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Auditor Report of Tantia Constructions Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statement of TANTIA CONSTRUCTIONS LIMITED ("the company"), which comprise the Balance Sheet as on 31st March, 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 the other explanatory information.

Management's Responsibility for the Standalone Financial Statement

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, 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 there- under.

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone 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 control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting polices 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 31st March, 2015, and its loss and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to:

a) Para vii to the Annexure to the Independent Auditors Report regarding delay in payment of statutory liabilities.

b) Note 42 to the Financial Statements for repossession of assets by the financers due to nonpayment of their installments.

c) Note 44 to the Financial Statements in relation to excess payment of managerial remuneration for the financial year 2013-14 which is yet to be taken up with the Central Government for their approval.

d) Note 43 to the Financial Statements regarding provision for gratuity made on an estimated basis and not as per the actuarial valuation, thereby not following Accounting Standard 15 (AS 15) Our opinion is not qualified in respect of the above matters.

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 the paragraphs 3 and 4 of the said Order, to the extent applicable.

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 the account as required by law have been kept by the Company so far 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 excepting compliance of Accounting Standard 15 (AS 15) regarding non provision of gratuity as per actuarial valuation. ( Refer Note 43 of Financial Statements)

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

(f) With respect to 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 30 to the financial statements;

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 to the Independent Auditor's Report

The annexure referred to in Paragraph 1 with the heading "Report on Other Legal and Regulatory Requirements" of our Report of even date to the members of TANTIA CONSTRUCTIONS LIMITED as at and for the year ended 31st March, 2015 :

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

b. The Company has a regular programme of physical verification of its fixed assets by which each fixed asset is verified on rotational basis over a period of three years which in our opinion, is reasonable, having regard to the size of the Company and nature of its assets. Accordingly, the physical verification of the fixed assets has been carried out by the Management during the year and no material discrepancies were noticed on such verification.

ii) a. As explained to us, the inventories have been physically verified by the Management in phased manner during the year. In our opinion, the frequency of such verification is reasonable.

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

c. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of inventories and no material discrepancies were noticed on physical verification of inventories as compared to book records.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to or from Companies, firms and other parties covered in the register required to be maintained under Section 189 of the Act. Accordingly, paragraph 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventories and fixed assets and with regard to sale of goods and services. We have not observed any major weakness in the internal control system during the course of our audit.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from the public in accordance with the provisions of section 73 to 76 of the Act and rules framed there under.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of cost records under section 148(1) of the Act, and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the same.

(vii) a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident fund, Employees State insurance, Income Tax, Sales Tax/Value

Added Tax, Wealth Tax, Customs Duty, Cess have generally not been deposited with the appropriate authorities within the specified period, outstanding amount at the end of the year was ' 357.03 Lacs.

b. According to the information and explanations given to us, details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues which has not been deposited on account of any dispute are given below:

Name of the Name of the Nature of Dues Amount Statute State (Rs,in lakhs)

Sales Tax West Bengal Appeal Demand 210.32

Sales Tax West Bengal Appeal Demand 343.31

Sales Tax West Bengal Appeal Demand 561.30

Sales Tax West Bengal Appeal Demand 853.13

Sales Tax West Bengal Appeal Demand 2235.63

Sales Tax West Bengal Assessment 706.11 Demand

Sales Tax West Bengal Assessment 947.93 Demand

Sales Tax West Bengal Penalty notice 306.84 (for wrong input tax credit)

Sales Tax West Bengal Penalty notice 222.35 (for wrong input tax credit)

Sales Tax We st Bengal Penalty notice 306.84 (for wrong input tax credit)

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

Sales Tax 2005-06 Revisionary Board

Sales Tax 2006-07 Revisionary Board

Sales Tax 2007-08 Revisionary Board

Sales Tax 2008-09 Revisionary Board

Sales Tax 2009-10 Appellate Authority

Sales Tax 2010-11 Appeal lost, Revision to be filed.

