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Auditor Report of Ramsarup Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of Ramsarup Industries limited, which comprise the Balance Sheet as at March 31, 2015, and the Statement of profit and loss and Cash Flow Statement for the year then, ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

the Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

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

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

Basis for Qualified opinion:-

1) the Company has four manufacturing units at Kalyani, Shyamnagar, Kharagpur and Durgapur, all of which are under the suspension of work for the last few years and they are under the symbolic /physical possession of lenders due to default of payment of the outstanding loans. Detail physical verifications of fixed assets and inventories could not be conducted by the management. We have also not been able to obtain sufficient appropriate audit evidences (SAAe) in respect of existence and valuation of fixed assets and inventories lying in these factories.

2) Borrowings from banks and financial institutions have been classified as nonperforming assets by the lenders. no balance confirmation of the outstanding loan could be obtained nor any bank statement has been provided by them. In absence of the same, we are unable to confirm the accuracy of the balances appearing in the books of account. As the borrowings have been considered as npA, no interest has been charged by the banks since then. During the year the company has provided interest on these borrowings up to 1st quarter June 2014 but interest of Rs. 395.84 crore for the three quarters from 1st July to 31st March, 2015 has not been provided.

3) the net worth of the company has been fully eroded and therefore the company filed an application before the ld. BIFR which is still pending. the Company's ability to continue the business is significantly dependent upon the viability of the restructuring plan to be approved by the ld. BIFR.

Qualified Opinion:-

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in the basis for qualified opinion paragraph, 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 principle generally accepted in India of the state of affairs of the company as at 31st March 2015, and its loss 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 Act, 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 except for the matters described in the basis for Qualified opinion paragraph, obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

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

c) the Balance Sheet, Statement of profit and loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) except for the possible effects of the matter described in the basis for Qualified opinion paragraph, in our opinion, the Balance Sheet, Statement of profit and loss, and Cash Flow Statement 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 paragraph above, in our opinion, may have an adverse effect on the functioning of the Company.

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

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

i) A number of litigations have been filed by some of the lender banks and creditors of the company against which primary liabilities stands provided in the books except for other claims and interest thereon. Apart from these various statutory / non-statutory liabilities as stated in note no 33 of financial statement have not been provided for although the financial impact thereon have been disclosed.

ii) the Company is carrying on infrastructure work at Rajasthan wherein substantial delay has happened for various reasons in execution of the contract. this may lead to cancellation of contract and losses so incurred will be ascertained at the relevant time. total outstanding work contract is estimated to the tune of Rs 40 crore against which the Bank Guarantee is covered by Rs. 1.37 crore. there are no outstanding derivative contracts in the Company.

iii) there has been some delay in transferring amounts required to be transferred to the Investor education & protection Fund by the Company. Following are the instances of delay in transferring amounts, to the Investor education & protection Fund by the Company.

Nature Amount Due for Transfer Actual Transfer

Final Dividend for 05-06 Rs.46,455.00 Sept 2013 28.05.2014

Interim Dividend for 05-06 Rs 2,38,034.80 Sept 2013 14.06.2014

ANNEXURE TO THE AUDITOR'S REPORT

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

i) In respect of its Fixed Assets:

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

b) the Company had a regular program of physical verification of fixed assets, and these were being verified in a phased manner over a period of three years, but due to suspension of work in all its manufacturing units it has not been possible for the company during the year, to have physical verification done.

c) no fixed assets have been disposed off during the year.

ii) In respect of its Inventories:

a) As explained to us the Inventories could not be physically verified by the management due to suspension of its manufacturing units. the Stock has been taken on the basis of previous period with estimated realizable value for deterioration in quality due to efflux of time.

b) the Company has been maintaining proper records of its inventories but in absence of physical verifications of inventories, actual comparison with book records have not been possible.

iii) As informed to us, the Company during the year has not granted any loan, secured or unsecured to companies, firms or other parties covered in register maintained under section 189 of the Companies Act, 2013. Accordingly, the provisions of sub clause (iii) (b) & (c) of the Companies (Auditors Report) order, 2013 (as amended) are not applicable.

iv) In our opinion and according to the information & explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of Inventory, Fixed Assets and also for the sale of goods. During the course of our Audit no major weakness has been noticed in the internal control system in respect of these areas.

v) According to the information and explanation given to us, the Company has not accepted any deposit from the public; therefore the provisions of clause (v) of the order are not applicable to the company.

vi) We have broadly reviewed the Books of Accounts maintained by the company in respect of generation of electricity where pursuant to the rules made by the Central Government of India, the maintenance of Cost Records have been prescribed u/s 148(1) 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.

vii) In respect of Statutory Dues:

a) According to the information and explanations given to us and on the basis of records of the Company, amount deducted / accrued in the books of accounts in respect of undisputed statutory dues including provident Fund, Income tax, Sales tax, Wealth tax, Service tax, Duty of Customs, Value Added tax,Cess and other material statutory dues have been regularly deposited with appropriate authorities during the year except the delays as below:

Statement of arrears of Statutory Dues outstanding for more than six months up to 31.03.2015:

Sl. Name of Statute Amount (Rs in lacs) No.

i) excise Duty Demand for F.Y. 2010-11 307.50

ii) eSI Contribution 6.49

iii) professional tax 1.55

Total 315.54

b) the disputed statutory dues that have not been deposited{net of Amount paid under protest} on account of disputed matter pending before appropriate authorities are as under:

Sl. Name of Statute Nature of Dues Amount No. (Rs. in Lacs)

