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Auditor Report of B L Kashyap & Sons Ltd.

Mar 31, 2023

INDEPENDENT AUDITOR''S REPORT

TO THE MEMBERS OF B.L. KASHYAP AND SONS LIMITED
Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of B.L. Kashyap and Sons Limited ("the Company"), which
comprise the Balance Sheet as at 31st March, 2023, the Statement of Profit and Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of the significant
accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").

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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair
view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state
of affairs of the Company as at 31st March, 2023, its profit and total comprehensive income, changes in equity and its cash flows for
the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified under section
143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the
Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the independence requirements that are
relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. 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.

Emphasis of Matter

Without qualifying our opinion, we draw attention to the following matters;

(a) Note No 24 to the standalone financial statements regarding claims against the Company not acknowledged as debts amounting
Rs. 1527.06 lakhs in respect of disputed statutory dues.

(b) Note No. 24 - The Company has litigation with Provident Fund authorities. It has deposited Rs. 15 Crores. The PF Department
has appealed against the judgment passed in favour of the Company. The liability in this respect is indeterminable.

(c) Note 29 - The company has discontinued making provision for interest payable on the overdue payments of ''works contracts''
based on various judicial pronouncements of higher judiciary forums. Further, the provision already made in the books of
accounts till FY2021-22 aggregating to Rs. 182.63 Lakhs has also been written back.

(d) Note No.2 The Company has categorised Current Assets/ Liabilities as those receivables/payables which are within the operating
cycle. Thus, non-moving outstandings beyond operating cycle period of 12 months have been classified as ''Non current'' even if
these are receivables/payable on demand or are overdue.

(e) Note 11(b)A - Regarding amount of ''Right of Recompense'' with the Participant Lenders of the Corporate Debt Restructuring
(CDR) package which is yet to be quantified.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have
determined the matters described below to be the key audit matters to be communicated in our report.

Information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the preparation of the other information. The other information comprises the
information included in the company''s annual report, but does not include the standalone financial statements and our auditor''s
report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge
obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Management''s and Board of directors'' Responsibility for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these standalone financial statements that give a true and fair view of the state of the affairs, profit/loss and other comprehensive
income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally
accepted in India, including the accounting Standards specified under section 133 of the Act. 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 standalone financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company''s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:

â¢ Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.

â¢ Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

â¢ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s
report. However, future events or conditions may cause the Company to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes
it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We
consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the
results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government in terms of
Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to
the extent applicable.

2. As required by Section 143(3) of the Act, we report to the extent applicable, 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 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 it appears from our
examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in
Equity and the Statement of Cash Flows 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 Ind AS specified under Section 133 of the
Act.

(e) On the basis of the written representations received from the directors as on 31^st March, 2023 taken on record by the Board
of Directors, none of the directors is disqualified as on 31^st March, 2023 from being appointed as a director in terms of
Section 164 (2) of the Act.

(f) With respect to the adequacy of internal financial controls over financial reporting and operating effectiveness of such
controls, refer to our separate Report in "Annexure B". Our report expresses an unmodified opinion on the adequacy and
operating effectiveness of the Company''s internal financial controls over financial reporting.

3. 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:

(a) The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial
statements; (Refer Note 24)

(b) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts .

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

(d) (i) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either

individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign
entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries;

(ii) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the Company from any person or entity, including foreign
entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;

(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub clause d (i) and (ii) contain any
material misstatement.

(e) The Company has not declared or paid any dividend during the year.

(f) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software
which has a feature of recording audit trail (edit log) facility is applicable for the Company only with effect from 1^st April
2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is currently not applicable.

4. With respect to the matter to be included in the Auditor''s Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its
directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any
director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed
other details under Section 197(16) of the Act which are required to be commented upon by us.

For Rupesh Goyal & Co.

Chartered Accountants
Firm Regn No. 021312N

Rupesh Goyal

Place: Delhi Proprietor

Date: 26^th May, 2023 M.No.507856

Mar 31, 2018

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of B.L. KASHYAP AND SONS Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Managementâs Responsibility for the Standalone Ind AS Financial Statements

The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.

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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditorsâ Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.

In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone Ind AS financial statements 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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.

We believe that the audit evidence obtained by us,is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 March 31, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Emphasis of Matter

Without qualifying our opinion, we draw attention to the following matters;

(a) Note No.23 to the financial statements regarding claims against the Company not acknowledged as debts amounting Rs. 18.38 Crores in respect of disputed statutory dues and Rs. 42.55 Crores in respect of differential amount of interest sacrificed by bankers pursuant to scheme of Corporate Debt Restructuring as bankers have a right of recompose of sacrifices.

(b) Note No. 23 to the financial statements regarding Corporate Guarantee given by the Company.

(c) Note 5(a) to the financial statements regarding inadequate provision of losses for diminution in the value of Investments in the Subsidiary Companies.

(d) Note No. 3 & 4 to the financial statements regarding Change in method of charging Depreciation from written Down Value to Straight Line Method.

Our opinion is not modified in respect of these matters.

Other Matters

e) The comparative financial information for the year ended 31st March, 2017 and the transition date opening balance sheet as at 01st April, 2016 included in these standalone Financial statements are based on the statutory financial statements prepared in accordance with the Companies ( Accounting Standards) Rules 2006 audited by the predecessor auditor whose report for the year ended 31st March 2017, 31st March 2016, 27th May, 2017 and 27th May 2016 respectively expressed an unmodified opinion on those standalone financial statements and have been restated to comply with Ind AS adjustments made to the previously issued said financial information prepared in accordance with the Companies ( Accounting Standards) Rules 2006 to comply with Ind AS have been audited by us.

Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable 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 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 it appears from our examination of those books.

c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanation sgiven to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements; ( Refer Note 23 )

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts.

