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Auditor Report of V2 Retail Ltd.

Mar 31, 2015

1. Report on the Standalone Financial Statements

We have audited the accompanying financial statements of V2 Retail Limited ("the Company"), which comprise the Balance Sheet as at 31 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 other explanatory information.

2. Management's Responsibility for the 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 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 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.

3. Auditor's Responsibility

Our responsibility is to express an opinion on these 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on 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 accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Subject to Para 4(a), (b), (c), (d) and (e) below, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

4. Basis for Qualified Opinion

a. Attention is invited to note 4 of these financial statements, included in capital reserve amounting to Rs.6,05,23,24,263/-, is Rs. 4,29,42,24,263/- arising out of transfer of asset and liabilities to the acquiring companies in earlier years for which necessary reconciliations/ information to the tune of Rs 3,72,24,324/- is not available with the company Accordingly in absence of the same, we are unable to comment on the appropriateness of capital reserve including consequential impact, if any, arising out of the same on these financial statements.

b. Attention is invited to note 5 and 10 of the these financial statements, the Company has outstanding short-term borrowings at the year- end due to a lender which include overdue principal and interest for which necessary supporting documents for balance confirmation at the year end and relevant information with relation to rate of interest is not available with the Company In the absence of the same, we are unable to comment on appropriateness of the same.

c. Attention is invited to note 14 of these financial statements, the Company has recognized Rs. 2,62,41,88,029/- as deferred tax assets at the year-end for which it does not have virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized in accordance with the principles of Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India . Had the company not recognized such deferred tax asset, impact on profit and loss account would have been decrease in profit during the year by Rs. 2,62,41,88,029/- and decrease in Reserves and Surplus by Rs. 2,62,41,88,029/-.

d. Attention is invited to note 38 of these financial statements, the Company has disclosed contingent liabilities on account of appeals with various statutory authorities at different levels amounting to Rs.1,69,38,13,117/- for which necessary information is not available with the Company to reliably ascertain estimated amount of such liabilities and consequential impact thereof on these financial statements in accordance with Accounting Standard-29-'Provisions, Contingent Liabilities and Contingent Assets' issued by the Institute of Chartered Accountants of India. Hence, we are unable to comment on the same.

e. Attention is invited to note 18 of these financial statements, the company has year-end inventory of traded goods amounting to Rs. 42,65,95,393/- in its new warehouse at Mubarikpur, Haryana for which no physical verification was performed by us as the company was in process of shifting such goods to this warehouse. Hence, we are unable to comment on such inventory lying at the company's warehouse.

5. Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in para 4(a), (b), (c), (d) and (e), the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2015;

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

6. Emphasis of Matter

Without qualifying our opinion, we draw attention to note 4 of these financial statements, wherein the Company has accumulated losses amounting to Rs. 5,26,88,36,193/- at the year-end which raises concern regarding going concern status of the Company. However, during the year, the company has earned profit after tax of Rs. 9,75,12,902/- and, having regard to improvement in the business conditions, increase in revenue from operations, cost rationalization measures adopted and opening of new stores by the Company, these financial statements have been prepared on a going concern basis and that no adjustments are required to the carrying value of assets and liabilities at the year- end.

7. Report on Other Legal and Regulatory Requirements

i. 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.

ii. As required by section 143 (3) of the Act, we report that except for the possible effects of the matters described in para 4(a), (b), (c), (d) and (e):

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 financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014;

e. On the basis of written representations received from the directors as on 31 March 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 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 38 of 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 Auditor's Report to the members of V2 Retail Limited on the financial statements for the year ended 31 March 2015

(i) (a) According to the information and explanation given to us, the Company has maintained proper records showing full particulars, and situation of fixed assets except quantitative details.

(b) All fixed assets were physically verified by the management in the previous year in accordance with a planned programme of verifying them once in three years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervals except for its new warehouse at Mubarikpur, Haryana having inventory of Rs 42,65,95,393/-, which have not been verified during or at the end of the year.

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

(c) On the basis of our examination of the records of inventories, we are of the opinion that the Company is maintaining proper records of inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account.

(iii) 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 Companies Act, 2013. Thus, 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 sale of goods and services and for the purchase of fixed assets. However, the internal control system for purchases of inventory is inadequate since the inventory items are entered into incorrect item codes at the time of recording in the system.

(v) The Company has not accepted any deposits from the public.

(vi) To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under Section 148(1) of the Companies Act, 2013 in respect of Company's products. Therefore provisions of clause 4(viii) of the Order are not applicable to the Company.

(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 Income-tax, Sales tax, Wealth tax, Service tax, Duty of excise, Duty of customs, Value Added tax, Provident Fund, Employees State Insurance and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities though there have been slight delays in a few cases. As explained to us, the Company did not have any dues on account of Cess. According to the information and explanations given to us, no undisputed amounts payable in respect of Employees State Insurance, Provident Fund, Income-tax, Sales tax, Wealth tax, Service tax, Duty of excise, Duty of customs, Value added tax and other material statutory dues were in arrears as at 31 March 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, other than the amounts reported below, there are no amounts in respect of Income-tax, Sales tax, Wealth tax, Service tax, Duty of customs and Duty of excise that have not been deposited by the Company with the appropriate authorities on account of any dispute:

Name of the Statute Nature of the Dues Period to which Amount (Rs.) Relates(FY)