1 West Bengal Sales Sales tax 59.41 tax Act, 1994

2 West Bengal Sales Sales tax 3,576.58 tax Act, 1994

3 West BengaL VAt tax VAt 4,015.57 Act, 2003

4 West Bengal VAt tax VAt 16.24 Act, 2003

5 West Bengal VAt tax VAt 701.99 Act, 2003

6 West Bengal VAt tax VAt 696.60 Act, 2003

7 West Bengal VAt tax VAt 1,433.79 Act, 2003

8 West Bengal VAt tax VAt 2,613.51 Act, 2003

9 West Bengal VAt tax VAt 1,550.63 Act, 2003

10 Central Sales tax Sales tax 51.68 Act,1956

11 Central Sales Sales tax 200.63 tax Act, 1956 12 Central Sales Sales tax 306.17 tax Act, 1956

13 Central Sales Sales tax 1,033.76 tax Act, 1956

14 Central Sales Sales tax 865.41 tax Act, 1956

15 Central Sales Sales tax 71.23 tax Act, 1956

16 Central Sales Sales tax 172.03 tax Act, 1956

17 Central Sales Sales tax 5.63 tax Act, 1956

18 employee State ESI 26.03 Insurance

19 employee State ESI 6.54 Insurance

20 provident Fund Act PF 19.90

21 Service tax Act Service tax 4422.54



Name of the statue Period to which Forum where amount relates dispute is pending

WestBengal sales Tax Act, 1994 Various Years from Appellate & 1994-95 to1999-00 Revisional Board

West Bengal Sales 2004-05 Appellate & tax Act, 1994 Revisional Board

West Bengal Sales 2005-06 Appellate & tax Act, 1994 Revisional Board

West BengaL VAT TAX 2006-07 Appellate & Act,2003 Revisional Board

West Bengal VAT TAX 2007-08 Appellate & Act, 2003 Revisional Board

West Bengal VAT TAX 2008-09 Appellate & Act, 2003 Revisional Board

West Bengal VAT TAX 2009-10 Appellate & Act, 2003 Revisional Board

West Bengal VAT TAX 2010-11 Appellate & Act, 2003 Revisional Board

West Bengal VAT TAX 2011-12 Appellate Act, 2003 Forum CD-01

Central Sales tax various from 1994 -95 to 1999-00 Act,1956 Appellate & Revisional Board

various fyear from Central Sales 2000- 01 & 2003-04 tax Act, 1956 kolkata high court

Central Sales 2004-05 & 2005-06 Appellate & tax Act, 1956 Revisional Board

Central Sales 2006-07 &2007- 08 Appellate & tax Act, 1956 Revisional Board

Central Sales 2008-09 Appellate & tax Act, 1956 Revisional Board

Central Sales 2009-10 Appellate tax Act, 1956 Revisional Board

Central Sales 2010- 11 Appallate& tax Act, 1956 Revisional Board

Central Sales 2012- 12 Appelate & from CD -01 tax Act, 1956

employee state insurance various year from 2002-03to 2006-07 EI- court

employee State 2001- 02tand 2002-03 insurance EI court

provident fund act, Various Years from Assistant / Regional 2009-10 to2013-14 p. F. Commissioner

Service tax Act Various Years from Service tax 2007-08 to2011-12 Commissionerate (Kol) (CBeC)

Sl. Name of Statute Nature of Dues Amount No. (Rs. in Lacs)

22 Commissioner of excise Duty 467.85 Central excise

23 Commissioner of excise Duty 15.00 Central excise

24 Commissioner of excise Duty 454.28 Central excise

25 Commissioner of excise Duty 620.43 Central excise

26 Income tax Act, 1961 Income tax 417.67

27 Income tax Act, 1961 Income tax 1141.81

28 Income tax Act, 1961 Income tax 674.30

29 Wealth tax Act, 1957 Wealth tax 1.66

Name of the statue Period to which Forum where amount relates dispute is pending

2008-09 the Customs, Commissioner of excise and central exercersise Service tax Appellate tribunal

Commissioner of Central excise 2009-10 the Customsexcise and Service tax Appellate tribunal Commissioner of Central excise 2010-11 the Customs,excise and Service tax Appellate tribunal Commissioner of Central excise 2011-12 the Customs,excise and Service tax Appellate tribunal

Income tax Act, A.Y. 2007-08 C I t (A) 1961

Income tax Act, A.Y. 2008-09 C I t (A) 1961

Income tax Act, A.Y. 2010-11 C I t (A) 1961

Wealth tax Act, A.Y. 2010-11 C I t (A) 1957

c) According to the information and explanations given to us the amounts which are required to be transferred to Investor education and protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under has been transferred to such fund within time except the followings:-

Nature Amount Due for Transfer Actual Transfer

Final Dividend for 05-06 Rs 46,455.00 Sept 2013 28.05.2014

Interim Dividend for 05-06 Rs2,38,034.80 Sept 2013 14.06.2014

viii) the Company has accumulated losses of Rs.1, 63,727 lacs (p.Y 1, 45,425/- lacs) at the end of the year, due to which the net Worth of the company has fully eroded. the Company has incurred Cash losses of Rs. 12,961 lacs during the financial year covered by the audit and in the immediately preceding financial year, Rs. 45,759 lacs.

ix) Based on our Audit procedure and on the basis of information and explanations given us, we are of the opinion that the company has defaulted in the entire payment of loans and Interest to the Banks & Financial Institutions etc.

x) According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from bank or financial institutions.

xi) Based on information and explanation given to us by the management no term loans has been raised during the year and earlier term loans outstanding are stated in financial statement.

xii) Based upon the audit procedures performed and information and explanation given by the management, we report that no material fraud on or by the company has been noticed or reported during the course of our audit.

For P. K. Lilha & Co.