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

2. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.

Annexure- A to the Auditorsâ Report

The Annexure referred to in our Auditorsâ Report of even date on the accounts for the year ended 31st March, 2018 of B.L. Kashyap & Sons Limited, New Delhi in pursuance to the Companies (Auditorâs Report) order, 2016 on the matters specified in paragraphs 3 and 4 of the said order.

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets once in a year, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year end and no material discrepancies were noticed on such verification.

(c) Title of the building of the Company amounting to Rs. 79,917 (S.L.M) as on 31st March, 2018 is not in name of the Company.

(ii) (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year- end.

(b) In our opinion and according to information and explanations given to us, the Procedures of physical verification of stores and material 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 information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

(iii) The Company has granted unsecured loans, to the companies, covered in the register maintained under section 189 of the Companies Act.

(a) The terms and conditions of the grant of loan are not prejudicial to the companyâs interest.

(b) The receipt of principal amount and interest are as per agreed terms and conditions.

(iv) The Company has complied with provisions of section 185 and 186 of the Companies Act, in respect of loans, investments, guarantees and security.

(v) The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under are not applicable.

(vi) The Central Government has specified maintenance of cost record u/s. 148(1) of the Companies Act, 2013.As per records produced and explanations given to us, the company has made and maintained cost records and accounts.

(vii) (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has following undisputed statutory dues outstanding for more than six months.

Nature of dues	Undisputed Amount Arrear More Six Month (Rs.)
EPF	3,01,11,369/-
E.S.I.C.	1,07,30,758/-
Labour Cess	10,07,877/-
Service Tax	2,48,25,135/-

(b) According to the information and explanations given to us, there are disputed amount payable towards Income Tax, Service Tax, Central Excise, and Valued added tax as on the date of Balance Sheet in the following cases:-

Name of the Statute	Nature of Dues	Period to which the amounts relates	Disputed Amount Not Deposited (Rs. in Lac)	Forum Where the Dispute is pending
Service Tax Act, Delhi	Service Tax Demand	F.Y. 2006-07 to F.Y. 2009-10	1385.53	Tribunal CESTAT,New Delhi
Central Excise Act, Noida	Excise Demand	F.Y. 2012-13	3.5	Tribunal CESTAT, Allahabad
Service Tax Act, Delhi	Service Tax Demand	F.Y. 2010-11 to F.Y. 2014-15	78.78	Custom and Central Excise Settlement Commission Additional Bench at Chennai

Income Tax	TDS Demand	F.Y. 2014-15	9.05	CIT(Appeal), Delhi -41
Income Tax	TDS Demand	F.Y. 2016-17	1.22	CIT(Appeal), Delhi -41
Value Added Tax, Haryana	Vat Demand	F.Y. 2011-12	44.77	Appeal VAT, Haryana
Value Added Tax, Haryana	Vat Demand	F.Y. 2012-13	19.11	Appeal VAT, Haryana
Value Added Tax, Haryana	Vat Demand	F.Y. 2013-14	16.25	Appeal VAT, Haryana
Value Added Tax, Punjab	Vat Demand	F.Y. 2009-10	126.48	Appeal VAT, Punjab
Value Added Tax, Bihar	Vat Demand	F.Y. 2014-15	152.86	Appeal VAT, Bihar
		Total	1837.58

(viii) The Company has defaulted in repayment of its dues to the Bank and Financial Institution as under:-

Name of Bank	Delayed Principal Amount in Rs.	Period of Default (days)	Delayed Interest Amount in Rs.	Delay in No. of Days
ICICI Bank - Corporate Loan	19,67,080	1	110,216	1
ICICI BANK - WCTL	292,80,000	1	223,776	1
State Bank of India(TL-WCTL)	155,14,768	32	136,318	32
Indusind Bank - Corporate Loan	30,80,000	1	184,907	1
Indusind Bank - WCTL	358,24,000	32	330,382	32
Oriental Bank of Commerce - Corporate Loan	45,60,000	1	269,367	1
State Bank of India- Corporate Loan	77,00,000	32	450,768	32
Oriental Bank OF Commerce - WCTL	12994334	32	115,848	32
State Bank of India(TL-WCTL-BG)	4000000	32	34,933	32
Syndicate Bank - FITL	220000000	365	52,360,067	424
Syndicate Bank - TL	1040399998	639	66,116,766	762
CANARA BANK -CORPORATE LOAN	4680000	1	140,912	1
Yes Bank - Corporate Loan	2202240	1	394,219	60

(ix) According to the information and explanation given to us, the money raised by way of initial public offer and Term Loans availed by the Company were applied for the purpose for which those were raised.

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

(xi) The managerial remuneration provided is in accordance with the requisite approval as mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.

(xii) The Company is not the Nidhi Company and as such this clause is not applicable.

(xiii) All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and are disclosed in the financial statements.

(xiv) The Company during the year has not made any preferential, private placement, of shares or fully or partly convertible debentures during the year.

(xv) The Company has not entered with any non-cash transaction with Directors or persons connected with them, during the year within the meaning of section 192 of the Companies Act, 2013.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

ANNEXURE âBâ TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF B.L. KASHYAP AND SONS LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)

We have audited the internal financial controls over financial reporting of BL Kashyap and Sons Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managementâs Responsibility for Internal Financial Controls

The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditorsâ Responsibility

Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness.

Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ.

For Maheshwari & Sharad

Chartered Accountants

Firm Regn No. 015513N

Sharad Mohan

Place : New Delhi Partner

Date : 19th May, 2018 M.No. 082176

Mar 31, 2017

Independent Auditors'' Report To the Members of B.L. Kashyap And Sons Limited Report on the Financial Statements

We have audited the accompanying standalone financial statements of B.L. Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2017, the Statement of Profit and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 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 financial control relevant to the Company''s preparation of the financial statements that give true and fair view 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 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 financial statements, give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2017;

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

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

Emphasis of Matters:-

We draw attention to the following matters in the notes to the financial statements.