Sales Tax 2011-12 Appeal under process

Sales Tax 2009-10 Appellate Authority

Sales Tax 2010-11 Appellate Authority

Sales Tax 2011-12 Appellate Authority

c According to the information and explanations given to us there is no amount which were required to be transferred to the investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1of 1956) and rules there under.

(viii) The Company does not have any accumulated losses at the end of the financial year. The Company has incurred cash losses in the financial year, however it had not incurred any cash losses in the immediately preceding financial year.

(ix) Based on our audit procedures and as per information, explanations and documents produced to us by the Management, we are of the opinion that the Company has defaulted in repayment of dues to Banks. Overdue amount was Rs. 2574 lacs was lying overdue for more than 396 days. The Company did not have any outstanding dues to debenture holders or dues to financial institutions. According to the information and explanations given to us there has been a severe cash flow mismatch in the Company which caused nonpayment/servicing of bank loan and interest thereon in time and nonpayment of statue ry dues on certain occasions.

(x) According to the information and explanations given to us, we are of the opinion that the terms and conditions on which the Company has given guarantee for loans taken by others from banks are not prima facie prejudicial to the interest of the Company.

(xi) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(xii) During the course of our examination of the books and records of the company carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such cases by the Management.

For KONAR MUSTAPHI AND ASSOCIATES

Chartered Accountants

Firm's Registration No-314125E

CA. S.K.MUSTAPHI

Dated: 30th May, 2015 Partner

Place : Kolkata Membership No. 051842


Mar 31, 2014

We have audited the accompanying financial statements of TANTIA CONSTRUCTIONS LIMITED ("the company"), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act,1956 ("the Act")which shall continue to apply in respect of section 133 of the Companies Act, 2013 in terms of General circular 15/2013 dated September 13, 2013 issued by the Ministry of Corporate Affairs. 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 statement is 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 entities 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

1. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements read with Notes 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:

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014;

b. In the case of the Statement of Profit and Loss, 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.

2. We did not Audit the financial statements of certain Joint ventures reflecting company''s share in profit Rs. 66.55 lacs in these financial statements. These financial statements are unaudited and have been furnished to us by the Management, and our opinion, in so far as it relates to the amounts included in respect of the said joint ventures, is solely based on the financial statements provided by the Management. Our opinion is not qualified in respect of this matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

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 Act, we give in the Annexure

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

2. As required by section 227(3) of the Act, 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 account as required by law have been kept by the Company so far as it 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 account ;

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 which shall continue to apply in respect of section 133 of the Companies Act, 2013 in terms of General circular 15/2013 dated September 13, 2013 issued by the Ministry of Corporate Affairs.

v. On the basis of the written representations received from the directors, 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 Independent Auditors'' Report to the Members of Tantia Constructions Ltd. (Referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of our report of even date).

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

b. The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified on rotational basis over a period of three years which in our opinion, is reasonable, having regard to the size of the Company and nature of its assets. Accordingly, the physical verification of the fixed assets has been carried out by the Management during the year and no material discrepancies were noticed on such verification.

c. The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

ii. a. As explained to us, the inventories have been

physically verified by the Management in phased manner during the year. In our opinion such verification is reasonable.

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

c. In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventories and no material discrepancies were noticed on physical verification of inventories as compared to book records.

iii. a. The Company has not granted any loans to

companies covered in the Register maintained under section 301 of the Companies Act, 1956.

b. The Company has taken unsecured loan from a Company covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount involved during the year Rs. 1,546.10 lacs and the year end balance was Rs. 1,471.16 lacs.

c. Based on the information and explanations given to us, we are of the opinion that the rate of interest and other terms and conditions of the loan taken from the said party was not prima facie prejudicial to the interest of the company.

d. According to the information and explanations given to us, repayments of the principal and

interest have been regularly made as stipulated.

iv. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services.

v. a. In our opinion and according to the information

and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the Register maintained under Section 301 of the Companies Act, 1956, have been so entered.

b. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements to be entered in the Register maintained under Section 301 of the Companies Act, 1956, and exceeding the value of rupees five lakh in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

vi. According to the information and explanations given to us, the Company has not accepted any deposits from the public to which the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 apply. Therefore, the provisions of Clause (vi) of Paragraph 4 of the Order are not applicable to the Company.

