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Auditor Report of Sancia Global Infraprojects Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of M/s Sancia Global Infraprojects 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 ended on that date, and a summary of significant accounting policies and other explanatory information.

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 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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.

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

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

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

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, subject to our report as required under section 227(3) of the Act and annexure to our report:

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 profit/ loss for the year ended on that date.

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 ("theOrder") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. Further to our comments in the Annexure referred to above, and 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 31,2014, 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.

f. We further report that:

As Stated in Note no.21.1 regarding FCCB, the maturity date of said FCCB was 13th day of February 2013.The Company has given proposals to the FCCB holders to convert their bonds into fully paid equity shares and the same is under the process of negotiations. However the company has become defaulted in making payment of interest installments to FCCB holders which were due on 12th August 2013 &12th February, 2014 during the year and total amount of interest overdue is Rs.306.08Lacs(P.y.197.28 Lakhs).

As stated in Note no.21.2 there was a search and seizure action u/s 132 of the Income Tax Act 1961 had been conducted by the Income Tax Department as on 23rd day of June, 2009 and presently the matter is pending with the Income Tax Appellate Tribunal, Kolkata pursuant to Appeal filed by DCIT, Kolkata under section 253 of the Income Tax Act, 1961. However the company has not made any provision towards liability of income tax for the period covered under the aforesaid search and seizure since the management did not foresee any major income tax liability. Further the company has received the notice of demand dated 08th June, 2014 under section 156 of the income tax Act, 1961 for the assessment year 2004-05, 2005-06, 2007-08, 2008-09, and 2009-10 with the demand of Rs.24982/-, 852001/-, 6,73,130/-, 59,49,227/- and 2,18,62,624/- respectively. However the management has decided to file appeal against the said orders.

As stated in Note No. 21.8 there was an inquiry operation on 4th day of June, 2014 was conducted by the DGCEI, Zonal Unit, Mumbai to ascertain facts regarding evasion of service tax under central excise act, 1944 read with section 83 of the finance act, 1994. However the company has not made any provision towards liability of service tax for the period covered under the aforesaid search and seizure since the management did not foresee any major service tax liability.

As stated in Note No. 21.3 the wholly owned subsidiary company i.e. Petrogrema Overseas Pte. Ltd has incurred heavy losses due to written-off of various loans & advances which could not be recovered as per the view of the management and become bad due to various reasons and consequently it will affect the going concern status of the subsidiary company. However the company has made provision for diminution of investments in subsidiary company as required byAS-13 on "Accounting on Investments" and to that extent the losses and Reserve of the company have been understated.

Bad Debts and sundry advances has been written off, as contained in Note no. 21.5 which is forming part of Balance Sheet and Profit & Loss Statement, the Company has written-off the debtors and advances, having consequential effect on the profit/loss of the reporting period.

The Accumulated losses of the Company is Rs. 403.95 Crores (Previous year: Loss Rs. 252.06crores) and its net worth isnegative Rs.191.16 Crores(Previous period: Negative Rs. 39.28crores) at the end of the reporting period which indicates erosion of Net worth of the Company. The Company can be termed as"SICK" within the meaning of clause (O) of sub section (1) of section 3 of the Sick Industrial Companies (Special Provision) Act, 1985.As per the Note no.21.6; "The Company has made a reference during the financial year 2012-13 to the "Board for Industrial & Financial Reconstruction" under section 15(1) of Sick Industrial Companies (Special Provisions) Act 1985 however the same reference has been declined by BIFR."Considering the same, the Company''s ability to continue as going concern is in doubt and will depend upon any revival programme by Bankers/Government.

The Company has defaulted in making payments to secured creditors and also not provided for interest on the banking facilities availed from the banks. The secured creditors had declared the account as a Non Performing Asset (NPA) and initiated notice under Section 13(2) as per the SARFAESI Act 2002. Further Bank of India have assigned all the rights, title and interest in financial assistance in favour of "Edelweiss Asset Reconstruction Company Limited (EARC)"vide letter No. EdelARC/3985-2014 dated April 30,2014 received from "Edelweiss Asset Reconstruction Company Limited.