(a) Note No. 3.1.1 to the financial statements regarding claims against the Company not acknowledged as debts amounting Rs, 17.85 Crores in respect of disputed statutory dues, Rs, 13.73 Crores in respect of penal and overdue interest on the outstanding loans as on 31st March, 2017 and Rs, 33.61 Crores in respect of differential amount of interest sacrificed by bankers pursuant to scheme of Corporate Debt Restructuring as bankers have a right of recompose of sacrifices.

(b) Note No. 3.1.2 to the financial statements regarding Corporate Guarantee given amounting Rs, 175.23 Crores.

(c) Note 14 to the financial statements regarding non provision of losses for diminution in the value of Investments in the Subsidiary Companies.

Our opinion is not modified in respect of these matters.

Report on other Legal and Regulatory Requirements

(1) As required by the Companies (Auditors'' Report) Order 2016 issued by the Central Government of India in terms of sub-section

(11) of section 143 of the Companies Act, 2013 we annexed Annexure ''A'' hereto a statement on the matters specified in para 3 and 4 of the said order.

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

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 31st March, 2017, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2017, from being appointed as a director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to separate report in Annexure ''B'' and

g) with respect to the other matters included in the Auditor''s Report and to the best of our information and according to the explanations given to us:-

(i) The company does not have any pending litigations which would materially impact its financial position.

(ii) The company does not have any term contracts including derivative contracts for which there are any material foreseeable losses.

(iii) There has been no delay in transferring amounts to the Investor Education and Protection Fund.

(iv) The Company has provided requisite disclosures in its standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company. Refer Note 3.16 to the standalone financial statements.

The Annexure referred to in our Auditors''Report of even date on the accounts for the year ended 31st March, 2017 of B.L. Kashyap & Sons Limited, New Delhi in pursuance to the Companies (Auditor''s Report) order, 2016 on the matters specified in paragraphs 3 and 4 of the said order.

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets once in a year,which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year end and no material discrepancies were noticed on such verification.

(c) Title of the building of the Company amounting to '' 79,917(W.D.V.) as on 31st March, 2017 is not in name of the Company.

(ii) (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year- end.

(iii) The Company has granted unsecured loans, to the companies, covered in the register maintained under section 189 of the Companies Act.

(a) The terms and conditions of the grant of loan are not prejudicial to the company''s interest.

(b) The receipt of principal amount and interest are as per agreed terms and conditions.

(iv) The Company has complied with provisions of section 185 and 186 of the Companies Act, in respect of loans, investments, guarantees and security.

(vii) (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the

Company has following undisputed statutory dues outstanding for more than six months.

Nature of dues	Undisputed Amount Arrear More Six Month ('')
EPF	4,09,65,261
E.S.I.C.	55,39,840
Labour Cess	995,182
Service Tax	5,83,67,480
Works Tax	11,56,390

Name of the Statute	Nature of Dues	Period to which the amount relates	Disputed Amount Not Deposited (Rs, in lac)	Forum where Dispute is Pending
Service Tax Act, Delhi	Service Tax Demand	F.Y. 2006-07 to F.Y. 2009-10	1,384.83	Tribunal CESTAT, New Delhi
Central Excise Act, Noida	Excise Demand	F.Y. 2012-13	3.5	Jt. Comm Central Excise Gr. Noida
Value Added Tax, West Bengal	Vat Demand	F.Y. 2009-10	37.37	Tribunal VAT, Kolkata
Value Added Tax, Haryana	Vat Demand	F.Y. 2011-12	44.78	Appeal VAT, Haryana
Value Added Tax, Haryana	Vat Demand	F.Y. 2012-13	19.11	Appeal VAT, Haryana
Value Added Tax, Haryana	Vat Demand	F.Y. 2013-14	16.25	Appeal VAT, Haryana
Value Added Tax, Punjab	Vat Demand	F.Y. 2009-10	126.48	Appeal VAT, Punjab
Value Added Tax, Bihar	Vat Demand	F.Y. 2014-15	152.86	Appeal VAT, Bihar
		Total	1,785.18

(viii) The Company has defaulted in repayment ofits dues to the Bank and Financial Institution as under:-

Name of Bank	Principal Amount (Rs,)	Period of Default (days)
Standard Chartered Bank	10,43,00,000	1096 Days
Syndicate Bank	8,32,31,999	274 Days

Name of Bank	Interest Amount (Rs,)	Period of Default (days)
Yes Bank (Cash Credit)	71,91,963	59 Days
Oriental Bank of Commerce (Cash Credit)	1,40,50,175	59 Days
IndusInd Bank(Cash Credit)	96,02,465	59 Days
Standard Chartered Bank (Cash Credit)	12,86,58,780	1106 Days
Syndicate Bank (Term Loan)	14,89,20,126	397 Days
Syndicate Bank-(Funded Interest Term Loan)	3,36,20,276	425 Days
ICICI Bank ( Corporate Loan)	5,07,278	59 Days

ICICI Bank -(Funded Interest Term Loan)	4,12,577	59 Days
ICICI Bank -(Working Capital Term Loan)	33,20,613	59 Days
IndusInd Bank (Corporate Loan )	7,95,836	59 Days
IndusInd Bank -(Funded Interest Term Loan)	11,17,882	59 Days
IndusInd Bank -(Working Capital Term Loan)	43,26,535	59 Days
Oriental Bank of Commerce - (Working Capital Term loan )	12,12,618	59 Days
Oriental Bank of Commerce - (Funded Interest Term Loan)	8,63,262	59 Days
Oriental Bank of Commerce - (Corporate Loan)	9,65,565	59 Days
Yes Bank (Corporate Loan)	5,68,599	59 days
Yes Bank - (Term Loan)	4,17,570	31 Days

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

(xi) The managerial remuneration provided is in accordance with the requisite approval as mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.

