Auditor Report of NAVA Ltd.

Mar 31, 2025

To the Members of NAVA Limited

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying Standalone Financial Statements of NAVA Limited (''the Company''), which comprise the Standalone Balance Sheet as at 31 March 2025, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Cash Flow and the standalone statement of changes in equity for the year then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory information.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2025, and its profit (including other comprehensive Income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

5. We have determined the matter described below to be the key audit matter to be communicated in our report.

Key audit matter	How our audit addressed the key audit matter
Provisions and contingent liabilities relating to ongoing litigations: Refer notes 2(m) for the accounting policies and Note 34(b)(i) to 34(b)(iv) to the accompanying standalone financial statements. The Company is involved in various direct tax, indirect tax and regulatory litigations that are pending before various statutory authorities as at 31 March 2025. The application of accounting principles as given	Our audit procedures included, but were not limited to the following: â¢ Obtained an understanding of the management process for: - identification of legal and indirect tax matters initiated against the Company. - assessment of accounting treatment for each such litigation identified as per the applicable accounting standards; and - measurement of amounts involved.
under Ind AS 37, Provisions, Contingent Liabilities	â¢ Evaluated the design and implementation, and tested the
and Contingent Assets (''Ind AS 37''), in order to	operating effectiveness of the controls put in place by the
determine whether the present obligation, if any,	management in relation to assessment of the outcome of
identified under such litigations is recognized as	these pending litigations;
a provision or disclosed as a contingent liability in the financial statements is inherently subjective	â¢ Assessed appropriateness of accounting policy relating
and needs careful evaluation and judgement to be	to provisions and contingent liabilities adopted by the
applied by the management of the Company.	management of Company in accordance with Ind AS 37;
	â¢ Obtained an understanding of the nature of litigations
The judgments involved are dependent on a number	pending against the Company and discussed the key
of significant assumptions and assessments which	developments during the year for ongoing litigations
includes assumptions relating to the likelihood and/	with the management and where relevant, we read the
or timing of the cash outflows from the business	external legal advice obtained by the management. For
and the interpretation of local laws, past legal	certain significant cases, we obtained independent third-
rulings and pending assessments at various levels	party confirmations from legal experts and evaluated the
of the statute, for which the management uses	responses received, together with follow-up discussions,
various subject matter experts.	where required;
The amounts involved are significant and due to the range of possible outcomes, considerable uncertainty around ongoing litigations, significant judgements involved and required reliance on legal/tax experts, the assessment of appropriate accounting treatment with respect to litigations is considered to be a key audit matter in the current year.	â¢ Involved auditor''s experts to assess Company''s interpretation and application of relevant tax laws to evaluate the appropriateness of key assumptions used and the reasonableness of estimates in relation to uncertain tax positions taking into account past judicial precedents; â¢ Evaluated the appropriateness and adequacy of the
	disclosures made relating to provisions and contingent liabilities in accordance with the applicable accounting standards.

Information other than the Standalone Financial Statements and Auditor''s Report thereon

6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the Standalone Financial Statements and our auditor''s report thereon.

Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report the fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

7. The accompanying Standalone Financial Statements have been approved by the Company''s Board of Directors. The Company''s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting

principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

9. The Board of Directors is also responsible for overseeing the Company''s financial reporting process.

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

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

11. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

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

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

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

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

Report on Other Legal and Regulatory Requirements

15. As required by section 197(16) of the Act, based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.

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

17. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable, that:

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

b) Except for the matters stated in paragraph 17(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended), 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 Standalone Financial Statements dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid Standalone Financial Statements comply with Ind AS specified under section 133 of the Act;

e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2025 from being appointed as a director in terms of section 164(2) of the Act;

f) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 17(b) above on reporting under section 143(3)(b) of the Act and paragraph 17(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);

g) With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statements of the Company as on 31 March 2025 and the operating effectiveness of such controls, refer to our separate report in Annexure II wherein we have expressed an unmodified opinion; and

h) 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 (as amended), in our opinion and to the best of our information and according to the explanations given to us:

i. The Company, as detailed in Note 34(b) to the Standalone Financial Statements, has disclosed the impact of pending litigation on its financial position as at 31 March 2025;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2025;

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 31 March 2025;

iv.

a. The management has represented that, to the best of its knowledge and belief, other than as disclosed in note 42(A)(i) to the Standalone Financial Statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;

b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 42(A)(ii) to the Standalone Financial Statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.

v. As stated in note 15B to the accompanying Standalone Financial Statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2025 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend. The interim dividend declared and paid by the Company during the year ended 31 March 2025 and until the date of this audit report is in compliance with section 123 of the Act and the final dividend paid by the Company during the year ended 31 March 2025 in respect of such dividend declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend; and

vi. As stated in Note 44 to the accompanying Standalone Financial Statements and based on our examination which included test checks, except for instance mentioned below, the Company, in respect of financial year commencing on or after 1 April 2024, has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with other than the consequential impact of the exception given below. Furthermore, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

Nature of exception noted	Details of Exception
Instances of accounting software for maintaining books of account for which the feature of recording audit trail (edit log) facility was not operated throughout the year for all relevant transactions recorded in the software	The audit trail feature was not enabled at the database level for accounting software to log any direct data changes, used for maintenance of all accounting records by the Company.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm''s Registration No.: 001076N/N500013

Vijay Vikram Singh

Partner

Membership No.: 059139 UDIN: 25059139BMKTAS6284

Hyderabad 16 May 2025

Mar 31, 2024

1. We have audited the accompanying standalone financial statements of NAVA Limited (''the Company''), which comprise the Standalone Balance Sheet as at 31 March 2024, the Standalone Statement of Profit and Loss (including Other Comprehensive Loss), the Standalone Statement of Cash Flow and the Standalone Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory information.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its profit (including other comprehensive loss), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

5. We have determined the matter described below to be the key audit matters to be communicated in our report.

Key audit matter

How our audit addressed the key audit matter

Contingent liabilities relating to ongoing litigation: Refer notes 2(m) for the accounting policy and note 34(b)(i) & 34(b)(iv) for the related disclosures in the Standalone financial statements.

As disclosed in notes referred above to the accompanying Standalone financial statements, the Company has presently disputed various claims from tax and other regulatory authorities (''litigations'').

Whether a liability is recognized as a provision or disclosed as a contingent liability in the financial statements involves inherent judgments dependent on a number of significant assumptions and assessments. These include assumptions relating to the likelihood and/or timing of the cash outflows from the business and the interpretation of local laws and pending assessments at various levels of the statute.

The amounts involved are significant and due to the range of possible outcomes and considerable uncertainty around the various litigations, the determination of the need for creating a provision in the standalone financial statements is inherently subjective and therefore is considered to be a key audit matter in the current year.

Our audit procedures included, but were not limited to the following:

â¢ Obtained an understanding of the management process for:

- identification of legal and indirect tax matters initiated against the Company.

- assessment of accounting treatment for each such litigation identified as per the applicable accounting standards; and

- for measurement of amounts involved;

â¢ Tested the design and operating effectiveness of the controls put in place by the management in relation to assessment of the outcome of these pending litigations;

â¢ Obtained an understanding of the nature of litigations pending against the Company, sent across independent third-party legal confirmations and evaluated the responses received, together with follow up discussions, where appropriate on certain cases and in case of no responses, discussed the key developments during the year for these key litigations with the management, in-house legal team; and

â¢ Evaluated the appropriateness and adequacy of the disclosures made relating to contingent liabilities in accordance with the applicable accounting standards.

Information other than the Standalone Financial Statements and Auditor''s Report thereon

6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

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

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

9. The Board of Directors is also responsible for overseeing the Company''s financial reporting process.

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

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

11. As part of an audit in accordance with Standards on Auditing, specified under Section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

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

Report on Other Legal and Regulatory Requirements

15. As required by Section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the Act.

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

17. Further to our comments in Annexure I, as required by Section 143(3) of the Act based on our audit, we report, to the extent applicable, that:

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

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, except for the matters stated in paragraph 17(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);

c) The standalone financial statements dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;

e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act;

f) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 17(b) above on reporting under Section 143(3)(b) of the Act and paragraph 17(h) (vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);

g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on 31 March 2024 and the operating effectiveness of such controls, refer to our separate report in Annexure II wherein we have expressed an unmodified opinion; and

i. The Company, as detailed in note 34(b) to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2024;

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2024;

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 31 March 2024;

iv.

a. The management has represented that, to the best of its knowledge and belief, other than as disclosed in note 43(a)(i) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;

b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 43(a)(ii) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with

the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

v. The final dividend paid by the Company during the year ended 31 March 2024 in respect of such dividend

declared for the previous year is in accordance with Section 123 of the Act to the extent it applies to payment of dividend and as stated in Note 42 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2024 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.

vi As stated in note 45 of the standalone financial statements and based on our examination which included test

checks, except for instance mentioned below, the Company, in respect of financial year commencing on 1 April

2023, has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with, other than the consequential impact of the exception given below:

Particulars	Details of Exception
Instances of accounting software for maintaining books of account for which the feature of recording audit trail (edit log) facility was not operated throughout the year for all relevant transactions recorded in the software	The audit trail feature was not enabled at the database level for accounting software from 1 April 2023 to 18 March 2024, to log any direct data changes, used for maintenance of all accounting records by the Company.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm''s Registration No.: 001076N/N500013

Sanjay Kumar Jain Partner

Membership No.: 207660 UDIN: 24207660BKERHJ6257

Place : Hyderabad Date : 17 May 2024

Mar 31, 2023

NAVA Limited (formerly known as "Nava Bharat Ventures Limited") Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying standalone financial statements of NAVA Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2023, the Statement of Profit and Loss (including Other Comprehensive loss), the Statement of Cash Flow and the Statement of Changes in Equity for the year then ended, and notes to the standalone financial statements, including a summary of the significant accounting policies and other explanatory information.