During the Period under review M/s Suryoday Allo Metal Powders Limited, a company registered under the Companies Act 1956 and having its Registered Office at 302, B.Wing, Narayan Chambers, 555, Narayan Peth Pune-411030, (Maharashtra) filed a legal suit in the court at Kolkata for winding-up the company due to defaulting of payment of Rs.1,04,19,948/- by M/s Sancia Global Infraprojects Limited.

Company has not made Provision for Interest on Working Capital Facility and Term Loan availed from Indian Overseas Bank, Punjab National Bank, Bank of India and State Bank of India, pursuant to classification of its account by the concerned Banks and Financial Institution as Non-performing Assets (NPA).

Balances of Loans, Sundry Debtors, Loans and Advances, deposits and Current Liabilities, are subject to confirmation from the respective parties and reconciliation, if any.

ANNEXURE TO THE AUDITORS'' REPORT

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Sancia Global Infraprojects Limited on the accounts of the company for the year ended 31st March, 2014.

On the basis of such checks as we considered appropriate and on the basis of examination of records and according to the information and explanation given to us during the course of our audit, we report that:

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

(b) As explained to us, all fixed assets have not been physically verified by the management during the period but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) As per the information and explanations given to us, the company has impaired various tangible assets during the reporting period however, it has no effect on the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the reporting period by the management at reasonable intervals.

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

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company had granted interest free unsecured loans, to companies and other parties listed in the register maintained under Section 301 of the Companies Act, 1956, repayable on call basis. The balances as at the close of the reporting period is Rs. 0.70crores.

In our opinion, other terms and conditions on which the loans have been granted is prima facie, not prejudicial to the interest of the company. The said parties are regular in repayment of the loan and company is taking reasonable steps to recover the same.

(b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company had taken interest free unsecured loans from companies, and other parties listed in the register maintained under Section 301 of the Companies Act, 1956, repayable on call basis. The balances as at the close of the reporting period is Rs. 105.98crores.

In our opinion, the other terms and conditions on which the loans have been taken is prima facie, not prejudicial to the interest of the company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act have been made at reasonable prices having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. As per information & explanations given by the management, the Company has no internal audit system commensurate with its size and the nature of its business.

8. The Company is not required to maintain cost records under section 209(1) (d) of the Companies Act, 1956.

9. According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2014 for a period of more than six months from the date they became payable except Professional tax, Sales tax and service tax and Income tax.

10. The Company has accumulated loss of Rs. 403.95 crores (Previous period loss Rs.252.06 crores) and has incurred cash loss of Rs. 0.74 Crores during the reporting period covered by our audit and cash loss of Rs. 1.48 crores in the immediately preceding reporting period. The Company may be classified as sick Company within the meaning of section 3(1)(o) of SICA.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has defaulted in repayment of dues to a financial institution, banks or debenture holders.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. According to information and explanations given to us, the Company is not dealing or trading in Shares, Securities, Debentures, Mutual funds & other Investments. Therefore, the requirements of clause 4(xiv) of the order relating to the maintenance of the proper records of the transactions are not applicable.

15. According to the information and explanations given to us, the Company has given guarantees for loan taken by others from a bank or financial institution. In our opinion and according to the information and explanation given to us, the terms & conditions of the guarantees given by the company for loans taken by others from banks and financial institutions, are not prima facie prejudicial to the interest of the company.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the reporting period.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the reporting period.

19. The Company has not issued any secured debentures during the period, hence the question of creation of security or charge in respect of debenture issued does not apply.

20. The Company has not raised any money by public issue during the reporting period.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported by the company during the period under review, nor have we been informed of such case by the management.

For Arup Das & Associates (Chartered Accountants) Firm Regn. No.:318034E

Sd/- Arup Das (Proprietor) Membership No.: 053564 Place : Kolkata Date : 24.06.2014


Mar 31, 2013

We have audited the accompanying financial statements of M/s Sancia Global Infra projects Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date, and a summary of significant accounting policies and other explanatory information.

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

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

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

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

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, subject to our report as required under section 227(3) of the Act and annexure to our report:

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 profit/ loss for the year ended on that date.