(xii) The Company is not the Nidhi Company and as such this clause is not applicable.

(xiii) All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and are disclosed in the financial statements.

(xiv) The Company during the year has not made any preferential, private placement, of shares or fully or partly convertible debentures during the year.

(xv) The Company has not entered with any non-cash transaction with Directors or persons connected with them, during the year within the meaning of section 192 of the Companies Act, 2013.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Annexure-B to the Auditors'' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of B.L.Kashyap And Sons Limited ("the Company") as of 31stMarch, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at31stMarch, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Sood Brij & Associates

Chartered Accountants

Firm Regn. No. 00350N

A.K. SOOD

Place : New Delhi Partner

Dated: 27th May, 2017 Membership Number: 014372

Mar 31, 2015

Report on the Financial Statements

We have audited the accompanying standalone financial statements of B.L.Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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.

Auditors' 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 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 financial control relevant to the Company's preparation of the financial statements that give true and fair view 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 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 financial statements, give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

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

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

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

Emphasis of Matters:-

We draw attention to the following matters in the notes to the financial statements

a) Note 3.1.1 to the financial statements regarding claims against the company not acknowledged as debt.

b) Note 3.1.2 to the financial statements regarding corporate Guarantees given.

c) Note 4(b) to the financial statements regarding shareholding of more than 5% in respect of promoter Director.

d) Note 11(b) regarding current maturities of Long Term debt.

Our opinion is not modified in respect of these matters. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order 2015 issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013 we annexed hereto a statement on the matters specified in para 3 and 4 of the said order.

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

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 aforesaid standalone financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 31 March, 2015, 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 included in the Auditor's Report and to the best of our information and according to the explanations given to us:-

(i) The company does not have any pending litigations which would materially impact its financial position.

(ii) The company does not have any term contracts including derivative contracts for which there are any material foreseeable losses.

(iii) There has been no delay in transferring amounts to the Investor Education and Protection Fund.

Annexure to the Auditors' Report

The Annexure referred to in our Auditors' Report of even date on the accounts for the year ended 31st March, 2015 of B.L. Kashyap and Sons Limited, New Delhi in pursuance to the Companies (Auditor's Report) order, 2015 on the matters specified in paragraphs 3 and 4 of the said order.

(i). (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of information available.

(b) The Company has a practice of physical verification of its fixed assets once in a year, which in our opinion is reasonable, having regard to the size of the company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year end and no material discrepancies were noticed on such verification.

(ii). (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year-end.

(b) In our opinion and according to information and explanations given to us, the Procedures of physical verification of stores and material 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 information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

(iii). The Company has granted unsecured loans, to the companies, covered in the register maintained under section 189 of the Companies Act, 2013.

(a) The receipt of principal amount and interest are as per agreed terms and conditions.

(b) As per agreed terms and conditions there are no overdraft amounts.

(iv.) In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of store materials, fixed assets and for the sale of goods and services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

(v). The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under are not applicable.

(vi). The Central Government has specified maintenance of cost record u/s. 148(1) of the Companies Act, 2013.As per records produced and explanations given to us, the company has made and maintained cost records and accounts.

(vii). (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has following undisputed statutory dues outstanding for more than six months.

Nature of dues Undisputed Amount Arrear More Six Month (Rs.)

Service Tax 7,54,28,581

Works Contract Tax 38,25,690

Total 7,92,54,271

(b) According to the information and explanations given to us, there are no disputedamount payable towards Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of Custom and duty of Central Excise, Valued added tax and cess outstanding as on the date of Balance Sheet except in the following cases:-

Name of the Statute Nature of Period to which Dues the amount relates

Income Tax Act Income Tax A. Y. 2010-11 Demand

Income Tax Act Income Tax A.Y. 2008-09 Demand

Income Tax Act Income Tax A.Y. 2012-13 Demand

Service Tax, Delhi Service Tax 10.09.2004 to Demand 16.06.2005

Service Tax, Delhi Service Tax FY. 2006-07 to Demand 2009-10

Central Excise Act Excise Demand FY. 2012-13

Value Added Tax Act, VAT Demand FY. 2006-07 West Bengal

Value Added Tax Act, VAT Demand FY. 2009-10 West Bengal

Value Added Tax Act, VAT Demand FY. 2010-11 Haryana

Value Added Tax Act, VAT Demand FY. 2011-12 Haryana

Value Added Tax Act, VAT Demand FY. 2009-10 Maharashtra

Name of the Statute Disputed Amount Not Forum where Dispute is Deposited (Rs. in lac) Pending

Income Tax Act 2.59 Commissioner of Income Tax (A)-NewDelhi

Income Tax Act 13.10 Deputy Commissioner of Income Tax, TDS, New Delhi

Income Tax Act 19.35 Commissioner of Income Tax (A)-NewDelhi

Service Tax Delhi 13.18 Tribunal Customs Excise and Service Tax, New Delhi

Service Tax Delhi 1384.83 Tribunal Customs Excise and Service Tax, New Delhi

Central Excise Act 3.50 Joint Commissioner Central Excise Gr. NOIDA

Value Added Tax Act, West Bengal 80.99 Joint Commissioner (A) Commercial Taxes, Kolkatta

Value Added Tax Act, West Bengal 37.37 Tribunal Value Added Tax, Kolkatta

Value Added Tax Act, Haryana 10.30 Tribunal Value Added Tax, Haryana

Value Added Tax Act, Haryana 44.78 Joint Excise and Taxation Commissioner (A), Faridabad

Value Added Tax Act, Maharashtra 16.00 Deputy Commissioner, Sales Tax, Pune

Total 1625.99

(c) There were no delays in transferring amounts to the Investor Education and Protection Fund.