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as

at 31 March 2023, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under section

143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matter

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

5. We have determined the matter described below to be the key audit matters to be communicated in our report.

Key Audit matter	How our audit addressed the key audit matter
Contingent liabilities relating to ongoing litigation:	Our audit procedures included, but were not limited to the
Refer note 2(r) for the accounting policy and note	following:
35(b)(i) to 35(b)(iv) for the related disclosures in	â¢ Obtained an understanding of the management process
financials.	for: - identification of legal and indirect tax matters initiated
As disclosed in the notes referred above to the	against the Company,
accompanying standalone financial statements,	- assessment of accounting treatment for each such
the Company has presently disputed various claims from tax and other regulatory authorities (''litigations'').	litigation identified as per the applicable accounting standards, and - for measurement of amounts involved;
Whether a liability is recognized as a provision or	â¢ Tested the design and operating effectiveness of the
disclosed as a contingent liability in the standalone	controls put in place by the management in relation to
financial statements involves inherent judgments dependent on a number of significant assumptions	assessment of the outcome of these pending litigations;
and assessments. These include assumptions	â¢ Obtained an understanding of the nature of litigations
relating to the likelihood and/or timing of the cash	pending against the Company, sent across independent
outflows from the business and the interpretation	third-party legal confirmations and evaluated the
of local laws and pending assessments at various	responses received, together with follow up discussions,
levels of the statute.	where appropriate on certain cases and in case of no
levels of the statute.	responses, discussed the key developments during the
The amounts involved are significant and due to	year for these key litigations with the management, in-
the range of possible outcomes and considerable	house legal team;
uncertainty around the various litigations the	â¢ Where relevant, we read the external legal advice
determination of the need for creating a provision in the financial statements is inherently subjective	obtained by the management;
and therefore is considered to be a key audit	â¢ Evaluated the appropriateness and adequacy of the
matter in the current year.	disclosures made relating to provisions and contingent liabilities in accordance with the applicable accounting standards.

Information other than the Financial Statements and

Auditor''s Report thereon

6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon.

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

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

Responsibilities of Management and Those Charged

with Governance for the Standalone Financial

Statements

7. The accompanying standalone financial statements have been approved by the Company''s Board

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

8. In preparing the financial statements, the Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but

to do so.

9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the

Standalone Financial Statements

10. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance

is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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

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

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

13. We also provide those charged with governance with a statement that we have complied

with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.

We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

15. As required by section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.

17. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable, that:

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 standalone financial statements dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;

e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the

directors is disqualified as on 31 March 2023 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 with reference to financial statements of the Company as on 31 March 2023 and the operating effectiveness of such controls, refer to our separate Report in Annexure II wherein we have expressed an unmodified opinion; and

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

i. the Company, as detailed in note 35(b) to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2023;

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2023;

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 31 March 2023;

iv. a. The management has represented

that, to the best of its knowledge and belief, other than as disclosed in note 44(a)(i) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;

b. The management has represented that, to the best of its knowledge and belief, other than as disclosed in note 44(a)(ii) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding

Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

v. The final dividend paid by the Company during the year ended 31 March 2023 in respect of such dividend declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend and as stated in Note 43 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2023 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 requires all companies which use accounting software for maintaining their books of account, to use such an accounting software which has a feature of audit trail, with effect from the financial year beginning on 1 April 2023 and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 (as amended) is not applicable for the current financial year.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm''s Registration No.: 001076N/N500013

Sanjay Kumar Jain

Partner

Membership No.: 207660

UDIN: 23207660BGYCHT9946

Place: Hyderabad

Date: 24 May 2023

Mar 31, 2022

Opinion

1. We have audited the accompanying standalone financial statements of Nava Bharat Ventures Limited (''the Company''), which comprise the Balance Sheet as at 31 March 2022, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity

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

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as

at 31 March 2022, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under section

Key Audit Matters

5. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter

; How our audit addressed the key audit matter

Contingent liabilities relating to ongoing litigations:

Refer note 2(r) for the accounting policy and note 35(b)(i) to 35(b)(iv) for the related disclosures.

As disclosed in the notes referred above to the accompanying standalone financial statements, the Company has presently disputed various claims from tax and other regulatory authorities (''litigations'').

Whether a liability is recognised as a provision or disclosed as a contingent liability in the standalone financial statements involves inherent judgments dependent on a number of significant assumptions and assessments. These include assumptions relating to the likelihood and/or timing of the cash outflows from the business and the interpretation of local laws and pending assessments at various levels of the statute.

The amounts involved are significant and due to the range of possible outcomes and considerable uncertainty around the various litigations the determination of the need for creating a provision in the financial statements is inherently subjective and therefore is considered to be a key audit matter in the current year.

Our audit procedures included, but were not limited to the following:

â¢ Obtained an understanding of the management process for:

- identification of legal and tax matters initiated against the Company,

- assessment of accounting treatment for each such litigation identified under as per the applicable accounting standards, and

- for measurement of amounts involved

â¢ Tested the design and operating effectiveness of the controls put in place by the management in relation to assessment of the outcome of these pending litigations;

â¢ Obtained an understanding of the nature of litigations pending against the Company and discussed the key developments during the year for these key litigations with the management, in-house legal team;

â¢ Where relevant, we read the external legal advice obtained by the management;

â¢ Obtained relevant third-party legal confirmations, together with follow up discussions, where appropriate on certain cases;

â¢ Evaluated the appropriateness and adequacy of the disclosures made relating to provisions and contingent liabilities in accordance with the applicable accounting standards.

Information other than the Standalone Financial

Statements and Auditor''s Report thereon

6. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon.

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

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

Responsibilities of Management and Those Charged

with Governance for the Standalone Financial

Statements

7. The accompanying standalone financial statements have been approved by the Company''s Board

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

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

9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the

Standalone Financial Statements

10. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue

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

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

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

â¢ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures

in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern;

â¢ Evaluate the overall presentation, structure and content of the standalone financial statements,

including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation;

13. We also provide those charged with governance with a statement that we have complied

Report on Other Legal and Regulatory Requirements

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

17. Further to our comments in Annexure I, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable, that:

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 standalone financial statements dealt with by this report are in agreement with the books of account;

d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;

e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 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 with reference to standalone financial statements of the Company as on 31 March 2022 and the operating effectiveness of such controls, refer to our separate Report in Annexure II wherein we have expressed an unmodified opinion; and

i. the Company, as detailed in note 35(b) to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2022;

ii. the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2022;

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 31 March 2022;

iv. a) The management has represented that,

to the best of its knowledge and belief, other than as disclosed in note 44(i) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, as disclosed in note 44(ii) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities

identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our attention that causes us to believe that the management representations under sub-clauses (a) and (b) above contain any material misstatement.

v. The final dividend paid during by the Company during the year ended 31 March 2022 in respect of such dividend declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend and as stated in note 43 to the accompanying

standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2022 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm''s Registration No.: 001076N/N500013

Sanjay Kumar Jain

Partner

Membership No.: 207660

UDIN: 22207660AJAMBY4748

Place: Hyderabad

Date: 16 May 2022

Mar 31, 2018

Report on the Standalone Financial Statements

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

Managementâs Responsibility for the Standalone Financial Statements

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

Auditorâs 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 these 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 financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial controls relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the 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 these 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 including Ind AS specified under Section 133 of the Act, of the state of affairs (financial position) of the Company as at 31 March 2018, and its profit (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Other Matter

9. The standalone financial statements of the Company as at and for the year ended 31 March 2017 were audited by the Companyâs predecessor auditor who had expressed an unmodified opinion on those standalone financial statements vide their report dated 27 May 2017. The balances as at 31 March 2017 as per the audited standalone financial statements, duly read in conjunction with note 40 to the financial statements, have been considered as opening balances for the purpose of these standalone financial statements.

