Central Excise, Belgaum

The Central Excise Duty on pattern 342,068 CESTAT, Bangalore Act,1944 development charges

The Central Excise Cenvat Credit utilised for 7,585,734 Commissioner of Central Excise, Act,1944 payment of Service Tax Belgaum

The Central Excise Interest / Penalty on 2,827,237 CESTAT, Mumbai Act,1944 undervaluation

The Central Excise Refund of Cenvat Credit 714,462 The Honourable High Court, Act,1944 Mumbai

The Central Excise Cenvat Credit availed on 668,440 Assistant Commissioner, Act,1944 Electrodes Central Excise, Bellary

The Central Excise Cenvat Credit availed on 362,821 Assistant Commissioner, Act,1944 Structural Steel Central Excise, Bellary

The Finance Act, Cenvat Credit on input 772,188 Deputy Commissioner, 1994 Services Central Excise, Bellary

The Finance Act, Cenvat Credit on outward 29,92,835 Commissioner of Central Excise, 1994 freight Belgaum

The Karnataka Electricity Tax on captive 604,782 The Honourable High Court of Electricity Act generation and Karnataka Consumption

Karnataka VAT VAT disallowance 53,50,856 Assistant Commissioner of Act, 2003 Commercial Taxes,Audit-1, Davangere.

Income tax Income tax and interest 41,726,230 Deputy Commissioner of Income Act,1961 demand Tax, Pune

(x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year 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 its bankers. The Company did not have any outstanding debentures or any outstanding loans from financial institution during the year.

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

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

(xiv) According to information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures. However, the Company had made investments in mutual funds for which proper records have been maintained of the transactions and contracts and timely entries have been made therein.

(xv) As informed to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) In our opinion, the term loans 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) According to information and explanation given to us, the Company has not made any preferential allotment of any shares to parties and companies covered under Section 301 of the Companies Act, 1956.

(xix) Since the Company has not issued any debentures during the year, para 4(xix) of the order regarding creation of security is not applicable.

(xx) The Company has not made any public issue to raise money.

(xxi) According to information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For M/s P. G. Bhagwat

Chartered Accountants

Firm Registration No. 101118W

S.B. Pagad

Partner

Pune : 29th April, 2013 Membership No.206124


Mar 31, 2012

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

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

3. As required by the Companies (Auditor's Report) Order, 2003 [as amended by Companies (Auditor's Report) (Amendment) Order, 2004] issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956 ('the Act'), we enclose in the Annexure a statement on the matters specified in paragraph 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 purpose of our audit;

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

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

(iv) 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;

(v) On the basis of the written representations received from the Directors as on 31st March, 2012, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;and

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

(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.

ANNEXURE TO THE AUDITORS' REPORT

STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF KIRLOSKAR FERROUS INDUSTRIES LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2012.

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

(b) As informed to us, the fixed assets have been physically verified by the management at reasonable intervals. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the Books of Account.

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

(ii) (a) The inventory was physically verified during the year by the management. In our opinion, the

frequency of verification is reasonable. Stocks lying with third parties at the year-end have been confirmed.

(b) 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. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) The Company has neither granted nor taken any loans, secured or unsecured, to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Consequently, clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f) and (iii)(g) of paragraph 4 of the Order are not applicable.

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

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

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding Rs. five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted deposits from public and hence the provisions of Clause (vi) are not applicable.

(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 in respect of products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

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

According to information and explanation given to us, no undisputed amounts payable in respect of statutory dues were in arrears, as at 31st March, 2012 for a period of more than six months from the date they became payable.

(b) According to information and explanation given to us, there are amounts of Excise Duty, Value Added Tax, Service Tax , Electricity Tax and Income Tax which have not been deposited on account of dispute as listed below:

Name of the statute Nature of the dues Amount Forum where dispute is pending (Rs)

The Central Excise Interest on refund 341,496 Assistant Commissioner of Act, 1944 Central Excise, Belgaum

The Central Excise Duty on pattern 342,068 CESTAT, Bangalore

Act, 1944 development charges

The Central Excise Cenvat credit utilized for 7,585,734 Commissioner of Central Excise,

Act, 1944 payment of Service Tax Belgaum

The Central Excise Interest/ Penalty on 3,127,237 CESTAT, Mumbai

Act, 1944 valuation

The Central Excise Refund of Cenvat 714,462 The Honorable High Court of

Act, 1944 Mumbai

The Central Excise Cenvat Credit availed on 598,069 Assistant Commissioner,

Act, 1944 Electrodes Central Excise, Belgaum

The Central Excise Cenvat Credit availed on 9,933,307 Commissioner (Appeals),

Act, 1944 Structural Steels Central Excise, Mangalore

The Finance Cenvat Credit on input 772,188 Deputy Commissioner,

Act, 1994 Services Central Excise, Bellary

The Finance Cenvat Credit on 32,990, 072 Commissioner of Central Excise,

Act, 1994 outward freight Belgaum

The Karnataka Electricity Tax on captive 604,782 Honorable High Court

Electricity Act, generation and of Karnataka Consumption

Income tax Minimum Alternate Tax 1,27,859 Income Tax Appellate Tribunal, Act, 1961 Pune

Income tax Minimum Alternate Tax 5,181,762 Commissioner of Income Tax/

Act, 1961 Income Tax Appellate Tribunal,

Pune

Income tax Minimum Alternate Tax 3,266,806 Commissioner of Income Tax/

Act, 1961 Income Tax Appellate Tribunal,

Pune

Income tax Minimum Alternate Tax 892,820 Assistant Commissioner of

Act, 1961 Income Tax, Pune

(x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year 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 its bankers. The Company did not have any outstanding debentures or any outstanding loans from financial institution during the year.

