Auditor Report of Pasupati Acrylon Ltd.

Mar 31, 2023

PASUPATI ACRYLON LIMITED Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of PASUPATI ACRYLON LIMITED (“the Company”), which comprise the balance sheet as at 31st March 2023, and the statement of Profit and Loss, (including other comprehensive Income) statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act 2013 (The “Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and profit/loss, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the 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 together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained by us is sufficient and appropriate to provide a basis for our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 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. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Major portion of the company’s business i.e. both export and import, is transacted in foreign currency and consequently the company is exposed to foreign exchange risk. Foreign currency exchange rate exposure due to its imports is partly balanced by export of goods. The balance foreign currency exchange rate exposure is hedged through derivative like foreign exchange forward contracts. (Refer Note No. 37 to the financial statements).We assessed the foreign exchange risk management policies adopted by the company. The company manages risk through formulating risk management objectives and policies which are reviewed by the senior management, Audit Committee and Board of Directors. Our audit approach was a combination of test of internal controls and substantive procedures to evaluate chances of minimizing the risk involved.

2. The company has certain matters under dispute which involves significant judgement to determine the possible outcome of these disputes (Refer Note No. 22(a) to the financial statements).We obtained the details of the disputes with their present status and documents. We made an in-depth analysis of the dispute. We also considered legal procedures and other rulings in evaluating management’s position on these disputes to evaluate whether any change was required to management’s position on these disputes. Based on above work preformed the assessment in respect of litigation and related disclosures relating to contingent liabilities in the financial statements is considered to be reasonable

3. Company’s major Raw Material is imported which is subject to variation due to volatility in crude oil prices and demand & supply ratio. These are monitored on regular basis using pricing trends and forecast from internationally reputed news agencies. To manage the price risk associated of these transactions, the Company formulates risk management objectives & policies which are reviewed by the senior management, Audit Committee and Board of Directors. Our Audit Approach was a combination of test of material controls & substantive procedures to evaluate chances of minimising the risk involved.

Information Other than the Financial Statements and Auditor’s Report Thereon

The Company’s Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the financial statements and our auditor’s report thereon.

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

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

Responsibilities of Management and Those Charged With Governance of the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS and other accounting principles generally accepted in India. 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements

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 SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

• 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.

• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

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

• 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 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.

• 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.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the 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

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of subsection (11) of section 143 of the Companies Act, 2013, we give in the “Annexure A” statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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, including other comprehensive income, Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).

e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B” Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.

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

a) The Company has disclosed the impact of pending litigations on its financial position in its Financial Statements - Refer note no. 22 (a) & 22 (c) to the financial statements.

b) The Company has made provision as required under the applicable law or accounting standards, for material foreseeable losses, if any, in respect of long term contracts including derivative contracts - Refer note no. 37 to the financial statements.

The company did not have any long term derivative contracts

c) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

d) Omitted.

e) (i) The management has represented that, to the best of their knowledge and belief, no funds have been advanced or loaned

or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) The management has represented, that, to the best of their knowledge and belief, no funds have been received by the company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

f) In our opinion and based on the information and explanation provided to us, no dividend has been declared or paid during the year by the company.

g) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from April 1, 2023, and accordingly, reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable for the financial year ended March 31, 2023,

For B. K. Shroff & Co Chartered Accountants

Firm Registration No.: 302166E

Place: New Delhi

Date: May 09, 2023 (OM PRAKASH SHROFF)

Udin 23006329BGYYUG7621 Partner

Membership No.: 006329

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Mar 31, 2018

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of Pasupati Acrylon Limited (“the Company”), which comprise the Balance Sheet as at 31^st March, 2018, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Cash Flow and the Statement of Changes in Equity for the period then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as “the Ind AS financial statements”).

Management’s Responsibility for the Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 Ind AS financial statements based on our audit. In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the 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 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 Ind AS financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the 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 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 Ind AS financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the 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 Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2018, and its loss, total comprehensive income, its cash flows and the changes in equity for the period ended on that date.

Report on Other Legal and Regulatory Requirements.

1. As required by Section 143(3) of the Act, based on our audit we report, to the extent applicable that:

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

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

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

d. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder.

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

f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.

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 has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements -Refer Note 24 to the financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts — Refer Note 38 to the financial statements;

iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company;

2. 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 Companies Act, 2013, we give in the Annexure ‘B’ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

Annexure “A” referred to in paragraph 1 (f) under ‘Report on Other Legal and Regulatory Requirements’ section of Independent Auditor’s Report of even date on the Ind AS Financial Statements of Pasupati AcrylonLimited.

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

We have audited the internal financial controls over financial reporting of Pasupati Acrylon Limited (“the Company”) as of March 31, 2018 in conjunction with our audit of the Ind AS Financial Statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on “the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) 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 Act.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

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

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

b) 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

c) provide reasonable assurance regarding prevention or timely detection of unauthorised 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, to the best of our information and according to the explanations given to us, 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 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 issued by the ICAI”.

Annexure “B” referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of Independent Auditor’s Report of even date on the Ind AS Financial Statements of Pasupati Acrylon Limited.

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

(b) All the fixed assets have been physically verified by the management according to a regular program, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification. Discrepancies noticed have been properly dealt with in the books of account.

(c) The title deeds of immovable properties are held in the name of the company.

(ii) Physical verification of inventory (except material in transit) has been conducted by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable. No material discrepancies with respect to book records were noticed on such verification. Discrepancies noticed have been properly dealt with in the books of account.

(iii) 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 and as such clauses (iii) (a), (b) and (c) of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us no loans, investments, guarantees and security covered under section 185 and 186 of the Companies Act, 2013 has been given by the company.

