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Auditor Report of Maithan Alloys Ltd.

Mar 31, 2017

To the members of

Maithan Alloys Limited

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Maithan Alloys Limited (the "Company"), which comprise the Balance Sheet as at 31st March

2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial

Statements

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

Auditors’ Responsibility

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

4. 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.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the standalone 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 standalone financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the standalone financial statements.

7. 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

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

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

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

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

Report on Other Legal and Regulatory Requirements

9. 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 Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

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

(c) The Balance Sheet, 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 accompanying standalone financial statements dealt with by this report 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 and 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 the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B";

(g) With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our

opinion and to the best of our knowledge and belief and according to the information and explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements- Refer Note 32.01(a) to the Standalone financial statements;

ii. The Company has made provision as at 31st March 2017, as required under the applicable law or accounting standards for material foreseeable losses on long-term contracts including derivative contracts;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31st March 2017;

iv. The Company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016, on the basis of information available with the company. Based on audit procedures, and relying on management’s representations, we report that disclosures are in accordance with the books of accounts maintained by the Company- Refer Note 18.01 to the Standalone financial statements.

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

(b) The fixed assets of the Company have been physically verified by the Management at reasonable intervals and no material discrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.

ii. The physical verification of inventory has been conducted at reasonable intervals by the Management and no material discrepancies were noticed on such verification.

iii. The Company has not granted any loans, secured or unsecured, to companies, limited liability partnership firm, firms or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii)[(a), (b) and (c)] of the said Order are not applicable to the Company.

iv. The Company has neither granted any loan, provided any guarantee or security, nor purchased any investments so the provisions of Clause 3(iv) of the order is not applicable to the Company.

v. The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the rules framed there under. Therefore, the provision of clause 3(v) of the order is not applicable on the company.

Name of the statute

Nature of dues

Amount

('')

Period to which the amount relates

Forum where the dispute is pending

The Central Excise Act, 1944

Excise Duty & Service Tax

1,045,052

2006-07

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

4,497,245

2007-08

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

1,236,512

2008-09

CESTAT, Kolkata

vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain Cost Records as specified under Sec 148(1) of the act in respect of its products.

vii. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

viii. (a) The Company is generally regular in depositing

the undisputed statutory dues, including provident fund, employees’ state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March 2017 for a period of more than six months from the date of becoming payable.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales-tax, service-tax, duty of customs, duty of excise, value added tax, which have not been deposited on account of any dispute. The particulars of dues of income-tax, sales-tax, service-tax, duty of customs, duty of excise, value added tax as at 31st March 2017 which have not been deposited on account of dispute, are as follows:

viii. The Company has not defaulted in repayment of loans or borrowings to any financial institution or banks at the balance sheet date.

Name of the statute

Nature of dues

Amount

('')

Period to which the amount relates

Forum where the dispute is pending

The Central Excise Act, 1944

Excise Duty & Service Tax

498,473

2008-09

Commissioner (Appeal), Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

1,090,780

2008-09

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

4,284,911

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

445,698

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

339,190

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

2,713,055

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

114,215

2009-10

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

98,051

2010-11

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

7,054,065

2012-13

CESTAT, Kolkata

The Central Excise Act, 1944

Excise Duty & Service Tax

660,880

2013-14

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

1,061,626

2013-14

Addl. Commissioner, Bolpur

The Central Sales Tax (Meghalaya Amendment) Rule, 1973

Central Sales Tax

65,697,583

2013-14

Shilong High Court

The Central Excise Act, 1944

Excise Duty & Service Tax

583,411

2013-14

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

200,606

2013-14

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

371,057

2013-14

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

115,006

2014-15

Assistant Commissioner, Asansol

The Central Excise Act, 1944

Excise Duty & Service Tax

3,151,800

2013-14

Addl. Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

6,015,000

2014-15

Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

56,864

2016-17

Assistant Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

23,857

2016-17

Assistant Commissioner, Bolpur

The Central Excise Act, 1944

Excise Duty & Service Tax

5,090,935

2016-17

Joint Commissioner, Bolpur

ix. The Company has not raised any money by way of initial public offer/further public offer (including debt instruments)/term loans. Accordingly, the provisions of clause 3(ix) of the Order are not applicable to the Company.

x. We have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of any such case by the Management.

xi. The managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of sec 197 read with Schedule V of the Companies Act, 2013.

xii. As the Company is not a Nidhi Company, the provisions of clause 3(xii) of the Order is not applicable.

xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sec 177 and 188 of the act. The details of such related party transactions have been disclosed in the standalone financial statement as required by the applicable accounting standards.

xiv. No money was raised through preferential allotment/ private placements of shares/fully/partly convertible debentures during the year under review, hence, the provisions of clause 3(xiv) of the said order is not applicable to the Company.