Report on Other Legal and Regulatory Requirements

10. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the Annexure I a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. Further to our comments in Annexure I, 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 standalone financial statements dealt with by this report are in agreement with the books of account;

d) in our opinion, the aforesaid standalone financial statements comply with Ind AS specified under Section 133 of the Act;

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

f) we have also audited the internal financial controls over financial reporting (IFCoFR) of the Company as on 31 March 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date and our report dated May 30, 2018 as per Annexure II expressed an unmodified opinion;

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

i. the Company, as detailed in Note 34 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position;

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

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

iv. the disclosure requirements relating to holdings as well as dealings in specified bank notes were applicable for the period from 8 November 2016 to 30 December 2016 which are not relevant to these standalone financial statements. Hence, reporting under this clause is not applicable.

Based on the audit procedures performed for the purpose of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, and to the best of our knowledge and belief, we report that:

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

(b) The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

(c) The title deeds of all the immovable properties (which are included under the head âProperty, plant and equipmentâ) are held in the name of the Company except for the following properties which were transferred as a result of amalgamation of companies in earlier years wherein the title deeds are in the name of the erstwhile companies/Entities:

Nature of property	Total Number of Cases	Whether leasehold / freehold	Gross block as on 31 March 2018 (Rs. in Lakhs)	Net block on 31 March 2018 (Rs. in Lakhs)	Remarks
Land	Multiple	Freehold	232.31	232.31	-

The title deeds of the land on which buildings of sugar manufacturing facility representing a gross block of Rs.1,409.78 lakhs and net block of Rs.1,230.96 lakhs as on 31 March 2018 situated at Samalkot, East Godavari district are not held in the name of the Company, owing to the expiry of lease period of the land on 12 August 1996, on which the same are constructed.

(ii) In our opinion, the management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies between physical inventory and book records were noticed on physical verification.

(iii) The Company has granted unsecured loans to companies covered in the register maintained under Section 189 of the Act; and with respect to the same

(a) in our opinion the terms and conditions of grant of such loans are not, prima facie, prejudicial to the Companyâs interest.

(b) the schedule of repayments of principal and interest has been stipulated wherein in respect of loan granted to one party, the principal and interest amounts are repayable on demand and since the repayment of principal has not been demanded, in our opinion, repayment of the principal amount is regular. Further, the repayment of interest amounts in respect of the said loan is regular. In respect of the other party, the schedule of repayments of interest and principal has been stipulated and as the interest and principal amounts were not due for payments during the year, the repayment of interest and principal amounts are regular.

(iv) In our opinion, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of loans, investments, guarantees and security.

(v) In our opinion, the Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.

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

(vii)(a) Undisputed statutory dues including provident fund, employeesâ 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, have generally been regularly deposited to the appropriate authorities, though there has been a slight delay in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.

(b) The dues outstanding in respect of income-tax, sales-tax, service-tax, duty of customs, duty of excise and value added tax on account of any dispute, are as follows:

Statement of Disputed Dues

Name of the statute	Nature of dues	Amount (Rs. in Lakhs)	Amount paid under Protest (âin lakhs)	Period to which the amount relates	Forum where dispute is pending	Remarks, if any
Various Sales Tax Acts	Central Sales Tax	64.88	-	2000-01	The Andhra Pradesh Sales Tax and VAT Appellate Tribunal, Hyderabad	-
	Central Sales Tax	2.20	-	2004-05	Assistant Commissioner of Sales Tax, Range-II, Cuttack.	-
	Andhra Pradesh General Sales Tax	79.36	-	2003-04	Assistant Commissioner of Commercial Taxes, Warangal	-

Customs Act, 1962	Customs duty	206.06	-	2012-13	CESTAT, Chennai	-
Customs Act, 1962	Customs duty	17.62	-	1985-87	Honâble High Court of Judicature at Hyderabad for the combined states of Telangana and Andhra Pradesh	-
Central Excise Act, 1944	Excise duty	737.00	-	2012-13	The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Bangalore	-
		55.29	-	1997-98	CESTAT, New Delhi	-
		94.35	-	2011-16	Commissioner of Customs and Central Excise (Appeals), Hyderabad	-
		136.90	-	2000-01 to 2001-02	Honâble High Court of Judicature at Hyderabad for the combined states of Telangana and Andhra Pradesh	-
		12.61	-	2000-01 to 2005-06	Commissioner of Central Excise (Appeals), Visakhapatnam	-
Finance Act, 1994 (as amended	Service Tax	124.55	-	2009-14	Commissioner of Service Tax (Appeals), Hyderabad	-
		17.05	-	2014-15	Commissioner of Service Tax (Appeals), Hyderabad	-
		474.74	-	2007-08	CESTAT, Kolkata	-
		14.65	-	April 2012 to March 2014	Deputy Commissioner of Central Excise, Kakinada	-
		22.72	-	April 2011 to March 2017	Assistant Commissioner of Central Excise, Kakinada	-
		60.76	-	October 2007 to March 2017	Commissioner of Central Excise (Appeals), Visakhapatnam	-
Income Tax Act, 1961	Income tax	311.60	311.60	AY 2005-06	Honâble High Court of Judicature at Hyderabad for the combined states of Telangana and Andhra Pradesh	-
		325.24	325.24	AY 2008-09	Commissioner of Income Tax (Appeals)	-
		61.62	61.62	AY 2009-10	Commissioner of Income Tax (Appeals)	-
		53.32	53.32	AY 2009-10	Income Tax Appellate Tribunal (ITAT)	-
		66.19	66.19	AY 2010-11	Income Tax Appellate Tribunal (ITAT)	-
		2,078.02	-	AY 2010-11	Honâble High Court of Judicature at Hyderabad for the combined states of Telangana and Andhra Pradesh	-
		176.11	176.11	AY 2011-12	Income Tax Appellate Tribunal (ITAT)	-
		290.02	290.02	AY 2012-13	Commissioner of Income Tax (Appeals)	-
		85.19	85.19	AY 2013-14	Commissioner of Income Tax (Appeals)	-

(viii) The Company has not defaulted in repayment of loans or borrowings to any banks during the year. The Company did not have any outstanding loans or borrowings from financial institution or government or outstanding debentures during the year.

(ix) The Company did not raise moneys by way of initial public offer or further public offer (including debt instruments). In our opinion, the term loans were applied for the purposes for which the loans were obtained.

(x) No fraud by the Company or on the company by its officers or employees has been noticed or reported during the period covered by our audit.

(xi) Managerial remuneration has been paid (and)/provided by the company in accordance with the requisite approvals mandated by the provisions of Section 197 of the Act read with Schedule V to the Act.

(xii) In our opinion, the Company is not a Nidhi Company. Accordingly, provisions of clause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance with Sections 177 and 188 of Act, where applicable, and the requisite details have been disclosed in the financial statements etc., as required by the applicable Ind AS.

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

(xv) In our opinion, the Company has not entered into any non-cash transactions with the directors or persons connected with them covered under Section 192 of the Act.

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

Annexure II to the Independent Auditorâs Report of even date to the members of Nava Bharat Ventures Limited on the standalone financial statements for the year ended March 31, 2018

Annexure II

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

1. In conjunction with our audit of the standalone financial statements of Nava Bharat Ventures Limited (âthe Companyâ) as at and for the year ended 31 March 2018, we have audited the internal financial controls over financial reporting (âIFCoFRâ) of the Company as at that date.

Managementâs Responsibility for Internal Financial Controls

2. The Companyâs Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (âICAI â). 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 the Companyâs business, including adherence to the Companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditorâs Responsibility

3. Our responsibility is to express an opinion on the Companyâs IFCoFR based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India (âICAIâ) and deemed to be prescribed under Section 143(10) of the Act, to the extent applicable to an audit of IFCoFR, and the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (âthe Guidance Noteâ) issued by the ICAI. 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 IFCoFR were established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includes obtaining an understanding of IFCoFR, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

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

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

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

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

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR, 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 IFCoFR to future periods are subject to the risk that the IFCoFR may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting and such controls were operating effectively as at 31 March 2018, 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 (âICAIâ).

For Walker Chandiok & Co LLP

Chartered Accountants

Firmâs Registration No.: 001076N/N500013

per Sanjay Kumar Jain

Place: Hyderabad Partner

Date : May 30, 2018 Membership No.: 207660

Mar 31, 2017

The Members of

Nava Bharat Ventures Limited,

Hyderabad.

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS:

We have audited the accompanying Standalone Ind AS Financial statements of NAVA BHARAT VENTURES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS:

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Standalone Ind AS Financial statements that give a true and fair view of the state of affairs, profit or loss including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS Financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY:

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

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

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

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial statements.

