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Auditor Report of Sanghvi Movers Ltd.

Mar 31, 2014

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

Management''s Responsibility for the 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 notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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.

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:

i. in the case of the Balance Sheet, of the state of affairs of the company as at 31st March 2014;

ii. in the case of the Statement of Profit and Loss, of the loss 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 that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

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

d. in our opinion, the Balance Sheet, the statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013; and

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

Annexure to the Independent Auditors'' Report – 31st March 2014 [Referred to in the Independent Auditors'' Report to the Members of Sanghvi Movers Limited (''the Company'') on the financial statements for the year ended 31st March 2014]

We report as follows:

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

(b) The Company has a regular program of physical verification of its fixed assets, by which all fixed assets are verified in a phased manner over a period of two years. In our opinion, the periodicity of physical verification 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) Fixed assets disposed off during the year were not substantial and therefore do not affect the going concern assumption.

2 (a) The inventory has been physically verified by management during the year. In our opinion, the frequency of such verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures for 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) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of accounts.

3 (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered

in the register maintained under section 301 of the Act. Accordingly, paragraphs 4(iii) (a) to 4(iii) (d) of the Order are not applicable.

(b) The Company has availed unsecured loans from three parties covered in the register maintained under section 301 of the Act. The maximum amount outstanding during the year and the year-end balance of this loan was Rs. 196,200,000.

(c) In our opinion the rate of interest and other terms and conditions on which the aforesaid loans have been taken are not, prima facie, prejudicial to the interests of the Company.

(d) In the case of the aforesaid loans, there was no principal amount repayable during the current financial year. The Company has been regular in repayment of interest as per the terms of the agreement.

4 In our opinion and according to the information and explanations given to us, and having regard to the explanation that purchases of certain items of inventories are for the Company''s specialised requirements and similarly certain services rendered are for the specialised requirements of the buyers and suitable alternative sources are not available to obtain comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to the purchase of inventories and fixed assets and with regard to rendering of services. The Company''s activities do not involve sale of goods. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal control system.

5 (a) In our opinion and according to the information and explanations given to us, the particulars of contracts

andarrangements referred to in section 301 of the Act, have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts and arrangements referred to in (a) above and exceeding the value of Rs. 5 Lakhs with any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time. However, on the basis of information and explanations provided, the same appear reasonable.

6 The Company has not accepted any deposits from the public.

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

8 The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Act, for services rendered by the Company.

9 (a) According to the information and explanations given to us and on the basis of our examination of the

records, the Company has generally been regular in depositing undisputed statutory dues including Income tax, Wealth tax, Service tax, Customs duty, Sales tax, Provident Fund, Employees'' State Insurance, Professional tax and other material statutory dues during the year with the appropriate authorities. As explained to us, the Company did not have any dues on account of Investor Education and Protection Fund and Excise duty.

According to the information and explanations given to us, no undisputed amounts payable in respect of Income tax, Wealth tax, Service tax, Customs duty, Sales tax, Provident Fund, Employees'' State Insurance, Professional tax and other material statutory dues were in arrears as at 31st March 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of Income tax, Wealth tax, Service tax, Sales tax and Customs duty which have not been deposited by the company with the appropriate authorities on account of any disputes other than those stated below:

Name of the Nature of the Amount Amount paid statute dues (Rs in Lakhs) under protest (Rs in Lakhs)

Income Tax Act, Income tax – TDS 21.47 _ 1961 demands

Income Tax Act, Income tax - 237.47 132.84 1961 Disallowances

Gujarat Value Sales tax demand 124.75 _ Added Tax Act, on crane hiring 2003 services

Maharashtra Sales tax demand 582.31 _ Value Added Tax on crane hiring Act, 2002 services

The Finance Act, Service tax on 261.20 _ 1994 services to SEZ units

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

Income Tax Act, 2007-2014 Commissioner of 1961 Income Tax - Appeals, Pune

Income Tax Act, 2008-2011 Commissioner of 1961 Income Tax, Pune

Gujarat Value June 2008 to Gujarat Value Added Tax Act, March 2009 Added Tax Tribunal 2003

Maharashtra April 2009 to Deputy Value Added Tax March 2010 Commissioner Act, 2002 VAT, Pune*

The Finance Act, 2009-2012 Commissioner of 1994 Central Excise, Pune

10 The Company does not have accumulated losses at the end of the financial year. The Company has not incurred cash loss in the current financial year and in the preceding finincial year.