Service Service Tax Laws Service Tax 2006-07 To 2010-11 30,208,391

Sales Tax Laws Sales Tax 2006-07 5,155,233

Sales Tax 2007-08 10,000,000

Sales Tax 2007-08 17,353,962

Sales Tax 2007-08 1,525,511

Sales Tax 2008-09 50,000

Sales Tax 2008-09 4,849,098

Sales Tax 2009-10 50,000

Sales Tax 2008-09 1,248,180

Sales Tax 2009-10 203,000

Sales Tax 2009-10 2,242,668

Sales Tax 2007-08 6,810,980

Sales Tax 2008-09 8,387,111

Sales Tax 2006-07 624,180

Sales Tax 2007-08 2,986,774

Sales Tax 2008-09 2,200,000

Sales Tax 2008-09 226,600,000

Sales Tax 2010-11 720,420

Income Tax Income Tax 2010-11 1,188,071,650

Total 1,509,287,158

Name of the Statute Forum where dispute is pending

Service Service Tax Laws Commissioner of Service Tax

Sales Tax Laws Assistant Commissioner of Sales Tax

Appellate Authority of Sales Tax

Jt. Commissioner (Appeals) of Sales Tax

Assistant Commissioner of Sales Tax

Assistant Commissioner of Sales Tax

Assistant Commissioner of Sales Tax

Assistant Commissioner of Sales Tax

Jt. Commissioner (Appeals) of Sales Tax

Jt. Commissioner (Appeals) of Sales Tax

Assistant Commissioner of Sales Tax

Deputy Commissioner, Jaipur of Sales Tax

Deputy Commissioner, Jaipur of Sales Tax

Deputy Commissioner of Sales Tax

Deputy Commissioner of Sales Tax

Deputy Commissioner of Sales Tax

Deputy Commissioner of Sales Tax Deputy Commissioner (Appeals) of Sales Tax

Income Tax CIT (Appeals) of Income Tax

(c) The Company did not have any dues on account of Investor Education and Protection Fund.

(viii) The company has accumulated losses at the end of the financial year which exceed fifty percent of its net worth. Further, company earned cash profit in the current and immediately preceding financial year.

(ix) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has defaulted in repayment of dues to a financial institution.

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

(xi) Based on the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained.

(xii) 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 the year.

For AKGVG & Associates

Chartered Accountants

Firm registration number: 018598N

Sd-

Vimal Kumar Saini

Place: New Delhi Partner

Date: 29th May 2015 Membership no.: 515915


Mar 31, 2014

We have audited the accompanying financial statements of V2 Retail Limited. ("the Company"), which comprises the Balance Sheet as at 31 March 2014, 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.

2. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act,2013 This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and free from material misstatement, whether due to fraud or error.

3. Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements, 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 Company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

4. Basis for qualified Opinion

a) Attention isinvitedtonote4ofthesefinancialstatements, included in capitalreserveamountingto Rs.6,05,23,24,263/-, isRs. 4,29,42,24,263/- arising out of transfer of asset and liabilities to the acquiring companies in earlier years for which necessary reconciliation/ information to the tune ofRs 3,72,24,324/- is not available with the company. Accordingly in the absence of the same, we are unable to comment on the appropriateness of capital reserve including consequential impact, if any, arising out of the same on these financial statements.

b) Attention is invitedto note 5and 10 ofthese financialstatementsthe Company has outstanding short-term borrowings attheyear-end due to a lender including over due principal and interest for which necessary supporting documents for balance confirmation at the year endand relevant information with relation to rate of interest is not available with the Company. In the absence of the same, we are unable to comment on the same.

c) Attention isinvited to note 14of these financial statementsthe company has recognized Rs.2,71,11,06,418/-as deferred tax assetsat the year-end for which it does not have virtual certainty supported by convincing evidence that suffcient future taxable income will be available against which such deferred tax assets can be realized in accordance with principles of Accounting Standard 22 Accounting for Taxes on Income issued by the Instituteof Chartered Accountants of India Had the company not recognized deferred tax, impacton Profit and loss account would have been increase in loss during the year by Rs. 16,70,481/- and decrease in Reserves and Surplus by Rs. 2,71,11,06,418/-,

d) Attention is invited to note 38 of these financial statements, the Company has disclosed contingent liabilities on account of appeals with various statutory authorities at different levels amounting to Rs. 1,69,57,11,396/- for which necessary information is not available with the Company to reliably ascertain estimated amount of such liabilities and consequential impact there of on these quarterly financial statements in accordance with Accounting Standard-29 issued by the Institute of Chartered Accountants of India. Hence, we are unable to comment on the same.

5. Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in para 3(a), (b), (c) and (d), the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31 March 2014;

(b) in the case of the Statement of Profit and Loss, of the loss 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.

6. Emphasis of Matter

Without qualifying our opinion, we draw attention to note 4 of these financial statements, wherein the Company has accumulated losses amounting to Rs. 5,36,63,49,094/- at the year end and has incurred loss of Rs. 4,50,76,168/- during the year which raises concern regarding going concern status of the Company. However, having regard to improvement in the business conditions, increase in revenue from operations, cost rationalization measures adopted and opening of new stores by the Company, these consolidated financial statements have been prepared on a going concern basis and that no adjustments are required to the carrying value of assets and liabilities.

7. Report on Other Legal and Regulatory Requirements

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

b) 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 purposes of our audit;

(ii) 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;

(iii) 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;

(iv) in our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement deal with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013, to the extent applicable; and

(v) on the basis of written representations received from the directors of the Company as on 31 March 2014, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March2014, from being appointed as director in terms of clause (g) of sub-section (1) of the Section 274 of the Act.

Annexure to the Independent Auditor''s Report (Referred to in our report of even date)

(i) (a) According to the information and explanation given to us, the Company has maintained proper records showing full particulars, and situation of fixed assets except quantitative details.

(b) As informed to us, the Company has a regular programme of physical verifcation of its fixed assets according to which all fixed assets are verifed every year. In our opinion, this periodicity of physical verifcation is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, the Company has physically verifed all fixed assets during theyear. No material discrepancies were noticed on such verifcation.

(ii) (a) The inventories have been physically verifed by the management during theyear. In our opinion, the frequency of such verifcation is reasonable.

(b) In our opinion and according to the information and explanation given to us, the procedures for the physical verifcation 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) Inouropinion, the Company ismaintaining proper recordsofinventory.As informed to us, thediscrepanciesnoticedon verifcation betweenthe physical stocks and the book records were not material and have been properly dealt with in the books of account.

(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, the provisions of clause 4(iii)(a) to (d) of the Order are not applicable to the company and hence not commented upon.