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

We have audited the internal financial controls over financial reporting of Maithan Alloys Limited ("the Company") as at 31st March 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

xv. The Company has not entered into any non-cash transactions with its directors or person connected with him. Accordingly, clause 3(xv) of the Order are not applicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly the provision of clause 3(xvi) are not applicable to the Company.

Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. 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

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 31st March 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 D K Chhajer & Co.

Chartered Accountants

Firm Registration No. 304138E

Dilip Kumar Saha

Place: Kalyaneshwari Partner

Date: 9th May, 2017 Membership No. 014464


Mar 31, 2015

1. We have audited the accompanying standalone financial statements of MAITHAN ALLOYS LIMITED (the "Company"), which comprise the Balance Sheet as at 31st March 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management's Responsibility for the Standalone Financial Statements

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

Auditors' Responsibility

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

4. 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.

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free from material misstatement.

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

7. 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

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

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

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

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

Report on Other Legal and Regulatory Requirements

9. As required by 'the Companies (Auditor's Report) Order, 2015', issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

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

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

(c) The Balance Sheet, 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 accompanying standalone financial statements dealt with by this report 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 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2015, from being appointed as a director in terms of Section 164(2) of the Act;

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

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 32 to the standalone financial statements;

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 including derivative contracts;

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

Annexure to Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to the members of MAITHAN ALLOYS LIMITED on the Standalone financial statements for the year ended 31st March, 2015

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

(b) The fixed assets of the Company have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification. In our opinion, the frequency of verification is reasonable.

ii. (a) The inventory excluding stocks with third parties has been physically verified by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.

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

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

iii. (a) The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii)[(b) and (c)] of the said Order are not applicable to the Company.

iv. In our opinion, and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system.

v. The Company has not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the rules framed there under.

vi. We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under sub-section (1) of Section 148 of the Act, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing the undisputed statutory dues, including provident fund, investor education and protection fund, employees' state insurance, income tax, sales tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales-tax, wealth-tax, duty of customs, value added tax, cess which have not been deposited on account of any dispute. The particulars of dues of service-tax and duty of excise as at 31st March, 2015 which have not been deposited on account of a dispute, are as follows:

Name oF the statute Nature of dues Amount (in Rs.)