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

(xiii) In our opinion and according to the information and explanations given to us, the Company is not a chit fund ora nidhi/ mutual benefit fund/ society.

(xiv) According to information and explanation given to us, the Company is not dealing in or trading in shares, securities, debentures. However, the Company had made investments in mutual funds for which proper records have been maintained of the transactions and contracts and timely entries have been made therein.

(xv) As informed to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) In our opinion, the term loans have been applied for the purpose for which they were raised.

(xvii) According to information and explanation given to us, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to information and explanation given to us, the Company has not made any preferential allotment of any shares to parties and companies covered under Section 301 of the Companies Act, 1956.

(xix) Since the Company has not issued any debentures during the year, para 4(xix) of the order regarding creation of security is not applicable.

(xx) The Company has not made any public issue to raise money.

(xxi) According to information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For M/s P. G. Bhagwat Chartered Accountants Firm Registration No.101118W

S.B.Pagad Partner

Pune: 27th April, 2012 Membership No.206124


Mar 31, 2010

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

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

3. As required by the Companies (Auditors Report) Order, 2003 [as amended by Companies (Auditors Report) (Amendment) Order, 2004] issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 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 beliefwerenecessaryforthepurposeofouraudit;

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

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

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

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

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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

ANNEXURE TO THE AUDITORSREPORT STATEMENT REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF KIRLOSKAR FERROUS INDUSTRIES LIMITED ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31st MARCH,2010.

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

(b) As informed to us, the fixed assets have been physically verified by the Management at reasonable intervals. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. The discrepancies noticed on such verification were not material and have been properly dealt with in the Books of Account.

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

(ii) (a) The inventory was physically verified during the year by the Management. In our opinion, the frequency of verification is reasonable. Stocks lying with third parties at the year-end have been confirmed.

(b) 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. The discrepancies noticed on verification between the physical stocks and the book records were not material.

(iii) The Company has neither granted nor taken any loans, secured or unsecured, to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f) and (iii)(g) of paragraph 4 of the Order are not applicable.

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

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

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding Rs. five lakhs in respect of any party during the period have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted deposits from public and hence the provisions of Clause vi are not applicable.

(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 in respect of products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education and protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it. As informed to us, Employees State Insurance Act is not applicable to the Company.

According to information and explanation given to us, no undisputed amounts payable in respect of statutory dues were in arrears, as at 31st March, 2010 for a period of more than six months from the date they became payable.

(b) According to information and explanation given to us, there are amounts of excise duty and sales tax, which have not been deposited on account of dispute as listed below:

Name of the statute Nature of the dues Amount (Rs.)

The Central Excise Interest on refund 341,496 Act, 1944

The Central Excise Duty on pattern development 342,068 Act, 1944 charges

The Central Excise Cenvat Credit utilised for 7,585,734 Act, 1944 payment of Service Tax

The Central Excise Penalty on excise duty 100,000 Act, 1944

The Central Excise Interest /Penalty on 3,127,237 Act, 1944 undervaluation

The Central Excise Cenvat Credit availed on 494,497 Act, 1944 Electrodes

The Central Excise Cenvat Credit availed on 9,839,223 Act, 1944 Structural Steels

The Karnataka VAT Interest on refund 211,311 Act,2003

The Karnataka VAT VAT - Difference in Tax 1,415,672 Act,2003

The Karnataka Electricity Tax on captive 604,782 Electricity Act, generation & consumption Income Tax Act,1961 Minimum Alternate Tax 3,456,134

Income Tax Act,1961 Minimum Alternate Tax 7,332,841

Income Tax Act, 1961 Minimum Alternate Tax 6,205,167

Name of the Statue Forum where dispute is pending

The Central Excise Act, 1944 Assistant Commissioner of Central Excise

The Central Excise Act, 1944 CESTAT, Bangalore

The Central Excise Act, 1944 Commissioner of Central Excise

The Central Excise Act, 1944 CESTAT, Bangalore

The Central Excise Act, 1944 CESTAT, Mumbai

The Central Excise Act, 1944 Assistant Commissioner, Central Excise

The Central Excise Act, 1944 Joint /Asst. Commissioner, Central Excise, Belgaum

The Karnataka VAT Act,2003 Joint Commissioner of Commerical Taxes, Davangere

The Karnataka VAT Act,2003 Deputy Commissioner of Commercial Taxes, Davangere

The Karnataka Electricity Act, Honble High Court of Karnataka

Income Tax Act,1961 Income Tax Appl. Tribunal, Pune.

Income Tax Act,1961 Commissioner, IT , Appeals, Pune

Income Tax Act, 1961 Commissioner, IT , Appeals, Pune

(x) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses in the current financial year 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 its bankers. The Company did not have any outstanding debentures or any outstanding loans from financial institution during the year.

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

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

(xiv) According to information and explanation given to us, the Company is not dealing in or trading in shares, securities, debentures. However, the Company had made investments in mutual funds for which proper records have been maintained of the transactions and contracts and timely entries have been made therein.

(xv) As informed to us, the Company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) In our opinion, the term loans have been applied for the purpose for which they were raised.

(xvii) According to information and explanation given to us, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to information and explanation given to us, the Company has not made any preferential allotment of any shares to parties and companies covered under Section 301 of the Companies Act, 1956.

(xix) Since the Company has not issued any debentures during the year, para 4(xix) of the order regarding creation of security is not applicable.

(xx) The Company has not made any public issue to raise money.

(xxi) According to information and explanation given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For M/s P. G. B HAG WAT Chartered Accountants

Firm Registration No. 101118W

S.B.Pagad

Partner

Pune : 29th April, 2010 Membership No. 206124



 
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