(b) The Company has taken loans from parties covered in the register maintained under Section 301 of the Companies Act,1956. The maximum amount involved during the year along with closing balance of loan taken from such parties is as follows:

Name of the Party Maximum Amount Outstanding Closing Balance

Mr. Ram Chandra Agarwal 44,072,507 38,772,507

Mrs. Uma Agarwal 1,087,576 1,087,576

Vishal Water World Pvt. Ltd. 100,232,680 100,000,000

V2 Conglomorate Ltd. 56,736,622 778,037

Ricon Commodities Pvt. Ltd. 42,981,078 42,663,874

VRL Infrastructure Ltd. 51,835 51,835

VRL Movers Limited 643,882 643,882

(c) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions for such loans are not prima facie prejudicial to the interest of the Company.

(d ) In respect of loans taken, repayment of the principal amount is as stipulated and payment of interest has been regular.

(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 sale of goods and services and for the purchase of fixed assets. However, the internal control system for purchases of inventory is inadequate since the inventory items are entered into incorrect item codes at the time of recording in the system.

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

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the valueofRs500,000 have beenentered into during the financialyearat prices which are reasonable having regardto the prevailing market prices at the relevant time.

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

(vii) The Company has not accepted any deposits from the public within the meaning of Sec 58A of the Companies Act, 1956 and the Rules framed there under, Therefore the provisions of section 58AA or any other relevant provisions of the act are not applicable to the company.

(viii) To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub- section (1) of Section 209 of the Act, in respect of Company''s products. Therefore provisions of clause 4(viii) of the Order are not applicable to the Company.

(ix) (a) Un disputed statutory dues including provident fund, investore ducation and protection fund, employees'' state insurance, income-tax, sales-tax, wealth- tax, service tax, customs duty, excise duty cess and other material statutory dues have not generally been regularly deposited with the appropriate authorities though the delays in deposit have not been serious.

(b) According to the information and explanations given to us and the records of the company, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees'' state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty excise duty cess and other material statutory dues which were outstanding, at the year end, for a period of more than six months from the date they became payable.

(c) According to the records of the company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute which , are as follows:

Name of Statue Nature of the Dues Period To which Amount (Rs.) Relates(FY)

Service Tax Laws Service Tax 2006-07 To 2010-11 30,208,391

Sales Tax Laws Sales Tax 2006-07 5,155,233

Sales Tax 2007-08 10,000,000

Sales Tax 2007-08 17,353,962

Sales Tax 2007-08 1,525,511

Sales Tax 2008-09 50,000

Sales Tax 2008-09 4,849,098

Sales Tax 2009-10 50,000

Sales Tax 2008-09 1,248,180

Sales Tax 2009-10 203,000

Sales Tax 2009-10 2,242,668

Sales Tax 2007-08 6,810,980

Sales Tax 2008-09 8,387,111

Sales Tax 2006-07 624,180

Sales Tax 2007-08 2,986,774

Sales Tax 2008-09 2,200,000

Sales Tax 2008-09 226,600,000

Sales Tax 2010-11 720,420

Income Tax Income Tax 2010-11 1,188,071,650

Total 1,509,287,158

Name of Statute Forum where dispute is Pending

Service Tax Laws Commissioner of Service Tax

Sales Tax Laws Assistant Commissioner of Sales Tax

Appellate Authority of Sales Tax

Jt. Commissioner (Appeals) of Sales Tax

Assistant Commissioner of Sales Tax

Assistant Commissioner of Sales Tax

Assistant Commissioner of Sales Tax

Assistant Commissioner of Sales Tax

Jt. Commissioner (Appeals) of Sales Tax

Jt. Commissioner (Appeals) of Sales Tax

Assistant Commissioner of Sales Tax

Deputy Commissioner, Jaipur of Sales Tax

Deputy Commissioner, Jaipur of Sales Tax

Deputy Commissioner of Sales Tax

Deputy Commissioner of Sales Tax

Deputy Commissioner of Sales Tax

Deputy Commissioner of Sales Tax

Deputy Commissioner (Appeals) of Sales Tax

Income Tax CIT (Appeals) of Income Tax

(x) The company has accumulated losses at the end of the financial year which exceed fifty percent of its net worth. Further, company incurred cash losses in the current and immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has defaulted in repayment of dues to a financial institution.

(xii) According to the information and explanation 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.

(xiii) In our opinion and according to the information and explanations given to us, the Company is notachitfundoranidhi/mutual benefitfund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 (as amended) are not applicable to the company.

(xiv) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as amended) are not applicable to the company.

(xv) 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) Based on the information and explanations given to us by the management, term loans were applied for the purpose for which the loans 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 prima facie no funds raised on short-term basis have been used for long-term investment.

(xviii)The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The Company did not have any outstanding debentures during the year.

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

For AKGVG & Associates Chartered Accountants Firm Registration No. : 018598N

Sd/- Vimal Kumar Saini Place New Delhi Partner Date 30.05.2014 Membership No.: 515915


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of V2 Retail Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Proft and Loss and Cash Flow Statement for the year then ended, and a summary of signifcant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fows of the Company in accordance with accounting principles generally accepted in India, including the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the fnancial 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 fnancial 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 fnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements. We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our audit opinion.

Basis for Qualifed Opinion

a) Attention is invited to note 4 of fnancial statements explaining the reserves and surplus in the head capital reserve amounting to Rs. 60,523.24/-Lacs., necessary supporting documents and relevant information is not available with the Company and provided to us, so In the absence of the same, we are unable to comment on the appropriateness of the same including consequential impact, if any, arising out of the same on these fnancial statements. This was also the subject matter of qualifcation by us in previous year as well.

b) Attention is invited to note 4 of fnancial statements explaining the reserves and surplus, company has accumulated losses more than 50% of its net worth. However, having regard to improvement in the economic sentiment, rationalization measures adopted by the Company, opening of new stores, these fnancial statements have been prepared on the basis that the company is a going concern and that no adjustments are required to the carrying value of assets and liabilities. The accumulated losses is Rs.5,32,12,72,927/- (Rupees Five hundred Thirty two crores twelve lacs seventy two thousand nine hundred twenty seven only) as at 31st March, 2013 which exceed the net worth of the company.

c) As stated in Note 29 to the fnancial statement, the Company has debited Rs 5,99,80,407/- on account of interest expense in the statement of Proft and Loss , however, necessary supporting documents and relevant information in relation to rate of interest is not available with the Company. In the absence of the same, we are unable to comment whether such charge to the statement of proft and loss is appropriate in accordance with Accounting Standard 16 on "Borrowing Costs" issued by the Institute of Chartered Accountants of India

d) As stated in Note 38 to the fnancial statement, the Company has contingent liability on account of appeal with different authorities at different levels amounting to Rs. 64,13,54,011/- , however, At the moment Company is not able to reliably ascertain estimated amount of such liability so the provision as required in accordance to the Accounting Standard-29 has not been made in books of accounts.