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 enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. Further to our comments in the Annexure referred to above, and 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, except information and explanations read with auditors'' report for the year ended 31.03.2010;

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.

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

g. We further report that:

- As Stated in Note no.1 in Note No. 22(Notes to accounts) regarding FCCB, the Company has defaulted in making payment to FCCB holders which was due on February 13, 2013. The company has given proposals to the FCCB holders to convert their bonds into fully paid equity shares and the same is under the process of negotiations. Further the company has become defaulted in making payment of interest installments to FCCB holders which were due on 12th August 2012 & 12th February, 2013 during the year and total amount was Rs. 197.28 Lakhs.

- As stated in Note no.2 in Note No. 22(Notes to accounts) there was a search and seizure action u/s 132 of the Income Tax Act 1961 had been conducted by the Income Tax Department as on 23rd day of June, 2009 and presently the matter is pending with the Income Tax Appellate Tribunal, Kolkata pursuant to Appeal filed by DCIT, Kolkata under section 253 of the Income Tax Act, 1961. However the company has not made any provision towards liability of income tax for the period covered under the aforesaid search and seizure since the management did not foresee any major income tax liability.

- As stated in Note No. 3 in Note No. 22(Notes to Accounts) the wholly owned subsidiary company i.e. Petrogrema Overseas Pte. Ltd has incurred heavy losses due to written-off of various loans & advances which could not be recovered as per the view of the management and become bad due to various reasons and consequently it will affect the going concern status of the subsidiary company. However the company has not made provision for diminution of investments in subsidiary company as required by AS-13 on "Accounting on Investments" and to that extent the losses and Reserve of the company have been understated.

- Bad Debts and sundry advances has been written off, as contained in Note no.5 in Note No. 22 which is forming part of Balance Sheet and Profit & Loss Statement, the Company has written-off the debtors and advances, having consequential effect on the profit/loss of the reporting period.

- As per AS-28 impairment of asset, company has not made an independent assessment of any indicators that may lead to impairment of assets.

- The Accumulated losses of the Company is Rs. 252.06 crores (Previous period: Loss Rs.232.57 crores) and its net worth is negative Rs. 39.28 Crores (Previous period: Negative Rs.21.07 crores) at the end of the reporting period which indicates erosion of Net worth of the Company. The Company can be termed as "SICK" within the meaning of clause (O) of sub section (1) of section 3 of the Sick Industrial Companies (Special Provision) Act, 1985.As per the Note no.6 in schedule No. 22; "The Company has made a reference during the financial year 2012-13 to the "Board for Industrial & Financial Reconstruction" under section 15(1) of Sick Industrial Companies (Special Provisions) Act 1985 however the same reference has been declined by BIFR."Considering the same, the Company''s ability to continue as going concern is in doubt and will depend upon any revival programme by Bankers/Government.

- The Company has defaulted in making payments to secured creditors and also not provided for interest on the banking facilities availed from the banks. The secured creditors had declared the account as a Non Performing Asset (NPA) and initiated notice under Section 13(2) as per the SARFAESI Act 2002.

- Company has not made Provision for Interest on Working Capital Facility and Term Loan availed from Indian Overseas Bank, Punjab National Bank, Bank of India and State Bank of India, pursuant to classification of its account by the concerned Banks and Financial Institution as Non-performing Assets (NPA).

- Balances of Loans, Sundry Debtors, Loans and Advances, deposits and Current Liabilities, are subject to confirmation from the respective parties and reconciliation, if any.

On the basis of such checks as we considered appropriate and on the basis of examination of records and according to the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets subject to the annexure to the Auditors Report for the period ended on 31.03.2010.

(b) As explained to us, all fixed assets have not been physically verified by the management during the period but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) As per the information and explanations given to us, the company has impaired various tangible assets during the reporting period however, it has no effect on the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the reporting period by the management at reasonable intervals

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

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records subject to the annexure to the Auditors Report for the previous financial period ended on 31.03.2010.

3. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company had granted interest free unsecured loans, to companies and other parties listed in the register maintained under Section 301 of the Companies Act, 1956, repayable on call basis. The balances as at the close of the reporting period is Rs. 0.69 crores.

