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Auditor Report of Shree Cements Ltd.

Jun 30, 2015

We have audited the accompanying standalone financial statements of Shree Cement Limited ("the Company"), which comprise the Balance Sheet as at 30th June, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

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

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 30th June, 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub- section (11) of Section 143 of the Act, we give in the Annexure, a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 it appears from our examination of those books.

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

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

(e) On the basis of written representations received from the directors as on 30th June, 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 30th June, 2015, from being appointed as a director in terms of Section 164 (2) of the Act.

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

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 26 to the financial statements;

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

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

Annexure to the Independent Auditor's Report

(Referred to in Paragraph 1 under the heading "Report on other legal and regulatory requirements" of our report of even date)

1) In respect of its fixed assets:

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

(b) As explained to us, fixed assets have been physically verified by the management in a phased periodical manner which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification.

2) In respect of its inventories:

(a) The inventories have been physically verified by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and 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 such discrepancies have been properly dealt with in the books of accounts.

3) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Act.

4) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and with regard to the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls system.

5) According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year in terms of the provisions of Section 73 to 76 of the Act or any other relevant provisions of the Companies Act, 2013 and the rules made thereunder.

6) We have broadly reviewed the accounts and records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014 read with Companies (Cost Records and Audit) Amendment Rules, 2014 prescribed by the Central Government under Section 148 of the Act, and are of the opinion that prima facie, the prescribed Cost records have been made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.

7) (a) According to the information and explanations given to us, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employees' State Insurance, Income Tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it.

According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 30th June, 2015 for a period of more than six months from the date they become payable.

(b) According to the information and explanations given to us, the details of disputed amount of Income Tax, Value Added Tax, Sales Tax, Excise Duty, Custom Duty, Entry Tax, Service Tax and Cess not deposited by the Company are as follows:

Name of the statute Nature of the dues Amount under dispute not yet deposited (Rsin Crore)

Rajasthan Tax on Entry Tax including interest 46.29 Entry of Goods into on goods purchased from 40.63 Local Area Act, 1999 outside Rajasthan

UP Tax on Entry of Entry Tax including interest 8.91 Goods Act, 2000 on stock transfer fromm Rajasthan to Uttar Pradesh

Punjab Tax on Entry 4% input tax credit reversal 0.07 of Goods into Local on Punjab entry tax paid Area Act, 2000 0.07



(B) Excise and Service Tax

Central Excise Act, Cenvat credit on Inputs and 1.06 1944 capital goods

Cenvat credit on Inputs and 0.09

capital goods

Cenvat credit on Inputs and 10.41

capital goods



Finance Act, 1994 Credit of Service Tax 0.06



Credit of Service Tax 0.01



Total (B) 11.63

(C) Customs Duty

Customs Act, 1962 Custom Duty Valuation 4.91

Custom Duty Valuation 0.95 (including interest)

Total (C) 5.86

(D) Sales Tax

Central Sales Tax Act, Partial Exemption Claim 2.24 1956 including interest

Total (D) 2.24

(E) Others

The Rajasthan Environment & Health Cess 65.46

Finance Act, 2008

Total (E) 65.46

Grand Total 181.16

(A B C D E)





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

Rajasthan Tax on 2005-06 to 2014-15 Apex Court Entry of Goods into 2005-06 to 2014-15 Deputy Commissioner Local Area Act, 1999 (Appeals), Ajmer & Apex Court

UP Tax on Entry of 2003-04 to 2009-10 Apex Court Goods Act, 2000 on

Punjab Tax on Entry 2010-11 Haryana & Punjab of Goods into Local Tax Tribunal, Patiala Area Act, 2000 2011-12 Deputy Commissioner (Appeals), Patiala

(B) Excise and Service

Central Excise Act, 1994-95 to 2011-12 Commissioner (Appeals) of 1944 Central Excise

2010-11 Commissioner (Appeals) of

Central Excise

1997-98 & 2007-08 to Customs Excise & Service Tax

2008-09 &2012-13 to Appellate Tribunal (CESTAT)