Chartered Accountants

FRn: 307008e

C.A. C.S. Agrawal

place: Kolkata Partner

Date:30.05.2015 Membership no. : 059534


Mar 31, 2014

We have audited the accompanying financial statements of Ramsarup Industries Limited, 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, 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 of the Companies Act, 1956 ("the Act"). (Which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs) 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 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 but not for the purpose of expressing an opinion on the effectiveness of the entity''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 subject to our observation mentioned hereinafter.

Without qualifying our opinion, attention is drawn to the following points :

i) As the company has been in default in making the payment of installments and servicing of loan etc to all Banks and Financial institutions, as such confirmations & other statements from them have also not been received. Physical verification of fixed assets and also of inventories in the accounts could not be verified during the year by the management as all the manufacturing units were not in operation and the physical / symbolic possession of all the manufacturing units have been taken over by some of the lenders bank, which has been challenged by the management, before the Ld. Debts Recovery Tribunal II Kolkata .

ii) It has been informed by some of the lenders bank that they have assigned their debts due from the Company to some Asset Reconstruction Companies but in absence of full details regarding the transactions no accounting effect have been given in the books of accounts.

iii) As stated in Note 35, the Company''s net-worth has been fully eroded. Taken together these conditions indicate, the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern, which is dependent on establishing profitable operations in line with the Company''s business plans, as well as satisfactory settlement of disputes/litigation in favor of the Company. Moreover, the Company made a reference to the Hon''ble Board for Industrial & Financial Reconstruction (BIFR) pursuant to the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) which has since been abated in accordance with the third proviso of Sec 15(1) of the SICA. Being aggrieved by the order of the Hon''ble BIFR the company has filed an appeal before Hon''ble AAIFR which is still pending.

These mitigating factors have been more fully discussed in Notes 33, 34 and 35 to be accompanying Financial Statements, in view of which the accompanying Financial Statement have been prepared under the Going Concern assumption and consequently no adjustments if any have been made to the carrying values of assets and liabilities.

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 subject to the above 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 statement of Profit and Loss, 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'', as amended by ''the 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 Act (hereinafter referred to as "the Order"), and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, 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 notified under the Act, (Which continue to be applicable in respect of section 133 of the Companies Act, 2013 in terms of general circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs) subject to Note No 37 on Impairment of Assets.

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 THE AUDITOR''S REPORT

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

i) In respect of its Fixed Assets:-

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

b) The Company had a regular program of physical verification of fixed assets, and these were being verified in a phased manner over a period of three years, but due to suspension of work in all its manufacturing units it has not been possible for the company during the year to have physical verification done.

c) No Fixed Assets have been disposed off during the year.

ii) In respect of its Inventories :-

a) As explained to us the Inventories could not be physically verified by the management due to suspension of its man- ufacturing units. The Stock has been taken on the basis of previous period with estimated market value of all the inventories.

b) The Company has been maintaining proper records of its inventories and in absence of physical verifications of inven- tories, actual comparison with book records have not been possible.

iii) In respect of the loans, secured or un-secured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 :-

a-d) As informed to us the Company has not granted any loan, secured or unsecured to companies, firms or other par- ties covered in register maintained under section 301 of the Companies Act, 1956, accordingly, the provisions of sub clause (iii) (b) to (d) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable.

e) The company during the year also has continued to consider the amount as unsecured loan which were credited by the company on account of sale proceeds of the Company''s share pledged by the promoter/ promoter companies & others against credit facilities taken. This amount is payable to them, which were due to default in payment was sold/ invoked by the lenders. As such there are no other terms & conditions for repayment of this amount, this has been deemed as free of interest and prima facie not prejudicial to the interest of the company.

f) The Company during the year has taken/credited a sum of Rs. 24.19 Lacs which has also been treated as unsecured loans repayable on demand from five body corporates under same group and a Director of the company. There are no other terms and conditions for repayment of this amount and this has been deemed as free of interest and therefore prima facie not prejudicial to interest of the company.

g) In respect of the said loan the maximum amount outstanding at any time during the year amounts to Rs. 4386.05 lacs and the year end balance is Rs. 4331.77 lacs.

iv) In our opinion and according to the information & explanations given to us, there is adequate internal control system com- mensurate with the size of the company and the nature of its business for the purchase of Inventory, Fixed Assets and also for the sale of goods. During the course of our Audit no major weakness has been noticed in the internal control system in respect of these areas.

v) a) According to the information and explanations given to us, we are of the opinion that the particulars of contract or

arrangements referred to in section 301 of the Act, that need to be entered in to the register have been so entered. b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered during the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) According to the information and explanation given to us, the Company has not accepted any deposit from the public; therefore the provisions of clause (vi) of paragraph 4 of the order are not applicable to the company.

vii) In our opinion, the Company has an Internal Audit System commensurate with its size and nature of its business.

viii) We have broadly reviewed the Books of Accounts maintained by the company in respect of generation of electricity where pursuant to the rules made by the Central Government of India, the maintenance of Cost Records have been prescribed U/s 209(1)(d) 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) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education

and Protection Fund, Employees State Insurance, Sales Tax, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues have been delayed for more than six months in depositing with appropriate authorities during the year as detailed below :

Statement of arrears of Statutory Dues outstanding for more than six months upto 31.03.2014 :

Name of Statute Amount (Rs. in lacs)

Provident Fund Contributions 4.88

ESI Contribution 7.04

Professional Tax 1.41

Excise Duty Demand for F.Y. 2010-11 307.50

Total 320.83

b) The disputed statutory dues that have not been deposited on account of disputed matter pending before appropriate authorities are as under :

Name of Statute Nature of Dues Amount Period to which the Rs.in Lacs amount relates

West Bengal Sales Sales Tax Various Years from Tax Act,1994 59.41 1994-95 to 1999-00