In our opinion, other terms and conditions on which the loans have been granted is prima facie, not prejudicial to the interest of the company. The said parties are regular in repayment of the loan and company is taking reasonable steps to recover the same.

(b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company had taken interest free unsecured loans from companies, and other parties listed in the register maintained under Section 301 of the Companies Act, 1956, repayable on call basis. The balances as at the close of the reporting period is Rs. 108.57 crores.

In our opinion, the other terms and conditions on which the loans have been taken is prima facie, not prejudicial to the interest of the company.

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act have been made at reasonable prices having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. As per information & explanations given by the management, the Company has no internal audit system commensurate with its size and the nature of its business.

8. The Company is not required to maintain cost records under section 209(1) (d) of the Companies Act, 1956.

9. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2013 for a period of more than six months from the date they became payable except Professional tax, Sales tax and service tax.

10. The Company has accumulated loss of Rs. 252.06 crores (Previous period loss Rs.232.57 crores) and has incurred cash loss of Rs. 1.48 Crores during the reporting period covered by our audit and cash loss of Rs. 251.54 crores in the immediately preceding reporting period. The Company may be classified as sick Company within the meaning of section 3(1)(o) of SICA.

11. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has defaulted in repayment of dues to a financial institution, banks or debenture holders.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, 2003 (as amended) is not applicable to the Company.

14. According to information and explanations given to us, the Company is not dealing or trading in Shares, Securities, Debentures, Mutual funds & other Investments. Therefore, the requirements of clause 4(xiv) of the order relating to the maintenance of the proper records of the transactions are not applicable.

15. According to the information and explanations given to us, the Company has given guarantees for loan taken by others from a bank or financial institution. In our opinion and according to the information and explanation given to us, the terms & conditions of the guarantees given by the company for loans taken by others from banks and financial institutions, are not prima facie prejudicial to the interest of the company.

16. Based on our audit procedures and on the information given by the management, we report that the company has not raised any term loans during the reporting period.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2013, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the reporting period.

19. The Company has not issued any secured debentures during the period, hence the question of creation of security or charge in respect of debenture issued does not apply.

20. The Company has not raised any money by public issue during the reporting period.

21. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported by the company during the period under review, nor have we been informed of such case by the management.

For M. Mukherjee & Associates

(Chartered Accountants)

sd/-

M.M. Mukherjee

(Proprietor)

Membership No.: 015254

FRN:326127E

Place: Kolkata

Date: 03rd September, 2013


Mar 31, 2012

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

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

3) As required by the Companies (Auditor's Report) Order 2003 issued by the Central Government in terms of sub-section (4A) of Section 227 of "The Companies Act, 1956. We enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4) Further to our comments in the Annexure referred to 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 the 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, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account of the Company;

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

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

f) We further report that:-

(i) As stated in point no. 1 in Note No. 22 regarding FCCB, the maturity date of said FCCB is on 13th February 2013. The company has defaulted on making payment on interest installment, due on 12th February, 2012 amounting Rs 89.27 Lakhs.

(ii) As stated in point no.2 in Note No. 22 .During the financial 2011-12, the Income Tax Department of Kolkata issued a show cause letter dated 30.11.2011 for conducting Special Audit u/s 142A (2A) of the Income Tax Act 1961. The Company has not made any provision against Income tax liability since the management did not foresee any major income tax liability.

(iii) As stated in Point No. 4 & 6 in Note No. 22 regarding the provision / write-off of Loans & Advances and Debtors, during the Financial Year 2011-12, As in the view of the management the recovery of same is considered Bad/doubtful..

(iv) As stated in Point No. 7 in Notes No. 22, as on 05.10.2011 the Company has acquired the assets and liabilities of its Associate company i.e. Sancia Infraglobal Private Limited.