The Central Excise Act, 1944 Excise Duty & Service Tax 1,045,052



The Central Excise Act, 1944 Excise Duty & Service Tax 4,497,245

The Central Excise Act, 1944 Excise Duty & Service Tax 1,236,512



The Central Excise Act, 1944 Excise Duty & Service Tax 498,473



The Central Excise Act, 1944 Excise Duty & Service Tax 1,090,780



The Central Excise Act, 1944 Excise Duty & Service Tax 4,284,911



The Central Excise Act, 1944 Excise Duty & Service Tax 784,888



The Central Excise Act, 1944 Excise Duty & Service Tax 14,137,531



The Central Excise Act, 1944 Excise Duty & Service Tax 2,713,055



The Central Excise Act, 1944 Excise Duty & Service Tax 114,215



The Central Excise Act, 1944 Excise Duty & Service Tax 98,051



The Central Excise Act, 1944 Excise Duty & Service Tax 2,013,061



The Central Excise Act, 1944 Excise Duty & Service Tax 3,237,711



The Central Excise Act, 1944 Excise Duty & Service Tax 7,054,065

The Central Excise Act, 1944 Excise Duty & Service Tax 946,802



The Central Excise Act, 1944 Excise Duty & Service Tax 660,880



The Central Excise Act, 1944 Excise Duty & Service Tax 1,061,626



The Central Excise Act, 1944 Excise Duty & Service Tax 583,411



The Central Excise Act, 1944 Excise Duty & Service Tax 200,606



The Central Excise Act, 1944 Excise Duty & Service Tax 370,146



The Central Excise Act, 1944 Excise Duty & Service Tax 371,057



The Central Excise Act, 1944 Excise Duty & Service Tax 115,006

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

The Central Excise Act, 1944 2006-07 Joint Commissioner, Bolpur

The Central Excise Act, 1944 2007-08 CESTAT, Kolkata

The Central Excise Act, 1944 2008-09 Joint Commissioner, Bolpur

The Central Excise Act, 1944 2008-09 Commissioner (Appeal), Kolkata

The Central Excise Act, 1944 2008-09 Assistant Commissioner, Asansol

The Central Excise Act, 1944 2009-10 Joint Commissioner, Bolpur

The Central Excise Act, 1944 2009-10 Assistant Commissioner, Asansol

The Central Excise Act, 1944 2009-10 Commissioner (Appeal), Bolpur

The Central Excise Act, 1944 2009-10 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 2009-10 Commissioner (Appeal), Bolpur

The Central Excise Act, 1944 2010-11 Commissioner (Appeal), Bolpur

The Central Excise Act, 1944 2012-13 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 2012-13 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 2012-13 Commissioner, Bolpur

The Central Excise Act, 1944 2013-14 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 2013-14 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 2013-14 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 2013-14 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 2013-14 Assistant Commissioner, Asansol

The Central Excise Act, 1944 2013-14 Assistant Commissioner, Asansol

The Central Excise Act, 1944 2013-14 Assistant Commissioner, Asansol

The Central Excise Act, 1944 2014-15 Assistant Commissioner, Asansol

(c) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in transferring to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 and rules made there under, with the appropriate authorities.

viii. The Company has no accumulated losses as at the end of the financial year and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

ix. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any bank as at the balance sheet date.

x. In our opinion, and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks during the year, are not prejudicial to the interest of the Company.

xi. The Company has not raised any term loans. Accordingly, the provisions of Clause 3(xi) of the Order are not applicable to the Company.

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

For D K Chhajer & Co. Chartered Accountants Firm Registration No. 304138E

Manoj Kumar Roongta Partner Membership No. 057761

Place : Kalyaneshwari Date : 26th May, 2015


Mar 31, 2014

1. We have audited the accompanying financial statements of Maithan Alloys Limited (the "Company"), which comprise the Balance Sheet as at March 31 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management''s Responsibility for the Financial Statements

2. The Company''s 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'' of India (the "Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

3. 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. 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 auditors consider 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.

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

Opinion

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

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

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

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

Report on Other Legal and Regulatory Requirements

7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'', issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

8. 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

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

(e) On the basis of written representations received from the directors as on March 31 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act

Annexure to Independent Auditors'' Report Referred to in paragraph [7] of the Independent Auditors'' Report of even date to the members of MAITHAN ALLOYS LIMITED on the financial statements as of and for the year ended 31st March 2014

(a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.

(b) The fixed assets of the Company have been physically verified by the Management during the year and no material discrepancies have been noticed on such verification. In our opinion, the frequency of verification is reasonable.

(c) In our opinion, the Company has not disposed off, a substantial part of fixed assets during the year and the going concern status of the company is not affected

i. (a) The inventory excluding stocks with third parties has been physically verified by the Management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable.

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

(c) On the basis of our examination of the inventory records, in our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material

iii. The Company has not granted/taken any loans, secured or unsecured, to/from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Therefore, the provisions of Clause 4(iii) [(b), (c), (d), (f) and (g)] of the said Order are not applicable to the Company.

iv. In our opinion, and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. Further, on the basis of our examination of the books and records of the Company, and according to the information and explanations given to us, we have neither come across, nor have been informed of, any continuing failure to correct major weaknesses in the aforesaid internal control system

v. (a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements 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 such contracts or arrangements and exceeding the value of Rupees Five Lakhs in respect of any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time

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

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

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

ix. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues, including provident fund, nvestor education and protection fund, employees'' state nsurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty and other material statutory dues, as applicable, with the appropriate authorities.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales-tax, wealth-tax, and customs duty which have not been deposited on account of any dispute. The particulars of dues of service tax and excise duty as at 31st March 2014 which have not been deposited on account of a dispute, are as follows

Name of the statute Nature of dues Amount Period to which the (Rs. in lacs) amount relates