Qualifed opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters described in the Basis for Qualifed Opinion paragraph, the fnancial 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:

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

(b) in the case of the Statement of Proft and Loss, of the proft forthe year ended on that date; and

(c) in the case of the Cash Flow Statement, of the cash fows 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 specifed in paragraphs 4 and 5 of the Order.

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

(a) except for the matter described in the basis for qualifcation paragraph, we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

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

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

(d) Except for the matter described in the Basis for Qualifed Opinion paragraph, in our opinion, the Balance Sheet, Statement of Proft and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

(e) On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualifed as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956.

Annexure referred to in paragraph 3 under the heading "Report on other legal and regulatory requirements" of our report of even date Re: V2 Retail Limited (the company)

(i) (a) The company has maintained proper records showing full particulars, including situation of fxed Assets except quantitative details.

(i) (b) Fixed assets have not been physically verifed by the management during the year. As explained by the management company has a policy of physical verifcation once in a period of three year, in our opinion, is unreasonable having regard to the size of the company and the nature of its assets.

(ii) (a) The management has conducted physical verifcation of inventory at reasonable intervals during the year.

(ii) (b) The procedures of physical verifcation of inventory followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(ii) (c) The company is maintaining proper records of inventory. Discrepancies noted on physical verifcation of inventories were not material and have been properly dealt with in the books of account.

(iii) (a) According to the information and explanations given to us, the company has not granted any loans, secured or unsecured to companies, frms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(a) to (d) of the Order are not applicable to the company and hence not commented upon.

(b) The Company had taken loans, secured or unsecured to companies, frms, or the other parties covered in the register maintained under Section 301 of the Companies Act,1956.

The company has taken reasonable steps for payment of principal and interest when such loan taken is overdue and the amount exceeds Rs.1 lakh.

(iv) (a) According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the register maintained under section 301 have been so entered.

(iv) (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rs 500,000 have been entered into during the fnancial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(v) In our opinion and according to the information and explanations given to us, there is inadequate internal control system commensurate with the size of the company and the nature of its business, for the recording of accounting transactions of purchase of inventory and expenses, which need to be strengthen. During the course of our audit, however we observed that management is in process of improvising the Internal Control.

(vi) In our opinion and according to the information and explanations given to us, the company does not have internal audit system commensurate with its size and nature of business.

(vii) The Company has not accepted any deposits from the public within the meaning of Sec 58A of the Companies Act, 1956 and the Rules framed thereunder, Therefore the provisions of section 58AA or any other relevant provisions of the act are not applicable to the company.

(viii) To the best of our knowledge and as explained, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act, in respect of Company''s products. Therefore provisions of clause 4(viii) of the Order are not applicable to the Company.

(ix) (a) The company is irregular 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, customs duty, excise duty, cess and other material statutory dues applicable to it, however such dues have been paid with interest and penalties as applicable.

(ix) (b) According to the information and explanations given to us and the records of the company, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees'' state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other material statutory dues which were outstanding, at the year end, for a period of more than six months from the date they became payable.

(ix) (c) According to the records of the company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute which , are as follows:

(x) The company has accumulated losses at the end of the fnancial year which exceed ffty percent of its net worth. Further, company incurred cash losses in the current and immediately preceding fnancial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has defaulted in repayment of dues to a fnancial institution/ bank.

(xii) According to the information and explanations given to us and based on the documents and records produced before 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 or a nidhi / mutual beneft fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 (as amended) 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. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as amended) are not applicable to the company.

(xv) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank or fnancial institutions.

(xvi) Based on the information and explanations given to us by the management, no new term loans have been taken during the year.

(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 prima facie no funds raised on short-term basis have been used for long-term investment.

(xviii) The company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) The Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money through public issue during the year.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the fnancial statements and as per the information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the year. For AKGVG & Associates

Firm registration number: 018598N

Chartered Accountants

per Vimal Kumar Saini

Place Delhi Partner

Date 30th May, 2013 Membership no.: 515915


Mar 31, 2010

1. We have audited the attached Balance Sheet of Vishal Retail Limited (the Company) as at March 31, 2010 and also the Profit and Loss account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. -

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 by the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of The Companies Act, 1956 of India (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. a) We report that

I. The accumulated tosses of Rs. 4,269,001,402 as at March 31, 2010 exceed the net worth of the company;

ii. Certain lenders have filed winding up petition against the company in the high court.

However, the accounts have been drawn on going concern assumption as the company has made a proposal under Corporate Debt Restructuring Scheme to CDR Cell for restructuring of its secured as well as unsecured debts and expects turnaround (Refer Note B-8 of Schedule 20).

b) We draw attention to NoteB-12 of Schedule 20 with regards to inventory of Rs. 2,199,612,291 lying at various stores and warehouses of the Company which is physically verified by other Chartered Accountants and relied upon by us.