(v) At the end of the financial Year 2011 -12; the accumulated loss of the Company is Rs 232.57 Crores have exceeded its net worth of Rs. 205.60 Crore. So, the Net worth of the Company has been fully eroded. The Company is a sick industrial Company within the meaning of clause (O) of sub section (1) of section 3 of the Sick Industrial Companies (Special Provision) Act, 1985. Having Regards to the above, the Company's ability to continue as going concern is in doubt and will depend upon any revival program by BIFR/Government (Refer Point No. 9 in Note No. 22)

(vi) The Company has defaulted in making payments to secured creditors of installment and also not provided for interest on the banking facilities availed from the bank. The secured creditors have during the year declared the account as a Non Performing Asset (NPA). Thus the secured creditors have initiated notice under Section 13(2) as per the SARFAESI Act 2002.

(vii) As stated in Point No. 3 in Note No.22, the Subsidiary of the Company has incurred heavy losses due to expiration of License of Mining and Oil rigs. In view of the losses in the subsidiary company the company has recorded diminution in the value of its investments by Rs. 81.93 Crores against its investments in the subsidiary company.

(viii) No provision for accrued Interest has been made for the period from April 2011 to March 2012 on borrowings from Indian Overseas Bank(IOB),Punjab National(PNB), Bank of India and State Bank of India, pursuant to classification of the accounts as Non-performing Assets (NPA) by the banks,

(ix) Balance of Unsecured loans, Sundry debtors, Loans and Advances and Deposits are subject to confirmation, reconciliation and adjustments, if any

g) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with Significant Accounting Policies and Notes on Accounts forming part thereof, give the information required by the Companies Act,

1956, in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India;

I. In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2012

II. In the case of Profit and Loss Account, of the Loss for the year ended on that date; and

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

ANNEXURE TO THE AUDITORS' REPORT

Annexure referred to in paragraph 3 our report of even date

On the basis of such checks as we considered appropriate and on the basis of examination of records and in terms of the information and explanations given to us, we state that:

I (a) The company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) All fixed assets have been physically verified by the management during the year which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) During the year the company has disposed off various tangible assets however this will not affect the going concern status of the company.

II (a) As explained to us company is engaged in manufacturing activities and its hold the stores, spares, raw materials and finished goods as inventories and the same were physically verified during the year by management at reasonable intervals.

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

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

III The Company has neither granted nor taken any loans, secured or unsecured to /from companies, firms or other parties covered in the register maintained under section 301 of the companies Act 1956.

IV. In our opinion, there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to the purchase of raw material, consumables, stores, spares and fixed assets. We have not come across any instance of major weakness in the said internal controls.

V. (a) On the basis of audit procedures performed by us, we are of the opinion that the transactions in which directors were interested and which were required to be entered in the register maintained under section 301 of the Companies Act, 1956, have been so entered.

(b) Based on the information and explanation given to us, in our opinion, these transactions have been made at reasonable prices having regard to the prevailing market prices at the relevant time.

VI. The Company has not accepted any deposits from public; hence clause (VI) of the Order does not apply.

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

VIII. The Company is not required to maintain cost records under section 209(1) (d) of the Companies Act, 1956.

IX. The Company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Customs Duty and other material statutory dues with appropriate authorities. As per information and explanations given to us, no such undisputed statutory dues were in arrears as on 31st March 2012 for a period of more than six months from the date they became payable except disputed income tax, service tax and sales tax.

X. The Company has incurred cash loss of Rs. 68.01 Crores during the year and its accumulated losses at the end of the financial year are more than 100% of its net worth.

XI. The Company has defaulted in repayment of its dues to Banks/ Financial Institutions; resulting the account of the company become NPA (Non Performing Assets).

Xil. The Company has not granted any loans or advances on the pledge of any securities; hence clause (xii) of the order does not apply.

XIII. In our opinion and according to the information and explanation given to us, the company is not a Chit fund or nidhi /mutual benefit fund/ society. Therefore, the provisions of clause (xiii) of paragraph 4 of the companies (Auditor's Report) order, 2003 are not applicable to the Company.

XIV. According to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments, the requirements of clause (xiv) of the order relating to the maintenance of the proper records of the transactions are not applicable.