The Central Excise Act, 1944 Excise Duty & Service Tax 10.45 2006-07

The Central Excise Act, 1944 Excise Duty & Service Tax 12.37 2008-09

The Central Excise Act, 1944 Excise Duty & Service Tax 42.85 2009-10

The Central Excise Act, 1944 Excise Duty & Service Tax 4.98 2008-09

The Central Excise Act, 1944 Excise Duty & Service Tax 10.91 2008-09

The Central Excise Act, 1944 Excise Duty & Service Tax 7.85 2009-10

The Central Excise Act, 1944 Excise Duty & Service Tax 141.38 2009-10

The Central Excise Act, 1944 Excise Duty & Service Tax 44.97 2007-08

The Central Excise Act, 1944 Excise Duty & Service Tax 27.13 2009-10

The Central Excise Act, 1944 Excise Duty & Service Tax 20.13 2012-13

The Central Excise Act, 1944 Excise Duty & Service Tax 32.38 2012-13

The Central Excise Act, 1944 Excise Duty & Service Tax 5.56 2013-14

The Central Excise Act, 1944 Excise Duty & Service Tax 9.46 2013-14

The Central Excise Act, 1944 Excise Duty & Service Tax 14.45 2013-14

The Central Excise Act, 1944 Excise Duty & Service Tax 6.60 2013-14

The Central Excise Act, 1944 Excise Duty & Service Tax 10.61 2013-14

Name of the Statute Forum where the dispute is pending

The Central Excise Act, 1944 Joint Commissioner, Bolpur

The Central Excise Act, 1944 Joint Commissioner, Bolpur

The Central Excise Act, 1944 Joint Commissioner, Bolpur

The Central Excise Act, 1944 Commissioner (Appeal), Kolkata

The Central Excise Act, 1944 Assistant Commissioner, Asansol

The Central Excise Act, 1944 Assistant Commissioner, Asansol

The Central Excise Act, 1944 Commissioner (Appeal), Bolpur

The Central Excise Act, 1944 CESTAT, Kolkata

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

The Central Excise Act, 1944 Addl. Commissioner, Bolpur

x. The Company has no accumulated losses as at the end of the financial year and it has not incurred any cash losses in the financial year ended on that date or in the immediately preceding financial year.

xi. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank or debenture holders as at the balance sheet date.

xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Therefore, the provisions of Clause 4(xii) of the Order are not applicable to the Company.

xiii. As the provisions of any special statute applicable to chit fund/ nidhi/ mutual benefit fund/ societies are not applicable to the Company, the provisions of Clause 4(xiii) of the Order are not applicable to the Company.

xiv. The Company has maintained proper records of the transactions and contracts in respect of dealing or trading in shares, securities, debentures and other investments and timely entries have been made therein. All shares, securities, debentures and other investments have been held by the Company in its own name.

xv. The Company has given guarantees for loans taken by others from banks and financial institutions. According to the information and explanation given to us, we are of the opinion that the terms and conditions thereof are not prima facie prejudicial to the interest of the Company.

xvi. The Company has not raised any term loans. Accordingly, the provisions of Clause 4(xvi) of the Order are not applicable to the Company.

xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

xviii. The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year. Accordingly, the provisions of Clause 4(xviii) of the Order are not applicable to the Company.

xix. The Company has not issued any debentures during the year and does not have any debentures outstanding as at the beginning of the year and at the year end. Accordingly, the provisions of Clause 4(xix) of the Order are not applicable to the Company.

xx. The Company has not raised any money by public issues during the year. Accordingly, the provisions of Clause 4(xx) of the Order are not applicable to the Company.

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

For D. K. Chhajer & Co. Chartered Accountants FRN-304138E

Niraj K. Jhunjhunwala Place: Kalyaneshwari Partner Date: 27 May 2014 M. NO-F057170


Mar 31, 2013

REPORT ON FINANCIAL STATEMENTS

We have audited the accompanying financial statements of MAITHAN ALLOYS LIMITED, which comprises the Balance Sheet as at March 31, 2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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

AUDITOR''S RESPONSIBILITY

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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:

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

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

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

Report on Other Legal and Regulatory Requirements:

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

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;

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

Annexure to Independent Auditors'' Report

Referred to in Paragraph 1 under the heading of ''Report on other Legal and Regulatory Requirements'''' of our report of even date

i) In respect of Fixed Assets:

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

(b) All fixed assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such physical verification.