West Bengal Sales Sales Tax 2004-05 Tax Act,1994 3,576.58

West BengalVAT VAT 2005-06 TaxAct, 2003 4,015.57

West Bengal Sales VAT 2006-07 Tax Act, 2003 16.24

West BengalVAT VAT 2007-08 Tax Act,2003 701.99

West Bengal VAT VAT 2008-09 Tax Act, 2003 696.60

West Bengal VAT VAT 1,433.79 2009-10 Tax Act, 2003

West Bengal VAT VAT 2,613.51 2010-11 Tax Act, 2003

Central Sales Sales Tax Various Years from TaxAct,1956 51.68 1994-95 to 1999-00

Central Sales Sales Tax Various Years from TaxAct, 1956 200.63 2000-01 to 2003-04

Central Sales Sales Tax 2004-05 & 2005-06 Tax Act, 1956 306.17

Central Sales Sales Tax 2006-07 & 2007-08 TaxAct, 1956 1,033.76

Central Sales Sales Tax 2008-09 TaxAct, 1956 865.41

Central Sales Sales Tax 71.23 2009-10 Tax Act, 1956

Central Sales Sales Tax 172.03 2010-11 TaxAct, 1956

Commissioner of Excise Duty 467.85 2008-09 Central Excise

Commissioner of Excise Duty 15.00 2009-10 Central Excise

Commissioner of Excise Duty 454.28 2010-11 Central Excise

Commissioner of Excise Duty 620.43 2011-12 Central Excise

Income Tax Income Tax 470.04 F.Y. 2009-10 Act, 1961 A.Y. 2010-11

Employee ESI 26.03 Various Years from State Insurance 2002-03 to 2006-07

Employee ESI 6.54 2001-02 and 2002-03 State Insurance

Providend Fund Act PF 23.32 Various Years from 2006- 07 to 2013-14

Service Tax Act Service Tax 4,519.87 Various Years from 2007- 08 to 2011-12



Name of Statute Forum dispute is pending

West Bengal Sales Appellate & Revisional Board Tax Act,1994

West Bengal Sales Appellate & Revisional Board Tax Act,1994

West BengalVAT Appellate & Revisional Board TaxAct, 2003

West Bengal Sales Appellate & Revisional Board Tax Act, 2003

West BengalVAT Appellate & Revisional Board Tax Act,2003

West Bengal VAT Appellate & Revisional Board Tax Act, 2003

West Bengal VAT Appellate & Revisional Board Tax Act, 2003

West Bengal VAT Under Appeal -Forum CD-01 Tax Act, 2003

Central Sales Appellate & Revisional Board TaxAct,1956

Central Sales Kolkata High Court TaxAct, 1956

Central Sales Appellate & Revisional Board Tax Act, 1956

Central Sales Appellate & Revisional Board TaxAct, 1956

Central Sales Appellate & Revisional Board TaxAct, 1956

Central Sales Appellate & Revisional Board Tax Act, 1956

Central Sales Under Appeal -Forum CD-01 TaxAct, 1956

Commissioner of The Customs, Excise and Service Tax Central Excise Appellate Tribunal

Commissioner of The Customs, Excise and Service Tax Central Excise Appellate Tribunal

Commissioner of The Customs, Excise and Service Tax Central Excise Appellate Tribunal

Commissioner of The Customs, Excise and Service Tax Central Excise Appellate Tribunal

Income Tax Deputy Commissioner of Income Tax Act, 1961

Employee EI Court State Insurance

Employee EI Court State Insurance

Providend Fund Act Assistant / Regional P.F Commissioner

Service Tax Act Service Tax Commis-sionerate (Kol)

s x) The Company has accumulated losses of Rs.1,45,425 Lacs (P.Y 96,525/- Lacs) at the end of the year, due to which the Net Worth of the company has completely eroded. The Company has incurred Cash Losses of Rs. 45,759 Lacs during the financial year covered by the audit and in the immediately preceding financial year, there was Cash Loss of Rs. 39,821 Lacs.

xi) Based on our Audit procedure and on the basis of information and explanations given us, we are of the opinion that the company has defaulted in the entire payment of Loan to Bank & Financial Institutions as per Balance Sheet.

xii) According to the information and explanation given to us, the company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities, accordingly paragraph 4 (xii) of the Order is not appli- cable.

xiii) In our opinion the company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of the order are not applicable to the company.

xiv) As informed and explained to us, the company has not dealt/traded in shares, securities, debentures and other investments during the year.

xv) According to the information and explanation given to us, there is no guarantee given by the company for the loans taken by others, from Banks or Financial institutions.

xvi) Based on information and explanation given to us by the management no term loan was raised during the year.

xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company we

are of the opinion that the company has neither borrowed loans from banks nor taken unsecured loans. Loan from Banks

has increased due to interest on loan paid subsequent invocations of Bank Guarantees issued by them and interest thereon.

xviii) During the year the company has not made preferential allotment of Shares to parties and companies covered in the regis- ter maintained under Section 301 of the Companies Act, 1956.

xix) The Company has not issued any secured Debenture during the year, hence the questions of charge does not arise.

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

xxi) Based upon the audit procedures performed and information and explanation given by the management, we report that no material fraud on or by the company has been noticed or reported during the year ended 31st March, 2014.

For P.K. LILHA & CO. Chartered Accountants FRN : 307008E

CA C.S. Agrawal Place : Kolkata Partner Date : 21st May 2014 Membership No. : 059534


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Ramsarup Industries Limited, which comprise the Balance Sheet as at March 31,2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 19S6 ("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.