5. Further to our comments in the paragraph 3 & 4 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 purposes of our audit, except that we have not been provided:

a. 6as/s and supporting for write off of inventory amounting to Rs. 3,417,159,919 on account of pilferage, shrinkages, slow- moving, non-moving, obsolete and damaged goods.

b. Adequate documentary evidence for Display Charges included in Other Incomeamounting Rs. 28,602,715 recognised in the Profit & LossAccount

c. Adequate documentary evidence to support write-off of capital work in progress amounting to Rs. 7,869,388 included in prior period expenses;

d. Basis for write-off of sundry balances amounting to Rs. 14,033,201 included in Other expenses in Schedule 16;

ii. 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;

iii. The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account;

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, except;

a) Accounting Standard 2 "Valuation of Inventories": The cost for valuation of inventories does not include Octroi, mandi tax, entry tax, input VAT, freight inwards and discount received on the purchase. The impact of such deviation from AS 2 is currently unascertainable.

b) Accounting Standard 28 "Impairment of Assets": whereby no assessment for impairment of assets, if any, was carried out during the year by the management;

c) Accounting Standard 22 "Accounting for Taxes on Income": The Company has recognized Deferred Tax Assets amounting to Rs. 2,626,499,840 as at 31 March 2010 even though the Company has incurred operating losses in the current year & in the earlier years and there is no convincing evidence as to virtual certainty of future income;

v. On the basis of the written representations received from the directors, as on March 31, 2010, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31,2010 from being appointed as a director 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. We further report as under:

a) The balances of unsecured loans amounting Rs. 1,604,587,755 from various banks and financial institutions are subject to confirmation and reconciliation.

b) The balance of Sundry Debtors Rs. 29,157,235 and Sundry Creditors Rs. 1,235,104,887 are subject to confirmation and reconciliation.

Subject to these observations and other observations in paragraphs 4(a), 5(i)(a), 5(i)(b), 5(i)(c), 5(i)(d) & 5(iv)(a),5(iv)(b)and 5(iv)(c) above, the consequential effect of which on relevant assets, liabilities and loss for the year is not quantifiable;

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 March 31,2010;

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

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

ANNEXURE TO AUDITORS REPORT

[Referred to in paragraph 3 of the Auditors Report of even date to the members of Vishal Retail Limited on the financial statements for the year ended 31- March 2010]

(I) (a) The Company has not maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The fixed assets of the Company have not been physically verified by the management during the year ended March 31, 2010. Hence, discrepancies if any, could not be ascertained.

(c) In our opinion and according to the information and explanations given to us, a substantial part of fixed assets has not been disposed of by the Company during the year.

(ii) (a) The inventory has been physically verified by the management and other Chartered Accountants at stores and warehouses during the year. In our opinion, the frequency of verification is reasonable.

(b) 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, except in relation to identification of slow moving, non moving, obsolete and damaged items of inventory.

(c) The Company is maintaining proper records of inventory and material discrepancies noticed on physical verification were properly adjusted in books of accounts.

(iii) (a) The company had in a prior year granted unsecured loan to two parties covered in the register maintained under section 301 of the Companies Act, 1956. Further during the year the Company granted additional unsecured loan to one of these parties. The maximum amount involved during the year was Rs. 1,970,972 and the year- end balance of loans granted to such parties was Rs. Nil.

(b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions for such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The parties have repaid the principal amounts as stipulated and have also been regular in the payment of interest to the Company.

(d) There is no overdue amount in excess of Rs. 1 Lakh in respect of loans granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

(e) The Company had in a prior year taken an unsecured interest free loan from a party covered in the register maintained under section 301 of the Companies Act, 1956. During the year, the Company had taken further interest free unsecured loan from such party. The maximum amount involved during the year was Rs. 19,105,112 and the year-end balance of loans taken from such parties was Rs. 7,196,145.

(f) In our opinion, the rate of interest and other terms and conditions for such loans are not, prima facie, prejudicial to the interest of the Company. <

(g) In respect of the aforesaid loans, the Company is regular in repaying the principal amounts as stipulated and has been regular in payment of interest,

(iv) In our opinion and according to the information and explanations given to us, the existing internal control system is not adequate and commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit, we have observed that there is a continuing failure to correct weakness in internal control system of the Company.

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

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs have been entered into during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vij The Company has not accepted any deposits, from the public within the meaning of Sections 58A and 58AA of the Act and the rules framed there under.

(vii) In our opinion, there is no internal audit system at the Corporate Office and warehouses. In respect of branches, the internal audit system should be further strengthened and scope widened to be commensurate with the size and nature of its business.

(viii) The Central Government of India has not prescribed the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Act for any of the products of the Company.

(ix) (a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees state insurance, income-tax, sales-tax, wealth-tax, service tax and customs duty. Further, as explained to us, the provisions of regarding investor education and protection fund and excise duty are presently not applicable to it.

Further, since the Central Government has till date not prescribed the amount of cess payable under section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in depositing the same.

(b) According to the information and explanations given to us, undisputed dues in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other statutory dues which were outstanding, at the year end for a period of more than six months from the date they became payable are as follows:

Name of the Statute Nature of the dues Amount (Rs.) Period to which it relates

Various Statues of respective states Labour Welfare Fund 208,686 2008-09

Various Statues of respective states Professional Tax 47,448 2006-07

Various Statues of respective states Professional Tax 15,830 2007-08

Various Statues of respective states Professional Tax 55,231 2008-09

Employees State Insurance Corporation Employees State Insurance 192,153 2007-08

Employees State Insurance Corporation Employees State Insurance 194,522 2008-09

Employees Provident Fund Provident Fund 87,580 2009-10

(c) According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax, customs duty, excise duty and cess on account of any dispute, are as follows:

Name of the Statute Nature of the dues Amount (Rs.) Period to Which It Relates (FY)

Excise Duty Act, 1944 Excise Duty 500,000 2007-08

Sales Tax Act (West Bengal) Sales Tax 1,527,586 2002-03

Sales Tax Act (Delhi) Sales Tax 1,149,937 2002-03

Sales Tax Act (Guwahati) Sales Tax 2,009,712 2002-03

Income Tax Act, 1961 Income Tax 3,323,879 2005-06

Income Tax Act, 1961 Income Tax 62,305,573 2006-07

Income Tax Act, 1961 Income Tax 61,536,850 2007-08

Name of the Statute Forum where dispute is pending

Excise Duty Act, 1944 Assistant Commissioner, Central Excise, Agra

Sales Tax Act (West Bengal) Additional Asst. commissioner of Commercial Tax

Sales Tax Act (Delhi) Deputy Commissioner of Sales Tax

Sales Tax Act (Guwahati) Superintendent of Taxes

Income Tax Act, 1961 Commissioner of Income Tax (Appeals)

Income Tax Act, 1961 Commissioner of Income Tax (Appeals)

Income Tax Act,1961 Commissioner of Income Tax (Appeals)

(x) The accumulated losses of the Company at the year end are more than fifty percent of its net worth. Further, the Company has incurred cash losses during the financial year covered by our audit and the immediately preceding financial year. The effect of qualifications in our audit report is currently unascertainable and accordingly accumulated losses have not been adjusted for consequential effect resulting from such qualifications.