OPINION:

In our opinion and to the best of our information and according to the explanations given to us the aforesaid Standalone Ind AS Financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs of the Company as at 31st March 2017, its profit, its cash flows and the changes in equity for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of section 143 (11) of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

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

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

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

(d) In our opinion, the aforesaid Standalone Ind AS Financial statements comply with the Accounting Standards specified under Section 133 of the Act.

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

(f) With respect to the adequacy of 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 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 Ind AS Financial statements - Refer Note 30 to the Standalone Ind AS Financial statements

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November 2016 to 30th December 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management -Refer Note:55

The Annexure referred to in Para 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, to the members of NAVA BHARAT VENTURES LIMITED, HYDERABAD, for the year ended March 31, 2017.

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

b. As explained to us, the management has physically verified the fixed assets during the year and there is a regular programme of physical verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. No discrepancies were noticed on such verification.

c. According to the information and explanations furnished by the Management and based on the records examined by us, regarding the title deeds of the immovable property other than self-constructed buildings and including investment Property, we report that:

i. In respect of immovable properties of lands that have been taken on lease and disclosed as fixed assets in the financial statements, the lease agreements are in the name of the company/ amalgamated Company, where the Company is the lessee in the agreements.

ii. The title in respect of the land costing Rs,15.71 lakhs admeasuring 14.06 acres and 23 guntas is yet to be transferred in the name of the Company.

iii. The title in respect of land costing Rs,26.06 lakhs admeasuring 5.05 acres allotted by APIIC Limited is yet to be transferred in the name of the Company.

iv. The long-term lease period relating to the land situated at Samalkot, East Godavari District on which the Buildings of Sugar Manufacturing facility were constructed was expired on 12.8.1996.

v. In respect of all other immovable properties, we are given to understand that the title deeds are with Security trustee and are held in the name/ erstwhile name of the Company or in the name of amalgamated Company.

2. The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such verification between the physical stocks and book records.

3.a. During the year, the Company has not granted any loans, secured or unsecured to Companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

b. In our opinion and according to the information and explanations given to us, in respect of the unsecured loan granted to a Company in earlier year, the terms and conditions of the grant of such loan are not, prima facie, prejudicial to the interest of the Company.

c. The schedule of repayment of principal and payment of interest has been stipulated and the repayments are as per the said stipulations.

d. There were no overdue amounts in respect of the said loans.

4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

5. The Company has not accepted any deposits from the public. Hence the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under, do not apply to this Company.

6. The maintenance of cost records has been specified by the Central Government under section 148(1) of the Companies Act, 2013 for the Products of Company. We have broadly reviewed the cost records maintained by the Company pursuant to sub-section

(1) of section 148 of the Companies Act, 2013 and are of the opinion that prime facie the prescribed accounts and 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.

7.a. According to the records, the company is generally regular in depositing 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 all other material statutory dues with the appropriate authorities. However, the extent of the arears of outstanding statutory dues as at March 31, 2017 for a period of more than six months from the date they became payable are as follows.

Name of the Statute	Nature of the dues	Amount ''	Period to which the amount	Due Date	Date of payment
			relates		Date of payment
AP AL (CFNAP) Act, 2006	Land Conversion Tax	151,061	2010 -11	-	Not yet paid
		52,560	2008-09	30.04.2009
OSPCB	Water Cess	60,994 11,518	2009-10 2011-12	30.04.2010 30.04.2012	Not yet paid
O S Govt.	Ground Rent	7,592 5,955	2009-10 2011-12	31.03.2010 31.03.2012	Not yet paid
East Coast Railways	Water way line Charges	1,80,932	2002-03 to 2009-10	31.03.2010	Not yet paid
		72,60,282	2003-04 to 2007-08	15.04.2008
		4,07,520	2008- 09	30.04.2009
		4,37,520	May 2010	30.06.2010
		2,51,868	Jun 2010	31.07.2010
		5,35,680	July 2010	31.08.2010
		5,14,944	Aug 2010	30.09.2010
The A.P. Electricity Duty Act, 2003 (as amended)	Electricity Duty	53,24,777 52,39,126 48,979 6,45,905 4,95,380 7,12,759 5,59,577 6,44,816 6,15,821	Sept 2010 2003-.04 to 2010-11 April 2011 May 2011 March 2012 2012-13 2013-14 2014-15 2015-16	31.10.2010 30.04.2012 31.05.201 1 30.06.2011 30.04.2012 30.05.2013 30.05.2014 30.05.2015 30.05.2016	Not yet paid

b. According to the records of the Company and the information and explanations given to us, there were no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute except the following.

Name of the Statute	Nature of Dues	Amount Rs,	Period to which amount relates	Forum where dispute is pending
AP (Ag. Produce & Live Stock) Marketing Act, 1966	Agricultural Market Cess	28,15,396	1980-81 to 1989-90	The Secretary, Agricultural Marketing Committee, Visakhapatnam
AP Municipalities Act, 1965	Property Tax	1,49,952 2,00,798	1995-96 to 2000-01 1995-96 to 2000-01	Hon''ble High Court of AP Hon''ble High Court of AP
AP Municipalities Act, 1965		9,19,512	201 1-2016	Appeal yet to be filed
Various Sales Tax Acts	Central Sales Tax	2,20,130 64,87,532	2004-05 2000-01	Asst. Commissioner of Sales Tax, Range-II, Cuttack STAT, Hyderabad
	APGST	79,35,607	2003-04	Asst. Commissioner of Commercial
	APGST	79,35,607	2003-04	Taxes, Warangal
		1,98,33,272	2004-05 to 2009-10	CESTAT, Bangalore
		7,37,00,285	2012-13	CESTAT, Bangalore
	Excise Duty	55,29,064	1997-98	CESTAT, New Delhi
	Excise Duty	13,690,286	2000-01 to 2001-02	Hon''ble High Court of AP
		12,25,648	2000-01 to 2005-06	Commissioner of Central Excise(Appeals), Visakhapatnam
		59,10,310	Oct 2007 - March 2017	Commissioner of Central Excise(Appeals), Visakhapatnam
Central Excise Act, 1944		1,18,23,188	2009-14	Commissioner of Service Tax (Appeals), Hyderabad
		16,51,329	2014-15	Commissioner of Service Tax (Appeals), Hyderabad
	Service Tax	92,28,030	2011-16	Commissioner of Customs and Central Excise (Appeals), Hyderabad
		13,54,843	April 2012 - March 2014	Deputy Commissioner of Central Excise, Kakinada
		21,03,640	April 2011 - March 2017	Assistant Commissioner of Central Excise, Kakinada
		4,82,96,986	2007-08	CESTAT, Kolkata
The AP Non-Agricultural Land Assessment Act, 1963	nala TAX	12,25,116	1993-94 to 1998-99	Hon''ble High Court of AP
Customs Act, 1962	Customs Duty	17,61,860 2,06,05,922	1985-87 2012-13	Hon''ble High Court of AP CESTAT, Chennai
The A.P. Electricity Duty Act, 2003.	Electricity Duty	6,61,33,219	2008-09 to 2016-17	Hon''ble High Court of AP
The A.P. Electricity Duty Act, 2003.	Electricity Duty	98,90,981*	2003-13	Hon''ble Supreme Court of India
* Net of amounts paid under protest

8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institutions and Banks.

9. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised and the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year.

10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.

11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Companies (Auditor''s Report) Order 2016 is not applicable

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

We have audited the internal financial controls over financial reporting of NAVA BHARAT VENTURES LIMITED, HYDERABAD ("the Company") as of 31 March 2017 in conjunction with our audit of the 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

14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Companies (Auditor''s Report) Order 2016 is not applicable.

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

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

AUDITOR''S 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, 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.

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 31 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 Brahmayya & Co.,

Chartered Accountants

Firm''s Registration No.000513S

P. Chandramouli

Place : Hyderabad Partner

Date : May 27, 2017 Membership No.02521 1

Mar 31, 2016

We have audited the accompanying Standalone Financial Statements of NAVA BHARAT VENTURES LIMITED, ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITORS'' RESPONSIBILITY

Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts and 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 Financial Statements.

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

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its Profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

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

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

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

(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

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

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 40 to the financial statements

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

The Annexure referred to in Para 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, to the members of NAVA BHARAT VENTURES LIMITED, HYDERABAD, for the year ended March 31,2016.