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

viii. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.

ix. a. According to the records of the company Provident fund, Investor Education and Protection fund, Employees State insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, Cess and other material statutory dues have generally not been deposited with the appropriate authorities within the specified period.

b. According to the information and explanations given to us, undisputed amounts payable in respect of, Income Tax (TDS) was Rs. 264.28 lacs at the year end, for a period of more than six months from the date they became payable.

c. According to the information and explanations given to us, details of dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues which has not been deposited on account of any dispute are given below :

Name of the Name of the Nature of Dues Amount Period to Statute State Rs''in lakhs which the amount relates

Sales Tax West Bengal Appeal Demand 210.32 2005-06

Sales Tax West Bengal Appeal Demand 343.31 2006-07

Sales Tax West Bengal Appeal Demand 561.30 2007-08

Sales Tax West Bengal Appeal Demand 853.13 2008-09

Sales Tax West Bengal Appeal Demand 2235.63 2009-10

Sales Tax West Bengal Assessment 706.11 2010-11 Demand

Forum where dispute is pending

Revisionary Board Revisionary Board Revisionary Board Revisionary Board Appellate Authority Appeal Under Process

x. 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.

xi. Based on our audit procedures and as per information, explanations and documents produced to by the management, we are of the opinion that the Company has not defaulted in repayment of dues to Banks or Financial Institutions. The Company has no outstanding dues of any debenture holders.

xii. According to the information and explanations given to us and based on the documentary evidences made available to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. In our opinion the Company is not a chit fund / nidhi / mutual benefit fund / society. Therefore, the provisions of Clause (xiii) of Paragraph 4 of the Order are not applicable to the Company.

xiv. In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of Clause (xiv) of Paragraph 4 of the Order are not applicable to the Company.

xv. According to the information and explanations given to us, we are of the opinion that the terms and conditions on which the Company has given guarantee for loans taken by others from banks are not prima facie prejudicial to the interest of the Company.

xvi. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

xvii. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that funds raised on short- term basis have prima facie not been used during the year for long term investment.

xviii. According to the information and explanations given to us, during the year covered by our audit, the Company has not made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

xix. According to the information and explanations given to us during the year covered by our report, the Company has not issued any secured debentures.

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

xxi. 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 KONAR MUSTAPHI & ASSOCIATES Chartered Accountants ICAI Firm Registration No. 314125E

CA S. K. MUSTAPHI Dated : 30th May, 2014 Partner Place : Kolkata Membership No. 051842


Mar 31, 2013

Report on the Financial Statements

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

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including 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 statement is free from material misstatements.

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 aforesaid financial statements read with Notes 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:

1. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

2. in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

3. in the case of 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") 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 said Order.

2. As required by section 227(3) of the Act, 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 account as required by law have been kept by the Company so far as it 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 account;

iv) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with

Independent Auditors''Report

by this Report comply with the Accounting Standards referred to in Sub-section (3C) of Section 211 of the Act;

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

In terms of our report of even date attached



Annexure to Independent Auditors'' Report to the Members of Tantia Constructions Ltd.

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

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

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified on rotational basis over a period of three years which in our opinion, is reasonable, having regard to the size of the Company and nature of its assets. Accordingly, the physical verification of the fixed assets has been carried out by the Management during the year and no material discrepancies were noticed on such verification.

(c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

(ii) (a) As explained to us, the inventories have been physically verified by the Management in phased manner during the year. In our opinion such verification is reasonable.