(xi) In our opinion and according to the information and explanations given to us, the Company has defaulted in repayment of dues to a financial institution, bank and debenture holders. Details of such default is reported as under:

Name of Banker Nature Of Facility Nature Of Dues

State Bank Of India Term Loan Principal Repayment

SLC

HDFC Bank Term Loan Principal Repayment

LIC Mutual Fund . Non Convertible Principal Repayment

Asset Management Debentures Co. Ltd

Name of Banker Amount Of Default Due date Date of rectifying the Default

State Bank Of India 8,400,000.00 01-Apr-09 23-May-09

8,400,000.00 01.-May-09 23-Jun-09

8,400,000.00 01-Jun.-09 29-Jul-09

8,400,000.00 01-Jul-09 29-Sep-09

8,400,000.00 01-Aug-09 30-Oct-009

8,400,000.00 01-Sep-09 30-Oct-09

8,400,000.00 01-Oct-09 31-Dec-09

8,400,000.00 01-Nov-09 30-Jan-10

8,400,000.00 01-Dec-09 30-Jan-10

8,400,000.00 01-Jan-10 10-Jan-10

8,400,000.00 01-Feb-10 31-Jan-10

8,400,000.00 01-Mar-10 04-May-10

45,000,000.00 21-Sep-09 29-Dec-09

HDFC Bank 10,000,000.00 28-Jun-09 15-Sep-09

10,000,000.00 28-Dec-09 Still Continuing

10,000,000.00 28-Mar-10 Still Continuing

1,000,000.00 11-Jul-09 Still Continuing LIC Mutual Fund . Asset Manag ement Co. Ltd 1,000,000.00 31-Aug-09 Still Continuing

17,000,000.00 30-Sep-09 Still Continuing

25,000,000.00 31-Oct-09 Still Continuing

1,000,000.00 30-Nov-09 Still Continuing

1,000,000.00 31-Dec-09 Still Continuing

1,000,000.00 31-Jan-10 Still Continuing

1,000,000.00 28-Feb-10 Still Continuing

1,000,000.00 31-Mar-10 Still Continuing

Name of Banker Nature Of Facility Nature Of Dues

Deutsche Asset Non Convertible Principal Repayment management Debentures (India) pvt. Ltd.

ING Vysya Bank Ltc. Short Term Loan Principal Repayment

UCO Bank Ltd. Short Term Loan Principal Repayment

Barclays Bank PLC WCDL Principal Repayment

HSBC WCDL Principal Repayment

DBS Bill Discounting Principal Amount

DEUTSCHE BANK Bill Discounting Principal Amount

Name of Banker Amount Of Default Due date Date of rectifying the Default

Deutsche Asset manag ement (India) pvt. Ltd. 500,000,000.00 25-Aug-09 Still Continuing

ING Vysya Bank Ltc 600,000,000.00 04-Oct-09 Still Continuing

UCO Bank Ltd. 600,000,000.00 10-Aug-09 Still Continuing

Barclays Bank PLC 400,000,000.00 30-Jun-09 Still Continuing,

HSBC 200,000,000.00 06-Sep-09 Still Continuing

200,000,000.00 07-Sep-09 Still Continuing

100,000,000.00 26-Aug-09 Still Continuing

100,000,000.00 06-Sep-09 Still Continuing

100,000,000.00 25-Sep-09 Still Continuing

DBS 12,002,848.00 19-Nov-09 Still Continuing

10,338,871.00 20-Nov-09 Still Continuing

5,491,195.00 21-Nov-09 Still Continuing

7,068,467.00 23-Nov-09 Still Continuing

12,195,897.00 24-Nov-09 Still Continuing

16,097,106.00 25-Nov-09 Still Continuing

17,342,878.00 26-Nov-09 Still Continuing

8,168,656.00 27-Nov-09 Still Continuing

17,311,142.00 28-Nov-09 Still Continuing

20,314,190.00 30-Nov-09 Still Continuing

8,656,597.00 1-Dec-09 Still Continuing

5,104,997.00 2-Dec-09 Still Continuing

5,072,076.00 5-Dec-09 Still Continuing

6,978,643.00 7-Dec-09 Still Continuing

15,481,656.00 8-Dec-09 Still Continuing

14,690,245.00 9-Dec-09 Still Continuing

7,218,741.00 14-Dec-09 Still Continuing

12,301,904.00 15-Dec-09 Still Continuing

21,140,723.00 16-Dec-09 Still Continuing

5,610,551.00 17-Dec-09 Still Continuing

5,155,489.00 18-Dec-09 Still Continuing

25,864,383.00 29-Dec-09 Still Continuing

5,483,315.00 31-Dec-09 Still Continuing

6,922,929.00 7-Jan-10 Still Continuing

6,778,191.00 13-Jan-10 Still Continuing

11,363,014.00 14-Jan-10 Still Continuing

16,305,994.00 21-Jan-10 Still Continuing 6,888,316.00 27-Jan-10 Still Continuing

6,109,387.00 28-Jan-10 Still Continuing

6,282,998.00 29-Jan-10 Still Continuing

9,953,526.00 3-Feb-10 Still Continuing

8,753,214.00 4-Feb-10 Still Continuing

4,491,994.00 5-Feb-10 Still Continuing

6,402,498.00 6-Feb-10 Still Continuing

7,457,756.00 8-Feb-10 Still Continuing

3,691,204.00 11-Feb-10 Still Continuing

DEUTSCHE BANK 5,113,486.00 13-Jan-10 Still Continuing

2,087,508.00 15-Jan-10 Still Continuing

5,245,309.00 18-Jan-10 Still Continuing

6,665,801.00 22-Jan-10 Still Continuing

11,410,311.00 25-Jan-10 Still Continuing

7,926,882.00 27-Jan-10 Still Continuing

Name of Banker Nature Of Facility Nature Of Dues

SICOM Bill Discounting Principal Amount

State Bank Of India Term Loan Interest Payment

State Bank Of India

State Bank Of India SLC Interest Payment

HSBC TL-I Interest Payment

HSBC TL-II Interest Payment

HSBC WCDL-200000000 Interest Payment

HSBC WCDL-100000000 Interest Payment

LIC Mutual Fund Non Convertible Interest Payment

Asset management Debentures Co. Ltd.