XV. In our opinion and according to the information and explanation given to us, the terms & conditions of, the guarantees given by the company for loans taken by others from banks and financial institutions are prima facie prejudice to the interest to the company. Refer the Point no. 10 in Notes No. 21 (contingent liability)

XVI. In our opinion and according to the information and explanation given to us, no term loans obtained during the year hence clause (XVI) of the order is not applicable.

XVII. According to the information and explanation given to us no short term funds were raised by the company during the year hence, Clause (XVII) of the order is not applicable.

XVIII. During the year under review, the Company did not make any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

XIX. The Company has not issued any secured debentures during the year, hence the question of creation of security or charge in respect of debenture issued does not apply.

XX. The company has not raised any money by public issues during the year under review.

XXI. According to the information and explanations given to us and to the best of our knowledge and belief, no fraud on or by the Company has been noticed or reported by the Company during the year.

For Rahul Bansal & Associates

(Chartered Accountants)

Place: Kolkata Rahul Bansal

Date : 17.05.2012 Proprietor

Membership No. 068619


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s Sancia Global Infraprojects Ltd. as at 31st March, 2010 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order 2003 issued by the Central Government in terms of sub section (4A) of Section 227 of "The Companies Act, 1956" we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to 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 the audit, except as otherwise stated;

(b) As per information and explanation with documentary evidence provided by the company, the books of accounts from 01st April 2009 to 14 February 2010 as required by law was destroyed on 21st February 2010 during shifting of statutory records from corporate office Mumbai to Registered office Kolkata. Company has presented before us books of accounts for the above said period, which were regenerated from the various sources of data. However books of accounts from 15th February to 31st March, 2010 were produced before us for the purpose of audit.

(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account of the Company:

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

The accounting for changes in foreign exchange rates, as required in accordance with accounting standard 11 "The effect of change in foreign exchange rates"

Provision for diminution in the value of Long Term investment, which is required in accordance with accounting standard 13 on "Accounting for Investment"

Provision for Actual liabilities of employees cost, which is not in accordance with accounting standard 15 "Employee Benefit"

Deferred Tax assets/liabilities accounted for to the extent of timing difference arising on depreciation. No other timing differences are considered as applicable in accounting standard 22 "Accounting for Taxes on Income"

Provision of impairment losses which is required in accordance with accounting standard 28 "Impairment of Assets"

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

(f) We further report that :-

Unsecured Loans, Sundry creditors, Sundry Debtors, Loans and Advances and Deposits are subject to confirmation, reconciliation and adjustment if any.

We are Unable to comment on Debtors outstanding more than six months which is not stated in financial report.

We are Unable to comment on Loans and Advances given to subsidiaries and other.

We are Unable to comment on advance against capital goods

(g) In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with Significant Accounting Policies and Notes on Accounts forming part thereof, give the information required by the Companies Act, 1956, in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India;

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

II. In the case of Profit and Loss Account, of the Profit for the year ended on that date; and

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

ANNEXURE TO THE AUDITORS REPORT Annexure referred to in paragraph 3 our report of even date

On the basis of such checks as we considered appropriate and on the basis of examination of records and in terms of the information and explanations given to us, we state that:

I (a) As there is no documentary evidence, we are not able to comment whether the company has maintained fixed assets register or not showing full particulars, including quantitative details and situation of fixed assets. However, till previous year 2008-09 company has maintained fixed assets register showing full particulars, including quantitative details and situation of fixed assets.

(b) As there is no documentary evidence available we are not able to comment whether fixed assets have been physically verified by the management or not.

(c) The Company has not disposed off substantial part of fixed assets so as to affect its going concern status.

II (a) As explained to us company is not engaged in manufacturing activities and it hold only the stores

& spares as inventories and the same were physically verified during the year by management at reasonable intervals.

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

(c) As there is no documentary evidence is available we are not able to comment that whether the company has maintained proper records of its inventories and material discrepancies were noticed on physical verification.

III (a) As there is no documentary evidence is available we are not able to comment that whether company has granted any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under section 301 of the companies Act 1956,

(b) We are not able to comment on the rate of interest and other terms and conditions, whether prima facie prejudicial to the interest of the company.

(c) We are not able to comment relating to regularity of receipt of the Principal amount and interest.