Attention of the members is invited to note 35 of the Notes on Accounts regarding the financial statements of the company having been prepared ongoing concern basis notwithstanding the fact that its Net Worth is completely eroded. The appropriateness of the said basis is interalia dependent on the company''s ability to infuse requisite funds for meeting its obligation, rescheduling its debts resuming normal operation of its manufacturing facilities which are not in operation as mentioned in note 34.

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 subject to the above read with the notes specially Note No. 35, 36,37 and 38 give a true and fair view in conformity with the accounting principles generally accepted in India:

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

b) In the case of the 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.

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 S 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 subsection (3C) of section 211 of the Companies Act, 1956;

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

i) In respect of its Fixed Assets :-

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

b) The Company had a regular program of physical verification of fixed assets, and these were being verified in a phased manner over a period of three years, but due to suspension of work in all its manufacturing units it has not been possible for the company during the year to have physical verification done.

c) Fixed Assets disposed off during the year were not substantial and therefore it does not affect the going concern assumption.

ii) In respect of its Inventories:

a) As explained to us the Inventories could not be physically verified by the management due to suspension of its manufacturing units. The Stock has been taken on the basis of previous period with estimated market value., of all the inventories.

b) The Company has been maintaining proper records of its inventories and in absence of physical verifications of inventories, actual comparison with book records have not been possible.

iii) In respect of the loans, secured or un-secured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956:-

a-d) As informed to us the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in register maintained under section 301 of the Companies act,1956,accordingly, the provisions of sub clause (iii) (b) to (d) of the Companies (Auditors Report) order, 2003 (as amended) are not applicable.

e) The company during the year also has continue to consider the amount as unsecured loan which were credited by the company on account of sale proceeds of the Company''s share pledged by the promoter/ promoter companies/Associates & others against credit facilities taken. This amount is payable to them, which were due to default in payment was sold/invoked by the lenders. As such there are no other terms & conditions for repayment of this amount, this has been deemed as free of interest and prima facie not prejudicial to the interest of the company.

f) The Company during the year has taken a sum of Rs. 5.03 Lacs as unsecured loans repayable on demand from a body corporate under group companies. There are no other terms and conditions for repayment of this amount and this has been deemed as free of interest and therefore prima facie not prejudicial to interest of the company.

g) In respect of the said loan the maximum amount outstanding at any time during the year amounts to Rs. 681.34 lacs and the year end balance is Rs. 681.07 lacs.

iv) In our opinion and according to the information & explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of Inventory, Fixed Assets and also for the sale of goods. During the course of our Audit no major weak fess has been noticed in the internal control system in respect of these areas.

v) a) According to the information and explanations given to us, we are of the opinion that the particulars of contract or arrangements referred to in section 301 of the Act, that need to be entered in to the register have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered during the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) According to the information and explanation given to us, the Company has not accepted any deposit from the public; therefore the provisions of clause (vi) of paragraph 4 of the order are not applicable to the company.

vii) In our opinion, the Company has an Internal Audit System commensurate with its size and nature of its business.

viii) We have broadly reviewed the Books of Accounts maintained by the company in respect of generation of electricity where pursuant to the rules made by the Central Government of India, the maintenance of Cost Records have been prescribed U/s 209(l)(d) 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) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Sales Tax, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues have been delayed for more than six months in depositing with appropriate authorities during the year as detailed below : *

Statement of arrears of Statutory Dues outstanding for more than six months up to 31.03.2013 :

S. No. Name of Statute Amount (Rs in lacs)

i) Provident Fund Contributions 7.21

ii) ESI Contribution 5.18

iii) Income Tax Deducted at source (TDS) . 35.38

iv) Income Tax Collected at Source (TCS) 0.58

v) Professional Tax 0.97

vi) Excise Duty Demand for F.Y. 2010-11 307.50

Total 356.82

b) The disputed statutory dues that have not been deposited on account of disputed matter pending before appropriate authorities are as under:

SI No. Name of Statute Nature of Dues Amount Period to which the Forum Where (Rs In Lacs) amount relates Dispute is Pending

1 West Bengal Sales Sales Tax 59.41 Various Years from Appellate &

Tax Act, 1994 1994-95 to 1999-00 Revisional Board

2 West Bengal Sales Sales Tax 3,576.58 2004-05 Appellate & Tax Act, 1994 Revisional Board

3 West Bengal VAT VAT 4,015.57 2005-06 Appellate & Tax Act, 2003 Revisional Board

4 " West Bengal VAT VAT 16.24 2006-07 Appellate & Tax Act''2003 Revisional Board

5 West Bengal VAT VAT 701.99 2007-08 Appellate & Tax Act''2003 Revisional Board

6 West Bengal VAT VAT 696.60 2008-09 Appellate & Tax Act''2003 Revisional Board

7 Central Sales Sales Tax 51.68 Various Years from Appellate & Tax Act, 1956 1994-95 to 1999-00 Revisional Board

8 Central Sales Sales Tax 200.63 Various Years from Kolkata High Court Tax Act, 1956 2000-01 to 2003-04

9 Central Sales Sales Tax 306.17 2004-05 & 2005-06 Appellate & Tax Act, 1956 * Revisional Board

10 Central Sales Sales Tax 1,033.76 2006-07 & 2007-08 Appellate & Tax Act, 1956 Revisional Board

11 Central Sales Sales Tax 865.41 2008-09 Appellate & Tax Act, 1956 Revisional Board

12 Commissioner of Excise Duty 467.85 2008-09 The Customs, Excise Central Excise and Service Tax Appellate Tribunal.

13 Commissioner of Excise Duty 15.00 2009-10 The Customs, Excise Central Excise and Service Tax Appellate Tribunal.

14 Commissioner of Excise Duty 454.28 2010-11 The Customs, Excise Central Excise and Service Tax Appellate Tribunal.

15 Commissioner of Excise Duty 620.43 2011-12 The Customs, Excise Central Excise and Service Tax Appellate Tribunal.

16 Income Tax Income Tax 400.15 F.Y. = 2009-10 Assistant Act, 1961 Commissioner of Income Tax

Total 13,481.75

x) The Company has accumulated losses of Rs. 96,525 lacs at the end of the year, due to which the Net Worth of the company has completely eroded. The Company has incurred Cash Losses of Rs. 39,821 lacs during the financial year covered by the audit and in the immediately preceding financial year, there was Cash Loss of Rs. 34,958 lacs.