(v) According to the information and explanation given to us, the company has not accepted any deposit from the public. Therefore, the provisions of clause (v) of the order are not applicable to the company.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and we 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 such accounts and records.

(vii) (a) The company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, goods and service tax, value added tax, cess and any other statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect thereof were outstanding as at 31st March,2018 for a period of more than six months from the date they became payable.

(b) According to the records of the company, dues of income-tax or Sales tax or service tax or duty of custom or duty of excise or value added tax which have not been deposited on account of any dispute are as under:

S. No.	Name of the Statue	Nature of dues	Period to which amount relates	Amount Rs.in lacs	Forum where dispute is pending
1	Commercial Tax Department	Demand against Provisional Assessment	April 16 to June 16	17.35	Add. Commissioner (Appeal)
		Entry Tax	2003-2012	85.96	Allahabad High Court
2	Centr al Excise, Se rvice Tax & Customs Act (Service Tax)	Utilisation of for CENVAT Credit payment of Service Tax	April 07 to Feb 08	11.39	Allahabad High Court
3	Income Tax	Demand against regular assessment	A/Y 2015-16	85.92	CIT (A)

(viii) 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 a financial institution, bank, government or dues to debenture holders.

(ix) In our opinion, moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans have been applied for the purposes for which they were obtained.

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

(xi) In our opinion, and according to the information and explanation given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of the Companies Act, 2013.

(xii) The company is not a nidhi company and hence provisions of clause (xii) of the order are not applicable to the company.

(xiii) In our opinion all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the financial statements etc. as required by the applicable accounting standards.

(xiv) During the year under review the company has not made any preferential allotment on private placement of shares or fully or partly convertible debentures.

(xv) The company has not entered into any non-cash transactions with directors or persons connected with him.

(xvi) The Company is not required to be registered under section 45- 1A of the Reserve Bank of India Act, 1934

For Suresh Kumar Mittal & Co.

Chartered Accountants

Firm Registration No. 500063N

Ankur Bagla

Place : New Delhi Partner

Date : 29^th May, 2018 Membership No. : 521915

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Mar 31, 2016

INDEPENDENT AUDITORS'' REPORT

TO THE MEMBERS OF PASUPATI ACRYLON LTD.

Report on the Financial Statements

We have audited the accompanying financial statements of PASUPATI ACRYLON LIMITED (“the Company”) which comprise the Balance Sheet as at 31 March 2016, the Statement of Profit and Loss and Cash Flow Statement for the period then ended 01st April, 2015 to 31^st March 2016 and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the Financial Statements

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

Auditor’s responsibility

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

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

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

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

Opinion

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

As required by the Companies (Auditor’s Report) Order, 2015 (“the Order”), issued by the Central Government of India in terms of subsection (11) of Section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 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) In our opinion, the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls are adequate.

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 21b (iii) & (iv) to the financial statements;

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

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

ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF “REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS” OF OUR REPORT OF EVEN DATE

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

(b) All the fixed assets have been physically verified by the management according to a regular program, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification. Discrepancies noticed have been properly dealt with in the books of account.

(c) The title deeds of immovable properties are held in the name of the company.

(ii) Physical verification of inventory (except material in transit) has been conducted by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable. No material discrepancies with respect to book records were noticed on such verification. Discrepancies noticed have been properly dealt with in the books of account.

(iii) 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 and as such clauses (iii) (a), (b) and (c) of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us no loans, investments, guarantees and security covered under section 185 and 186 of the Companies Act, 2013 has been given by the company.

(v) According to the information and explanation given to us, the company has not accepted any deposit from the public. Therefore, the provisions of clause (v) of the order are not applicable to the company.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and we 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 such accounts and records.

(vii) (a) The company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess and any other statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect thereof were outstanding as at 31st March,2016 for a period of more than six months from the date they became payable.

(b) According to the records of the company, dues of income-tax or Sales tax or service tax or duty of custom or duty of excise or value added tax which have not been deposited on account of any dispute are as under:-

Sr. No.	Name of the Statue	Nature of dues	Period to which amount relates	Amount Rs. in lacs	Forum where dispute is pending
1	UP Trade Tax Act Entry Tax	Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax Entry Tax	01.04.03 to 31.03.04 01.04.04 to 31.03.05 01.04.05 to 31.03.06 01.04.06 to 31.03.07 November 2010 (2010-11) 01.04.11 to 31.03.12 01.04.07 to 31.03.08 01.04.08 to 31.03.09 01.04.09 to 31.03. 10 01.04.10 to 31.03. 11	14.40 19.47 14.54 10.34 5.19 1.44 5.04 5.97 7.99 1.58	Supreme Court, N. Delhi Tribunal — Moradabad Tribunal - Moradabad Tribunal — Moradabad Supreme Court, New Delhi Stay granted Supreme Court, New Delhi Stay granted Supreme Court, New Delhi Stay granted Supreme Court, New Delhi Stay granted Supreme Court, New Delhi Stay granted Supreme Court, New Delhi Stay granted
2	Central Excise &	Education cess debited in DEPB script	14.09.04 to 07.10.04 11.10.04 to 29.11.04 02.12.04 t0 08.02.05	4.16 14.69 17.34	CESTAT, New Delhi
3	Central Excise, Service Tax & Customs Act (Service Tax)	Utilization of CENVAT Credit for payment of Service Tax	April 07 to Sept 07 Oct 07 to Dec 07 Jan 08 to Feb 08	4.97 3.41 3.01	Matter in Allahabad High Court
4	Central Excise, Service	Disallowing Service Tax	Feb 05 to Feb 08	122.27	CESTAT, New Delhi

(viii) 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 a financial institution, bank, government or dues to debenture holders.

(ix) No money have been raised by way of initial public offer or further public offer (including debt instruments during the year). Term loans have been applied for the purpose for which they were obtained.

