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Auditor Report of Niraj Cement Structurals Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of Niraj Cement Structurals Limited ('the Company'), which comprise the balance sheet as at 31 March 2015, the statement of profit and loss and the cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

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 and presentation 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 thereunder.

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

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

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

Basis of Qualified Opinion :

(a) Interest for the year amounting to Rs. 237.47 lakhs on Loan from State Bank of India and Bank Loan transferred to ASREC and ARCIL Registered under SARFAESI Act 2002, by State Bank of India and IDBI Bank Ltd, has not been charged to the Profit & Loss account, resulting in overstatement of profit and understatement of liabilities to that extent.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis of Qualified Opinion para, 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 March 2015 and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

Without qualifying our opinion we draw attention to the following matters in the Notes to the financial statements :

a. Note No. A-3, C-8 in the financial statements which indicates that the Company has overdue accumulated debts over the period amounting to Rs.5790.44 Lacs secured by various assets of the company and of which Rs.4463.69 Lacs is taken over by ASREC (India) Ltd and ARCIL Ltd Registered under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Company has also incurred losses for earlier two year and substantial decrease in turnover over preceding three year. Company has also defaulted in repayment of its Public Deposits and Inter Corporate Deposit on maturity and payment of Interest thereon. These conditions, along with other matters set forth in Note A-3, C-8 and C-9, indicate the existence of a material uncertainty that may cast apprehension about the Company's ability to function as a going concern. However, the financial statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note A-3.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraph 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) Except for the effects of the matter described in the Basis for Qualified Opinion paragraph above, in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) The matter described in the Basis for Qualified Opinion para and Emphasis of Matter para above, in our opinion, may have an adverse effect on the functioning of the Company.

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

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

(h) with respect to the 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 No. A-19 and C-9 to the financial statements;

ii. The Company did not have any Long term contract including derivatives contract as such the question of commenting on any material foreseeable losses thereon does not arise.

iii. There has been not been an occasion in case of the Company during the year under report to transfer any sums to the Investor Education and Protection Fund. The question of delay in transferring such sums does not arise.

Annexure to the Independent Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the standalone financial statements for the year ended 31 March 2015, we report that:

(i) FIXED ASSETS

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

b. The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of five years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.

(ii) INVENTORIES

a. As explained to us, the inventories have been physically verified during the year by the management. In our opinion, having regard to the nature and location of stocks, the frequency of the physical verification is reasonable.

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

c. In our opinion, the Company is maintaining proper records of inventory and the discrepancies noticed on physical verification of the same were not material in relation to the operations of the Company and the same have been properly dealt with in the books of account;

(iii) LOAN GIVEN

a. The Company has not granted loans to bodies corporate covered in the register maintained under section 189 of the Companies Act, 2013 ('the Act'). Accordingly, paragraph 3(iii) of the Order is not applicable to the Company

(iv) INTERNAL CONTROL

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

(v) DEPOSITS FROM PUBLIC

The Company has accepted deposits from the public. The company has generally complied with the provisions of directives issued by Reserve Bank of India and the provisions of Section 73 to 76 of the Companies Act 2013 and rules framed thereunder except filing of Return of Deposit with Registrar of Companies and default in payment of Interest and principle repayment on maturity. As per the information and explanation given to us, no order under the aforesaid sections have been passed by the Company Law Board, National Company Law Tribunal, or Reserve Bank of India, or any Court, or any other tribunal on the company..

(vi) COST ACCOUNTING RECORDS

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

(vii) STATUTORY DUES

a. According to the information and explanations given to us and on the basis of our examination of the records, Company is regular in depositing undisputed statutory dues payable in respect of provident fund, income tax, sales tax, wealth tax, service tax, duty of excise, duty of customs, value added tax, cess and other material statutory dues with few delay in some case except mention below which were in arrears as at 31 March 2015 for a period more than six months from the date they became payable:

Name of Statute Year/ Particulars Rs.(in Lakhs)

Income Tax Act 1961 AY 2007-08 137.70

Income Tax Act 1961 AY 2008-09 232.58

Income Tax Act 1961 AY 2009-10 189.86

Income Tax Act 1961 FBT dues 7.67

The Maharashtra Value MVAT Dues 14.97 Added Tax Act, 2002

Income Tax Act 1961 Tax Deducted at Source 264.28

b. According to the information and explanations given to us, there are no material dues of wealth tax, duty of customs and cess which have not been deposited with the appropriate authorities on account of any dispute. However, according to information and explanations given to us, the following dues of income tax, sales tax, service tax and value added tax have not been deposited by the Company on account of disputes:

Name of the Nature of dues Year Amount statute (in Lakhs.)