xi) Based on our Audit procedure and on the basis of information and explanations given us, we are of the opinion that the company has defaulted in the payment of the financial institutions and bank. The details of such defaults are mentioned in Note nos. 5.2 of the attached financial statement.

xii) According to the information and explanation given to us, the company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities, accordingly paragraph 4 (xii) of the Order, is not applicable.

xiii) In our opinion the company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of the order are not applicable to the company.

xiv) As informed and explained to us, the company has not dealt/traded in shares, securities, debentures and other investments during the year.

xv) According to the information and explanation given to us, there is no guarantee given by the company for the loans taken by others, from Banks or Financial institutions.

xvi) Based on information and explanation given to us by the management no term loan was raised during the year.

xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company we are of the opinion that the company has borrowed loans from banks and taken unsecured loans for the purpose of long term & short term utilization. However the amount has more been invested in fixed assets/CWIP, of which the amount is not ascertainable.

xviii) During the year the company has not made preferential allotment of Shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

xix) The Company has not issued any secured Debenture during the year, hence the questions of charge does not arise.

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

xxi) Based upon the audit procedures performed and information and explanation given by the management, we report that no material fraud on or by the company has been noticed or reported during the year ended 31st March, 2013.

For P.K. UlHA & Co.

Chartered Accountants

FRN. No.: 307008E

(CA. C.S. Agrawal)

Place: Kolkata Partner

Dated : 30th May, 2013 M.No.59534


Mar 31, 2011

1.We have audited the attached Balance Sheet of RAMSARUP INDUSTRIES LIMITED as at 31st March 201 I, the Profit b& Loss Account and also the Cash Flow Statement for the year ended on that date both annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 the Companies (Auditor's Report) Amendment order 2004, issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956,and on the basis of such checks as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 & 5 of the said order to the extent applicable to the Company.

4. Further to our comments in the Annexure referred to in paragraph 3 above we report that::

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, Profit & Loss Account and Cash Flow Statement dealt with by the report are in agreement with the books of account.

d) In our opinion the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting standards referred to in section 21 I (3C) of the Companies Act, 1956.

e) On the basis of written representation received from the Directors, and taken on record by the Board of Directors. we report that none of the Director of the Company is disqualified as on 3 I st March 201 I from being appointed as a Director under Clause (g) of Sub-section (I) of Section 274 of the Companies Act, 1956.

d) In our opinion and to the best of our information and according to the explanations given to us, the said Accounts reac together with Significant Accounting Policies (Schedule 21) and Notes thereon (Schedule 22). With specific reference to:-

i) Note No. 10, of Schedule 22 in contravention to clause 17 of AS - I 6 'Borrowing Costs' Interest on borrowed funds for the period beyond stipulated date of commissioning of the project pursuant to an inordinate interruption in the activities pertaining to creation of the asset is being included in Capital Work in Progress, instead of charging the same in the Profits Loss Account.

ii) Attention is also drawn to note no (I), (2), (4), (II), (13), (14) & [15] subject to which it gives 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 2011

b) In the case of the Profit & 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 the date.

ANNEXURE TO THE AUDITOR'S REPORT

(Referred to in paragraph (3) of the Auditor's Report of even date)

a) In respect of toFixed Assets :-

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

b) The Company has a regular programme of physical venfication of fixed assets, these are verified in a phased manner over a penned of three years. In accordance with this programme certain fixed assets were verified dunning the year and no maternal discrepancies were noticed on such verification. In our opinion, this pandect- of physical verification is reasonable having regard to the size of the company and the nature of the assets.

c) Fixed Assets disposed off dung the year were not substantial and therefore do not affect the going concern assumption.

i) In respect of the Inventories :-

a) As explained to us the Inventions have been physically verified by the management at reasonable intervals. In our opinion the frequency of venfication is reasonable.

b) The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of to business.

c) The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical venfication of inventories as compared to the book records.

ii) In respect of the loans, secured or un-secured, granted or taken by the company to from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956:-

a-d) As informed to us the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in register maintained under section 301 of the Companies act, 1956, accordingly, the provisions of sub clause (iii) (b) to (d) of the Companies (Auditors Report) order, 2003 (as amended) are not applicable.

e) The company during the year has considered the amount as unsecured loan which were credited by company on account of sale proceeds of the company's share pledged by the promoter/promoter companies/Associates & others against credit facilities taken. This amount is payable to them, which due to default in payment was sold evoked by the lenders. As such there are no other terms & conditions for repayment of this amount, this has been deemed as free of interest and prima facie not prejudicial to the interest of the company.

f) In respect of the said loan four companies are involved in adduct to Managing Director of the company and the maximum amount outstanding at anytime dung the year amounts to Rs.4358.25 lacs and the year end balance is also same as above.

v) In our opinion and according the information & explanations given to us, there is adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of Inventor/, Fixed Assets and also for the sale of goods. Dung the course of our And* no major weakness has been noticed in the internal control system in respect of these areas.

v) a) According to the information and explanations given to us, we are of the opinion that the particulars of contract or arrangements referred to in section 301 of the Act, that need to be entered in to the register have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered dung the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) According to the information and explanation given to us, the Company has not accepted any deposit from the public: therefore the provisions of clause (vi) of paragraph 4 of the order are not applicable to the company.