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

(xi) In our opinion, and according to the information and explanation given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V of the Companies Act, 2013.

(xii) The company is not a Nidhi Company and hence provisions of clause (xii) of the order are not applicable to the company.

(xiii) In our opinion all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the financial statements etc. as required by the applicable accounting standards.

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

(xv) The company has not entered into any non-cash transactions with directors or persons connected with him.

(xvi) The Company is not required to be registered under section 45-1A of the Reserve Bank of India Act, 1934

For B.K. SHROFF & CO.

Chartered Accountants

Firm Registration No. 302166E

Place : New Delhi Partner

Date : 20^th May, 2016 Membership No. : 6329

---

Mar 31, 2015

We have audited the accompanying financial statements of PASUPATI ACRYLON LTD ("the Company") which comprise the Balance Sheet as at 31 March 2015, 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

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

Auditor''s responsibility

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

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

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

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

Opinion

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

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 Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 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) In our opinion, the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls are adequate.

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 19 to the financial statements;

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts — Refer Note 34 to the financial statements;

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

ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

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

b) All the fixed assets have been physically verified by the management according to a regular program, which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification.

(ii) a) Physical verification of inventory (except material in transit) has been conducted by the management at reasonable intervals.

In our opinion, the frequency of verification is reasonable.

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

c) The company is maintaining proper records of inventory. Discrepancies noticed on verification of inventory as compared to book records were not material.

(iii) The company has not granted any loans, secured or unsecured to companies firms or other parties covered in the register maintained under section 189 of the Act and as such clauses (iii) (a) and (b), of the Order are not applicable to the company

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system.

(v) According to the information and explanation given to us, the company has not accepted any deposit from the public. Therefore, the provisions of clause (v) of the order are not applicable to the Company.

(vi) The Central Government has not specified maintenance of cost records under sub section (1) of Section 148 of the Act in respect of products dealt with by the company

(vii) a) The company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund,employees state insurance, income tax, sales tax, wealth tax, service tax, duty of custom, duty of excise, value added tax, cess and any other statutory dues applicable to it, except in certain instances where delays were noticed. According to the information and explanations given to us, no undisputed amounts payable in respect thereof were outstanding as at 31st March,2015 for a period of more than six months from the date they became payable. b) According to the records of the company, dues of income-tax or Sales tax or wealth-tax or service tax or duty of custom or duty of excise or value added tax or cess which have not been deposited on account of any dispute are as under:-

Name of the Statue Nature of dues Period to which Amount amount relates Rs.in lacs

Central Excise & Differential 13.02.92 to 30.06.92 6.77 Sales Act 1964 duty on waste

August 92 to 20.01.93 13.28

Feb. 96 to July 03 145.58

Aug. 03 to Jan. 04 17.52

May 04 to Jan. 05 31.25

Feb. 05 toApr. 05 4.75

May 05 to Nov 05 10.89

Dec 05 to March 07 13.40

April 07 toAugust 07 4.26

Sept 07 to March 08 4.96

April 08 to Nov. 08 7.43

Dec. 08 toAug. 09 2.83

Sept 09 to Feb.10 3.76

March 10 to Nov. 10 4.32

May 11 to Jan.12 6.27

Feb 12 to Nov. 12 45.26

Dec. 12 to Nov. 13 26.88

Dec. 13 to Sep. 14 9.05

UP Trade Tax Entry Tax 01.04.03 to 31.03.04 14.40 Act Entry Tax Entry Tax 01.04.04 to 31.03.05 19.47

Entry Tax 01.04.05 to 31.03.06 14.54

Entry Tax 01.04.06 to 31.03.07 10.34

Entry Tax November 2010 (2010-11) 5.19

Entry Tax 01.04.11 to 31.03. 12 1.44

Entry Tax 01.04.07 to 31.03. 08 5.04

Entry Tax 01.04.08 to 31.03. 09 5.97

Entry Tax 01.04.09 to 31.03. 10 7.99

Entry Tax 01.04.10 to 31.03. 11 1.58

Central Excise & Education cess 14.09.04 to 07.10.04 4.16 Customs Act debited in DEPB script 11.10.04 to 29.11.04 14.69 02.12.04 to 08.02.05 17.34

Central Excise, Utilisation of April 07 to Sept 07 4.97 Service CENVAT Tax & Customs Credit for Oct 07 to Dec 07 3.41 Act payment of (Service Tax) Service Tax Jan 08 to Feb 08 3.01

Central Excise, Disallowing Feb 05 to Feb 08 122.27 Service Service Tax Tax & Credit due to Customs Act non (Service Tax) Registration of HO under ISD.

Name of the Statute Forum where pending Remarks

Central Excise & Supreme Court,N. Delhi Department filed appeal Sales Act 1964 in Hon''ble Supreme Court

Department issuing SCN as Protected Demand

UP Trade Tax Act Supreme BG submitted as per Entry Tax Court, N.Delhi Supreme Court order.

Tribunal - Moradabad BG submitted as per Supreme Court order.

Tribunal - Moradabad BG submitted as per Supreme Court order.

Tribunal - Moradabad BG submitted as per Supreme Court order.

Supreme Court,N.Delhi BG submitted as per Stay granted order. Supreme Court

Supreme Court,N.Delhi BG submitted as per Stay granted order. Supreme Court

Supreme Court,N.Delhi BG submitted as per Stay granted order. Supreme Court

Supreme Court,N.Delhi BG submitted as per Stay granted order. Supreme Court

Supreme Court,N.Delhi BG submitted as per Stay granted order. Supreme Court

Supreme Court,N.Delhi BG submitted as per Stay granted order. Supreme Court

Central Excise CESTAT, New Delhi Department filed appeal Services Tax and before The CESTAT. Customs Act Cases put in call book Service Tax till decision by CESTAT

Central Excise CESTAT, New Delhi Pending before CESTAT for Services Tax and final hearing Customs Act Service Tax

c) No amount was required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 and rules made there under.