2013-14

Finance Act, 1994 2008-09 to 2010-11 Commissioner (Appeals) of

Central Excise

2007-08 to 2008-09 Customs Excise & Service Tax Appellate Tribunal (CESTAT)

Total (B)

(C) Customs Duty

Customs Act, 1962 2012-13 Customs Excise & Service Tax Appellate Tribunal (CESTAT)

2008-09 to 2009-10 Commissioner (Appeals), Custom

Total (C)

(D) Sales Tax

Central Sales Tax Act, 1998-99 to 2000-01 Rajasthan High 1956 Court, Jodhpur

Total (D)

(E) Others

The Rajasthan 2007-08 to 2014-15 Rajasthan High Court, Jodhpur

Finance Act, 2008

Total (E)

Grand Total

(A B C D E)

(c) The amounts required to be transferred to the investor education and protection fund in accorda nce with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund withi n prescribed time.

8) The Company has no accumulated losses at the end of the financial year. The Company has not incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

9. Based on the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to the financial institutions, banks or debenture holders.

10) As informed to us, the Company has not given any guarantees for loans taken by others from bank or financial institutions.

11) In our opinion, the term loans have been applied for the purpose for which they were obtained.

12) In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

For B. R. Maheswari & Co. Chartered Accountants Firm’s Registration No. 001035N

Sudhir Maheshwari Place: Kolkata Partner Date: 5th August, 2015 Membership No. 081075








Jun 30, 2012

1. We have audited the attached Balance Sheet of Shree Cement Limited as at 30th June, 2012 and also the Statement of Profit and Loss and the Cash Flow Statement for the period from 1st April 2011 to 30th June 2012 annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

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

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

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

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

(iii) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

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

(v) On the basis of information & explanations given to us and representations received from the Directors of the Company, we report that none of the Directors of the Company, is prima facie, disqualified from being appointed as Director of the Company in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956.

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

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 30th June, 2012;

(b) in the case of the Statement of Profit and Loss, of the profit for the period from 1st April, 2011 to 30th June, 2012; and

(c) in the case of the Cash Flow Statement, of the cash flows for the period from 1st April, 2011 to 30th June, 2012.

ANNEXURE REFERRED TO

IN OUR REPORT OF EVEN DATE

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

(b) As explained to us, a Substantial portion of fixed assets has been physically verified during the year by the management and in our opinion the frequency 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 not disposed off any major part of fixed assets that would affect the Going Concern status of the Company.

2) (a) As explained to us, inventories were physically verified by the management at reasonable intervals during the year.

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

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and such discrepancies have been properly dealt with in the books of accounts.

3) 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. Accordingly, clause (iii) of the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditor's Report) (Amendment) Order, 2004 is not applicable to the company for the current year.

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

5) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangement referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

6) The Company has not accepted any deposit from the public during the year.

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

8) We have broadly reviewed the accounts and records maintained by the Company pursuant to the rules made by the Central Government for maintenance of cost records under section 209(1) (d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of record with a view to determine whether they are accurate or complete.

9) (a) According to the information and explanations given to us, the company has generally been regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 30.06.2012 for a period of more than six months from the date they become payable.

(c) According to the information and explanations given to us, the details of disputed amount of Income Tax, Sales Tax, Excise Duty, Custom duty, Entry Tax, Service Tax and Cess not deposited by the Company are as follows :

Name of Statute Nature of the dues Amount under Period to which the Forum where dispute dispute not yet amount relates is pending deposited (Rs. in Cr.)