Name of Banker Amount Of Default Due date Date of rectifying the Default

6,746,561.00 28-Jan-10 Still Continuing

18,742,626.00 29-Jan-10 Still Continuing

2,837,203.00 30-Jan-10 Still Continuing

8,929,753.00 1-Feb-10 Still Continuing

8,560,211.00 2-Feb-10 Still Continuing

2,240,225.00 5-Feb-10 Still Continuing

10,298,907.00 8-Feb-10 Still Continuing .

9,629,532.00 10-Feb-10 Still Continuing

SICOM 4,096,793.00 2-Dec-09 Still Continuing

7,169,423.00 9-Dec-09 Still Continuing

8,284,957.00 17-Dec-09 Still Continuing

9,115,663.00 21-Dec-09 Still Continuing

9,832,380.00 25-Dec-09 Still Continuing

5,240,889.00 31-Dec-09 Still Continuing

6,939,782.00 22-Feb-10 Still Continuing

State Bank Of India 3,169,447.00 30-Apr-09 23-Jun-09

3,272,810.00 31-May-09 29-Jul-09

3,074,778.00 30-Jun-09 29-Sep-09

2,909,824.00 31-Jul-09 30-Oct-09

2,794,093.00 31-Aug-09 30-Oct-09

2,723,477.00 30-Sep-09 0-Oct-09

State Bank Of India 2,718,905.00 31-Oct-09 30-Jan-10

2,454,145.00 30-Nov-09 30-Jan-10

2,556,860.00 31-Dec-09 30-Jan-10

2,459,158.00 31-Jan-10 10Feb-10

1,937,818.00 28-Feb-10 31-Mar-10

2,109,699.00 31-Mar-10 03-May-10

State Bank Of India 441,699.00 30-Apr-09 23-Jun-09

698,978.00 31-May-09 10-Jun-09

509,116.00 30-Jun-09 01-Jul-09

509,795.00 31-Jul-09 01-Aug-09

555,103.00 31-Aug-09 30-Oct-09

514,835.00 30-Sep-09 30-Oct-09

537,818.00 31-Oct-09 29-Dec-09

515,082.00 30-NOV-09 29-Dec-09

HSBC 1,566,478.64 31-May-09 01-Jun-09

1,341,297.34 31-Jan-10 01-Feb-10

HSBC 1,447,832.39 25-Oct-09 27-Oct-09

1,447,832.39 25-Dec-09 27-Dec-09

HSBC 13,263,013.70 31-Mar-10 Still Continuing

13,198,630.14 31-Mar-10 Still Continuing

HSBC 7,017,808.22 31-Mar-10 Still Continuing

5,559,178.08 31-Mar-10 Still Continuing

6,052,054.79 31-Mar-10 Still Continuing

LIC Mutual Fund Asset management Co. Ltd. 8,424,657.53 30-Apr-09 30-Jun-09

8,705,479.45 31-May-09 30-Jun-09

8,696,773.97 31-Jul-09 Still Continuing

8,696,773.97 31-Aug-09 Still Continuing

8,416,233.00 30-Sep-09 Still Continuing

8,696,773.97 31-Oct-09 Still Continuing

8,416,233.00 30-Nov-09 Still Continuing

8,696,773.97 31-Dec-09 Still Continuing

8,696,774.00 31-Jan-10 Still Continuing

Name of Banker Nature Of Facility Nature Of Dues Deutsche Asset Non Convertible Interest Payment management Debentures (india) pvt. Ltd.

ING Vysya Bank Ltc. Short Term Loan Interest Payment

UCO Bank Ltd. Short Term Loan Interest Payment

Barclays Bank PLC WCDL Interest Payment

HDFC Bank Cash Credit Interest Payment

HDFC Bank TL-II Interest Payment

Name of Banker Amount Of Default Due date Date of rectifying the Default

Deutsche Asset management (India) pvt.Ltd. 8,135,692.00 28-Feb-10 Still Continuing

8,696,774.00 31-Mar-10 Still Continuing

3,205,479.45 24-Apr-09 21-May-09

4,006,849.00 24-May-09 25-May-09

4,140,410.96 24-Jun-09 25-Jun-09

4,006,849.00 24-Jul-09 27-Oct-09

4,140,410.96 24-Aug-09 Still Continuing .