(viii) The accumulated losses at the end of the financial year were not more than fifty percent of its net worth. The company has not incurred any cash losses during the financial year and in the immediately preceding financial year.

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

(x) In our opinion, the company has not given guarantee for loans taken by others from banks or financial institutions.

(xi) In our opinion, the term loans have been applied for the purposes for which they were obtained.

(xii) According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For B.K. SHROFF & CO. Chartered Accountants Firm Registration No. 302166E

O.P. Shroff Place : New Delhi Partner Date : 25th May, 2015 Membership No. : 6329

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Mar 31, 2014

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

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

Auditor''s responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

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

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

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matter We draw attention to;

a) Schedule 12 to the financial statements relating to recognition of net defferred tax assets of Rs.2354.60 lacs (including Rs.2690.13Lac upto 31st March 2013) in accounts upto 31st March 2014 based on future profitability projection made by the management. However, we are unable to express any opinion on the above projections and their consequential impact, if any, on such Deferred Tax Assets.

b) Schedule 33 relating to change in method of providing depreciation from straight line method to written down value method in respect of certain plant & machinery resulting in profit after tax (including exceptional items) to be lower by Rs.553.33 lacs deffered tax asset lower by Rs.247.73 lacs & fixed assets lower by Rs.800.76 lacs.

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 Act.

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

ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

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

(b) As explained to us, all the fixed assets have been physically verified by the management according to a regular program which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification.

(c) In our opinion and according to explanations given to us, fixed assets disposed off during the year were not substantial and as such the disposal has not affected the going concern concept of the company.

(ii) (a) As explained to us, physical verification of inventory (except material in transit and lying with third parties) has been conducted by the management at reasonable intervals. 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 nature of its business.

(c) On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. Discrepancies noticed on verification of inventory as compared to book records were not material and these have been properly dealt with in the books of accounts.

(iii) (a) (i) The company has not granted any loans, secured or unsecured from companies, firms or other parties as listed in the register maintained under section 301 of the Companies Act 1956 and as such information regarding rate of interest, overdue amounts and other terms & conditions of loans granted is not required to be furnished.

(ii) The Company has not taken any loan during the year from the parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) As the company has neither taken nor granted any loan to parties covered u/s 301 of the companies Act, 1956, provision of clause (iii) (b) (c) (d) of the order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. Further on the basis of our examination of the books and records of the company, carried out in accordance with the auditing standards generally accepted in India, we have not observed any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

(v) (a) According to the information and explanations given to us, during the year there were no contracts or arrangements referred to in Section 301 of the Act that need to be entered into the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, no transactions of purchase and sale of goods materials and services, made in pursuance of contracts or arrangements to be entered into the register maintained under section 301 of the Companies Act 1956 aggregating during the year to Rs. 5 lacs in respect of any party.

(vi) In our opinion and according to the information given to us, company has not accepted deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 or other relevant provision of the act, accordingly clause (iv) of the order are not applicable.

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

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such accounts and records.

(ix) (a) According to the records of the company, the company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Service Tax, Trade Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it, except in certain instances where delays were noticed.

(b) According to information and explanations given to us no undisputed amounts payable in respect of income tax, wealth tax, sales tax custom duty, excise duty and cess were outstanding as at 31st March,2014 for a period of more than six months from the date they became payable.

(c) According to the records of the company, dues in respect of Sales Tax/Income Tax/Customs Duty/Wealth Tax/Excise Duty / Service Tax/Cess which have not been deposited on account of dispute are as under:

Name of the Nature of Period to which Amount No. Statue dues

Central Excise & Differential 13.02.92 to 30.06.92 6.77 Salt Act 1964 duty on waste

August 92 to 20.01.93 13.28

Feb. 96 to July 03 145.58

Aug. 03 to Jan. 04 17.52

May 04 to Jan. 05 31.25

Feb. 05 to Apr. 05 4.75

May 05 to Nov 05 10.89

Dec 05 to March 07 13.40

April 07 to August 07 4.26

Sept 07 to March 08 4.96

April 08 to Nov. 08 7.43

Dec. 08 to Aug. 09 2.83

Sept 09 to Feb.10 3.76

March 10 to Nov. 10 4.32

May 11 to Jan.12 6.27

Feb 12 to Nov. 12 45.26

Dec. 12 to Nov. 13 26.89

UP Trade Tax Entry Tax 01.04.03 to 31.03.04 14.40 Act

Entry Tax Entry Tax 01.04.04 to 31.03.05 19.46

Entry Tax 01.04.05 to 31.03.06 14.68

Entry Tax 01.04.06 to 31.03.07 10.34

Entry Tax November 2010 (2010-11) 3.15

Central Excise & Education cess 14.09.04 to 07.10.04 4.16 Customs Act debited in 11.10.04 to 29.11.04 14.69 DEPB script 02.12.04 to 08.02.05 17.34

Central Excise, Utilisation of April 07 to Sept 07 4.97 Service CENVAT Tax & Customs Credit for Oct 07 to Dec 07 3.41 Act payment of (Service Tax) Service Tax Jan 08 to Feb 08 3.01

Central Excise Disallowing Feb 05 to Feb 08 122.27 Service Service Tax Tax & Cuystoms Credit due to Act non (Service Tax) Registration of HO under ISD.

Name of the Statute Forum where pending Remarks

Cental Excise & Supreme Court,N. Delhi Department filed appeal in Sales Act 1964 Hon''ble Supreme Court Department issuing

SCN as Protected Demand

UP Trade Tax Supreme Court, N.Delhi BG submitted as per Act Supreme Court order. Entry Tax Tribunal - Moradabad BG submitted as per Supreme Court order.