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

b. As explained to us, the management has physically verified the fixed assets during the year and there is a regular programme of physical verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. No discrepancies were noticed on such verification.

c. According to the information and explanations furnished by the Management and based on the records examined by us, regarding the title deeds of the immovable property other than self constructed buildings and including investment property, we report that:

i. In respect of immovable properties of lands that have been taken on lease and disclosed as fixed assets in the financial statements, the lease agreements are in the name of the company, where the Company is the lessee in the agreements.

ii. The title in respect of the land costing Rs.15.71 lakhs admeasuring 14.06 acres and 23 guntas is yet to be transferred in the name of the Company.

iii. The title in respect of land costing Rs.26.06 lakhs admeasuring 5.05 acres allotted by APIIC Limited is yet to be transferred in the name of the Company.

iv. The long term lease period relating to the land situated at Samalkot, East Godavari District on which the Buildings of Sugar Manufacturing facility were constructed was expired on 12.8.1996.

v. In respect of all other immovable properties, we are given to understand that the title deeds are with Security trustee and are held in the name of the Company.

2. The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such verification between the physical stocks and book records.

3. a. During the year, the Company has granted unsecured loans to a Company covered in the register maintained under Section 189 of the Companies Act, 2013.

b. In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loan are not, prima facie, prejudicial to the interest of the Company

c. The schedule of repayment of principal and payment of interest has been stipulated and the repayments are as per the said stipulations.

d. There were no overdue amounts in respect of the said loans.

4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

5. The Company has not accepted any deposits from the public. Hence the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under, do not apply to this Company.

6. The maintenance of cost records has been specified by the Central Government under section 148(1) of the C ompanies Act, 201 3 for the Products of C ompany. We have broadly reviewed the cost records maintained by the Company pursuant to sub-section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prime facie the prescribed accounts and 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.

7. a. According to the records, the company is generally regular in depositing 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 all other material statutory dues with the appropriate authorities. However, the extent of the arrears of outstanding statutory dues as at March 31, 2016 for a period of more than six months from the date they became payable are as follows.

UNDISPUTED STATUTORY DUES

Nature of the Amount Period to which the Due Date Date of Name of the Statute dues Rs. amount relates payment

AP AL (CFNAP) Act, 2006 Land Conversion 6,466,061 2010 -11 - Not yet paid Tax

Orissa Electricity Duty Act, 1961 Electricity Duty 1,091,227 2008-09 30.04.2009 Not yet paid

325,551 2009-10 30.04.2010

90,239 2012-13 30.04.2013

Customs Act,1962 Customs Duty 1,761,860 1985-87 - Not yet paid

304,945 2008-09 30.04.2009

156,781 2009-10 30.04.2010

Go AP 156,867 2010-11 30.04.2011

Water Charges 260,127 2011-12 30.04.2012 Not yet paid

(I & CAD Dept.) 131,924 2012-13 30.04.2013

152,700 2013-14 30.04.2014

135,219 2014-15 30.04.2015

52,560 2008-09 30.04.2009

OSPCB Water Cess 60,994 2009-10 30.04.2010 Not yet paid

11,518 2011-12 30.04.2012

12,484 2008-09 31.03.2009 Not yet paid

Go AP, APPCB Water Cess 15,976 2013-14 31.03.2014

13,999 2014-15 31.03.2015

The A.P. Electricity Duty Act, 2003-04 to Not yet paid 2003 (as amended) * Electricity Duty 7,260,282 2007-08 15.04.2008

- do - - do - 407,520 2008-09 30.04.2009 Not yet paid

437,520 May 2010 30.06.2010

251,868 Jun 2010 31.07.2010

- do - - do - 535,680 July 2010 31.08.2010 Not yet paid

514,944 Aug 2010 30.09.2010

5,324,777 Sept 2010 31.10.2010

- do - - do - 5,239,126 30.04.2012 Not yet paid

48,979 April 2011 31.05.2011

- do - - do - 645,905 May 2011 30.06.2011 Not yet paid 495,380 March 2012 30.04.2012

712,759 2012-13 30.05.2013

- do - - do - 559,577 2013-14 30.05.2014 Not yet paid 644,816 2014-15 30.05.2015

137,854 2011-12 31.03.2012

160,268 2012-13 31.03.2013

AP Municipa lities Act,1965 Property Tax 204,510 2013-14 31.03.2014 Not yet paid

207,359 2014-15 31.03.2015

O S Govt. Ground Rent 7,592 2009-10 31.03.2010 Not yet paid

5,955 2011-12 31.03.2012

East Coast Railways Water way line 180,932 2002-03 to 31.03.2010 Not yet paid Charges 2009-10

Commissioner, Municipality, Samalkot Welfare Cess 9,969 2014-15 - Not yet paid

The Finance Act, 1994 Service tax 514,022 2014-15 30.06.2015 Not yet paid

A.P. Excise Act, 1968 Establishment 1,245,672 - - Not yet paid Charges

b. According to the records of the Company and the information and explanations given to us, there were no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute except the following.

DISPUTED STATUTORY DUES

Nature of Amount Period to which the Forum where dispute is Name of the Statute Dues Rs. amount relates pending

AP (Ag. Produce & Agricultural The Secretary, Agricultural Live Stock) Marketing 2,815,396 1980-81 to 1989-90 Marketing Committee, Act, 1966 Market Cess Visakhapatnam

AP Municipa lities Property Tax 149,952 1995-96 to 2000-01 Hon''ble High Court of AP

-do- -do- 200,798 1995-96 to 2000-01 Hon''ble High Court of AP

Asst. Commissioner of Sales Central 220,130 2004-05 Tax, Range-II, Cuttack Sales Tax

Various Sales Tax Acts 6,487,532 2000-01 STAT, Hyderabad

APGST 7,935,607 2003-04 Asst.Commissioner of Commercial Taxes, Warangal

18,670,865 2004-05 to 2009-10 CESTAT, Bangalore

73.700.285 2012-13 CESTAT, Bangalore

5,529,064 1997-98 CESTAT, New Delhi

Excise Duty

13.690.286 2000-01 to 2001-02 Hon''ble High Court of AP

Commissioner of Central

1,190,633 2000-01 to 2005-06 Excise(Appeals), Visakhapatnam

Central Excise Act, Commissioner of Central 1944 5,373,098 Oct 2007 - Mar 2016 Excise(Appeals), Visakhapatnam

11,169,906 2009-14 Appeal yet to be filed

Service Tax 1,107,337 April 2012 - March 2014 Deputy Commissioner Central Excise, Kakinada

Assistant Commissioner of 1,252,798 April 2011 - March 2016 Central Excise, Kakinada

48,296,986 2011-12 Appeal yet to be filed.

The A.P. Electricity Electricity 50,079,654 2008-09 to 2015-16 Appeal yet to be filed. Duty Act, 2003. Duty

The AP Non- Agricul tural Land NALA TAX 1,225,116 1993-94 to 1998-99 Hon''ble High Court of AP Assessment Act, 1963

8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institutions and Banks.

9. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised and the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year.

10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.

11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Companies (Auditor''s Report) Order 2016 is not applicable

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Companies (Auditor''s Report) Order 2016 is not applicable.

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

for Brahmayya & Co.,

Chartered Accountants

Firm''s Registration Number: 000513S

P. Chandramouli

Place : Hyderabad Partner

Date : 30th May, 2016 Membership Number: 025211

Mar 31, 2015

We have audited the accompanying Standalone Financial Statements of NAVA BHARAT VENTURES LIMITED, ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR''S RESPONSIBILITY

Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit. We have taken into account the provisions of the Act,the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

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

An audit involves performing procedures to obtain audit evidence about the amounts and 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 Financial Statements.

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

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2015, and its Profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS:

1. As required by the Companies (Auditor''s Report) Order, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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

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

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

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

(d) In our opinion, the aforesaid Standalone Financial Statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

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

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 34 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

Annexure to the Auditor''s Report

The Annexure referred to in Para 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, to the members of NAVA BHARAT VENTURES LIMITED, HYDERABAD, for the year ended March 31, 2015.

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

b. As explained to us, the management has physically verified the fixed assets during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. No discrepancies were noticed on such verification.

2. a. The inventory has been physically verified during the year by the management.In our opinion, the frequency of verification is reasonable.

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

c. The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification between the physical stocks and book records were not material.

3. a. During the year, the Company has granted unsecured loan to a Company covered in the register maintained under Section 189 of the Companies Act, 2013. The maximum amount involved during year was USD 6.00 Million (equivalent to RS.3,749.70 Lakhs) and the year end balance of such loan was USD 6.00 Million (equivalent to RS. 3,749.70 Lakhs).

b. In our opinion and according to the information and explanations given to us, receipt of the principal amount and interest are as per the terms of such unsecured loan.

4. We are informed that the prices charged to Subsidiary Companies cannot be compared with alternative quotations as most of the items/transactions are of special in nature. Read with the above, in our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. The Company has not accepted any deposits from the public. Hence the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under, do not apply to this Company.