(viii). The Company has incurred Cash Loss of Rs. 2,218.35 Lac during the year and Rs. 10,945.72 Lac in the immediately preceding financial year. The Company does not have accumulated losses at the end of the financial years.

(ix). The Company has defaulted in payment of its dues to the Bank as under:-

Name of Bank Principal & Interest Amount (Rs.) Period of Default

Union Bank of India 6,42,85,716 182 Days

Union Bank of India 74,38,897 274 Days

HDFC Bank 30,67,848 36 Days

(x). According to the information and explanations given to us, the Company has given guarantee for loans taken by others from banks or financial institutions and prima facie the terms and conditions whereof are not prejudicial to the interest of the company.

(xi). According to the information and explanation given to us, the Term Loans availed by the Company 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 year.

For Sood Brij & Associates

Chartered Accountants

Firm Regn. No. 00350N

A.K. SOOD

Place : New Delhi Partner

Dated : 28th May, 2015 Membership Number: 14372

Mar 31, 2014

We have audited the accompanying financial statements of B. L. Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of Significant Accounting Policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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

Auditors'' Responsibility

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

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

Opinion

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' Report) Order 2003 issued by the Central Government of India in terms of Sub Section 4A of Section 227 of the Companies Act, 1956. We annex hereto a statement on the matters specified in paragraph 4 & 5 of the said order

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

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

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

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

d. in our opinion, the Balance Sheet, Statement of Profit 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 31st March, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to the Independent Auditors'' Report

The Annexure referred to in Auditors'' Report of even date on the accounts for the year ended 31st March, 2014 of B. L. Kashyap And Sons Limited, New Delhi.

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

(b) The Company has a practice of physical verification of its fixed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year-end and no material discrepancies were noticed on such verification.

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

2. (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year-end.

(b) In our opinion and according to information and explanations given to us, the procedures of physical verification of stores and material 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 information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the Companies Act, 1956. The number of parties involved in the transactions including interest, were three and maximum amount involved in the transactions was Rs. 39,396.97 Lakhs and the year-end closing balance was Rs. 39,229.54 Lakhs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The receipt of the principal amount and interest are as per agreed terms and conditions.

(d) The principal amounts are repayable as per agreed terms and conditions. There are no overdue amounts with respect to principal and interest amounts.

(e) The Company has taken unsecured loan from five parties covered in the register maintained under section 301of the Companies Act, 1956. The maximum amount involved was Rs. 2,114.65 Lakhs and year-end balance was Rs. 1,413.96 Lakhs.

(f) In our opinion, the terms and conditions on which loans have been taken from Directors listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fixed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

5. (a) According to the information and explanations given to us we are of the opinion that the transactions that need to be entered into 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 entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to the prevailing market prices and practices at the relevant time.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. The Central Government has under clause (d) of sub section (1) of section 209 of the Companies Act ,1956 has prescribed the cost records to be maintained as per their notification dated 3rd June 2011, called The Companies Cost accounting Records Rules, 2011. As per management and records produced before us, the prescribed accounts and records have been maintained.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues except service tax amounting of Rs. 24.81 crores and TDS amounting to Rs. 4.85 crores outstanding for a period of more than six months.

(b) According to the information and explanations given to us, there were no disputed amounts payable towards Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and Central Excise Duty outstanding as on the date of Balance sheet except in the following cases:

10. The Company has incurred cash loss of Rs. 116.18 crores in the current financial year but no cash loss was incurred in the immediately preceding financial year. The Company does not have accumulated losses at the end of the financial year.

11. The Company has defaulted in repayment of its dues to the Banks. The default amount and period of default is as under:

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

13. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities.

However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company and its nominees.

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and financial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year 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.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix) of the order is not applicable.

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

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

For Sood Brij & Associates Chartered Accountants Firm Regn. No. 00350N

A.K. SOOD Place : New Delhi Partner Dated : 28th May, 2014 Membership Number: 14372

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of B.L. Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31 March, 2013, the Statement of Proft and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date 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 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, error or otherwise.

Auditors'' 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 auditors'' 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.

Opinion

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

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

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

(iii) 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 (Auditors'' Report) Order 2003 issued by the Central Government of India in terms of Sub Section 4A of Section 227 of the Companies Act, 1956. We annex hereto a statement on the matters specifed in paragraph 4 & 5 of the said order

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

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

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

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

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

The Annexure referred to in Auditors'' Report of even date on the accounts for the year ended 31 March, 2013 of B.L. Kashyap And Sons Limited, New Delhi.

1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fxed assets on the basis of information available.

(b) The Company has a practice of physical verifcation of its fxed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verifed fxed assets at the year-end and no material discrepancies were noticed on such verifcation.

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

2. (a) As explained to us, the stores and material at different sites have been physically verifed by the management at the year- end.

(b) In our opinion and according to information and explanations given to us, the procedures of physical verifcation of stores and material 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 information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verifcation of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the

Companies Act, 1956. The number of parties involved in the transactions including interest, were three and maximum amount involved in the transactions was Rs. 41,922.90 Lacs and the year-end closing balance was Rs. 36,299.44 Lacs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c). The receipt of the principal amount and interest are as per agreed terms and conditions.

(d). The principal amounts are repayable as per agreed terms and conditions. There are no overdue amounts with respect to principal and interest amounts.

(e). The Company has taken unsecured loan from two Directors covered in the register maintained under section 301 of the Companies Act 1956. The maximum amount involved was Rs. 2.49 Crores and year end balance was Rs. 2.24 Crores.

(f) In our opinion, the terms and conditions on which loans have been taken from Directors listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the company.