Tribunal - Moradabad BG submitted as per Supreme Court order.

Tribunal - Moradabad BG submitted as per Supreme Court order. Supreme Court N.Delhi BG submitted as per Stay granted Supreme Court order.

Central Excise Addl. Commissioner. Department filed appeal & Custome Act before Central Excise The CESTAT. Cases put in &Customs, Meerut call book till decision by CESTAT

Central Excise CESTAT, New Delhi Pending before CESTAT Service Tax & for final hearing Stay Customs Act Granted

Central Excise CESTAT, New Delhi Pending before CESTAT for Service Tax Customs final hearing Act

(x) As at 31.03.2014 the accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash losses during the year covered by our audit but had incurred cash loss in the immediately preceding year.

(xi) In our opinion and according to the information and explanations given to us, the company has generally not defaulted in repayment of principal/interest dues to financial institutions, banks & debentures holders.

(xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis of security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof.

(xiii) In our opinion the company is neither a chit fund nor nidhi/mutual benefit fund/society and hence clause 4 (xiii) of the Order is not applicable.

(xiv) In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments and accordingly the provisions of clause 4(xiv) of the Order is not applicable.

(xv) Based on our examination of the records we are of the opinion that the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company we report that funds raised on short term basis have not been used for long term investments.

(xviii)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 Companies Act, 1956.

(xix) During the year the company had not issued any debentures.

(xx) During the year under review no money was raised by public issue.

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with auditing standards generally accepted in India, we have neither come across any instance of fraud by the company, noticed or reported during the year nor have we been informed of such case by the management. However fraud on the company by an employee of Rs.145.93 lacs was noticed and reported which has subsequently been recovered.

For B.K. SHROFF & CO. Chartered Accountants Firm Registration No. 302166E O.P. Shroff Place : New Delhi Partner Date : 26th May, 2014 Membership No. : 6329

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Mar 31, 2013

Report on the Financial Statements

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

Management''s responsibility for the Financial Statements

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

Auditor''s responsibility

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

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

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

Opinion

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

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

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

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

Emphasis of Matter

We draw attention to;

a) Schedule 28 to the financial statements which states that the Managing Directors Remuneration of Rs.27.08 lacs paid for the period 01.10.2012 to 31.03.2013 is subject to approval of the Central Government.

b) Schedule 13 to the financial statements relating to recognition of net deferred tax assets of Rs.2690.13 lacs (including Rs.2395.83 lacs upto March 2012) in accounts upto 31st March 2013 based on future profitability projection made by the management. However, we are unable to express any opinion on the above projections and their consequential impact, if any, on such DTA

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 Act.

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

ANNEXURE REFERRED TO IN PARAGRAPH (1) UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

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

(b) As explained to us, all the fixed assets have been physically verified by the management according to a regular program which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification.

(c) In our opinion and according to explanations given to us, fixed assets disposed off during the year were not substantial and as such the disposal has not affected the going concern concept of the company.

(ii) (a) As explained to us, physical verification of inventory (except material in transit and lying with third parties) has been conducted by the management at reasonable intervals. 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 nature of its business.

(c) On the b asis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. Discrepancies noticed on verification of inventory as compared to book records were not material and these have been properly dealt with in the books of accounts.

(iii) (a) (i) The company has not granted any loans, secured or unsecured from companies, firms or other parties as listed in the register maintained under section 301 of the Companies Act 1956 and as such information regarding rate of interest, overdue amounts and other terms & conditions of loans granted is not required to be furnished.

(ii) The Company has not taken any loan during the year from the parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) As the company has neither taken nor granted any loan to parties covered u/s 301 of the companies Act, 1956, provision of clause (iii) (b) (c) (d) of the order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. Further on the basis of our examination of the books and records of the company, carried out in accordance with the auditing standards generally accepted in India, we have not observed any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

(v) (a) According to the information and explanations given to us, during the year there were no contracts or arrangements referred to in Section 301 of the Act that need to be entered into the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, no transactions of purchase and sale of goods materials and services, made in pursuance of contracts or arrangements to be entered into the register maintained under section 301 of the Companies Act 1956 aggregating during the year to Rs. 5 lacs in respect of any party.

(vi) In our opinion and according to the information given to us, company has not accepted deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 or other relevant provision of the act, accordingly clause (iv) of the order are not applicable.

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

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such accounts and records.

(ix) (a) According to the records of the company, the company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Service Tax, Trade Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it, except in certain instances where delays were noticed.

(b) According to information and explanations given to us no undisputed amounts payable in respect of income tax, wealth tax, sales tax custom duty, excise duty and cess were outstanding as at 31st March,2013 for a period of more than six months from the date they became payable.

(c) According to the records of the company, dues in respect of Sales Tax/Income Tax/Customs Duty/Wealth Tax/Excise Duty / Service Tax/Cess which have not been deposited on account of dispute are as under:

(x) As at 31.03.2013 the accumulated losses of the company are more than fifty percent of its net worth. The company has incurred cash losses during the year covered by our audit and in the immediately preceding year.

(xi) In our opinion and according to the information and explanations given to us, the company has generally not defaulted in repayment of principal/interest dues to financial institutions, banks & debentures holders.

(xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis of security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof.

(xiii) In our opinion the company is neither a chit fund nor nidhi/mutual benefit fund/society and hence clause 4 (xiii) of the Order is not applicable.

(xiv) In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments and accordingly the provisions of clause 4(xiv) of the Order is not applicable.

(xv) Based on our examination of the records we are of the opinion that the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company we report that funds raised on short term basis have not been used for long term investments. Except Rs. 279.48 Lacs utilized for purchase of fixed assets / repayment of Term Loan.