11 In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its bankers. The Company did not have any dues to any financial institutions or any oustanding debentures during the year.

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

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

14 According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

15 According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

16 In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised.

17 According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that the funds raised on short-term basis have not been used for long-term investments.

18 The Company has not made any preferential allotment of shares to companies/firms/other parties covered in the register maintained under section 301 of the Act.

19 The Company did not have any outstanding debentures during the year.

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

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

For B S R & Co. LLP Chartered Accountants Firm Registration No. 101248W

Juzer Miyajiwala Place : Pune Partner Date : 30th May 2014 Membership No. 047483


Mar 31, 2013

Report on the Financial Statements

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

Management''s Responsibility for the Financial Statements

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

Auditor''s Responsibility

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

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

Opinion

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

i. in the case of the Balance Sheet, of the state of affairs of the company as at 31 March 2013; ii. in the case of the Statement of Profit and Loss, 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 that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books;

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

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

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

Annexure to Independent Auditors'' Report – 31 March 2013

[Referred to in Auditors'' Report to the Members of Sanghvi Movers Limited (''the Company'') on the financial statements for the year ended 31 March 2013] We report as follows:

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

(b) The Company has a regular program of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of two years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification during the year.

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

2 (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures for 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) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account.

3 (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 301 of the Act.

(b) The Company has availed unsecured loans from three parties covered in the register maintained under section 301 of the Act. The maximum amount outstanding during the year was Rs.172,100,000 and the year- end balance of such loan is Rs.172,100,000.

(c) In our opinion, the rate of interest and other terms and conditions on which the aforesaid loans have been taken are not, prima facie, prejudicial to the interests of the Company.

(d) In the case of the aforesaid loans, there was no principal amount repayable during the current financial year. The Company has been regular in repayment of interest as per the terms of the agreement.

4 In our opinion and according to the information and explanations given to us, and having regard to the explanation that purchase of certain items of inventories and fixed assets are for the Company''s specialised requirements and similarly certain services rendered are for the specialised requirements of the buyers and suitable alternative sources are not available to obtain comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to the rendering of services. The Company''s activities do not involve sale of goods. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal control system.

5 In our opinion, and according to the information and explanations given to us, there are no contracts or arrangements the particulars of which need to be entered into the register maintained under Section 301 of the Act.

6 The Company has not accepted any deposits from the public.

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

8 The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Act, for services rendered by the Company.

9 (a) According to the information and explanations given to us and on the basis of our examination of the records, the Company has been regular in depositing undisputed statutory dues including Provident Fund, Employees'' State Insurance, Income tax, Wealth tax, Sales tax, Service tax, Customs duty and other material statutory dues during the year with the appropriate authorities. As explained to us, the Company did not have any dues on account of Investor Education and Protection Fund and Excise duty.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees'' State Insurance, Income tax, Wealth tax, Sales tax, Service tax, Customs duty and other material statutory dues were in arrears as at 31 March 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Wealth tax, Service tax and Customs duty which have not been deposited with the appropriate authorities on account of disputes other than those stated below:

Name of the Nature of the Amount(Rs Amount paid statute dues in lakhs) under protest (Rs in lakhs)

Income Tax Act, Income tax TDS 37.83 1961 demands

Income Tax Act, Income tax 498.07 381.46 1961 Disallowances

Gujarat Value Sales tax demand 124.75 Added Tax Act, on crane hiring 2003 services

Gujarat Motor RTO tax under 44.46 Vehicles Act, Gujarat Motor 1989 Vehicles Act

NAME Period to which Forum where the amount dispute relates is pending

Income Tax Act, 2007-2012 Commissioner of Income Tax - Appeals, Pune

Income Tax Act, 2008-2010 Commissioner of Income Tax -Pune

Income Tax Act, June 2008 to Gujarat Value March 2009 Added Tax Tribunal

Income Tax Act, N.A. Gujarat High Court

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

11 In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its bankers. The Company did not have any outstanding dues to any financial institutions or debenture holders during the year.