(c) The fixed assets disposed off during the year are not substantial and hence, it has not affected the going concern status of the company.

ii) In respect of inventories:

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

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

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) In respect of the loans, secured or unsecured, granted or taken by the Company to / from companies, firm or other parties covered in the register maintained under Section 301 of the Companies Act,1956:

(a) The Company has neither granted nor taken any loans, secured or unsecured, to / from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f) and (iii)(g) of the Order are not applicable.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

v) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act,1956:

(a) According to the information and explanation given to us by the management, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section;

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time where such market prices are available.

vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public hence the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act 1956 are not applicable to the company.

vii) In our opinion and according to the information and explanations given to us, the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

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

ix) (a) According to the records of the Company, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income tax, Wealth Tax, Sales tax, Service-tax, Customs duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities, thus, no amounts were outstanding, at the year end for a period of more than six months from the date they became payable.

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

Financial year to which the Particulars Forum where dispute is pending Amount (Rs. in lacs) matter pertains

Excise Duty & Service Tax 2006-07 Joint Commissioner, Bolpur 10.45

Excise Duty & Service Tax 2007-08 CESTAT, Kolkata 44.97

Excise Duty & Service Tax 2008-09 Joint Commissioner, Bolpur 12.37

Excise Duty & Service Tax 2008-09 Assistant Commissioner, Asansol 10.91

Excise Duty & Service Tax 2008-09 Commissioner (Appeal), Kolkata 4.98

Excise Duty & Service Tax 2009-10 Joint Commissioner, Bolpur 42.85

Excise Duty & Service Tax 2009-10 Assistant Commissioner, Asansol 7.85

Excise Duty & Service Tax 2009-10 Commissioner (Appeal), Bolpur 141.38

Excise Duty & Service Tax 2009-10 Addl. Commissioner, Bolpur 27.13

Excise Duty & Service Tax 2012-13 Addl. Commissioner, Bolpur 20.13

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

xi) In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

xiv) The Company has maintained proper records of the transactions in respect of dealing or trading in shares and timely entries have been made therein. All shares acquired by the company were held in its own name.

xv) The Company has given Guarantee to Banks for Loans taken by its subsidiary Company. In our opinion and according to the information and explanation given to us, the terms of the said Guarantee is not prima facie prejudicial to the interest of the Company.

xvi) In our opinion and according to the information and explanation given to us no term loan was obtained during the year. Accordingly, the provisions of clause 4(xvi) of the Order are not applicable to the Company.

xvii) According to the information and explanations given to us and on the basis of the overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year under review.

xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year. Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

xx) During the year, the Company has not made any public issue and therefore the question of disclosing the end use of money raised by public issue does not arise.

xxi) As per the information and explanation given to us no fraud on or by the Company has been noticed or reported during the year under report.

For D. K. CHHAJER & CO.

Chartered Accountants

FRN - 304138E

Niraj K Jhunjhunwala

Place: Kalyaneshwari Partner

Date: 24th May, 2013 M. No- 057170


Mar 31, 2012

1. We have audited the attached Balance Sheet of MAITHAN ALLOYS LIMITED as at 31st March, 2012, the Statement of Profit and Loss and also the Cash Flow statement 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 (Auditor's Report) Order, 2003 as amended by the Companies (Auditor's Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of 'The Companies Act, 1956' (the 'Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in Paragraph 3 above, we report that:

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

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and the 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. On the basis of written representations received from the directors as on 31st March, 2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956;

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

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

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

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

ANNEXURE TO THE AUDITORS' REPORT Referred to in paragraph (3) of our report of even date to the members of Maithan Alloys Limited

i) In respect of fixed assets:

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

(b) All fixed assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such physical verification.

(c) The fixed assets disposed of during the year are not substantial and hence, it has not affected the going concern status of the company.

ii) In respect of inventories:

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

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

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) The Company has neither granted nor taken any loans, secured or unsecured, to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, clauses (iii)(b), (iii)(c), (iii)(d), (iii)(f) and (iii)(g) of the Order are not applicable.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

v) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act,1956: (a) According to the information and explanation given to us by the management, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section;

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time where such market prices are available.

vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public hence the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act 1956 are not applicable to the company.

vii) In our opinion and according to the information and explanations given to us, the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

viii) We have been informed that the Central Government has not prescribed the maintenance of cost records by the Company under Section 209 (1) (d) of the Companies Act, 1956.

ix) a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, custom duty and excise duty were outstanding, at the year end for a period of more than six months from the date they became payable.