Income Tax Act Income Tax Penalty A.Y.2008-09 355.79

Income Tax Act Income Tax Penalty A.Y.2010-11 474.06

Income Tax Act Income Tax A.Y.2011-12 431.74

Income Tax Act Income Tax A.Y.2012-13 348.14

Name of the statute Forum where dispute is pending

Income Tax Act ITAT (Mumbai)

Income Tax Act ITAT (Mumbai)

Income Tax Act CIT(A) (Mumbai)

Income Tax Act CIT(A) (Mumbai)

c. According to the information and explanations given to us there are no amounts which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, and rules there under.

(viii) IN RESPECT OF LOSSES

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

(ix) REPAYMENT OF DUES

Based on our Audit procedures and according to information and explanation given to us, the Company has defaulted in repayment of its debt to banks. The Company has overdue outstanding dues to financial institutions, banks or debenture holders as at 31st March 2015 including interest thereon amounting to Rs.5790.71Lakhs for period April 2014 to March 2015 and Rs.566.56Lakhs for the period November 2014 to March 2015

(x) GUARANTEES GIVEN

In our opinion and according to the information and the explanations given to us, the Company has not given guarantee for loans taken by others from banks or financial institutions.

(xi) END USE OF BORROWINGS

According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, and on the basis of the management representation on which we have placed reliance, the term loans have been applied for the purpose for which they were raised.

(xii) FRAUDS

Based on the audit procedures performed for the purpose of reporting the true and fair view of financial statement and as per the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.

For Ajay B Garg Chartered Accountant

A Garg Proprietor Mem No 32538 Place : Mumbai Dated : 30/05/2015




Mar 31, 2014

We have audited the accompanying financial statements of Niraj Cement Structurals Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, 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") read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 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.

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 misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

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

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

(b) in the case of the Profit and Loss Account, of the loss 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 para-graphs 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 Account-ing Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013; e. on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to Independent Auditor''s Report Referred to in Paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date.

1. In respect of Fixed Assets :

a. The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets on the basis of information available.

b. As informed to us, during the year, majority of the fixed assets have been physically verified by the management on the basis of phased programme of verification of the assets over a reasonable time. Pursuant to the program, a portion of the fixed assets has been physically verified by the management during the year, no material discrepancies were noticed between the book records and the physical inventory for the same.

c. In our opinion and according to the information and explanations given to us, the company has not disposed of sub- stantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of inventories :

a. As per information and explanation given to us, the management has conducted physical verification of inventory at reasonable intervals during the year.

b. Based on the information and explanation given to us and on the basis of the management representation on which we have placed reliance, we are of the opinion that the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and its nature of business.

c. The company is maintaining proper records of inventory and as explained to us, during the year, there were no material discrepancies noticed on physical verification of inventory, as compared to the book records.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or parties covered in the register maintained under section 301 of the Companies Act, 1956 :

a. The company has taken loans from 2 parties covered in the Register maintained under section 301 of the Companies Act, 1956 aggregating to Rs. 226.93 lakhs.

b. The Company has not granted loans to parties covered in the register maintained under section 301.

c. In our opinion, the rate of interest and other terms and conditions on which the loans has been obtained and or given from the parties listed in register maintained under Sec. 301 of the Companies Act, 1956 are prima facia not prejudicial to the interest of the Company.

d. The parties have repaid the Principal amounts as stipulated and have been regular in payment of interest.

e. There are no overdue amounts more than one lakhs.

4. In our opinion and as per the information and explanation given to us there are adequate internal control procedure com-mensurate with the size of the company and nature of its business with regards to purchases of new materials, stores, plant and machinery equipment and other assets and for sale of goods. During the course of our audit, we have not ob-served any continuing failure to correct major weakness in internal control.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956 :

a. In our opinion and according to the information and explanations given to us, transactions that need to be entered into the Register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b. So far we have been able to ascertain, the company has entered into transactions for purchase of goods and materials and sale of goods, materials and services in pursuance of contract or arrangements entered in the Register maintained under Sec. 301 of the Companies Act, 1956 as aggregating during the year to Rs. 500,000/ - or more in respect of each party. These transactions have been made at prices which are reasonable having regard to prevailing market prices available with the company for such goods and services or the prices at the relevant time.