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

(c) In our opinion and according to the information and explanations given to us, the Company has maintained proper records of inventories and no material discrepancies were noticed on physical verification of inventories as compared to book records.

(iii) (a) 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 301 of the Companies Act, 1956. Accordingly, Paragraphs 4(iii) (b), (c) and (d) of the Order is not applicable.

(b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured from Companies, firms or other parties covered in the Register maintained under section 301 of the Companies Act, 1956. Accordingly, Paragraphs 4(iii) (f) and (g) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal Control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for 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.

(v) (a) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956, have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under Section 301 of the Companies Act, 1956, and exceeding the value of rupees five lakh in respect of each party during the year have been made at prices which appear reasonable as per information available with the Company.

(vi) According to the information and explanations given to us, the Company has not accepted any deposits from the public to which the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 apply. Therefore, the provisions of Clause (vi) of Paragraph 4 of the Order are not applicable to the Company.

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

(viii) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209(l)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed cost records have been maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.

(ix) (a) The Company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues as applicable.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employee State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues were outstanding at the year end, for a period of more than six months from the date they became payable.

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

(xi) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has not defaulted in repayment of dues to Financial Institutions, banks and debenture holders.

(xii) In our opinion and according to the information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provisions of clause (xii) of Paragraph 4 of the Order are not applicable.

(xiii) In our opinion, the Company is not a chit fund / nidhi / mutual benefit fund / society. Therefore, the provisions of Clause (xiii) of Paragraph 4 of the Order are not applicable to the Company.

(xiv) In our opinion and according to the information and explanations given to us, the Company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of Clause (xiv) of Paragraph 4 of the Order are not applicable to the Company.

(xv) According to the information and explanations given to us, we are of the opinion that the terms and conditions on which the Company has given guarantee for loans taken by others from banks are not prima facie prejudicial to the interest of the Company.

(xvi) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet and Cash Flow Statement of the Company, we — are of the opinion that there are no funds raised on 51 short-term basis that have been used for long term ~ investment.

(xviii) According to the information and explanations given to us, the Company has made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956 and the price at which the shares were issued were not prejudicial to the interest of the Company.

(xix) In our opinion and according to the information and explanations given to us,the Company has not issued any secured debentures during the year.

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

(xxi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

In terms of our report of even date attached

For KONARMUSTAPHI& ASSOCIATES

Chartered Accountants

Firm Registration No. 314125E

CAS.K.Mustaphi

Place :Kolkata Partner

Date : May 30, 2013 Membership No. 051842


Mar 31, 2012

1. We have audited the attached Balance Sheet of TANTIA CONSTRUCTIONS LIMITED, KOLKATA as at March 31, 2012, the Statement of Profit and Loss and the Cash Flow Statement of the Company for the year ended on that date both annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with 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 misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the 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 (CARO) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we give 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 in Paragraph 3 above, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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, the 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, the Statement of Profit and Loss and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representation received from the directors as on March 31, 2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2012 from being appointed as a director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956;

f) 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:

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

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 Cash Flow Statement, of the cash flows for the year ended on that date.

For KONAR MUSTAPHI AND ASSOCIATES

Firm Registration No. 314125E

Chartered Accountants

S. K. MUSTAPHI Place: Kolkata Partner

Dated: May 29, 2012 Membership No. 51842

Annexure to Auditors Report for the year ended as at March 31, 2012

(Referred to in paragraph 3 of our report of even date.)