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

Particulars Financial years to which Forum where dispute Amount the matter pertains is pending (Rs. in lacs)

Excise Duty & Service Tax 2006-07 Joint Commissioner, Bolpur 10.45

Excise Duty & Service Tax 2008-09 Joint Commissioner, Bolpur 12.37

Excise Duty & Service Tax 2008-09 Assistant Commissioner, Asansol 10.91

Excise Duty & Service Tax 2008-09 Commissioner (Appeal), Kolkata 4.98

Excise Duty & Service Tax 2009-10 Joint Commissioner, Bolpur 42.85

Excise Duty & Service Tax 2009-10 Assistant Commissioner, Asansol 7.85

Excise Duty & Service Tax 2009-10 Commissioner (Appeal), Bolpur 141.38

Excise Duty & Service Tax 2007-08 CESTAT, Kolkata 44.97

Excise Duty & Service Tax 2009-10 Addl. Commissioner, Bolpur 27.13

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

xi) In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

xiv) The Company has maintained proper records of the transactions in respect of dealing or trading in shares and timely entries have been made therein. All shares acquired by the company were held in its own name.

xv) The Company has given Guarantee to Banks for Loans taken by its subsidiary Company. In our opinion and according to the information and explanation given to us, the terms of the said Guarantee is not prima facie prejudicial to the interest of the Company.

xvi) In our opinion and according to the information and explanation given to us the term loans were applied for the purpose for which the loans were obtained.

xvii) According to the information and explanations given to us and on the basis of the overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year under review.

xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year. Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

xx) During the year, the Company has not made any public issue and therefore the question of disclosing the end use of money raised by public issue does not arise.

xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For D. K. Chhajer & Co.

Chartered Accountants

Niraj K. Jhunjhunwala

Partner Kalyaneshwari M. No- F057170

Dated: 29th June, 2012 Firm Reg. No. 304138E


Mar 31, 2011

1. We have audited the attached Balance Sheet of MAITHAN ALLOYS LIMITED as at 31st March, 2011, the Profit and Loss Account and also the Cash Flow statement 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 (Auditor’s Report) Order, 2003 as amended by the Companies (Auditor’s Report) (Amendment) Order, 2004, ssued by the Central Government of India in terms of Sub-section (4A) of Section 227 of ‘The Companies Act, 1956’ (the ‘Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in Paragraph 3 above, we report that:

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

d. In our opinion, the Balance Sheet, the Profit and Loss Account and the 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. On the basis of written representations received from the directors as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956;

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

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

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

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

ANNEXURE TO THE AUDITORS’ REPORT

Referred to in paragraph (3) of our report of even date to the members of Maithan Alloys Limited

i) In respect of fixed assets:

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

b) All fixed assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such physical verification.

c) The fixed assets disposed of during the year are not substantial and hence, it has not affected the going concern status of the Company.

ii) In respect of inventories:

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

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

c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) a) During the year, the Company has granted unsecured loan to a Company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs.3.00 crore and the year end balance was nil.

b) In our opinion the rate of interest and other terms and conditions of the loans are not prima facie prejudicial to the interest of the Company.

c) In respect of aforesaid loan, there is no stipulation as to repayment thereof.

d) In our opinion and according to the information and explanation given to us there is no overdue amount outstanding in respect of the said loan.

e) During the year, the Company has taken unsecured loan from a Company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs.11.00 Crores and the year end balance was nil.

f) In our opinion and according to the information and explanation given to us, the rate o interest and other terms and condition of the above loan are not prima facia prejudicial to the interest of the Company.

g) In respect of aforesaid loan, there is no stipulation as to repayment thereof.

iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

v) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) According to the information and explanation given to us by the management, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section;

b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time where such market prices are available.

vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public hence the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act, 1956 are not applicable to the Company.

vii) In our opinion and according to the information and explanations given to us, the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

viii) We have been informed that the Central Government has not prescribed the maintenance of cost records by the Company under Section 209 (1) (d) of the Companies Act, 1956.

ix) a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, custom duty and excise duty were outstanding, at the year end for a period of more than six months from the date they became payable.