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

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

14 According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

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

16 In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised.

17 According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that the funds raised on short-term basis have not been used for long- term investments.

18 According to the information and explanations given to us, the Company has not made preferential allotment of shares to companies/firms/other parties covered in the register maintained under section 301 of the Act.

19 The Company did not have outstanding debentures during the year.

20 The Company has not raised any money by public issues during the year.

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

For B S R & Co.

Chartered Accountants

Firm registration no. 101248W

Juzer Miyajiwala

Place : Pune Partner

Date : 27th May 2013 Membership No. 047483


Mar 31, 2012

We have audited the attached Balance Sheet of Sanghvi Movers Limited ('the Company') as at 31 March 2012 and the Statement of Profit and Loss 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.

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

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

2 Further to our comments in the Annexure referred to in paragraph 1 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 purposes of our audit;

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

c) the Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account;

d) in our opinion, the Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Act;

e) on the basis of written representations received from the Directors of the Company as on31 March 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as at 31 March 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Act;

f) in our opinion and to the best of our information and according to the explanations given to us, the said 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:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2012;

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

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

[Referred to in paragraph 1 of the Auditors' Report to the Members of Sanghvi Movers Limited ('the Company') on the financial statements for the year ended 31 March 2012]

We report as follows:

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

(b) The Company has a regular program of physical verification of its fixed assets by which all fixed assets are verified in a phased manner over a period of two years. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification during the year.

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

2 (a) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures for 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) The Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account.

3 (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 301 of the Act.

(b) The Company has availed an unsecured loan from a party covered in the register maintained under section 301 of the Act. The maximum amount outstanding during the year was Rs. 64,000,000 and the year-end balance of such loan is Rs. 21,400,000.

(c) In our opinion, the rate of interest and other terms and conditions on which the aforesaid loan has been taken are not, prima facie, prejudicial to the interests of the Company.

(d) In the case of the aforesaid loan, the principal sum and the interest are repayable on demand.

4 In our opinion and according to the information and explanations given to us, and having regard to the explanation that purchase of certain items of inventories and fixed assets are for the Company's specialised requirements and similarly certain services rendered and goods sold are for the specialised requirements of the buyers and suitable alternative sources are not available to obtain comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and fixed assets and with regard to the rendering of services and sale of goods. In our opinion and according to the information and explanations given to us, there is no continuing failure to correct major weaknesses in internal control system.

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

(b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts and arrangements referred to in (a) above and exceeding the value of Rs 5 lakh with any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time except for purchase of certain services which are for the Company's specialized requirements for which suitable alternative sources are not available to obtain comparable quotations. However, on the basis of information and explanations provided, the same appear reasonable.

6 The Company has not accepted any deposits from the public.

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

8 The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Act, for services rendered by the Company.

9 (a) According to the information and explanations given to us and on the basis of our examination of the records, the Company has been regular in depositing undisputed statutory dues including Provident Fund, Employees' State Insurance, Income tax, Wealth tax, Sales tax, Service tax, Customs duty and other material statutory dues during the year with the appropriate authorities. As explained to us, the Company did not have any dues on account of Investor Education and Protection Fund and Excise duty.

According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees' State Insurance, Income tax, Wealth tax, Sales tax Service tax, Customs duty and other material statutory dues were in arrears as at 31 March 2012 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of Income tax, Sales tax, Wealth tax, Service tax and Customs duty which have not been deposited with the appropriate authorities on account of disputes other than those stated below:

Name of the Nature of Amount Period to Forum where dispute is statute the dues (Rs in lakhs) which the pending amount relates

Income Tax Act, Income tax & TDS 161.65 2007-2012 Commissioner of Income 1961 demands Tax -Appeals, Pune

Gujarat Value Sales tax demand on 124.75 June 2008 to Gujarat Value Added Added Tax Act, crane hiring services March 2009 Tax Tribunal 2003

Gujarat Motor RTO tax under 44.46 N.A. Gujarat High Court Vehicles Act, Gujarat Motor 1989 Vehicles Act

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

11 In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to its bankers or to any financial institutions. The Company did not have any outstanding debentures during the year.