(g) The company is regular in repaying the principal amounts as stipulated.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fxed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

5. (a) According to the information and explanations given to us we are of the opinion that the transactions that need to be entered into 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 entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to the prevailing market prices and practices at the relevant time.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. The Central Government has under clause (d) of sub section (1) of section 209 of the Companies Act ,1956 has prescribed the cost records to be maintained as per their notifcation dated 3 June, 2011, called The Companies Cost accounting Records Rules, 2011. As per management and records produced before us, the prescribed accounts and records have been maintained.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues except the Service Tax dues amounting to Rs. 7.39 Crores outstanding for a period of more than six months.

(b) According to the information and explanations given to us, there were no disputed amounts payable towards Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and Central Excise Duty outstanding as on the date of Balance sheet except in the following cases:

Name of the Statute Nature of Dues O/s Amount Under Dispute (Rs.)

Income Tax Act Income Tax Demand 22.28 Crs

Income Tax Act Income Tax Demand 32 Lacs

Income Tax Act Income Tax Demand 2.59 Lacs

Income Tax Act Income Tax Demand 13.10 Lacs

Employees Provident P.F. Demand 577.76 Crs Fund & Miscellaneous Provision Act

Service Tax, Delhi Service Tax Demand 13.18 Lacs

Service Tax, Bangalore Service Tax Demand 288 Lacs including penalty

U.P. Trade Tax Act Vat Demand 10.33 Lacs

VAT Act, Uttar Pradesh Vat Demand 506 Lacs

VAT Act, West Bengal Vat Demand 80.99 Lacs

Maharastra Sales Tax Vat Demand 275 Lacs

Name Period to which the Forum where Dispute is Pending amount relates

Income Tax Act A.Y. 2002-2003 to A.Y. CIT(A)-II, New Delhi 2008-2009

Income Tax Act A.Y. 2009-2010 CIT(A)-II, New Delhi

Income Tax Act A.Y. 2010-2011 CIT(A)-II, New Delhi

Income Tax Act A.Y. 2008-2009 DCIT, TDS, Ward 49(1), New Delhi

Income Tax Act 01.04.2005 to 31.12.2010 Employee Provident Fund Appellate Tribunal, New Delhi

Income Tax Act 10.09.2004 to 16.06.2005 Customs, Excise and Service Tax Tribunal, New Delhi

Income Tax Act 01.04.2009 to 30.09.2009 Customs, Excise and Service Tax Tribunal, Bangalore

Income Tax Act 2005-2006 Sales Tax, Appellate Tribunal, Commercial Taxes Noida

Income Tax Act 2012-13 Deputy Commissioner, Commercial Tax, Noida

Income Tax Act 2006-2007 Jt. Comm.(A) Commercial Taxes, Kolkata

Income Tax Act 2008-2009 Deputy Commissioner, Sales Tax, Pune

10. The Company has neither accumulated losses at the end of the year nor incurred cash losses in the current fnancial year covered by our audit and in the immediately preceding fnancial year.

11. The Company has defaulted in repayment of its dues to the Banks. The default amount and period of default is as under:

Party Principal (Rs.) Interest (Rs.) Period of Default

State Bank of Patiala 3,115,736 650,244 85 days each

Syndicate Bank NIL 35,274,781 59 days

Kotak Mahindra Bank Ltd NIL 2,522 21 days

HDFC Bank Ltd 15,956,114 1,997,974 85 days each

L&T Infrastructure Finance Company Ltd 41,666,667 8,452,125 59 days each

Reliance Capital Ltd 3,366,508 294,741 58 days each

SREI Equipment Finance Ltd 46,427,534 16,036,733 85 days each

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

13. The Company is not a chit fund, nidhi, mutual beneft fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities.

However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company and its nominees...

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and fnancial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year 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.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix) of the order is not applicable.

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

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

For Sood Brij & Associates

Chartered Accountants

Firm Regn. No. 00350N

A.K. SOOD

Place : New Delhi Partner

Dated : 30.05.2013 Membership Number: 14372

Mar 31, 2012

We have audited the accompanying financial statements of B.L. Kashyap And Sons Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2012, the Statement of Profit and Loss of the Company for the year ended on that date, the Cash Flow Statement of the Company for the year ended on that date and a summary of Significant Accounting Policies and other explanatory information.

Management's Responsibility for the Financial Statements

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

Auditors' Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' 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.

As required by the Companies (Auditors' Report) Order 2003 issued by the Central Government of India in terms of Sub Section 4A of Section 227 of the Companies Act, 1956. We annex hereto a statement on the matters specified in paragraph 4 & 5 of the said order. Opinion

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

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 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 the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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

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

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

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

d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956.

The Annexure referred to in Auditors' Report of even date on the accounts for the year ended 31st March, 2012 of B.L. Kashyap And Sons Limited, New Delhi.

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

(b) The Company has a practice of physical verification of its fixed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year-end and no material discrepancies were noticed on such verification.

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

2. (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year-end.

(b) In our opinion and according to information and explanations given to us, the procedures of physical verification of stores and material 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 information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the Companies Act, 1956.The number of parties involved in the transactions including interest, were three and maximum amount involved in the transactions was Rs.31,698.61 Lakhs and the year-end closing balance was Rs. 31,400.61 Lakhs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The receipt of the principal amount and interest are as per agreed terms and conditions.

(d) The principal amounts are repayable as per agreed terms and conditions. There are no overdue amounts with respect to principal and interest amounts.