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

Particulars Financial years Forum where Amount years to which dispute is (Rs. the matter pending in lacs) pertains

Excise Duty & Service Tax 2006-07 Joint Commiss ioner, Bolpur 10.45

Excise Duty & Service Tax 2008-09 Joint Commiss ioner, Bolpur 12.37

Excise Duty & Service Tax 2008-09 Assistant Com missioner, Asansol 10.91

Excise Duty & Service Tax 2008-09 Commissioner (Appeal), Kolkata 4.98

Excise Duty & Service Tax 2009-10 Joint Commiss ioner, Bolpur 42.85

Excise Duty & Service Tax 2009-10 Assistant Com missioner, Asansol 7.85

Excise Duty & Service Tax 2009-10 Commissioner (Appeal), Bolpur 141.38

Excise Duty & Service Tax 2007-08 CESTAT, Kolkata 44.97

Excise Duty & Service Tax 2009-10 Addl. Commis sioner, Bolpur 27.13

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

xi) In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

xiv) The Company has maintained proper records of the transactions in respect of dealing or trading in shares and timely entries have been made therein. All shares acquired by the Company were held in its own name.

xv) The Company has given Guarantee to Banks for Loans taken by its subsidiary Company. In our opinion and according to the information and explanation given to us, the terms of the said Guarantee is not prima facie prejudicial to the interest of the Company.

xvi) In our opinion and according to the information and explanation given to us the term loans were applied for the purpose for which the loans were obtained.

xvii) According to the information and explanations given to us and on the basis of the overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year under review.

xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year. Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

xx) During the year, the Company has not made any public issue and therefore the question of disclosing the end use of money raised by public issue does not arise.

xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For D. K. Chhajer & Co. Chartered Accountants

Niraj K. Jhunjhunwala Partner M. No- F057170 Firm Reg. No. 304138E

Place: Kalyaneshwari Dated: 15 June 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of MAITHAN ALLOYS LIMITED as at 31 March 2010 and also the Profit and Loss Account and the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of The Companies Act, 1956 (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in Paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in Paragraph 3 above, we report that:

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

d. In our opinion, the Balance Sheet, the Profit and Loss Account and the 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. On the basis of written representations received from the directors, as on 31 March 2010, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March 2010 from being appointed as a director in terms of Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956;

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

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

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

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

Annexure to the Auditors Report Referred to in paragraph (3) of our report of even date to the members of Maithan Alloys Limited

i) In respect of fixed assets:

a) The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets.

b) All fixed assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such physical verification.

c) The Fixed Assets disposed of during the year are not substantial and hence, it has not affected the going concern status of the Company.

ii) In respect of inventories:

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

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

c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii) a) During the year, the Company has not granted any loans, secured or unsecured to Companies, Firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.Accordingly, the clauses (iii) (b), (iii) (c), (iii) (d) are not applicable.

b) During the year, the Company has taken unsecured loans from a Company covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.10.88 crores and the year end balance was Rs. 10.88 crores.

c) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and condition of the above loan are not prima facie prejudicial to the interest of the Company.

d) In respect of aforesaid loan, there is no stipulation as to repayment thereof.

iv) In our opinion and according to the information and

explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

v) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

a) According to the information and explanation given to us by the management, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section;

b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time where such market prices are available.

vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public hence the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act 1956 are not applicable to the Company.

vii) In our opinion and according to the information and explanations given to us, the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

viii) We have been informed that the Central Government has not prescribed the maintenance of cost records by the Company under Section 209 (1) (d) of the Companies Act, 1956.

ix) a) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of

income tax, wealth tax, service tax, sales tax, custom duty and excise duty were outstanding, at the year end for a period of more than six months from the date they became payable. c) According to the information and explanations given to us, details of dues of sales tax, income tax, custom duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute are given below.



Excise Duty & Service Tax 2006-07 Joint Commissioner, Bolpur 10.45

Excise Duty & Service Tax 2008-09 Joint Commissioner, Bolpur 12.37

Excise Duty & Service Tax 2008-09 Assistant Commissioner, Asansol 10.91

Excise Duty & Service Tax 2008-09 Commissioner (Appeal), Kolkata 4.98

Excise Duty & Service Tax 2009-10 Joint Commissioner,Bolpur 42.85

Excise Duty & Service Tax 2009-10 Assistant Commissioner, Asansol 7.85

Excise Duty & Service Tax 2009-10 Commissioner (Appeal), Bolpur 141.38

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

xi) In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

xiv) The Company has maintained proper records of the transactions in respect of dealing or trading in shares and timely entries have been made therein. All shares acquired by the Company were held in its own name.