6. In respect of Fixed Deposits :

a. In our opinion and as per information and explanation given to us the Company has complied with the provisions of Section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1875, with regards to the deposits accepted from the public.

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

8. To the best of our knowledge and according to information given to us, the Central Government has not prescribed mainte-nance of cost records under sec. 209 (i) (d) of the Companies Act, 1956 in respect of any of the products of the Company.

9. In respect of statutory dues :

a. According to the records available with the company and information given to us, other than stated below, there have no been instances of delays in depositing undisputed statutory dues including the Provident Fund dues, ESIS dues, Income tax, MVAT, Service Tax, Cess , Sales tax and other statutory dues applicable during the year, which was out-standing for the period more than six month from the date it became payable. The following undisputed Statutory dues have not been deposited with the appropriate authorities and are outstanding :

b. The disputed statutory dues that have been not deposited on account of matters pending before the appropriate Ap-pellate Authorities are as under :

Name of Statute Year/ Particulars Rs. (in Lakhs)

Income Tax Act 1961 AY 2007-08 137.70

Income Tax Act 1961 AY 2008-09 232.58

Income Tax Act 1961 AY 2009-10 189.86

Income Tax Act 1961 FBT dues 7.67

The Maharashtra Value MVAT Dues 52.67 Added Tax Act, 2002

Income Tax Act 1961 Tax Deducted at 209.74 Source

The Maharashtra State Profession Tax 0.52 Tax on Professions, Trades, Callings and Employments Act, 1975

Employees Provident Funds Provident Fund 0.65 and Miscellaneous Provisions Act, 1952

Employees'' State Insurance ESIC 0.49 Act, 1948

Finance Act, 1994 Service Tax 18.52

Name of Statute Year Rs.(in lakhs) Appellate Authority

Income Tax Act A.Y.2008-09 355.79 ITAT (Mumbai)

Income Tax Act A.Y.2010-11 474.06 CIT(A) (Mumbai)

ESIC F.Y.1995-96 2.75 Dy. Director of ESIC

ESIC F.Y. 1997-98 2.86 Dy. Director of ESIC

10. The company has no accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and immediately preceding financial year.

11. There are continuing defaults in repayment of long term borrowing during the year

a. Long term borrowing :

b. During the year short term borrowing from bank was restructured.

12. According to information and explanations given to us, and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore the provisions of clause 4(xii) of the Order are not applicable to the Company.

13. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi / mutual benefit fund / societies. Therefore the provisions of clause 4(xiii) of the Order are not applicable to the Company.

14. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) Order are not applicable to the Company.

15. Based on our audit procedures and according to information and explanations given to us except otherwise stated in ''note to financial statement'', the company has not given guarantees for loans taken by others from a Bank or financial institution.

16. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Com-pany, and on the basis of the management representation on which we have placed reliance, the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, and on the basis of the management representation on which we have placed reliance, we are of the opinion that no funds raised on short term basis have been used for long term assets.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not raised any monies by way of issue of debentures.

20. During the year the company has not raised any money by public issue and accordingly the provisions of clause 4 (xx) of the Companies (Auditor''s Report) order, 2003 are not applicable to the Company.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

For Ajay B Garg. Chartered Accountants

A Garg Proprietor Membership No:. 032538

Place: Mumbai Date : 30th May 2014


Mar 31, 2012

1. We have audited the annexed Balance Sheet of NIRAI CEMENTS STRUCTURALS LIMITED (the "Company") as at 31st March 2012 and also the annexed profit & Loss account and Cash flow statement of the Company for the year ended on that date, which we have signed under reference to this report. These financial statements are the responsibility of the management of the company. Our responsibility is to express opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on 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 the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) order, 2003 as amended by Companies (Auditor's Report) (Amendment) order, 2004 issued by the Central Government in terms of sub section (4A) of Section 227 of the Companies Act 1956, and on the basis of such checks as we may have considered appropriate and according to the information and explanations given to us, we set out in annexure a Statement on the matters specified in the paragraph 4 and 5 ofthe said order.

4. Furtherto our comments in the Annexure referred to in paragraph 3 above, we report that

a) We have obtained all the information and explanation which to the best of our knowledge and behalf were necessary for the purpose of our audit.

b) In our opinion proper books of accounts as required by law have been kept by the company so far as appear from our examination ofthese books.

c) The Balance Sheet and the profit & Loss account and the Cash flow Statement dealt with by the report are in agreement with the books of accounts

d) In our opinion, these financial statements have been prepared in compliance with the applicable accounting standards referred to in Sub Clause [3c] of Section 211 of the Companies Act, 1956.