6. We have broadly reviewed the cost records maintained by the Company pursuant to sub-section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prime facie the prescribed accounts and 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.

7. a. According to the records of the Company, the company regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales- tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities.

b. According to the records of the Company, no un disputed statutory dues including provident fund, employees'' state insurance, income-tax, sales- tax, wealth tax, service tax, duty of customs, duty of excise, value added tax,cess and any other statutory dues were in arrears as at March 31, 2015 for a period of more than six months from the date they became payable except the following:

Name of the Statute Nature of the dues Amount RS.

AP AL(CFNAP) Act , 2006 Land Conversion Tax 64,66,061

Orissa Electricity Electricity Duty 10,91,227 Duty Act 1961 3,25,551

90,239

Customs Act,1962 Customs Duty 17,61,860

GoAP ( I & CAD Dept) Water Charges 3,04,945

1,56,781

1.56.867

2,60,127

1,31,924

1,52,700

OSPCB Water Cess 52,560

60,994

11,518

GoAP, APPCB Water Cess 12,484

15,976

The A.P. Electricity Electricity Duty 72,60,282 Duty Act, (as amended)

- do - - do - 4,07,520

- do - - do - 4,37,520

2,51.868

5,35,680

5,14,944

53,24,777

- do - - do - 52,39,126

The A.P. Electricity Electricity Duty 48,979 Duty Act,(as amended) 4,95,380

The A.P. Electricity Electricity Duty 7,12,759

Duty Act 2003 (as amended) 5,59,577

AP Municipalities Property Tax 1,52,854

Act,1965 1,81,234

2,52,451

O S Govt. Ground Rent 7,592

5,955

East Coast Railways Water way line Charges 1,80,932

Commissioner, Municipality, Welfare Cess 6,044 Samalkot

Name of the Statute Period to which Due Date Date of the amount payment relates

AP AL(CFNAP) Act , 2006 2010 - 11 Not yet paid

Orissa Electricity 2008 - 09 30.04.2009 Not yet Duty Act 1961 2009 - 10 30.04.2010 paid

2012 - 13 30.04.2013

Customs Act,1962 1985 - 87 Not yet paid

GoAP ( I & CAD Dept) 2008 - 09 30.04.2009 Not yet

2009 - 10 30.04.2010 paid

2010 - 11 30.04.2011

2011 - 12 30.04.2012

2012 - 13 30.04.2013

2013 - 14 30.04.2014

OSPCB 2008 - 09 30.04.2009 Not yet

2009 - 10 30.04.2010 paid

2011 - 12 30.04.2012

GoAP, APPCB 2008 - 09 31.03.2009 Not yet

2013 - 14 31.03.2014 paid

The A.P. Electricity 2003 - 04 15.04.2008 Not yet Duty Act, (as amended) to 2007-08 paid

- do - 2008 - 09 30.04.2009 Not yet paid

- do - May 2010 30.06.2010 Not yet

Jun 2010 31.07.2010 paid

July 2010 31.08.2010

Aug 2010 30.09.2010

Sept 2010 31.10.2010

- do - 2003 - 04 30.04.2012 Not yet

2010 - 11 paid

The A.P. Electricity April 2011 31.05.2011 Not yet Duty Act,(as amended) May 2011 30.06.2011 paid

March 2012 30.04.2012

The A.P. Electricity 2012 - 13 30.05.2013 Not yet

Duty Act 2003 (as amended) 2013 - 14 30.05.2014 paid

AP Municipalities 2011 - 12 31.03.2012 Not yet

Act,1965 2012 - 13 31.03.2013 paid

2013 - 14 31.03.2014

O S Govt. 2009 - 10 31.03.2010 Not yet

2011 - 12 31.03.2012 paid

East Coast Railways 2002 - 03 to 31.03.2010 Not yet

2009 - 10 paid

Commissioner, Not yet Municipality, 2014 - 15 - Paid Samalkot

c. According to the records of the Company and the information and explanations given to us, the dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute are as follows.

Name of the Statute Nature of the dues Amount RS.

AP (Ag.Produce & Agricultural Market Cess 28,15,396 Live Stock) Marketing Act, 1966

AP Municipalities Property Tax 1,49,952 Act 1965 2,00,798

Central Sales Tax 2,20,130

various sales Tax 64,87,532

APGST 79,35,607

1,75,08,459

7,37,00,285

55,29,064 Excise Duty Central Excise Act, 13,690,286

1944 11,55,618

Service Tax 36,90,416

44,15,367

1,40,42,859

20,54,018

Central Excise Act, Service Tax 1,05,44,620 1944 6,75,349

9,13,025

The A.P Electricity Electricity Duty 260,70,764

Duty Act, 2003. 43,085,412

The AP Non- NALA TAX 12,25,116 Agricultural Land Assessment Act, 1963

Period to which the Forum where dispute is pending amount relates

1980-81 to 1989-90 The Secretary, Agricultural Marketing Committee, Visakhapatnam

1995-96 to 2000-01 Hon''ble High Court of A.P.

1995-96 to 2000-01

2004-05 Asst. Commissioner of Sales Tax, Range-II, Cuttack

2000-01 STAT, Hyderabad

2003-04 Asst. Commissioner of Commercial Taxes, Warangal

2004-05 to 2009-10 CESTAT, Bangalore

2012-13 CESTAT, Bangalore

1997-98 CESTAT, New Delhi

2000-01 to 2001-02 Hon''ble High Court of A.P.

2000-01 to 2005-06 Commissioner of Central Excise (Appeals), Visakhapatnam

Oct 2007 - March Commissioner of Central Excise 2013 (Appeals), Visakhapatnam

2000- 01 to 2010 -11 Hon''ble High Court of A.P

1996-97 to 2010-11 Hon''ble High Court of A.P

2009-12 Appeal yet to be filed

2009-14 Appeal yet to be filed

April 2012 - Deputy Commissioner of September 2013 Central Excise, Kakinada

April 2011 - August Assistant Commissioner of 2013 Central Excise, Kakinada

2003-04 to 2012-13 Hon''ble High Court of A.P

2008-09 to 2014-15 Appeal yet to be filed

1993-94 to 1998-99 Hon''ble High Court of A.P

d. According to the records of the Company and the information and explanations given to us, the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time.

8. The Company has no accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the year covered by our audit and also in the immediately preceding financial year.

9. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions and Banks.

10. In our opinion, the terms and conditions on which the Company has given guarantees for the loans taken by Others from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

11. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised.

12. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

for Brahmayya & Co., Chartered Accountants Firm''s Registration Number: 000513S

P. Chandramouli Partner Place : Hyderabad Membership Number: 025211

Date : May 29, 2015

Mar 31, 2014

Report on the Financial Statements:

We have audited the accompanying financial statements of NAVA BHARAT VENTURES 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

Management''s Responsibility for the Financial Statements:

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956 ("the Act"), read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and 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, but not for the purpose of expressing an opinion on the effectiveness of the entity''s nternal 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 overal 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, 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:

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of Sub-Section (4A) of Section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the 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 Sub-Section (3C) of Section 211 of the Companies Act, 1956; read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

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 Companies Act, 1956

f. Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under Section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

Annexure to the Auditors'' Report

The Annexure referred to in Para 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, to the members of NAVA BHARAT VENTURES LIMITED, HYDERABAD, for the year ended March 31, 2014.

1. a. The Company has maintained proper records

showing full particulars, including quantitative details and situation of fixed assets.

b. As explained to us, the management has physically verified the fixed assets during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. No discrepancies were noticed on such verification

c. The plant and machinery disposed off during the year by the Company is not substantial and hence, it has not affected the going concern status of the Company.

2. a. The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable

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

c. The Company is maintaining proper records of inventory. The discrepancies noticed on physica verification between the physical stocks and book records were not material

3. a. During the year, 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

b. In view of our comment in paragraph (a) above, (III) (b), (c), (d), (e), (f) and (g) of paragraph 4 of the aforesaid order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, there are adequate interna control systems commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system

5. a. In our opinion and according to the information and explanations 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 to be maintained under that section

b. In respect of the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs entered into during the financial year, in the absence of any comparable quotes, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public. Hence the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975, do not apply to this Company.

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

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect of sugar, distillery, power and ferro alloys and are of the opinion that prima facie the prescribed accounts and 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 The Central Government has not prescribed the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for any other products of the Company.

9. a. According to the records of the Company, the Company is regular (but for what is stated in Para (b) below) in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it.

10. The Company has no accumulated losses as at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financia nstitutions and Banks

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi/mutua benefit fund/society Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures and other investments Therefore, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

15. In our opinion, the terms and conditions on which the Company has given guarantees for the loans taken by Others from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

16. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised

17. In our opinion and according to the information and explanations given to us, the funds raised on short-term basis have not been used for long-term investment.