A. Entry Tax

Rajasthan Tax on Entry of Entry Tax including Interest on goods 99.18 2005-06 to 2011-12 Rajasthan High Court, Goods into Local Area Act, purchased from outside Rajasthan Jodhpur 1999

Entry tax including Interest 24.57 2005-06 to 2009-10 Deputy Commissioner

- 50% Exemption on Ras Plant (Appeals), Ajmer

13.95 2010-11 to 2011-12 CTO, Special Circle, Ajmer

UP Tax on Entry of Goods Entry Tax including Interest 19.95 2003-04 to 2009-10 Apex Court Act, 2000 on stock transfer from Rajasthan to Uttar Pradesh

Total (A) 157.65

B. Excise and Service Tax

Central Excise Act, 1944 Cenvat credit on Inputs and 1.03 1994-95 to 2011-12 Commissioner (Appeals) capital goods of Central Excise

Cenvat credit on Inputs and 0.14 1997-98, 2007-08 & Customs Excise Service capital goods 2008-09 Tax Appellate Tribunal (CESTAT)

Finance Act, 1994 Service Tax credit 0.07 2008-09 to 2010-11 Commissioner (Appeals) of Central Excise

Service Tax credit on Road 1.52 2004-05 to 2008-09 Customs Excise Service Freight & Others Tax Appellate Tribunal (CESTAT)

Total (B) 2.76

(C) Sales Tax

Central Sales Tax Act, 1956 Partial Exemption claim including 4.27 1998-99 to 2000-01 Rajasthan High Court, Interest Jodhpur

Total (C) 4.27

(D) Others

The Rajasthan Finance Environment & Health Cess on 30.14 2007-08 to 2011-12 Rajasthan High Court, Act, 2008 Limestone including Interest Jodhpur

Total (D) 30.14

Grand Total (A B C D) 194.82

10) The Company does not have any accumulated losses at the end of the financial year and the company has not incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

11) Based on the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to the financial institutions, banks or debenture holders.

12) According to the information and explanations given to us, the Company has not granted any loans and 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 company or nidhi / mutual benefit fund / society. Therefore, the provision of clause 4(xiii) of the order is not applicable to the Company.

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) As informed to us, the company has not given any guarantees for loans taken by others from bank or financial institutions.

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

17) According to 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 investment.

18) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act and therefore, the provisions of clause 4 (xviii) of the Order are not applicable to the Company.

19) The Company has created securities or charge in respect of debentures issued and outstanding at the year end.

20) During the year under audit, the Company has not raised money by public issue and accordingly, the provisions of clause 4 (xx) of the Order are not applicable to the Company.

21) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

for B.R. MAHESWARI & CO,

Chartered Accountants

(Registration No. 001035N)

Place: Kolkata (SUDHIR MAHESHWARI)

Date : 23rd August, 2012 Partner

Membership No. 81075


Mar 31, 2011

1. We have audited the attached Balance Sheet of Shree Cement Limited as at 31st March, 2011 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 the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

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

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

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

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

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

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

(v) On the basis of information & explanations given to us and representations received from the Directors of the Company, we report that none of the Directors of the Company, is prima facie, disqualified from being appointed as Director of the Company in terms of Clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

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

(a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

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

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

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

(b) As explained to us, a Substantial portion of fixed assets has been physically verified during the year by the management and in our opinion the frequency is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were notice on such verification.

(c) During the year, the Company has not disposed off any major part of fixed assets that would affect the Going Concern status of the Company.

2) (a) As explained to us, inventories were physically verified by the management at reasonable intervals during the year.

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

(c) The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material and such discrepancies have been properly dealt with in the books of accounts.

3) 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. Accordingly, clause (iii) of the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004 is not applicable to the company for the current year.

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

5) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangement referred to in section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

6) The Company has not accepted any deposit from the public during the year.

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

8) We have broadly reviewed the accounts and records maintained by the Company pursuant to the rules made by the Central Government for maintenance of cost records under section 209(1) (d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of record with a view to determine whether they are accurate or complete.

9) (a) According to the information and explanations given to us, the company has generally been regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31.03.2011 for a period of more than six months from the date they become payable.

(c) Further, since the Central Government has till date not prescribed the amount of cess payable under Section 441A of the Act, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same.