(d) We are unable to comment regarding loan taken from parties, covered in the register maintained under Section 301 of the Act.

(e) We are not able to comment on other terms and conditions on which the loans have been taken is prima facie, not prejudicial to the interest of the company.

(f) In view of our comments in Para III (d) and (e) above, clause III (g) of the said order is not applicable to the company.

IV. In our opinion, there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to the purchase of consumables, stores, spares and fixed assets. We have not come across any instance of major weakness in the said internal controls.

V. (a) As there is no documentary evidence, we are unable to form an opinion that the transactions in which directors were interested and which were required to be entered in the register maintained under section 301 of the Companies Act, 1956, have been so entered.

(b) Based on the information and explanation given to us, in our opinion, these transactions have been made at reasonable prices having regard to the prevailing market prices at the relevant time.

VI. The Company has not accepted any deposits from public; hence clause (vi) of the Order does not apply.

VII. The Company has an internal audit system, which in our opinion is commensurate with the size and nature of its business.

VIII. The Company is not required to maintain cost records under section 209(1) (d) of the Companies Act, 1956.

IX. The company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it. There are no such material outstanding statutory dues accrued in accounts as of the last date of the financial year concerned for a period of more than six months from the date they became payable except Income Tax payable for the financial year 2008-09.

X. The Company has not incurred cash loss during the year nor does it have accumulated losses, hence clause (x) of the Order does not apply.

XI. As no documentary evidence is available we are not able to comment that whether the Company has defaulted in repayment of its dues to any Financial Institution or bank.

XII. The Company has not granted any loans or advances on the pledge of any securities; hence clause (xii) of the order does not apply.

XIII. In our opinion and according to the information and explanation given to us, the company is not a Chit fund or nidhi/mutual benefit fund/ society. Therefore, the provisions of clause (xiii) of paragraph 4 of the companies (Auditors Report) order, 2003 are not applicable to the Company.

XIV. As no documentary evidence is available we are not able to comment that whether the company is not dealing or trading in shares, securities, debentures and other investments, the requirements of clause 4(xiv) of the order relating to the maintenance of the proper records of the transactions are not applicable.

XV. As no documentary evidence is available we are not able to comment that whether the guarantees given by the company for loans taken by others from banks and financial institutions, are not prima facie prejudicial to the interest of the company.

XVI. As no documentary evidence is available we are not able to comment that whether term loans obtained during the year have been prima facie applied for the purpose for which they were taken.

XVII. As no documentary evidence is available we are not able to comment that whether the information and explanation given to us and an overall examination of the Balance Sheet of the company, funds raised on short-term basis, have not been used for long-term investments.

XVIII. During the year under review, the Company did not make any preferential allotment of shares to the parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

XIX. The Company has not issued any secured debentures during the year, hence the question of creation of security or charge in respect of debenture issued does not apply.

XX. The Company has not raised any money by public issues during the year under review.

XXI. During the course of our examination of the books and records of the company, carried out / in accordance with the generally accepted practice in India, and according to the explanation and information given to us, we have neither come across any instance of fraud on or by the company.



For T.N. Datta & Associates

(Chartered Accountants)

Sd/-

T.N. Datta

Proprietor

Membership No. 056676

Place : Kolkata

Date : September 05, 2010


Mar 31, 2009

1) We have audited the attached Balance Sheet of M/s. Gremach Infrastructure Equipments & Projects Ltd. as at 31st March, 2009 and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3) As required by the Companies (Auditors Report) Order 2003 issued by the Central Government in terms of sub-Section (4A) of Section 227 of "The Companies Act, 1956" we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4) Further to our comments in the Annexure referred to 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 the 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, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account of the Company;

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

e) On the basis of representations made by the Directors of the Company and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2009 from being appointed as a Director in terms of 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 financial statements read together with Significant Accounting Policies and Notes on Accounts forming part thereof, give the information required by the Companies Act, 1956, in the manner so required and present a true and fair view in conformity with the accounting principles generally accepted in India;

I. In the case of Balance Sheet, of the state of affairs of the Company as at 31st March 2009

II. In the case of Profit and Loss Account, of the Profit for the year ended on that date; and

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

ANNEXURE TO THE AUDITORS REPORT

Annexure referred to in paragraph 3 our report of even date

On the basis of such checks as we considered appropriate and on the basis of examination of records and in terms of the information and explanations given to us, we state that:

I (a) The company is maintaining proper records to show full particulars, including quantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) The Company has not disposed off substantial part of fixed assets so as to affect its going concern status.