(xviii)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 Companies Act, 1956.

(xix) During the year the company had not issued any debentures.

(xx) During the year under review no money was raised by public issue.

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with auditing standards generally accepted in India, we have neither come across any instance of fraud by the company, noticed or reported during the year nor have we been informed of such case by the management.

For B.K. SHROFF & CO.

Chartered Accountants

Registration No: 302166E

O.P. Shroff

Place : New Delhi Partner

Date : 29th May, 2013 Membership No. : 6329

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of PASUPATI ACRYLON LTD. as at 31st March, 2012, the Profit & Loss Account and 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 have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors' Report) Order, 2003 and the companies (Auditor's Report) (Amendment) order, 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 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 purpose of our audit;

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

(iii) The Balance Sheet, Profit & 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 & 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 other than as stated below.

(v) As per information and explanations given to us, we report that as on 31.03.2012 none of the directors of the company are disqualified from being appointed as a director of the company u/s 274(l)(g) of the Companies Act, 1956.

(vi) As staled in note no. 13 relating to recognition of net deferred tax assets (DTA) of Rs. 2395.83 Lacs (including Rs. 2015.10 Lacs upto March, 11) in accounts upto 31st March, 2012, based on the future profitability projection made by the management. However, we are unable to express any opinion on the above projections and their consequential impact, if any, on such DTA. Had the impact of above item not been considered there would be a loss of Rs. 1250.49 Lacs ( excluding DTA of Rs 2015.10 Lacs adjusted with opening profit & Loss account debit balance) as against reported loss of Rs, 869.76 Lacs for the year and the profit & loss debit balance would have been Rs. 8048.60 Lacs as against the reported figures of Rs. 6033.50 Lacs.

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

(a) In the case of the Balance Sheet, of the state of affairs of the company as at 31s1 March, 2012.

(b) In the case of the Profit & Loss Account, of the Loss for the year ended on that date, and

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

For B. K. Shroff & Co.,

Chartered Accountants Firm Reg. No: 302166E

Place : New Delhi O.P. Shroff

Date : 30th May 2012 Partner

Membership No. 6329

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

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

(b) As explained to us, all the fixed assets have been physically verified by the management according to a regular program which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification.

(c) In our opinion and according to explanations given to us, fixed assets disposed off during the year were not substantial and as such the disposal has not affected the going concern concept of the company.

(ii) (a) As explained to us, physical verification of inventory (except material in transit and lying with third parties) has been conducted by the management at reasonable intervals. 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 nature of its business.

(c) On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. Discrepancies noticed on verification of inventory as compared to book records were not material and these have been properly dealt with in the books of accounts.

(iii) (a) (i) The company has not granted any loans, secured or unsecured from companies, firms or other parties as listed in the register maintained under section 301 of the Companies Act 1956 and as such information regarding rate of interest, overdue amounts and other terms & conditions of loans granted is not required to be furnished.

(ii) The Company has not taken any loan during the year from the parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) As the company has neither taken nor granted any loan to parties caused U/s 301 of the companies Act, 1956 provision of clause (iii) (b) (c ) (d) of the order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. Further on the basis of our examination of the books and records of the company, carried out in accordance with the auditing standards generally accepted in India, we have not observed any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

(v) (a) According to the information and explanations given to us, during the year there were no contracts or arrangements referred to in Section 301 of the Act that need to be entered into the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, no transactions of purchase and sale of goods materials and services, made in pursuance of contracts or arrangements to be entered into the register maintained under section 301 of the Companies Act 1956 aggregating during the year to Ks. 5 lacs in respect of any party.

(vi) In our opinion and according to the information given to us, company has not accepted deposits from the public within the

meaning of section 58A & 58AA of the companies Act, 1956 or other relevant provision of the act accordingly clause (vi) of the order are not applicable.

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

business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central

Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such accounts and records.

(ix) (a) According to the records of the company, the company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Service Tax, Trade Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it, except in certain instances where delays were noticed.

(b) According to information and explanations given to us no undisputed amounts payable in respect of income tax, wealth tax, sales tax custom duty, excise duty and cess were outstanding as at 31st March,2012 for a period of more than six months from the date they became payable.

(c) According to the records of the company, dues in respect of Sales Tax/Income Tax/Customs Duty/Wealth Tax/Excise Duty /Service Tax/Cess which have not been deposited on account of any dispute are as under:

Sr. Name of the Nature of dues Period to which Amount No. Statue amount relates Rs.in lacs

1 Central Excise & Differential duty 13.02.92 to 30.06.92 6.77 Salt Act 1964 on waste August 92 to 20.01.93 13.28

Feb. 96 to July 03 145.58 Aug. 03 to Jan. 04 17.52 May 04 to Jan. 05 31.25 Feb. 05 to Apr. 05 4.75 May 05 to Nov 05 10.89 Dec 05 to March 07 13.40 April 07 to August 07 4.26 Sept 07 hi March 08 4.96 April 08 to Nov. 08 7.43 Dec. 08 to Aug. 09 2.83 Sept 09 to Feb. 10 5.76 March 10 to Nov. 10 4.32

2 UP Trade Tax Act Entry Tax 01.04.03 to 31.03.04 14.40 Entry Tax Entry Tax 01.04.04 to 31.03.05 19.46

Entry Tax 01.04.05 to 31.03.06 14.68

Entry Tax 01.04.06 to 31.03.07 10.34 Entry Tax November 2010 (2010-11) 3.15

3 Central Excise & Education cess 14.09.04 to 07.10.04 4.16

CustomsAct debited in DEPB script 11.10.04 to 29.11.04 14.69

02.12.04 to 08.02.05 17.34

4 Central Excise, Utilisation of April 07 to Sept 07 4.97

Service Tax & CENVAT Credit Oct 117 to Dec 07 3.41

Customs Act for payment of Jan 08 to Feb 08 3.01

(Service lax) Service Tax

5 Central Excise & Excise Duty on Jan 06 to December 06 0.18 Customs Act NitrogenGas

Jan 07 to December 07 0.17

Jan 08 to November 08 0.27

Dec. 08 to October 09 0.20

Nov 09 to Aug. 10 0.15

Sep. 10 to May 11 0.18

6 Central Excise,Disallowing Feb 05 to Feb 08 122.27 Service Service tax Tax & Customs Credit due to non ACT (Service Tax) REGISTRATION OF HQ under ISD.