(d) According to the information and explanations given to us, the details of disputed amount of Income Tax, Sales Tax, Excise Duty, Custom duty, Entry Tax, Service Tax and Cess not deposited by the Company are as follows:

Name of Statute Nature of the dues Amount under dispute not yet deposited (Rs. in Lac)

A. Entry Tax

Rajasthan Tax on Entry of Entry Tax including Interest on goods 6917.83 Goods into Local Area Act, 1999 purchased from outside Rajasthan

Entry tax including Interest 1465.94 - 50% Exemption on Ras Plant 1343.98 UP Tax on Entry of Goods Entry Tax including Interest 3215.99 Act, 2000 on stock transfer from Rajasthan to Uttar Pradesh

Total (A) 12943.74

B. Excise and Service Tax

Central Excise Act, 1944 Cenvat credit on Inputs and capital 89.51 goods

Custom Duty (Valuation) 70.44

Custom duty payment through DEPB 690.33

Cenvat credit on Inputs and capital 110.64 goods

Finance Act, 1994 Service Tax credit on Road Freight 164.47 & Others

Total (B) 1125.39

C Sales Tax

Central Sales Tax Act, 1956 Partial Exemption claim including 612.23 Interest

Rajasthan Value Input Tax Credit on Capital Goods 28.79 Added Tax, 2003

Total (C) 641.02

(D) Others

The Rajasthan Finance Act, 2008 Environment & Health Cess on 1937.38 Limestone including Interest

Total (D) 1937.38

Grand Total (A+B+C+D) 16647.53



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

A. Entry Tax

Rajasthan Tax on Entry of Goods into Local Area Act, 1999 2005-06 to 2010-11 Rajasthan High Court, Jodhpur 2005-06 to 2008-09 Deputy Commissioner (Appeals), Ajmer 2009-10 to 2010-11 CTO, Special Circle, Ajmer

UP Tax on Entry of Goods Act, 2000 2003-04 to 2009-10 Uttar Pradesh High Court, Allahbad

Total (A)

B. Excise and Service Tax

Central Excise Act, 1944 1994-95 to 2009-10 Commissioner (Appeals) of Central Excise 2009-10 Commissioner (Appeals) of Central Excise 2009-10 Customs Excise Service Tax Appellate Tribunal (CESTAT) 1997-98 to 2008-09 Customs Excise Service Tax Appellate Tribunal (CESTAT)

Finance Act, 1994 2004-05, 2005-06, Customs Excise Service Tax

2007-08 & 2008-09 Appellate Tribunal (CESTAT)

Total (B)

C Sales Tax

Central Sales Tax Act, 1956 1998-99 to 2000-01 Rajasthan High Court, Jodhpur

Rajasthan Value Added Tax, 2003 2007-08 & 2008-09 Deputy Commissioner (Appeals), Ajmer

Total (C) (D) Others

The Rajasthan Finance Act, 2008 2007-08 to 2010-11 Rajasthan High Court, Jodhpur

Total (D)

Grand Total (A+B+C+D)

10) The Company does not have any accumulated losses at the end of the financial year and the company has not incurred cash losses in the financial year covered by our audit and in the immediately preceding financial year.

11) Based on the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to the financial institutions, banks or debenture holders.

12) According to the information and explanations given to us, the Company has not granted any loans and 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 company or nidhi / mutual benefit fund / society. Therefore, the provision of clause 4(xiii) of the order is not applicable to the Company.

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) As informed to us, the company has not given any guarantees for loans taken by others from bank or financial institutions.

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

17) According to 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 investment.

18) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act and therefore, the provisions of clause 4 (xviii) of the Order are not applicable to the Company.

19) The Company has created securities / charges in respect of secured debentures issued during the year.

20) During the year under audit, the Company has not raised money by public issue and accordingly, the provisions of clause 4 (xx) of the Order are not applicable to the Company.

21) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.



for B.R. MAHESWARI & CO.

Chartered Accountants

Place: Kolkata (Registration No. 001035N)

Date: 27th May, 2011

(SUDHIR MAHESHWARI)

Partner

Membership No. 081075

 
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