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

b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified on rotational basis over a period of three years which in our opinion, is reasonable, having regard to the size of the Company and nature of its assets. Accordingly, the physical verification of the fixed assets has been carried out by the Management during the year and no material discrepancies were noticed on such verification.

c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

ii) a) As explained to us, the inventories have been physically verified by the Management in phased manner 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 of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

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

iii) a) 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 301 of the Companies Act, 1956. Accordingly, Paragraphs 4(iii) (b), (c) and (d) of the Order is not applicable.

b) According to the information and explanations given to us, the company has not taken any loans, secured or unsecured from Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, Paragraphs 4(iii) (f) and (g) of the Order is not applicable

iv) 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 for the purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit we have not observed any failure to correct major weaknesses in the aforesaid internal control systems.

v) a) In our opinion and according to the information and explanations given to us, and based on our verification, we are of the opinion that the particulars of contracts or arrangements that need to be entered in the register maintained under section 301 of the Companies Act, 1956 have been entered.

b) In our opinion and according to the information and explanations given to us, and based on our verification, we report that the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding the value of Rupees five lakh in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits from the public to which the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975 apply.

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

viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government of India, regarding the maintenance of cost records under clause (d) of subsection (1) of Section 209 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have, however not made a detailed examination of the records with a view to determine whether they are accurate or complete.

ix) a) The Company is generally regular in depositing with appropriate authority undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues as applicable.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues were outstanding at the year end, for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us, details of dues of Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues which has not been deposited on account of any dispute are given below

Name of the Name of the Nature of Amount Statute State Dues (Rs.in Lakhs)

Sales tax West Bengal Appeal demand 39.03

Sales tax West Bengal Appeal demand 210.32

Sales tax West Bengal Appeal demand 343.31

Sales tax West Bengal Normal assessment demand 561.30

Sales tax West Bengal Normal assessment demand 853.13

Sales tax Jharkhand Normal assessment demand 1.15

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

Sales tax 2004-05 Revisionary Board

Sales tax 2005-06 Revisionary Board

Sales tax 2006-07 Revisionary Board

Sales tax 2007-08 Appeal

Sales tax 2008-09 Appeal

Sales tax 2006-07 Appeal

x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provisions of clause 4 (xii) of CARO are not applicable.

xiii) In our opinion, the Company is not a chit fund, nidhi, mutual benefit fund or society. Accordingly the provisions of clause 4(xiii) CARO are not applicable to the Company.

xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Therefore the provisions of clause 4(xiv) CARO are not applicable to the Company.

xv) In our opinion, the terms and condition on which the Company has given Guarantee for loans taken by others from Banks are not prejudicial to the intent of the Company.

xvi) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on overall examination of the Balance Sheet and Cash Flow Statement of the Company, we report that funds raised on short term basis that have not been used during the year for long term investment.

xviii) According to the information and explanations given to us, the company has made preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956 and the price at which the shares were issued were not prejudicial to the interest of the Company.

xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report.

xx) The Company has not raised any money by way of public issue during the period covered by our audit.

xxi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For KONAR MUSTAPHI AND ASSOCIATES

Firm Registration No. 314125E

Chartered Accountants

S. K. MUSTAPHI Place: Kolkata Partner

Dated: May 29, 2012 Membership No. 51842


Mar 31, 2011

1. We have audited the attached Balance Sheet of TANTIA CONSTRUCTIONS LIMITED, KOLKATA as at 31st March, 2011, the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date both annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with 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 misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and the 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 (CARO) issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we give 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 in Paragraph 3 above, we report that:

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

d) 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 3(c) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representation received from the directors as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956;

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

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2011;

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

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

Annexure to Auditors Report for the year ended on 31st March, 2011

(Referred to in paragraph 3 of our report of even date.)

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

b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets are verified on rotational basis over a period of three years which in our opinion, is reasonable, having regard to the size of the Company and nature of its assets. Accordingly, the physical verification of the fixed assets has been carried out by the Management during the year and no material discrepancies were noticed on such verification.

c) The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

ii) a) As explained to us, the inventories have been physically verified by the Management in phased manner 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 of physical verification of inventories followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

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

iii) a) 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 301 of the Companies Act, 1956. Accordingly, Paragraphs 4(iii) (b), (c) and (d) of the Order is not applicable.

b) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured from Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, Paragraphs 4(iii) (f) and (g) of the Order is not applicable

iv) 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 for the purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit we have not observed any failure to correct major weaknesses in the aforesaid internal control systems.

v) a) In our opinion and according to the information and explanations given to us, and based on our verification, we are of the opinion that the particulars of contracts or arrangements that need to be entered in the register maintained under section 301 of the Companies Act, 1956 have been entered.

b) In our opinion and according to the information and explanations given to us, and based on our verification, we report that the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956, and exceeding the value of Rupees five lakh in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits from the public to which the provisions of Sections 58A, 58AA or any other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975 apply.