18. During the year, the Company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year, therefore the question of creating security or charge in respect thereof does not arise.

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

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

for Brahmayya & Co.

Chartered Accountants Firm''s Registration Number: 000513S

(P. Chandramouli)

Place : Hyderabad Partner

Date : May 30, 2014 Membership Number: 025211

Mar 31, 2012

1. We have audited the attached Balance Sheet of NAVA BHARAT VENTURES LIMITED, HYDERABAD (A.P) 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 the 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), 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.

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

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

iii) The Balance Sheet, the Statement of Profit and Loss and Cash Flow statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss and 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.

v) 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;

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

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 the Statement of profit and loss, of the Profit of the Company 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, Re: NAVA BHARAT VENTURES LIMITED, HYDERABAD.

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

b) As explained to us, the management has physically verified most of the fixed assets during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. As informed, no material discrepancies were noticed on such verification.

c) The plant and machinery disposed off during the year by the Company is not substantial and hence, it has not affected the going concern status of the Company.

2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification between the physical stocks and book records were not material.

3. a) The Company has granted unsecured loan to one of its subsidiary covered in the register maintained under section 301 of the companies Act, 1956. The maximum amount involved during the year was Rs.8,390 lakhs and the year- end balance of loan granted to such party was Rs. 8,390 lakhs.

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

c) As the terms of repayment have not been stipulated in respect of loans given as above, we are not in a position to make any specific comment regarding the repayment of principal and also interest.

d) In respect of the said loan and interest thereon, there are no overdue amounts.

e) As informed, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the companies Act, 1956. Accordingly, the provisions of clauses 4(iii)(f) and 4(iii)(g) of the companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. a) According to the information and explanations 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 to be maintained under that section

b) In respect of the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs entered into during the financial year, in the absence of any comparable quotes, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the Company has not accepted any deposits from the public. Therefore, the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975, do not apply to this Company.

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

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of sugar, distillery, power and ferro chrome and are of the opinion that prime facie the prescribed accounts and records have been made and maintained. The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 for any other products of the Company.

9. a) According to the records, the Company is generally regular (but for what is stated in Para ( b) below) in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as at March 31, 2012 for a period of more than six months from the date they became payable except the following Amount Name of the Statute Nature of the dues (?)

The A.P. Electricity Electricity 72,60,282 Duty Act 1939 (as amended)

-do- -do- 4,07,520

4,37,520

2,51,868

-do- -do- 5,35,680

5,14,944 53,24,777

48,979 -do- -do- 6,45,905

28,460 GoAP APPCB Water Cess 12,363

3,04,945 GoAP Water Charges 1,56,781 I & CAD Dept 1,56,867

AP AL(CFNAP) ACT 2006 Land Conversion 64,66,061

Orissa Electricity Duty Act Electricity Duty 10,91,227

-do- Electricity Duty 3,25,551

52,560 OSPCB Water Cess 60,994

Customs Act,1962 Customs Duty 17,61,860

OSGovt. Land lease 7,592

Name of the Period to which the Due Date Date of amount relates payment

The A.P. Electricity Duty Act 1939 (as amended) 2003-04 to 15-04-2008 Not yet paid 2007-08

-do- 2008-09 30-04-2009 Not yet paid

May 2010 30-06-2010

Jun 2010 31-07-2010

-do- July 2010 31-08-2010 Not yet paid

Aug 2010 30-09-2010

Sept. 2010 31-10-2010

-do- April 2011 31-05-2011 Not yet paid May 2011 30-06-2011

GoAP APPCB 2008-09 Not yet paid 2011-12

2008-09 30-04-2009 GoAP (I & CAD Dept) 2009-10 30-04-2010 Not yet paid 2010-11 30-04-2011

AP AL(CFNAP) ACT 2006 2010-11 Not yet paid

Orissa Electricity Duty Act 1961 2008- 09 30-04-2009 Not yet paid

-do- 2009 -10 30-04-2009 Not yet paid

OSPCB 2008 - 09 30-04-2009 Not yet paid 2009 - 10 30-04-2010

Customs Act,1962 1985 - 87 Not yet paid

OSGovt. 2010-11 Not yet paid

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

Name of the Statute Nature of the Amount

2,20,130 Central Sales 14,30,850 Tax Various Sales Tax Acts 70,16,426

21,90,252 AP GST

79,35,607

75,60,960 Income Tax Act, 1961 Income Tax 331,62,882

230,88,330

AP (Agriculture Produce Agricultural & Live Stock Marketing 28,15,396 Market Cess Act, 1966

55,29,064

139,48,452

Excise Duty 11,31,853

8,64,428

Central Excise Act, 1944

135,81,386

36,26,003 Service Tax 106,26,427

3,06,394

AP State Excise & Establishment

Prohibition Act, 1972 charges under 35,51,781 State Excise

Name of the Period to which Forum where dispute Statue the amount realtes is pending

2004-05 Asst. Commissioner of Sales Tax, 2005-06 Range-II, Cuttack

Various Sales Tax Acts 2000-01 STAT, Hyderabad

2002-03 Asst.Commissioner of Commercial 2003-04 Taxes, Warangal

Asst. Year ITAT, Hyderabad 2005-06

Income Tax Act, 1961 Asst. Year ITAT, Hyderabad 2006-07

Asst. Year CIT (Appeals) - V 2008-09 Hyderabad

AP (Agriculture Produce & Live Stock) Marketing Act, 1966 1980-81 to The Secretary, Agricultural Marketing 1989-90 Committee, Visakhapatnam

Customs, Excise & Service Tax Appellate Tribunal, New Delhi

2004 05 Customs, Excise & Service Tax Appellate Tribunal, 2009-10 Bangalore

Customs, Excise & Service Tax 2001-02 Appellate Tribunal, Bangalore

2009-10 Deputy Commissioner of Central Excise & Customs-II 2011-12 Kakinada

Central Excise Act, 1944 2000-01 to Hon ble High Court of A.P. 2001-02

2000 - 01 Hon'ble High Court of A.P to 2010 -11

1996-97 Hon'ble High Court of A.P. to 2010-11

2006-07 Customs, Excise & Service Tax Appellate Tribunal, and 2010-11 Bangalore

AP State Excise & Prohibition Act, 1972 1968-69 Commissioner of State to 1987-88 Excise & Prohibition, Hyderabad

Name of the Statute Nature of the Amount

The AP Non-Agricultural Land Assessment Act, NALA TAX 18,82,000 1963

1,49,952 AP Municipalities Act, Property Tax 1965 2,00,798

The A.P. Electricity Duty

Electricity Duty 311,65,094 Act 1939. as amended

Name of the Period to which Forum where dispute Statue the amount realtes is pending

The AP Non-Agricultural Land Assessment Act, 1963 1993-94 Hon'ble High Court of AP to 1998-99

1995-96 Hon'ble High Court of AP to 2000-01

AP Municipalities Act, 1965 1995-96 Hon'ble High Court of AP to 2000-01

The A.P. Electricity Duty Act 1939. (as amended) 2003-04 Hon'ble High Court of AP to 2011-12

10. The Company has no accumulated losses as at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions and Banks.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi/mutual benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

15. In our opinion, the terms and conditions on which the Company has given guarantees for the loans taken by Others from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

16. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised.

17. According to the information and explanations given to us and on an 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.

18. During the year, the Company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act, 1956.

19. During the year, the Company has not issued any debentures, therefore the question of creating security or charge in respect thereof does not arise

20. 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.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

per our report of even date

for Brahmayya & Co,

Chartered Accountants

Firms' Registration Number: 000513S

P. Chandramouli Place : Hyderabad Partner

Date : 30th May 2012 Membership Number: 025211

Mar 31, 2011

1. We have audited the attached Balance Sheet of NAVA BHARAT VENTURES LIMITED, HYDERABAD (A.P) 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 CompanyÃs Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 signifcant 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 (AuditorsÃ 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 specifed in paragraphs 4 and 5 of the said Order.

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

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

iii) The Balance Sheet, profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, profit and Loss account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

v) 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 disqualifed 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;

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read in conjunction with the Schedules annexed therewith 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 of the Company for the year ended on that date; and

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

for Brahmayya & Co.

Chartered Accountants

Firms Registration Number: 000513S

(P Chandramouli)

Place: Hyderabad Partner

Date : 28th May, 2011 Membership Number: 025211

Annexure to the Auditors Report

referred to in paragraph 3 of our report of even date

Re: Nava Bharat Ventures Limited, Hyderabad.

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

b) As explained to us, the management has physically verifed most of the fixed assets during the year and there is a regular programme of verifcation which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. As informed, no material discrepancies were noticed on such verifcation.

c) The plant and machinery disposed off during the year by the Company is not substantial and hence, it has not affected the going concern status of the Company.