vii) In our opinion, the Company has an Internal Audit System commensurate with its size and nature of its business.

viii) We have broadly reviewed the Books of Accounts maintained by the company in respect of generation of electrify and some of the steel products where pursuant to the rules made by the Central Government of India, the maintenance of Cost Records have been prescribed U/s 209( l)(d) 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.

x) a) According to the records of the Company, undisputed statutory dues including Provident Fund, Employees State Insurance, Sales Tax, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues have been delayed for more than six months under following heads in depositing with appropriate authorities during the year :-

Statement of arrears of Statutory Dues outstanding for more than six months up to 3 1.03.2011 :-

S. No. Name of Statute Amount (Rs in lacs)

i) Provident Fund 102.55

ii) ESI 25.04

iii) Tax Deducted at source 203.23

iv) Tax Collected at Source 0.38

v) Professional Tax 2.46

vi) Income Tax (A.Y 2010-1 I) 574.55

vii) Excise Duty 307.50

Total 1215.71

b) The disputed statutory dues that have not been deposited on account of disputed matter pending before appropriate authorities are as under:

Sl No. Name of Statute Nature of Dues Amount (Rs In Lacs)

1 west Bengal Sales Sales Tax 59.41 Tax Act, 1994

2 West Bengal Sales Sales Tax 1461.79 Tax Act, 1994

3 West Bengal Sales sales Tax 3576.58 Tax Act, 1994

4 West Bengal VAT VAT 4015.57 Tax Act, 2003

5 Central Sales sales tax 5768 Tax Act, 1956

6 Central Sales Sales Tax 200.63 Tax Act, 1956

7 Central Sales Sales Tax 306.17 Tax Act, 1956

9671.83

Name of statute Period to which the Forum Where amount relates Dispute is Pending

West Bengal Sales Various Years from Appellate & Tax Act, 1994 1994-95 to 1999-00 Revisional Board

West Bengal Sales Various Years from West Bengal Tax Act, 1994 2000-01 to 2003-04 Taxation Tribunal

West Bengal Sales 2004-05 Appellate & Tax ACT, 1994 Revisional Board

West Bengal Vat 2005-06 Appellate & Tax Act, 2003 Revisional Board

Central Sales Various Years from Appellate & Tax Act, 1956 1994-95 to 1999-00 Revisional Board

Central Sales Various Years from Kolkata High Court Tax Act, 1956 2000-01 to 2003-04

Central Sales 2004-05 & 2005-06 Appellate Revisional Board

x) The Company has accumulated losses of Rs.15,247 lacs after adjusting General Reserve of Rs.1,900 lacs at the end of the year, which is not more than 50% of its Net Worth. The Company has incurred Cash Losses of Rs.24,622 lacs during the financial year covered by the audit but in the immediately preceding financial year, there was no Cash Loss.

xi) Based on our Audit procedure and on the basis of information and explanations given us, we are of the opinion that the company has defaulted in the payment of the financial institutions and bank and the loan/cash credit have become overdue. The detailed of such loans are mentioned in note-2 of schedule 22 of the attached financial statement. n addition to this the company has defaulted in repayment of dues to non convertible debenture holder of the company to the extent of Rs40crores.

xii) According to the information and explanation given to us, the company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities, accordingly paragraph 4 (xii) of the Order is not applicable.

xiii) In our opinion the company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society Therefore the provisions of clause 4(xiii) of the order are not applicable to the company.

xiv) As informed and explained to us, the company has not dealt Abraded in shares, securities, debentures and other investments during the year.

xv) According to the information and explanation given to us, there is no guarantee given by the company for the loans taken by others, from Banks or Financial institutions.

xvi) The term loans outstanding at the beginning of the year and those raised during the year have been applied for the purpose for which they were raised.

xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company we are of the opinion that the company has borrowed loans from banks and also unsecured loans for the purpose of long term & short term utilization. However the amount has more been invested in fixed assets/CWIR of which the amount is not ascertainable.

xviii) During the year the company has not made preferential allotment of Shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956.

xix) The Company has not issued any secured Debenture during the year, hence the questions of charge does not arise.

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

xxi) Based upon the audit procedures performed and information and explanation given by the management, we report that no material fraud on or by the company has been noticed or reported during the year ended 31st March, 2011.

For P. K. LILHA & Co. Chartered Accountants

Registration No. : 307008E

(CAP.K.LILHA)

Place :Kolkata Partner

Dated: 17th April, 2012 M.No.M092


Mar 31, 2010

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

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

3. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) Amendment order 2004, issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanation given to us, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 & 5 of the said order to the extent applicable to the Company.

4. Further to our comments in the Annexure referred to in Paragraph 3 above we report that :

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, Profit & Loss Account and Cash Flow Statement dealt with by the report are in agreement with the books of account.

d) In our opinion the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in compliance with the Accounting standards referred to in Section 211(3C) of the Companies Act, 1956.

e) On the basis of written representation received from the Directors, and taken on record by the Board of Directors, we report that none of the Director of the Company is disqualified as on 31st March 2010 from being appointed as a Director under Clause (g) of Sub- Section (1) of Section 274 of the Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said Accounts read together with Significant Accounting Policies and Notes thereon as per Schedule 21 & Schedule 22 respectively, give the information requi- red 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.

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

ii) In the case of the Profit & Loss Account, of the Profit for the year ended on that date, and

iii) In the case of the Cash Flow Statement, of the Cash Flows for the year ended on the date.