(e) The Company has not taken any loan from companies, firms and other parties covered in the register maintained under section 301of the Companies Act 1956. Consequently the requirements of clauses (iii) (f) and (iii) (g) of Paragraph 4 of the order are not applicable.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fixed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

5. (a) According to the information and explanations given to us we are of the opinion that the transactions that need to be entered into 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 entered in the register maintained under section 301 of the Companies Act, 1956,have been made at prices which are reasonable having regard to the prevailing market prices and practices at the relevant time.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. The Central Government has under clause (d) of sub section (1) of section 209 of the Companies Act ,1956 has prescribed the cost records to be maintained as per their notification dated 3rd June 2011, called The Companies Cost accounting Records, Rules, 2011. As per management and records produced before us, the prescribed accounts and records have been maintained.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has been regular in depositing with appropriate authorities undisputed statutory dues for more than six months except Bonus of Rs. 2,68,31,100/- which was not paid for a period exceeding Six months.

(b) According to the information and explanations given to us, there are no disputed amount payable towards Income tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Cess and Central Excise Duty outstanding as on the date of Balance sheet except in the following cases:

Name of Nature of Outstanding the Statute Dues Amount in Rs. Under Dispute

Income Tax Act Income Tax Demand 59.00 Crores

Income Tax Act Income Tax Demand 32.00 Lacs

Income Tax Act Income Tax Demand 13.10 Lacs

Employees Provident Fund Provident Fund 577.76 Crores And Misc. Provision Act Demand

Service Tax Delhi Service Tax Demand 13.18 Lacs

U.P. Trade Tax Act VAT Demand 9.28 Lacs

U.P. Trade Tax Act VAT Demand 10.13 Lacs

VAT Act, West Bengal VAT Demand 80.99 Lacs

Name of the Statute Period to which Forum where the Amount Dispute is Pending Relates

Income Tax Act A.Y.2002-2003 to A.Y. 2008-09 CIT (A) -II, New Delhi

Income Tax Act A.Y.2009-2010 CIT (A) -II, New Delhi

Income Tax Act A.Y. 2008-2009 DCIT, TDS, Ward 49 (1), New Delhi

Employees Provident Fund And Misc, Provision Act 1-4-2005 to 31-12-2010 Employees Provident Fund Appellate Tribunal, New Delhi

Service Tax Delhi 10.09.2004 to 16.06.2005 Tribunal CESTAT, New Delhi

U P Trade Tax Act 2009-2010 Sales Tax Appellate Tribunal Commercial Taxes, Noida.

U P Trade Tax Act 2005-2006 Addl. Comm. (A), Commercial Tax Noida.

VAT Act, West Bengal 2006-2007 Jt. Comm (A) Commercial Taxes ,Kolkata

10. The Company has neither accumulated losses at the end of the year nor incurred cash losses in the current financial year covered by our audit and in the immediately preceding financial year.

11. The Company has defaulted in repayment of its dues to the Banks. The default amount and period of default is as under:

Party Principal Interest Period of Defaults

Banks 6,07,67,566/- 3,00,39,390/- 89 Days

Other Financial Institution 6,24,78,428/- 38,14,125/- 121 Days

For Details refer Note No.6 of the Balance sheet.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

13. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities. However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company and its nominees.

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and financial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year 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.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix) of the order is not applicable.

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

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

For Sood Brij & Associates

Chartered Accountants

Firm Regn. no. 00350N

A.K. Sood

Place: New Delhi Partner

Dated : 30th May, 2012 Membership No. 14372

Mar 31, 2011

1. We have audited the attached Balance Sheet of B.L. Kashyap And Sons Limited, New Delhi (the Company) 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, 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 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, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

(e) based on the representations made by the Directors of the Company and information and explanation given to us, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of Section 274(1)(g) 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, read together with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

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

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

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

Annexure to the AuditorsÃ Report

The Annexure referred to in paragraph 3 of our AuditorÃs Report of even date on the accounts for the year ended 31 March, 2011 of B.L. Kashyap And Sons Limited, New Delhi.

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

(b) The Company has a practice of physical verification of its fixed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year-end and no material discrepancies were noticed on such verification.

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

2. (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year-end.

(b) In our opinion and according to information and explanations given to us, the procedures of physical verification of stores and material 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 information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the Companies Act, 1956.The number of parties involved in the transactions including interest, were four and maximum amount involved in the transactions was Rs.37,457.18 Lakhs and the year-end closing balance was Rs. 37,426.57 Lakhs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The receipt of the principal amount and interest are as per agreed terms and conditions.

(d) The principal amounts are repayable on demand. There are no overdue amounts.

(e) The Company has not taken any loan from companies, firms and other parties covered in the register maintained under section 301of the Companies Act 1956. Consequently the requirements of clauses (iii) (f) and (iii) (g) of Paragraph 4 of the order are not applicable.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fixed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

5. (a) According to the information and explanations given to us we are of the opinion that the transactions that need to be entered into 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 entered in the register maintained under section 301 of the Companies Act, 1956,have been made at prices which are reasonable having regard to the prevailing market prices and practices at the relevant time.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58A and 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub section (1) of Section 209 of the Companies Act, 1956.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has been regular in depositing with appropriate authorities undisputed statutory dues.

(b) According to the information and explanations given to us, there are disputed liabilities that have not been deposited with the appropriate authorities on account of Income Tax (as per details given below) as at 31st March, 2011 for a period exceeding six months.

Name of Nature of Outstanding Period to which the Statute Dues Amount Under the Dispute Relates Amount

Income Tax Act Income Tax *75.93 Crores A.Y.2002-2003 Demand to A.Y. 2008-09

Income Tax Act Income Tax 8.77 Lacs A.Y.2008-2009 Demand

Service Tax Service Tax 13.18 Lacs 10.09.2004 to Delhi Demand 16.06.2005

U.P. Trade Tax Vat Demand 9.28 Lacs 2009-2010 Act

Vat Act, West Vat Demand 80.99 Lacs 2006-2007 Bengal

Vat Act, West Vat Demand 31.92 Lacs 2007-2008 Bengal

Name of Forum where the Statute Dispute is Pending

Income Tax Act CIT (A) -II, New Delhi

Income Tax Act DCIT, TDS, Ward 49 (1), New Delhi Service Tax Tribunal CETATE, Delhi New Delhi U.P. Trade Tax Addl. Comm (A), Act Commercial Tax Noida Vat Act, West Jt. Comm (A) Commercial Bengal Taxes, Kolkata

Vat Act, West Jt. Comm (A) Commercial Bengal Taxes, Kolkata

* Out of above Rs. 3.69 Crores have since been deposited/adjusted.