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

xvi) In our opinion and according to the information and explanation given to us the term loans were applied for the purpose for which the loans were obtained.

xvii) According to the information and explanations given to us and on the basis of the overall examination of the

balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year under review.

xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year. Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

xx) During the year, the Company has not made any public issue and therefore the question of disclosing the end use of money raised by public issue does not arise.

xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For D. K. Chhajer & Co.

Chartered Accountants

Niraj K. Jhunjhunwala Place: Kalyaneshwari Partner

Dated: 21 June 2010 M. No- F057170

Firm Reg. No.304138E


Mar 31, 2009

1. We have audited the attached Balance Sheet of MAITHAN ALLOYS LIMITED as at 31st March, 2009 and also the Profit and Loss Account and the Cash Flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of The Companies Act, 1956 (the Act) and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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, 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. On the basis of written representations received from the directors, as on 31st March, 2009, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2009 from being appointed as a director in terms of Clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956;

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

a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009;

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

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

ANNEXURE TO THE AUDITORS REPORT

Referred to in paragraph (3) of our report of even date to the members of Maithan Alloys Limited

(i) In respect of fixed assets:

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of its Fixed Assets.

(b) All fixed assets were physically verified by the management during the year. We have been informed that no material discrepancies were noticed on such physical verification.

(c) Substantial part of fixed assets has not been disposed of during the year, which will affect its status as going concern.

(ii) In respect of inventories:

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

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation of the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

(iii) The Company has neither granted nor taken any loans, secured or unsecured, to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, clauses (iii) (b), (iii) (c), (iii) (d), (iii) (f) and (iii) (g) of the Order are not applicable

(iv) In our opinion and according to the information and explanations given to us, there

is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal controls in respect of these areas.

(v) In respect of the contracts or arrangements referred to in Section 301 of the Companies Act, 1956:

(a) In our opinion and according to information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section;

(b) In our opinion and according to the information and explanations given to us, transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time where such market prices are available.

(vi) In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public hence the provisions of Section 58A, 58AA or any other relevant provisions of the Companies Act 1956 are not applicable to the company.

(vii) In our opinion and according to the information and explanations given to us, the Company has an adequate internal audit system commensurate with the size of the Company and the nature of its business.

(viii) We have been informed that the Central Government has not prescribed the maintenance of cost records by the Company under Section 209 (1) (d) of the Companies Act, 1956.

(ix) According to the records of the Company, the Company is generally regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, service-tax, custom duty, excise duty, cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, service tax, sales tax, custom duty and excise duty were outstanding, at the year end for a period of more than six months from the date they became payable.

According to the information and explanations given to us, details of dues of sales tax, income tax, custom duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute are given below:

Particulars Financial years to Forum where dispute Amount which the matter is pending (Rs. in lacs) pertains

Excise Duty & 2006-07 Joint Commissioner, Bolpur 10.45 Service Tax

Excise Duty & 2008-09 Joint Commissioner, Bolpur 12.37 Service Tax

Excise Duty & 2008-09 Assistant Commissioner, 10.91 Service Tax Asansol

Excise Duty & 2008-09 Commissioner (Appeal), 4.98 Service Tax Kolkata

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

(xi) In our opinion and according to information and explanation given to us, the Company has not defaulted in repayment of dues to a financial institution or bank or debenture holders.

(xii) According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

(xiv) The Company has maintained proper records of the transactions in respect of dealing or trading in shares and timely entries have been made therein. All shares acquired by the company were held in its own name.

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

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

(xvii) According to the information and explanations given to us and on the basis of the overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

(xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares during the year under review.

(xix) In our opinion and according to the information and explanations given to us, the Company has not issued any secured debentures during the year. Accordingly, the provisions of clause 4(xix) of the Order are not applicable to the Company.

(xx) During the year covered by our Audit report, the Company has not raised any monies by public issues.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and

fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit.

For D. K. CHHAJER & CO.

Chartered Accountants

Niraj K. Jhunjhunwala

Partner

M. No- F057170

Kalyaneshwari Dated: 4th June, 2009.

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