Auditor Report of Sri Krishna Constructions (India) Ltd.

Mar 31, 2016

To the members of Sri Krishna Constructions (India) Limited

Report on the Standalone Financial Statements

I have audited the accompanying standalone financial statements of Sri Krishna Constructions (India) Limited (“the Company”), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

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

Auditor’s Responsibility

My responsibility is to express an opinion on these standalone financial statements based on my audit.

I have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

I conducted my 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. 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.

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

Opinion

In my opinion and to the best of my information and according to the explanations given to me, 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 31st March, 2016, 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, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, I give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the order.

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

a. I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit;

b. In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my 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 my 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 the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to my separate Report in “Annexure B”; and

g. 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 my opinion and to the best of my information and according to the explanations given to me:

i) the Company does not have any pending litigations which would impact its financial position

ii) the Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses

iii) There were no amounts which were, required to be transferred, to the Investor Education and Protection Fund by the Company

Annexure - A to the Auditors’ Report

The annexure referred in Independent auditor’s report to the members of the Company on the standalone financial statements for the year ended 31 March, 2016, I report that;

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

b) Fixed assets have been physically verified by the management at reasonable intervals; and no material discrepancies were noticed on such verification. In my opinion, interval of physical verification is reasonable having regard to the size of the company and the nature of its assets.

c) According to the information and explanation given to me and on the basis of verification of records of the company, the title deeds of immovable properties are held in the name of the company

2. Physical verification of inventory in the form of Land has been conducted at reasonable intervals by the management and no material discrepancies were noticed on physical verification

3. The Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, accordingly paragraph 3(iii) of the Order is not applicable.

4. According to the information and explanation given to us, the company has complied with the provisions of section 185 & section 186 of the Companies Act, in respect of the loan and investment made.

5. During the year The company has not accepted any deposits from the public.

6. Maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act,

7. a) According to the information and explanation given to us and based on our verification of books of

account, Generally the Company is regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, professional tax and any other statutory dues with the appropriate authorities and there are no arrears of statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, except tax deducted at source.

b) There were no dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute.

8. According to the information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution or bank.

9. According to the information and explanation given to me, the Company has applied moneys raised by way of initial public offer (listed in SME segment) and term loans for the purpose raised.

10. According to the information and explanation given to me, no fraud by the company or fraud on the company by its officers or employees has been noticed or reported during the year.

11. According to the information and explanation given me, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act;

12. According to the information and explanation given to me, the company is not a Nidhi Company, Accordingly paragraph 3(ix) of the Order is not applicable

13. According to the information and explanation given to me, transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details such transactions have been disclosed in the Financial Statements as required by the applicable accounting standards

14. According to the information and explanation given to me, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year

15. According to the information and explanation given to me, the Company has not entered into any noncash transactions with directors or persons connected with him. Accordingly paragraph 3 (xv) of the Order is not applicable

16. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934

For Suthar & Co

Chartered Accountants

Firm’s Registration No. 013840S

Berulal Suthar

Proprietor

Membership No. 224990

Place : Bangalore

Date: 28^th May, 2016