10. The Company has neither accumulated losses at the end of the year nor incurred cash losses in the current financial year covered by our audit and in the immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to banks or financial institutions.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii) of the Order is not applicable.

13. The Company is not a chit fund, nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities. However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company and its nominees...

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and financial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year 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.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix) of the order is not applicable.

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

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

For Sood Brij & Associates Chartered Accountants Firm Regn. no. 00350N

A.K. Sood Partner Membership No. 14372

Place: New Delhi Dated: 28th May, 2011

Mar 31, 2010

1. We have audited the attached Balance Sheet of B.L. Kashyap And Sons Limited, New Delhi (the Company) as at March 31,2010, the Profit and Loss Account and the Cash Flow Statement of the Company 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 ouropinion.

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

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

(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 (3C) of section 211 of the Companies Act, 1956;

(e) based on the representations made by the Directors of the Company and information and explanation given to us, we report that none of the directors is disqualified as on March 31,2010 from being appointed as a director in terms of Section 274(1 )(g) 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, read together with the notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India;

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2010; and

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

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

Annexure to the Auditors Report

The Annexure referred to in paragraph 3 of our Auditors Report of even date on the accounts for the year ended 31 st March, 2010 of B.L. Kashyap And Sons Limited, New Delhi.

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

(b) The Company has a practice of physical verification of its fixed assets at reasonable intervals, which in our opinion is reasonable, having regard to the size of the Company and the nature of its assets. In accordance with such practice, the management has physically verified fixed assets at the year-end and no material discrepancies were noticed on such verification.

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

2. (a) As explained to us, the stores and material at different sites have been physically verified by the management at the year end.

(b) In our opinion and according to information and explanations given to us, the procedures of physical verification of stores and material 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 information and explanations given to us, the Company has maintained proper records of its inventories. Discrepancies noticed on physical verification of inventories were not material and have been properly dealt with in the books of accounts.

3. (a) The Company has granted unsecured loans to Companies covered in the register maintained under section 301 of the Companies Act, 1956.The number of parties involved in the transactions including interest, were three and amount involved in the transactions was Rs.29054.55 Lakhs.

(b) The amount advanced to parties covered in the register maintained under section 301 of the Companies Act is interest bearing. The rates of interest and other terms and conditions of such loans are not, prima facie, prejudicial to the interest of the Company.

(c) The receipt of the principal amount and interest are as per agreed terms and conditions.

(d) The principal amounts are repayable on demand. There are no overdue amounts.

(e) The Company has not taken any loan from companies, firms and other parties covered in the register maintained under section 301 of the Companies Act 1956. Consequently the requirements of clauses (iii) (f) and (iii) (g) of Paragraph 4 of the order are not applicable.

4. In our opinion, and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business for purchase of fixed assets, materials and other assets and for providing contract job work services. We have not noted any continuing failure to correct major weakness in the internal controls during the course of the audit.

5. (a) According to the information and explanations given to us we are of the opinion that the transactions that need to be entered into 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 entered in the register maintained under section 301 of the Companies Act, 1956, have been made at prices which are reasonable having regard to the prevailing market prices and practices at the relevant time.

6. The Company has not accepted any deposits from the public and consequently, the directives issued by the Reserve Bank of India, the provisions of Sections 58Aand 58AA or any other relevant provisions of the Companies Act, 1956 and the rules framed there under are not applicable.

7. The Company has an internal audit system. According to the information and explanations given to us by the management, the company is taking necessary steps in view of increased activities, to strengthen the internal audit systems which commensurate with the size and the nature of its business.

8. According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under clause (d) of sub section (1 )of Section 209 of the Companies Act, 1956.

9. (a) According to the information and explanations given to us, and on the basis of our examination of the books of account, the Company has been regular in depositing with appropriate authorities undisputed statutory dues.

(b) According to the information and explanations given to us, there are no disputed amounts that have not been deposited with the appropriate authorities on account of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty Central Excise Duty and Cess outstanding as at 31 st March 2010 for a period exceeding six months.

10. The Company has neither accumulated losses at the end of the year nor incurred cash losses in the current financial year covered by our audit and in the immediately preceding financial year.

11. The Company has not defaulted in repayment of dues to banks or financial institutions or debenture holders.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, clause 4(xii)of the Order is not applicable.

13. The Company is not a chit fund. nidhi, mutual benefit fund or a society. Accordingly, clause 4(xiii) of the Order is not applicable.

14. (a) According to the information and explanations given to us, the Company does not trade in shares or other securities.

However it has made Investments in the quoted/unquoted equity shares of Companies.

(b) The Company has maintained proper records of the transactions and contracts. On our examination of the records, we found that timely entries have been made therein.

(c) All the investments are held in the name of the Company.

15. According to the information and explanations given to us, the terms and conditions on which the Company has given guarantee for loans taken by others from banks and financial institutions are not prejudicial to the interest of the Company.

16. According to the information and explanation given to us, the term loans availed by the Company were applied for the purposes for which the loans were obtained.

17. According to the information and explanations given to us, and on an overall examination of the Financial Statements of the Company, we are of the opinion that, prima facie short term funds have not been used for long term purposes.

18. During the year 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.

19. The Company has not issued Debentures during the year. Accordingly, clause 4(xix)of the order is not applicable.

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

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

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