Name of the Statue Forum where Remarks pending

Central Excise & Salt Act 1964 Supreme Court, N.Delhi Department filed appeal in Hon'ble Supreme Court

Department issusing SCN as Protected Demand

UP Trade Tax Act Entry Tax Supreme Court, N.Delhi BG SUB. AS PER Sup. Court ORDER

Tribunal - Moradabad BG SUB. AS PER Sup. Court ORDER

Tribunal - Moradabad BG SUB. AS PER Sup. Court ORDER

Tribunal - Moradabad BG SUB. AS PER Sup. Court ORDER

Supreme Court, N.Delhi BG SUB. AS PER Sup. Court ORDER Stay granted

Central Excise & Customs Act Addl. Commissioner. Department filed appeal before

Central Excise & the CESTAT. Cases put in

Customs, Meerut call book till decision by CESIAT

Central Excise, Service lax & Customs Act (Service lax) CESTAT, New Delhi Pending

Stay Granted

Central Excise &- Customs Act CESTAT, New Delhi Pending bef.CF.STAT for final hearing

CESTAT, New Delhi Pending bef.CESTAT for final hearing Stay granted

CESTAT, New Delhi Pending bef.CESTAT for final hearing Stay granted

CESTAT, New Delhi Pending bef.CESTAT for final hearing Stay yet to be granted.

CESTAT, New Delhi Pending bef.CESTAT for final hearing Stay granted Supdt.-Adj. Haldwani

Division PH not fixed till date. reply submitted to SCN

Central Excise, Service Tax & Customs Act (Service Tax) CESTAT, New Delhi Pending before CESIAT for

Stay granted final hearing

(x) As at 31.03.2012 the accumulated losses of the company are more than fifty percent of its net worth. The company has incurred cash losses during the year covered by our audit but not in the immediately preceding year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of principal/interest dues to financial institutions, banks & debentures holders.

(xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis of security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof.

(xiii) In our opinion the company is neither a chit fund nor nidhi/mutual benefit fund/society and hence clause 4 (xiii) of the Order is not applicable.

(xiv) In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments and accordingly the provisions of clause 4(xiv) of the Order is not applicable.

(xv) Based on our examination of the records we are of the opinion that the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company we report that funds raised on short term basis have not been used for long term investments . Except Rs. 720.47 Lacs utilized for purchase of fixed assets / repayment of Term Loan.

(xviii) 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 Companies Act, 1956.

(xix) During the year the company had not issued any debentures.

(xx) During the year under review no money was raised by public issue.

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with auditing standards generally accepted in India, we have neither come across any instance of fraud by the company, noticed or reported during the year nor have we been informed of such case by the management.

For B. K. Shroff & Co., Chartered Accountants Firm Reg. No: 302166E

Place : New Delhi O.P. Shroff

Date : 30th May 2012 Partner

Membership No. 6329

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of PASUPATI ACRYLON LTD. as at 31st March, 2010, the Profit & Loss Account and the Cash Flow Statement for the period ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order, 2003 and the companies (Auditors Report) (Amendment) order, 2004 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said order.

4. Attention is invited to

(a ) note no.13 On schedule Q regarding providing depreciation by charging off 100% depreciation on all assets, instead of 95% as per straight line method. Resulting in profit after tax to be lower by Rs. 717.33 and fixed assets to be lower by said amount.

(b ) As stated in note no. 12(a) in schedule Q, relating to noncompliance of Accounting standard 9 to the extent of credit for extinguishment of loan liability amounting to Rs. 3.54 lacs taken to capital Reserve instead of Profit & Loss account due to which profit for the ytar is lower by Rs.3.54 lacs and capital reserve higher by said amount.

5. 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 purpose of our audit;

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

(iii) The Balance Sheet, Profit & 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 & 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 o( the Companies Act, 1956.

(v) As per information and explanations given to us, we report that as on 31.03.2010 none of the directors of the company are disqualified from being appointed as a director of the company u/s 274(l)(g) of the Companies Act, 1956.

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

(a) In the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2010.

(b) In the case of the Profit & Loss Account, of the Profit for the period ended on that date and

(c) In the case of cash flow statement, of the cash flows for the period ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE

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

(b) As explained to us, all the fixed assets have been physically verified by the management according to a regular program which in our opinion is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies with respect to book records were noticed on such verification. ^

(c) In our opinion and according to explanations given to us, fixed assets disposed off during the period were not substantial and as such the disposal has not affected the going concern concept of the company.

(ii) (a) As explained to us, physical verification of inventory (except material in transit and lying with third parties) has been conducted by the management at reasonable intervals. 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 nature of its business.

(c) On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. Discrepancies noticed on verification of inventory as compared to book records were not material and these have been properly dealt with in the books of accounts.

(iii)(a) (i) The company has not granted any loans, secured or unsecured from companies, firms or other parties as listed in the register maintained under section 301 of the Companies Act 1956 and as such information regarding rate of interest, overdue amounts and other terms & conditions of loans granted is not required to be furnished.