ANNEXURE TO THE AUDITORS REPORT



(Referred to in paragraph (3) of the Auditors Report of even date)

i) In respect of its Fixed Assets :

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

b) The Company has a regular programme of physical verification of fixed assets are verified in a phased manner over a period of three year. In accordance with this program, 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.

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

ii) In respect of its Inventories :

a) As explained to us the Inventories have been phy- sically verified by the management at reasonable intervals. In our opinion the frequency of verifica- tion is reasonable.

b) The procedure of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

c) The Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of inventories as compared to the book records.

iii) In respect of the loans, secured or un-secured, granted or taken by the company to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956 :

a-d)As informed to us the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in register maintained under section 301 of the Companies act,1956,accordingly, the provisions of sub clause

(iii) (b) to (d) of the Companies (Auditors Report) order, 2003 (as amended) are not applicable.

e) The company during the year has taken unsecured loan from 3 (Three) companies listed in the register maintained under Section 301 of the Act. In respect of the said loan the maximum amount outstanding at any time during the year amounts to Rs. 4,895.00 Lacs and the year end balance is NIL.

f) In our opinion and according to the information and explanations given to us, the Loan taken are non bearing interest and other terms and conditions, are prima-facie not prejudicial to the interest of the company.

g) The principal amounts, were repayable on demand.

iv) In our opinion and according the information & expla- nations 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, Fixed Assets and also for the sale of goods. During the course of our Audit no major weakness has been noticed in the internal control system in respect of these areas.

v) a) According to the information and explanations given to us, we are of the opinion that the particulars of contract or arrangements referred to in section 301 of the Act, that need to be entered in to the register have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding the value of Rupees Five Lacs have been entered during the year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) According to the information and explanation given to us, the Company has not accepted any deposit from the public; therefore the provisions of Clause (vi) of Paragraph 4 of the order are not applicable to the Company.

vii) In our opinion, the Company has an Internal Audit System commensurate with its size and nature of its business.

viii) We have broadly reviewed the Books of Accounts maintained by the company in respect of generation of electricity and some of the steel products where pursuant to the rules made by the Central Government of India, the maintenance of Cost Records have been prescribed U/s 209(1)(d) 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) According to the records of the Company, undisputed statutory dues including Provident Fund, Investor Education & protection Fund, Employees State Insurance, Sales Tax, Income Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other statutory dues have been generally regularly deposited with appropriate authorities during the year.

b) No undisputed amounts payable were outstanding at the year end, for a period of more than six months from the date they became payable.

c) The disputed statutory dues aggregating to Rs 5,970.32 lacs, that have not been deposited on account of disputed matter pending before appropriate authorities are as under :

Sl Name of Statute Nature Amount

No. of Dues ( Rs In Lacs)

1 West Bengal Sales Sales Tax 59.41

Tax Act, 1994

2 West Bengal Sales Sales Tax 1887.14

Tax Act, 1994

3 West Bengal Sales Sales Tax 3576.58

Tax Act, 1994

4 Central Sales Sales Tax 51.68

Tax Act, 1956

5 Central Sales Sales Tax 200.63

Tax Act, 1956

6 Central Sales Sales Tax 179.66

Tax Act, 1956 Sl Name of Statue Period to which the Forum Where Dispute

No amount relates is Pending

Various Years from Appellate & Revisional

1 West Bengal Sales 1994-95 to 1999-00 Board Tax Act,1994

2 West Bengal Sales Various Years from West Bengal Taxation Tax Act,1994 2000-01 to 2003-04 Tribunal

3 West Bengal Sales 2004-05 Appellate & Revisional Tax Act,1994 Board

4 Central Sales Various Years from Appellate & Revisional Tax Act,1956 1994-95 to 1999-00 Board

5 Central Sales Various Years from Kolkata High Court

2000-01 to 2003-04 Tax Act,1956

6 Central Sales 2004-05 Appellate & Revisional Tax Act,1956 Board

x) The Company has no accumulated losses at the end of the year. The Company has not incurred Cash Losses during the financial year covered by the audit but in the immediately preceding financial year, there was Cash Loss of Rs. 8,277.47 Lacs.

xi) Based on our Audit procedure and on the basis of information and explanations given us, we are of the opinion that the company has delayed in payment of some of the dues to the financial institution/Banks but some of them has since been regularized and others are still in process.

xii) According to the information and explanation given to us, the company has not granted loans or advances on the basis of security by way of pledge of shares, debentures and other securities, accordingly Paragraph 4 (xii) of the Order is not applicable .

xiii) In our opinion the company is not a Chit Fund/Nidhi/ Mutual Benefit Fund/Society. Therefore the provisions of clause 4(xiii) of the order are not applicable to the company.

xiv) As informed and explained to us, the company has not dealt/traded in shares, securities, debentures and other investments during the year.

xv) According to the information and explanation given to us, there is no guarantee given by the company for the loans taken by others, from Banks or Financial institutions.

xvi) The term loans outstanding at the beginning of the year and those raised during the year have been applied for the purpose for which they were raised.

xvii) According to the information & explanations given to us and on overall examination of the balance sheet of the company we are of the opinion that there are funds raised on short term basis that have, prima facie, been used for long term investment.

xviii) The Company has made preferential allotment of Preference Shares (Unlisted) during the year to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956 to the extent of Rs. 912.76 lacs but the prices at which share have been issued is not prejudicial to the interest of the Company.

xix) The Company has not issued any secured Debenture during the year, hence the questions of charge does not arise.

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

xxi) Based upon the audit procedures performed and information and explanation given by the management, we report that no material fraud on or by the company has been noticed or reported during the year ended 31st March, 2010.

For P. K. LILHA & Co.

Chartered Accountants

Registration No. : 307008E



CA.P. K. LILHA

Place : Kolkata Par tner

Dated : 31st May, 2010 M.No.11092

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