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

viii) To the best of our knowledge, the Central Government has not prescribed any rules for maintenance of cost records and accounts under Section 209 (1) (d) of the Companies Act, 1956.

ix) a) The Company is generally regular in depositing with appropriate authority undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income- tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues as applicable.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income- tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues were outstanding as the year end, for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us, details of dues of Provident Fund, Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues which has not been deposited on account of any dispute are given below

(Rs. in Lakhs)

Name of the Nature of the Nature of Amount in Statue States Dues (Rs.)

Sales Tax West Bengal Appeal demand 301.63

Sales Tax West Bengal Normal assessment 517.27 demand

Sales Tax Jharkhand Normal assessment demand 4.91



Name of the Periods to which Forum where Statue the amount relates dispute is pending

Sales Tax 2005-06 Revisionary Board

Sales Tax 2006-07 Joint Commissioner (Appeal)

Sales Tax 2006-07 Asst Commissioner

x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year.

xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions or banks.

xii) In our opinion and according to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly the provisions of Para (xii) of CARO are not applicable.

xiii) In our opinion, the Company is not a chit fund, nidhi, mutual benefit fund or society. Accordingly the provisions of clause 4(xiii) CARO are not applicable to the Company.

xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Therefore the provisions of clause (xiv) CARO are not applicable to the Company.

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

xvi) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

xvii) According to the information and explanations given to us and on overall examination of the Balance Sheet and Cash Flow Statement of the Company, we report that funds raised on short term basis that have not been used during the year for long term investment.

xviii) 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 Companies Act, 1956.

xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report.

xx) The Company has not raised any money by way of public issue during the period covered by our audit.

xxi) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For Konar Mustaphi and Associates Firm's Registration No. 314125E Chartered Accountants

S. K. Mustaphi Place: Kolkata Partner Dated : 20th May, 2011 Membership No. 051842


Mar 31, 2010

1. We have audited the attached balance sheet of TANTIA CONSTRUCTIONS LIMITED , KOLKATA as at 31st M arch, 20 10 , the profit and loss account and the cash flow statem ent for the year ended on that date annexed thereto. These financial statem ents are the responsibility of the Company s managem ent. Our responsibility is to express an opinion on these financial statem ents based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit toobta in reasonable assurance about whether the financial statem ents are free of material mis-statements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statem ents. An audit also includes assessing the accounting principles used and significant estim ates made by m anagem ent, as wel as evaluating the overall financialstatem entpresentation. We believe that our audit provides a reasonable ba sis for our opinion.

3. As required by the Companies (Auditor s Report) Order 2003 (as am ended) issued by the Central Governm ent of India in terms of sub -section (4A) of Section 227 of the Companies Act, 1956, we en close in the Annexure a statem ent on the matters specifie d in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexurere ferred to above, we report that:

a) We have obtained all the inform ation and explanations, which to the best of our know ledge and beliefwere 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 exam ination of those books;

c) The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreem ent with the books of account;

d) In our opinion, the balance sheet, profit and lossaccount and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section 3(c) of Section 211 of the Companies Act, 1956;

e) On the basis of the written representation received from the directors and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2010 from being appointed as a direct or in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explan ations given to us, the said financials statements 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.

i) in the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2010,

i) in the case of the profit and loss account, of the profit for the year ended on that date; and

i) in the case of cash flow statement, of the cash flows for the year ended on that date.