(ii) The Company has not taken any loan during the. period from the parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) As the company has neither taken nor granted .any loan to parties caused U/s 301 of the companies Act, 1956 provision of clause (iii) (b) (c ) (d) of the order are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods. Further on the basis of our examination of the books and records of the company, carried out in accordance with the auditing standards generally accepted in India, we have not observed any continuing failure to correct major weaknesses in the aforesaid internal control procedures.

(v) (a) According to the information and explanations given to us, during the period there were no contracts or arrangements referred to in Section 301 of the Act that need to be entered into the register required to be maintained under that section.

(b) In our opinion and according to the information and explanations given to us, no transactions of purchase and sale of goods materials and services, made in pursuance of contracts or arrangements to be entered into the register maintained under section 301 of the Companies Act 1956 aggregating during the period to Rs. 5 lacs in respect of any party.

(vi) In our opinion and according to the information given to us, company has not accepted deposits from the public within the

meaning of section 58A & 58AA of the companies Act, 1956 or other relevant provision of the act according clause (iv) of the order are not applicable.

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

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the order made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of such accounts and records.

(ix)(a) According to the records of the company, the company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Service Tax, Trade Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to it, except in certain instances where delays were noticed,

(b) According to information and explanations given to us no undisputed amounts payable in respect of income tax, wealth tax, sales tax custom duty, excise duty and cess were outstanding as at 31st March,2010 for a period of more than six months from the date they became payable.

(c) According to the records of the company, dues in respect of Sales Tax/Income Tax/Customs Duty/Wealth Tax/Excise Duty /Service Tax/Cess which have not been deposited on account of any dispute are as under:

Name of the statue Nature of dues Period to which amount relates Amount Rs. Forum where pending

Central Excise Differential duty on waste Feb.96 toJan04 163.10lacs Supreme Court and Salt Act, 1964 May04 to April05 36.00 lacs

Differential duty on waste May 05 to March 07 24.29 lacs High Court Differential duty on waste April to Nov.. 08 16.64 lacs Supreme Court

Differential duty on waste 13.02.92 to 30.06.02 6.77 lacs Supreme Court Aug.92 to 20.01.93 13.28 lacs

UP Tax on Entry of Entry tax Aug.07 to March 08 15.28 lacs High Court Good Tax 2001 Entry Tax demand for e-form 04-05 19.46 lacs High Court

Entry tax demand for e-form 05-06 14.54 lacs Deputy Commissioner Moradabad Entry tax demand for e-form 1/4/08 to 30/9/09 47.94 lacs High court

Entry tax demand for e-form 1/10/09 to 31/03/10 15.43 lacs Deputy Commissioner Moradabad Entry tax demand for e-form 06-07 2.22 lacs High Court

Entry Tax Dec.03 to March.04 14.40 lacs High Court Entry Tax on coal Freight April06 to March07 10.33 lacs High Court Entry Tax on coal Freight 01.10.09 to 31.03.10 29.04 lacs High Court

Customs Act Education cess on DEPB 14.09.04 to 08.02.05 37.28 lacs Additional Commissioner Central excise & Customs

Central Excise Act Excise duty Jan06 to Dec06 0.18 lacs Assistant Excise duty jan07 to Dec07 0.17 lacs Commissioner Excise duty Jan.08 to Nov.,08 0.28 lacs Custom & Excise Dec.08 to Oct.09 0.20 lacs

Central Excise Act Cenvat April 07 to Feb. 08 11.38 lacs Additional Commissioner Central excise

Forest Act, 1927 Transit tax on forest produce Oct.09 to March,10 10.91 lacs High Court

Central Excise Act Disallowing service tax credit Feb. 05 to Feb. 09 122.27 lacs Commissioner due to non registration Meerut - II



(x) As at 31.03.2010 the accumulated losses of the company are more than fifty percent of its net worth. The company has not incurred cash losses during the period covered by our audit but had incurred cash loss in the immediately preceding year.

(xi) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of principal/interest dues to financial institutions, hanks & debentures holders. However monthly interest (from 01.09.08 to 31.03.10) ofRs.1,27 lacs and quarterly installment (from 01.09.08 to 31.03.10) ofRs.1.37 Lacs to financial Institutions) also, monthly interest (April09 to Mar.10) to a bank amounting to Rs.0.98 lacs has been defaulted as on 31.03.2010, also monthly interest ofRs. 51.27 lacs & quarterly installment amounting to Rs. 21.62 lacs to banks has been delayed during the period.

Note:- The repayment / payment of overdue quarterly principal installments and monthly interest ofRs. 8.02 lacs & Rs. 1.26 lacs of NIA, have been paid / waived as per one time settlement during the period and as such there is no default as at 31st March2010.

(xii) Based on our examination of documents and records maintained by the company, we are of the opinion that since the company has not granted any loan and advance on the basis of security by way of pledge of shares, debenture and other securities, it is not required to maintain records in respect thereof.

(xiii) In our opinion the company is neither a chit fund nor nidhi/mutual benefit fund/society and hence clause 4 (xiii) of the Order is not applicable.

(xiv) In our opinion the company is not dealing in or trading in shares, securities, debentures and other investments and accordingly the provisions of clause 4(xiv) of the Order is not applicable.

(xv) Based on our examination of the records we are of the opinion that the company has not given any guarantee for loans taken by others from banks or financial institutions.

(xvi) In our opinion the term loans have been applied for the purpose for which they were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the company we report that funds raised on short term basis have not been used for long term investments .

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

(xix) During the period the company had not issued any debentures.

(xx) During the period under review no money was raised by public issue.

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with auditing standards generally accepted in India, we have neither come across any instance of fraud by the company, noticed or reported during the period nor have we been informed of such case by the management.

for B.K. SHROFF & CO. Chartered Accountants

O.P. Shroff Partner Membership No.: 6329

Place : New Delhi Date : May 27, 2010