5. Based on the basis ofthe written representations made by all the Directors ofthe company as on 31st March 2012 and taken on record by the Board of Directors of the Company and in accordance with the information and explanations as made available, the Directors of the company do not, prima facie, have any disqualification as referred to in clause (g) sub-section (1) to the Section 274 of the Companies Act, 1956.

6. Without qualifying attention is drawn to Note no A-15 in respect of certain long overdue/slow moving trade receivables aggregating to Rs. 6618.65 Lakhs in respect of which management is confident of realizing the same with concerted efforts in due course oftime.

7. In our opinion and to the best of our information and according to the explanations given to us, the financial statements, together with the Notes thereon and attached thereto give in the prescribed manner the information required by the Companies Act, 1956 and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case ofthe Balance Sheet ofthe state of affair ofthe company at 31a March 2012 and

b) In case of Profit & Loss account, ofthe profit for the year ended on that date.

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

Annexure referred to in paragraph 3 of the Auditors' Report to the members of NIRAJ CEMENTS STRUCTURALS LIMITED on the accounts for the year ended 31a March 201 2.

1. In respect of Fixed Assets:

a) The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets on the basis of information available.

b) As informed to us, during the year, majority ofthe fixed assets have been physically verified by the management on the basis of phased program of verification of the assets over a reasonable time. Pursuant to the program, a portion ofthe fixed assets has been physically verified by the Management during the year, no material discrepancies were noticed between the book records and the physical inventory for the same.

c) In our opinion and according to the information and explanations given to us, the company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of inventories:

a) As per information and explanation given to us, the management has conducted physical verification of inventory at reasonable intervals duringthe year.

b) Based on the information and explanation given to us and on the basis of the management representation on which we have placed reliance, we are ofthe opinion that the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size ofthe Company and its nature of business.

c) The company is maintaining proper records of inventory and as explained to us, during the year, there were no material discrepancies noticed on physical verification of inventory, as compared to the book records.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or parties covered in the register maintained under section 301 ofthe Companies Act, 1 956 :

a) The company has taken loans from 2 parties covered in the Register maintained under section 301 of the Companies Act, 1956 aggregatingto Rs. 68.61 lakhs.

b) The Company has not granted loans to parties covered in the register maintained under section 301.

c) In our opinion, the rate of interest and other terms and conditions on which the loans has been obtained and or given from the parties listed in register maintained under Sec. 301 ofthe Companies Act, 1956 are prima facia not prejudicial to the interest ofthe Company.

d) The parties have repaid the Principal amounts as stipulated and have been regular in Payment of interest.

e) There are nooverdueamountsmorethanone lakhs.

4. In our opinion and as per the information and explanation given to us there are adequate internal control procedure commensurate with the size ofthe company and nature of its business with regards to purchases of new materials, stores, plant and machinery equipment and other assets and for sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control.

5. In respect of transactions covered under Section 301 ofthe Companies Act, 1 956:

a) In our opinion and according to the information and explanations given to us, transactions that need to be entered into the Register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b) So far we have been able to ascertain, the company has entered into transactions for purchase of goods and materials and sale of goods, materials and services in pursuance of contract or agreements entered in the Register maintained under Sec. 301 of the Companies Act, 1956 as aggregating during the year to Rs. 500,000/- or more in respect of each party. These transactions have been made at prices which are reasonable having regard to prevailing market prices available with the company for such goods and services or the prices at the relevant time.

6. In respect of Fixed Deposits :

a) In our opinion and as per information and explanation given to us the Company has complied with the provisions of Section 58A and 58AA ofthe Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1875, with regards to the deposits accepted from the public.

7. In respect of internal audit systems:

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

8. To the best of our knowledge and according to information given to us, the Central Government has not prescribed maintenance of cost records under sec. 209 (i) (d) ofthe Companies Act, 1956 in respect of any ofthe products ofthe Company.