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

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

14 According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.

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

16 In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised.

17 According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that the funds raised on shortterm basis have not been used for long-term investments.

18 According to the information and explanations given to us, the Company has not made preferential allotment of shares to companies/firms/other parties covered in the register maintained under section 301 of the Act.

19 The Company did not have outstanding debentures during the year.

20 The Company has not raised any money by public issues during the year.

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

For B S R & Co.

Chartered Accountants

Place: Mumbai Firm registration no: 101248W

Date: 30th May 2012

Vijay Mathur

Partner

Membership No: 046476


Mar 31, 2010

We have audited the attached Bala nce Sheet of Sanghvi Movers Limited as at 31 st 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.

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.

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.

Further to our comments in the Annexure referred to above, we report that -

1) 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;

2) 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;

3) 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;

4) 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;

5) On the basis of representations made by the Directors of the Company and taken on record by the Board of Directors , wereport that none of the Directors is disqualified as on 31 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;

6) 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 the Notes forming part thereof, particularly Note 4 regarding change in accounting policy on stores and spare parts purchased for repairs and maintenance resulting in an increase in profit before tax by Rs. 288 Lakhs, 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 :

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

b) in the case of Profit and Loss Account, of the Profit for the year ended on that date; and

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

ANNEXURE TO THE AUDITORS REPORT 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 has maintained records showing full particulars including quantitative details of fixed assets, excepting the situation of movable fixed assets, which change with orders under execution.

(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.

(i) (a) Physical Verification of inventory was conducted by the Management at the year end and was test checked by us.

(b) The procedures of physical verification of inventory followed by the management need to be improved to be reasonable and adequate in relation to the size of the company and the nature of its business.

(c) Records of inventory showing, quantity of receipts, issues and balances with dates of transactions are maintained. Stocks of inventory from purchases during the year have been valued and properly dealt with in the books of account.

(i) (a) Other than a loan of Rs. 70 Lakhs granted to and Rs. 435 Lakhs taken from a company listed in the register maintained under Section 301 of the Companies Act, 1956, the Company has not taken or granted any loans from companies, firms or other parties listed therein.

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

(c) The payment of interest is regular. The loans have been repaid.

(d) As on the balance sheet date, no amount was due to or by 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. The Company does not sell goods. 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.

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

(vi) The Company is not required to maintain cost records under Section 209(1)(d) of the Companies Act, 1956, except for its business of generation of electricity from wind power. We have broadly reviewed the prescribed accounts and records maintained.

(ix) (a) The Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty and other statutory dues with appropriate authorities. As per information and explanations given to us, no such undisputed statutory dues were in arrears as at 31st March 2010 for a period of more than six months from the date they became payable.

(b) The disputed statutory dues which have not been deposited with the appropriate authorities are as under :

Nature of Dues Rs in Lakhs Forum where Dispute is Pending

Gujarat Motor Vehicles Tax 44.46 Gujarat High Court

Employees State Insurance 1.75 Industrial Court, Pune

Income Tax 126.22 CIT(Appeals)-V, Pune

(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) The Company has not defaulted in repayment of its dues to any Bank, there being no borrowings from financial institutions or from debenture holders.

(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) Clause (xiii) of the Order relating to chit funds does not apply to the Company.

(xiv) The Company does not deal in shares, securities, debentures and other investments and accordingly clause (xiv) of the Order does not apply.

(xv) The Company has not given any guarantee for loans taken by others from a bank, hence clause (xv) does not apply to the Company.

(xvi) We state that the Company has generally applied the term loans received for the purposes they were obtained.

(xvii) We state that on an overall basis, no funds raised on short-term basis have been applied by the Company for long-term investments.

(xviii) During the year under review, no shares were allotted to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956.

(xix) The Company has not issued any secured debentures and accordingly clause (xix) of the Order does not apply.

(xx ) During the year under review, the Company did not raise any money by way of a public issue of shares or securities, hence clause (xx) of the Order does not apply.

(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.

ForL.M.JOSHI & CO.

Chartered Accountants

F. No. 104403W



Prasanna L. Joshi

Partner

M.No . 35097

Pune

26 th May, 2010



 
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