Annexure to Auditors Report for the year ended on 31st March, 2010 (Referred to in paragraph 3 of our report of even date.)

i) a) The Com pany has m aintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets a re verified in a phased manner over a period of three 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. We are informed that no material discrepancies were noticed during such verification.

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

i) a) The inventory has been physically verified by the m anagement during the year. In our opinion the frequency of verification is reasonable.

b) In our opinion, the procedures of physical verification of inventories followed by them anagem ent are reasonable and adequate in relation to the size of the Company and the nature of its business .

c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining properrecords of inventory and the discrepancies noticed onve rification between the physical stock and book records were not mate rial.

i) a) As informed, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the registerm aintained under section 30 1 of the Companies Act, 1956 .

b) As informed, the company has not taken any loans, secured or unsecured from Companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 .

iv) In our opinion and according to the information and explanation given to us, there is adequate internal control system com m ensurate with the size of the Company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control.

v) a) In our opinion and according to the information and explanations given to us, and based on ourverification, we are of the opinion that the particulars of contracts or a rrangements referred to in register maintained, under section 301 of the Companies Act, 1 9 5 6 , 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, an d based on our verification, we report that the transactions made in pursuance of such contracts or arrangem ents entered in the register maintained under section 30 1 of the Companies Act, 1956 , and exceeding the value of Rupees five lakh in respect of any party during the year have been made at prices which a re reasonable having regard to prevailing market prices at the relevant time.

vi) The Company has not accepted any deposits under the provisions of Sections 58 A an d 58AA of the Companies Act, 1956 and the rules framed there under.

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

vii) According to the records produced and information given to us, the Central Government has not prescribed any rules for maintenance of cost records and accounts under Section 209 (i) (d) of the Companies Act, 1956 .

ix) a) The Company is regularin depositing with appropriate authority undisputed statutory dues including Provident Fund , Investor Education and Protection Fund , Employees State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax , Custom duty , Excise duty , Cess and other materialstatutory dues as applicable with the appropriate authority .

b ) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty And Cess were in arrears as at 31st M arch, 20 10 for a period of m ore than six months from the date they became payable.

c) According to the information and explanations given to us, details of dues of sales tax, income tax, excise duty and

service tax which has not been deposite don account of any dispute are given below

Name of the Statue Nature of Dues Amount in Rs.

West Bengal AppealDem and 210.32

West Bengal Normal AssttDem and 343.31

West Bengal Penalty Under WBVAT Act 2003 384.82



(Rs.in Lakhs)

Periods to which Forum where the amount relates dispute is pending

2005-06 Revisionary Board

2006-07 Joint Commissioner (Appeal)

2008-09 Joint Commissioner Central Section

x) The Company has no accum ulated losses at the end of the financial year and it has not incurred cash losses in the current an d in mediately preceding financial year.

xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions or bank.

xii) The company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xii) The provisions of any special statute applicable to Chit Fund /Nidhi/ Mutual Benefit Fund /Societies are not applicable to the Company.

xiv) In our opinion, the company is not a dealer in shares, securities an d other investments .

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

xvi) The Company has not taken any term loan from banks during the year. However the equipment finance loans taken during the year from the financial institutions have been applied to wards the purchase of equipments financed under the loan.

xvii) According to the information and explanations given to us and an overall examination of the balance sheet and cash flow statem ent of the Company, there a re no funds raised on short term basis that have been used for long term investment.

xvii) 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 there gister m aintained under section 301 of the Companies Act, 1956 .

xix ) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the period covered by our report.

xx) The Company has not raised any money by way of any public issue during the period covered by our audit.

xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, an d according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, nornoticed or reported during the year, nor have we been informed of such case by the management.



For S.M. Bengani & Co

Firms Registration No. 305075E

Chartered Accountants

Room No. 57, 11/2 floor

187, Rabindra Sarani CA. Hiralal Bengani

KOlkata- 700 007 Propredetor

Dated : 29th May,2010 Membership No. 07867

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