9. In respect of statutory dues:

a) According to the records ofthe company, the Company is generally regular in depositing undisputed statutory dues including the Provident Fund dues, ESIS dues, Income tax, MVAT ,Sales tax and other statutory dues applicable to it with the statutory authorities except followingdues:

Name of Statute AY Rs. (in Lakhs)

Income TaxAct 2007-08 137.70

Income TaxAct 2008-09 232.58

Income TaxAct 2009-10 189.86

Income TaxAct &FBT FBT dues 7.67

b) The disputed statutory dues that have been not deposited on account of matters pending before the appropriate Appellate Authorities are as under:

Name of Year Rs. Appellate Statute (in lakhs) Authority

Income Tax A.Y.2008-09 355.79 Income Tax Act Appellate Tribunal Mumbai

ESIC F.Y. 1995-96 2.74 Dy. Directorof ESIC

ESIC F.Y. 1997-98 2.86 Dy. Directorof ESIC

1 0. The company has no accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and immediately preceding financial year.

11. There have not been any continuing defaults or default in repayment of duesto the banksduringthe year.

1 2. Accordingto information and explanations given to us, and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security byway of pledge of shares, debentures and other securities. Therefore the provisions of clause 4(xii) of the Order are not applicable to the Company.

1 3. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi / mutual benefit fund / societies. Therefore the provisions of clause 4(xiii) ofthe Order are not applicable to the Company.

14. In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) Order are not applicable to the Company.

15. Based on our audit procedures and according to information and explanations given to us the company has given guarantees for loans taken by others from a Bank or financial institution, which has been backed by Bank guarantee in favour of the company and assigned to the Bank and the Loan being directly disbursed to Sub Contractor.

1 6. According to the information and explanations given to us and on an overall examination ofthe Balance Sheet of the Company, and on the basis of the management representation on which we have placed reliance, the term loans have been applied forthe purpose for which they were raised.

1 7. According to the information and explanations given to us and on an overall examination ofthe Balance Sheet of the Company, and on the basis of the management representation on which we have placed reliance, we are of the opinion that no funds raised on short term basis have been used for longterm assets.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 ofthe Companies Act, 1956.

1 9. The Company has not raised any monies by way of issueof debentures.

20. During the year the company has not raised any money by public issue and accordingly the provisions of clause 4 (xx) of the Companies (Auditor's Report) order, 2003 are not applicable to the Company.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

For Ajay B. Garg Chartered Accountant

Place : Mumbai A G r

Date : September 5th, 2012 Mgm No


Mar 31, 2010

1. We have audited the annexed Balance Sheet of NIRAI CEMENT STRUCTURAL LIMITED as at 31st March 2010 and also the annexed Profit & Loss account and Cash flow statement of the Company for the year ended on that date. These financial statements are the responsibility of the management of the company. Our responsibility is to express opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on 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 the management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) order, 2003 as amended by Companies (Auditors Report) (Amendment) order, 2004 issued by the Central Government in terms of sub section (4A) of Section 227 of the Companies Act 1956, and on the basis of such checks as we may have considered appropriate and according to the information and explanations given to us, we set out in annexure a Statement on the matters specified in the 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 :-

a. We have obtained all the information and explanation which to thebest of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of accounts as required by law have been kept by the company so far as appear from our examination of these books.

c. The Balance Sheet and the Profit & Loss account and the Cash Flow statement dealt with by the report are i n agreement with the books of accounts.

d. In our opinion, these financial statements have been prepared in compliance with the applicable accounting standards referred to in Sub Clause [3c] of Section 211 of the Companies Act, 1956.

5. Based on the basis of the written representations made by all the Directors of the company as on 31st March 2010 and taken on record by the Board of Directors of the Company and in accordance with the information and explanations as made available, the Directors of the company do not, prima facie, have any disqualification as referred to in clause (g) sub-section (1) to the Section 274 of the Companies Act, 1956.

6. In our opinion and to the best of our information and according to the explanations given to us, the financial statements, together with the Notes thereon and attached thereto give in the prescribed manner the information required by the Companies Act, 1956 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 affair of the company at 31 st March 2010 and

b. In case of Profit & Loss account, of the profit for the year ended on that date.

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

ARSS referred to in paragraph 3 of the Auditors Report to the members of Niraj Cement Structurals Limited on the accounts for the year ended 31st March 2010.

1. In respect of Fixed Assets:

a. The Company has maintained proper records to show full particulars including quantitative details and situation of the fixed assets.

b. During the year, majority of the fixed assets have been physically verified by the management on the basis of phased programme oi verification of the assets over a reasonable time. No material discrepancies were noticed on verification of the assets made du ri ng the year.

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

2. In respect of inventories:

a. The management has conducted physical verification of inventory at reasonable intervals.