4,140,410.96 24-Sep-09 Still Continuing

4,006,849.00 24-Oct-09 Still Continuing

4,140,411.00 24-Nov-09 Still Continuing

4,006,849.00 24-Dec-09 Still Continuing

4,140,411.00 24-Jan-10 Still Continuing

4,140,411.00 24-Feb-10 Still Continuing

4,674,658.60 24-Mar-10 Still Continuing

ING Vysya Bank Ltc 4,808,219.00 30-Jun-09 03-Jul-09

4.978.284.56 31-Jul-09 27-Oct-09

5,009,657.63 31-Aug-09 27-Oct-09

4.912.239.57 30-Sep-09 27-Oct-09

4,870,653.40 30-Nov-09 Still Continuing

5,017,970.44 31-Dec-09 Still Continuing

5,051,196.00 31-Jan-10 Still Continuing

4.600.150.60 28-Feb-10 Still Continuing

5,089,289.00 31-Mar-10 Still Continuing

UCO Bank Ltd. 5,838,247.14 31-May-09 01-Jun-09

5,661,268.34 30-Jun-09 02-Jul-09

5,735,446.00 31-Jul-09 Still Continuing

5,564,715.00 31-Aug-09 Still Continuing

6,552,825.00 30-Sep-09 Still Continuing

7,583,017.00 31-Oct-09 Still Continuing

6,737,084.00 30-Nov-09 Still Continuing

7,037,748.00 31-Dec-09 Still Continuing

7,116,444.00 31-Jan-10 Still Continuing

6,499,917.00 28-Feb-10 Still Continuing

7,270,568.00 31-Mar-10 Still Continuing

Barclays Bank PLC 3,908,493.00 30-Apr-09 09-Jun-09

3,991,781.00 31-May-09 25-Jul-09

3,863,013.00 30-Jun-09 Still Continuing

3,991,781.00 31-Jul-09 Still Continuing

3,991,781.00 31-Aug-09 Still Continuing

3,863,013.00 30-Sep-09 Still Continuing 3,991,781.00 31-Oct-09 Still Continuing

3,863,013.00 30-Nov-09 Still Continuing

3,991,781.00 31 -Dec-09 Still Continuing

3,991,781.00 31-Jan-10 Still Continuing

3.605.479.61 28-Feb-10 Still Continuing

3,991,781.00 31-Mar-10 Still Continuing

HDFC Bank 440,257.48 31-Jan-10 Still Continuing

1,368,804.75 28-Feb-10 Still Continuing

1,378,872.17 31-Mar-10 Still Continuing

HDFC Bank 728,767.12 30-Apr-09 04-May-09

584,109.60 30-Jun-09 15-Sep-09

517,808.22 31-Jul-09 15-Sep-09

509,589.00 31-Aug-09 25-Sep-09

2,069,979.70 31-Mar-10 Still Continuing

Name of Banker Nature Of Facility Nature Of Dues

DBS Bill Discounting Interest Payment

DEUTSCHE BANK Bill Discounting Interest Payment

Name of Banker Amount Of Default Due date Date of rectifying the Default

DBS 499.186.94 19-Nov-09 Still Continuing

426,726.28 20-Nov-09 Still Continuing

224.913.33 21-Nov-09 Still Continuing

285,062.56 23-Nov-09 Still Continuing

488.002.95 24-Nov-09 Still Continuing

639,033.06 25-Nov-09 Still Continuing

683,024.30 26-Nov-09 Still Continuing

319,137.08 27-Nov-09 Still Continuing

670,866.04 28-Nov-09 Still Continuing

774,443.71 30-Nov-09 Still Continuing

327,290.52 1-Dec-09 Still Continuing

566,333.93 2-Dec-09 Still Continuing

185.373.96 5-Dec-09 Still Continuing

250.657.56 7-Dec-09 Still Continuing

551.189.37 8-Dec-09 Still Continuing

518,384.54 9-Dec-09 Still Continuing

243.360.57 14-Dec-09 Still Continuing

410.849.89 15-Dec-09 Still Continuing

699,381.45 16-Dec-09 Still Continuing

183,841.62 17-Dec-09 Still Continuing

167,306.21 18-Dec-09 Still Continuing

749,712.80 29-Dec-09 Still Continuing

155,485.78 31-Dec-09 Still Continuing

181.039.34 7-Jan-10 Still Continuing

164.440.77 13-Jan-10 Still Continuing

272,089.71 14-Jan-10 Still Continuing

354,487.84 21-Jan-10 Still Continuing

136.728.35 27-Jan-10 Still Continuing

119,342.27 28-Jan-10 Still Continuing

120,754.06 29-Jan-10 Still Continuing

175.618.38 3-Feb-10 Still Continuing

151,682.41 4-Feb-10 Still Continuing

76,425.43 5-Feb-10 Still Continuing

106,912.95 6-Feb-10 Still Continuing

119.834.90 8-Feb-10 Still Continuing

55,823.14 11-Feb-10 Still Continuing

DEUTSCHE BANK 129,448.25 13-Jan-10 Still Continuing

51,472.80 15-Jan-10 Still Continuing

124.162.93 18-Jan-10 Still Continuing 149,021.74 22-Jan-10 Still Continuing

243.836.78 25-Jan-10 Still Continuing

164,184.19 27-Jan-10 Still Continuing

137.518.94 28-Jan-10 Still Continuing

375,879.51. 29-Jan-10 Still Continuing

Name of Banker Nature Of Facility Nature Of Dues

DEUTSCHE BANK Bill Discounting Interest Payment

SICOM Bill Discounting Interest Payment

Name of Banker Amount Of Default Due date Date of rectifying the Default

DEUTSCHE BANK 55,966.74 30-Jan-10 Still Continuing

170,276.93 1-Feb-10 Still Continuing

160,416.01 2-Feb-10 Still Continuing

39,771.67 5-Feb-10 Still Continuing

172,683.04 8-Feb-10 Still Continuing

155,127.80 10-Feb-10 Still Continuing -

193,671.68 2-Dec-09 Still Continuing

318,990.22 9-Dec-09 Still Continuing

SICOM 342,293.57 17-Dec-09 Still Continuing

362,129.08 21-Dec-09 Still Continuing

374,977.34 25-Dec-09 Still Continuing

187,379.73 31-Dec-09 Still Continuing

102,005.29 22-Feb-10 Still Continuing

(xii) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the provisions of clause 4(xii) of the Companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company.

(xiii) In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 (as amended) 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. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 (as amended) 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 guarantee for loans taken by others from banks or financial institutions during the year.

(xvi)ln our opinion, the term loans have been applied forthe purpose for which the loans were raised.

(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 the Company has used funds raised on short term basis aggregating to Rs. 4,492,265,502 for long term investments.

(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 Act. In our opinion, the prices at which shares have been issued is not prejudicial to the interest of the Company.

(xix) The Company has not issued any debentures during the year.

(xx) The Company has not raised any money through public issue during the year. .

(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, 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 such case by the management.

For Haribhakti & Co. Chartered Accountants FRNNO.103523W

[Raj Kumar Agarwal]

Place : New Delhi Partner

Date : May 31, 2010 Membership No. 074715

 
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