2. a) The inventory has been physically verifed during the year by the management. In our opinion, the frequency of verifcation is reasonable.

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

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verifcation between the physical stocks and book records were not material.

3. a) During the year, the Company has neither granted nor taken any loans, secured or unsecured to/ from Companies, frms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

b) In view of our comment in paragraph 3(a) above, (III) (b), (c), (d), (e) and (f) of paragraph 4 of the aforesaid order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. a) According to the information and explanations 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 to be maintained under that section

b) In respect of the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees fve Lakhs entered into during the financial year, in the absence of any comparable quotes, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 58A and 58AA and other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

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

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect of sugar, distillery, power and ferro chrome and are of the opinion that prime facie the prescribed accounts and records have been made and maintained. The Central Government has not prescribed the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for any other products of the Company.

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

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as at March 31, 2011 for a period of more than six months from the date they became payable except the following

Period to which Name of the Nature of Amount Date of

the amount Due Date

Statute the dues (Rs) payment

relates

The A.P. 2003-04 Electricity Duty Electricity 72,60,282 to 15-04-2008 Not yet paid

Act 1939 Duty

2007-08 (as amended)

-do- -do- 4,07,520 2008 - 09 30-04-2009 Not yet paid

4,37,520 May 2010 30-06-2010

2,51,868 Jun 2010 31-07-2010

-do- -do- Not yet paid

5,35,680 July 2010 31-08-2010

5,14,944 Aug 2010 30-09-2010

GoAP Water Cess 28,460 2008 - 09 - Not yet paid

APPCB

GoAP Water 3,04,945 2008 - 09 30-04-2009 Not yet paid

(I & CAD Dept) Charges 1,56,781 2009 - 10 30-04-2010

Land AP AL(CFNAP) Conversion 64,66,061 2010 - 11 - Not yet paid

ACT 2006 Tax

Orissa Electricity Electricity Duty 10,91,227 2008- 09 30-04-2009 Not yet paid

Duty Act

1961

Electricity -do- 3,20,936 2009 -10 30-04-2009 Not yet paid

Duty

52,560 2008 - 09 30-04-2009

OSPCB Water Cess Not yet paid

1,08,226 2009 - 10 30-04-2010

Customs Customs 17,61,860 1985 - 87 - Not yet paid

Act,1962 Duty

Central

Excise Service Tax 25,287 Aug 2010 30-09-2010 Not yet paid

Act, 1944

The Company has no accumulated losses as at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions and Banks.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of the Companies (AuditorÃs Report) Order, 2003 are not applicable to the Company.

15. In our opinion, the terms and conditions on which the Company has given guarantees for the loans taken by Others from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

16. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised.

17. According to the information and explanations given to us and on an 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.

18. During the year, the Company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act, 1956.

19. During the year, the Company has not issued any debentures , therefore the question of creating security or charge in respect thereof does not arise.

20. 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.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

for Brahmayya & Co. Chartered Accountants

Firms Registration Number: 000513S

(P Chandramouli)

Place: Hyderabad Partner

Date : 28th May, 2011 Membership Number: 025211

Mar 31, 2010

1. We have audited the attached Balance Sheet of NAVA BHARAT VENTURES LIMITED, HYDERABAD (A.P) as at 31st March, 2010, 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 CompanyÃs Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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 (AuditorsÃ 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.

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

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

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

iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with by this report are in agreement with the books of account.

iv) In our opinion, the Balance Sheet, Profit and Loss account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

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

vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read in conjunction with the Schedules annexed therewith 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, 2010;

b) in the case of the profit and loss account, of the Profit of the Company 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 AuditorsÃ Report: referred to in paragraph 3 of our Report of even date

Re:Nava Bharat Ventures Limited, Hyderabad.

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

b) As explained to us, the management has physically verified most of the fixed assets during the year and there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. As informed, no material discrepancies were noticed on such verification.

c) The plant and machinery disposed off during the year by the Company is not substantial and hence, it has not affected the going concern status of the Company.

2. a) The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

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

c) The Company is maintaining proper records of inventory. The discrepancies noticed on physical verification between the physical stocks and book records were not material.

3. a) During the year, 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.

b) In view of our comment in paragraph 3(a) above, (III) (b), (c), (d), (e) and (f) of paragraph 4 of the aforesaid order are not applicable to the Company.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. a) According to the information and explanations 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 to be maintained under that section

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 58A and 58AA and other relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public.

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

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of sugar, distillery, power and ferro chrome and are of the opinion that prime facie the prescribed accounts and records have been made and maintained. The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 for any other products of the Company.

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

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as at March 31, 2010 for a period of more than six months from the date they became payable except the following:

Annexure to the AuditorsÃ Report: referred to in paragraph 3 of our Report of even date

Name of the Statu Nature of the Amount(Rs.) dues

The A.P. Electricity Duty Act, 1939 Electricit Duty 72,60,282 (as amended)

-do- -do- 4,07,520

Orissa Electricity Duty Act, 1961 -do- 10,91,227

Customs Act,1962 Customs Duty 17,61,860

Name of the Statute Period to which Due Date Date of the amount relates Payment

The A.P.Electricity Electricity Duty 15-04-2008 Not yet paid Duty Act.1939 (as amended)

-do- -do- 30-04-2008 Not yet Paid

Orissa Electricity Duty Act. 1961 -do- 30-04-2009 Not yet Paid

Customs Act,1962 Customs Duty Not yet Paid

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

Name of the Statute Nature of the dues Amount Rs.

Central Sales Tax 2,20,135 14,30,850

Central Sales Tax 44,53,693

Various Sales Tax Acts 70,16,426

APGST 16,15,252

Central Sales Tax 14,40,936

AP Value Added Tax Act, 2005 VAT 23,86,997

Income Tax Act, 1961 Income Tax 4,68,50,844

3,31,62,882

AP (Agriculture Produce & Live Agricultural 28,15,396 Stock) Marketing Act, 1966 Market Cess

Central Excise Act, 1944 Excise Duty 55,29,064

Service Tax 32,04,729

AP State Excise & 91,25,862

Prohibition Act, 1972 3,07,018

Establishment charges 28,56,867 under State Excise

The AP Non- Agricultural NALA TAX 12,25,116 Land Assessment Act, 1963

Property Tax 1,49,952 AP Municipalities Act, 1965

2,00,798

The A.P. Electricity Duty Electricity Duty 2,19,48,070 Act 1939., (as amended)

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

2004-05 Asst. Commissioner of

2005-06 Sales Tax, Range-II, Cuttack

2000-01 STAT, Hyderabad 2000-01

Various Sales Tax Acts 2002-03 Asst.Commissioner of

Commercial Taxes, Warangal

1998-99 Sales Tax Appellate Tribunal, Hyderabad

AP Value Added Tax Act.2005 2005-06 Honble High Court of A.P.

Income Tax Act,1961 Asst. Year 2005-06 ITAT, Hyderabad Asst. Year 2006-07

AP (Agriculture Produce 1980-81 to The Secretary, Agricultural & Live Stock) Maketing Act 1966 1989-90 Marketing Committee, Visakhapatnam

Central Excise.Act 1944 1997-98 Customs, Excise & Service Tax Appellate Tribunal, New Delhi

2000-01 to Honble High Court of A.P. 2009-10

AP State Excise & 1996-97 to Honble High Court of A.P. 2009-10 Prohibition Act, 1972 2006-07 and Customs, Excise & Service Tax

2007-08 Appellate Tribunal, Bangalore

1968-69 to Commissioner of State Excise 1987-88 & Prohibition, Hyderabad

The AP Non-Agricultural 1993-94 to Honble High Court of A.P. 1998-99

AP Municipalities Act 1965 1995-96 to Honble High Court of A.P. 2000-01

1995-96 to Honble High Court of A.P. 2000-01

The A.P. Electricity Duty 2003-04 to Honble High Court of A.P. 2009-10

10. The Company has no accumulated losses as at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions and Banks.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi/mutual benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the Companies (AuditorÃs Report) Order, 2003 are not applicable to the Company.

14. The Company is not dealing or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of the Companies (AuditorÃs Report) Order, 2003 are not applicable to the Company.

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

16. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised.

17. According to the information and explanations given to us and on an 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.

18. During the year, the Company has not made any preferential allotment of shares to parties and Companies covered in the Register maintained under section 301 of the Companies Act, 1956.

19. During the year, the Company has not issued any debentures, therefore the question of creating security or charge in respect thereof does not arise.

20. 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.

21. Based upon the audit procedures performed and according to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year.

for Brahmayya & Co.

Chartered Accountants

Firms Registration No.: 000513S

P. Chandramouli

Hyderabad Partner

May 29, 2010 Membership No.025211

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