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 its nature of business.

c. The company is maintaining proper records of inventory and as explained to us there were no material discrepancies noticed on physical verification of inventory, as compared to the book records.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/from companies, firms or parties covered in the register maintained under section 301 of the Companies Act, 1956 :

a. The company has not taken loans from any party covered in the Register maintained under section 301 of the Companies Act, 1956.

b. The Company has not granted loans to parties covered in the register maintained under section 301.

c. In our opinion, the rate of interest and other terms and conditions on which the loans has been obtained and /or given from the parties listed in register maintained under Sec. 301 of the Companies Act, 1956 are prima facie not prejudicial to the interest of the Company.

d. The parties have repaid the Principal amounts as stipulated and have been regular in Payment of

interest.

e. There are no overdue amounts more than one lakhs.

4. In our opinion and as per the information and explanation given to us there are adequate internal control procedure commensurate with the size of the company and nature of its business with regards to purchases of raw materials, stores, plant and machinery equipment and other assets and for sale of goods. During the course of our audit, we have not observed any continuing failure to correct majorweakness in internal control.

5. In respect of transactions covered under Section 301 of the Companies Act, 1956:

a. In our opinion and according to the information and explanations given to us, transactions that need to be entered into the Register in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b. So far we have been able to ascertai n, the company has entered into transactions for purchase of goods and materials and sale of goods, materials and services in pursuance of contract or agreements entered in the Register maintained under Sec. 301 of the Companies Act, 1956 as aggregating during the year to Rs. 500,000/- or more in respect of each party. These transactions have been made at prices which are reasonable having regard to prevailing market prices available with the company for such goods and services or the prices at the relevant time.

6. In respect of Fixed Deposits:

In our opinion and as per information and explanation given to us the Company has complied with the provisions of Section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975, with regards to the deposits accepted from the public.

7. In respect of internal audit systems:

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

8. To the best of our knowledge and according to information given to us, the Central Government has not prescribed maintenance of cost records under sec. 209 (I) (d) of the Companies Act, 1956 in respect of any of the products of the Company.

9. In respect of statutory dues:

a. According to the records of the company, the Company is generally regular in depositing undisputed statutory dues including the Provident Fund dues, ESIS dues, Income tax, Sales tax and other statutory dues applicable to it with the statutory authorities as on 31st March,2010, except followingdues.

Name of Statute Nature of (Rs. In Lacs) Amount the dues

Income Tax Act FBT 7.67

Income Tax Act Income Tax 231.00

b. According to information and explanations given to us, following statutory dues which have not been deposited as on 31st March 2010 on account ofdispute.

Nature of Forum where Period to Amount statutory dues dispute is pending which it (Rs. relates In Lacs)

Income Tax Commissioner of A.Y.2006-07 282.85 Act, 1961 Income Tax (Appeals)

Works Contract Sales Tax Appellate Tax Act Authority F.Y.2004-05 0.44

ESIC Dy. Director of ESIC F.Y. 1995-97 2.74

ESIC Dy. Director of ESIC F.Y. 1997-98 2-86



Of the above ESIC dues the company has deposited an amount of Rs 2.71 lakhsas per the order of the court.

10. The company has no accumulated losses at the end of the financial year and it has not incurred any cash losses in the current and immediately preceding financial year.

11. According to information and explanations given to us, and based on the documents and records produced before us, and on the basis of the management representation on which we have placed reliance, the Company has not defaulted in repayment of dues to financial institution, banks or debenture holders.

12. According to information and explanations given to us, and based on the documents and records produced before us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore the provisions of clause 4(xii) of the Order are not appl icable to the Company.

13. In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund and nidhi / mutual benefit fund / societies.

Therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order 2003 are not applicable to the Company.

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

15. Based on our audit procedures and according to information and explanations given to us the company has not given guarantees for loans taken by others from a Bank or financial institution.

16. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, and on the basis of the management representation on which we have placed reliance, the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, and on the basis of the management representation on which we have placed reliance, we are of the opinion that no funds raised on short term basis have been used for long term assets.

18. During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company has not raised any monies by way of issue of debentures.

20. Duri ng the year the company has not raised any money by public issue and accordingly the provisions of clause 4 (xx) of the Companies (Auditors Report) order, 2003 are not appl icable to the Company.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated.

For AjayB. Garg Chartered Accountant

A Garg

Mem. No 032538

Place : Mumbai

Dated : 6,th September, 2010

 
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