II (a) As explained to us company is not engaged in manufacturing activities and it holds only the stores & spares as inventories and the same were physically verified during the year by management at reasonable intervals.

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

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

III (a) The Company has not granted any loans, secured or unsecured, to or from Companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act 1956, Clause 4(iii) (b) of the order relating to the rate of interest and other terms and conditions, whether prima facie prejudicial to the interest of the company and clause 4(iii) (c) relating to regularity of receipt of the Principal amount and interest, are not applicable.

(b) The company has taken unsecured loans from two parties, pending finalization of terms of allotment of shares, covered in the register maintained under Section 301 of the Act. The maximum amount outstanding during the year was Rs. 21,654.93 lacs and the year end balance was Rs. 92,62.55 Lacs.

(c) The other terms and conditions on which the loans have been taken is prima facie, not prejudicial to the interest of the company.

(d) In view of our comments in Para III (d) and (e) above, clause III (g) of the said order is not applicable to the company.

IV. In our opinion, there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to the purchase of coal, consumables, stores, spares and fixed assets. We have not come across any instance of major weakness in the said internal controls.

V. (a) On the basis of audit procedures performed by us, we are of the opinion that the transactions in which directors were

interested and which were required to be entered in the register maintained under Section 301 of the Companies Act, 1956, have been so entered.

(b) Based on the information and explanation given to us, in our opinion, these transactions have been made at reasonable prices having regard to the prevailing market prices at the relevant time.

VI. The Company has not accepted any deposits from public; hence clause (vi) of the Order does not apply.

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

VIII. The Company is not required to maintain cost records under Section 209(1) (d) of the Companies Act, 1956.

IX. (a) The Company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth Tax, Customs Duty and other material statutory dues with appropriate authorities.

(b) As per information and explanations given to us, no such undisputed statutory dues were in arrears as on 31st March 2009 for a period of more than six months from the date they became payable.

X. The Company has not incurred cash loss during the year nor does it has accumulated losses, hence clause (x) of the Order does not apply.

XI. The Company has not defaulted in repayment of its dues to any Financial Institution or bank.

XII. The Company has not granted any loans or advances on the pledge of any securities; hence clause (xii) of the order does not apply.

XIII.In our opinion and according to the information and explanation given to us , the company is not a Chit fund or nidhi /mutual benefit fund/ society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Companies (Auditors Report) order, 2003 are not applicable to the Company.

XIV.According to the information and explanations given to us, the company is not dealing or trading in shares, securities, debentures and other investments, the requirements of clause 4(xiv) of the order relating to the maintenance of the proper records of the transactions are not applicable.

XV. In our opinion and according to the information and explanation given to us, the terms & conditions of the guarantees given by the company for loans taken by others from banks and financial institutions, are not prima facie prejudicial to the interest of the company.

XVI.In our opinion and according to the information and explanation given to us, the term loans obtained during the year have been prima facie applied for the purpose for which they were taken.

XVII. According to the information and explanation given to us and an overall examination of the Balance Sheet of the company, funds raised on short-term basis, have not been used for long-term investments.

XVIII .During the year under review, the Company did not make any preferential allotment of shares to the parties and Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

XIX. The Company has not issued any secured debentures during the year, hence the question of creation of security or charge in respect of debenture issued does not apply.

XX. The Company has not raised any money by public issues during the year under review.

XXI.According to the information and explanations given to us and to the best of our knowledge and belief, no fraud on or by the Company has been noticed or reported by the Company during the year.



For T.N. Datta & Associates (Chartered Accountants) T.N. Datta Proprietor Membership No. 056676

Place: Kolkata Date : 30.06.2009

 
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