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Auditor Report of Prime Securities Ltd.

Mar 31, 2023

Prime Securities LimitedReport on the Audit of the Standalone FinancialStatementsOpinion

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

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (''the Act'') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (''Ind AS'') specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our

report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (''ICAI'') together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter â Proposed acquisition

4. We draw attention to Note 52 to the accompanying standalone financial statements which describes that subsequent to the balance sheet date, the Board of Directors of the Company, in its meeting held on 13 April 2023, have approved an agreement to acquire ownership in Bridgeweave Limited, UK, details of which are described in the aforesaid note. Our opinion is not modified in respect of this matter.

Key Audit Matters

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

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

Key audit matter

How our audit addressed the key audit matter

Revenue Recognition

We refer to the Company''s significant accounting policies in note 2(b) and the revenue related disclosure in note 37 of the standalone financial statements.

Our audit procedures to address this key audit matter included, but were not limited to, the following:

â¢ Evaluated the appropriateness of the Company''s accounting policy for revenue recognition;

â¢ Evaluated the design and operating effectiveness of key controls over the revenue recognition process; and

Key audit matter	How our audit addressed the key audit matter
The Company''s revenue from operations	â¢ For the revenue contracts entered by the Company,
arises from merchant banking and advisory	the following procedures were performed:
services, which mainly includes Corporate & Financial Advisory services, arranging long term finance and raising equity funds.	â¢ Obtained and inspected mandates, with respect to the key contractual terms entered by the Company with the customer and evaluated the
Recognition of revenue is based upon the satisfaction of performance obligations upon transfer of control of promised services to customers in an amount that reflects the consideration the Company is contractually expected to receive in exchange for those services as set forth under the terms of	appropriateness of the accounting treatment assessed by the management; â¢ Evaluated whether the performance obligations and service delivery obligations as per the terms of the engagement appear to be satisfied by the Company to the extent of revenue recognised, by performing
engagement.	enquiry with the management and inspecting
Identification of the various performance obligations within the contract and allocation	supporting documents evidencing completion of such work;
of consideration to these performance	â¢ Tested invoices, on sample basis, raised in relation
obligations, is complex and requires	to the advisory services and traced the receipt
significant management judgement.	of money in respect of such invoices to the bank
Considering the materiality of amounts involved, significant judgements, this has	statements. Accounting of unbilled revenue was verified with invoices issued in subsequent period;
been identified as a key audit matter in	and
respect of standalone financial statements.	â¢ Performed cut-off testing for samples of revenue
	transactions recorded before and after the financial year end date by comparing with relevant underlying documentation to assess whether the revenue was recognized in the correct period.
Valuation of unquoted investments carried	Our audit procedures in relation to valuation of unquoted
at fair value	investments with the involvement of our valuation
Refer note 2(g) for significant accounting	experts included, but were not limited to the following:
policies and note 7 of standalone financial	â¢ Obtained an understanding of Company''s business
statements	model and its assessment in accordance with Ind AS
As at 31 March 2023, the Company held	109 for classification and valuation of its investments;
unquoted investments carried at fair value amounting to H 3,917 lacs which represents 29.7 % of the total assets of the Company as at 31 March 2023. The aforesaid investments are not traded in the active market. These investments are fair valued using Level 2 and Level 3 inputs. The fair valuation of Level 3 investments is determined by a management-appointed	â¢ Obtained a detailed understanding of the management''s process and controls for determining the fair valuation of these investments. The understanding was obtained by performance of walkthroughs which included inspection of
	documents produced by the Company including its valuation policy and discussion with those involved in the process of valuation;
independent valuation specialist. The process	â¢ Evaluated the design and tested the operational
of computation of fair valuation of Level 3	effectiveness of relevant key controls over the
investments includes use of unobservable	valuation process, including the Company''s review
inputs and management judgements and	and approval of the estimates and assumptions used
estimates which are complex.	for the valuation including key authorization and
The key assumptions underpinning	data input controls, independent price verification
management''s assessment of fair value of	performed by the management expert;
Level 3 investments, include application of liquidity discounts, calculation of discounting rates and the estimation of projections of revenues, projections of future cash flows and growth rates.	â¢ Obtained and evaluated for reasonableness, the market observable inputs used by the management for valuation of Level 2 investments;

Key audit matter	How our audit addressed the key audit matter
The valuation of these investments was	â¢ Obtained the valuation reports issued by the
considered to be one of the areas which	management''s expert and assessed the expert''s
required significant auditor attention and	competence, objectivity and independence in
was one of the matters of most significance	performing the valuation of Level 3 investments;
in the standalone financial statements due to	â¢ Performed a reasonableness test on the valuation
the materiality of total value of investments to	reports provided by Management by carrying out
the standalone financial statements and the	following procedures:
complexity involved in the valuation of these	â¢ Analyzed financial performance of the investee
investments.	company from the date of investment till the valuation date. â¢ Applied calibration to price of recent Investment methodology in assessing the impact if any on the valuation of investee company as on the valuation date. â¢ Screened for comparable companies / comparable transactions (wherever transaction data was available) for each of the investee companies. â¢ Ensured the appropriateness and sufficiency of the carrying value of these investments in the standalone financial statements and the gain or loss recognized in the standalone financial statements as a result of such fair valuation; â¢ Ensured the appropriateness of the disclosures in accordance with the applicable accounting standards; and â¢ Obtained written representations from the management and those charged with governance whether they believe significant assumptions used in valuation of the investments are reasonable.

Information other than the Standalone Financial

Statements and Auditor''s Report thereon

7. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditor''s report thereon. This report is expected to be made available to us after the date of this auditor''s report.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

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

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

the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

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

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

12. As part of an audit in accordance with Standards

on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

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

and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

13. 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.

14. 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.

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

Report on Other Legal and Regulatory

Requirements

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

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

18. Further to our comments in Annexure I, as required by section 143(3) of the Act based on

our audit, we report, to the extent applicable,

that:

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

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

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

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

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

f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company as on 31 March 2023 and the operating effectiveness of such controls, refer to our separate Report in Annexure II, wherein we have expressed an unmodified opinion; and

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

i. The Company, as detailed in note 30 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2023;

ii. The Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2023;

iii. There were no amounts which were

required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31 March 2023;

iv. a. The management has represented that, to the best of its knowledge and belief, as disclosed in note 50(b) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person or entity, including foreign entities (''the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''the Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries; b. The management has represented that, to the best of its knowledge and belief, as disclosed in note 50(a) to the standalone financial statements, no funds have been received by the Company from any person or entity, including foreign entities (''the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (''Ultimate

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

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

v. As stated in note 49 to the accompanying standalone financial statements, the Board of Directors of the Company have proposed final dividend for the year ended 31 March 2023 which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend. Further, the final dividend paid by the Company during the year ended 31 March 2023 in respect of such dividend declared for the previous year is in accordance with section 123 of the Act to the extent it applies to payment of dividend.

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

Mar 31, 2018

Report on the Indian Accounting Standards (Ind AS) Financial Statements

We have audited the accompanying standalone financial statements of PRIME SECURITIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income) and the Statement of Cash Flow, the statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone Ind AS financial statementsâ).

Managementâs Responsibility for the Financial Statements

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

Auditorâs Responsibility

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

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

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

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

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

Basis for Qualified Opinion

As referred in Note no. 32, the Company has, in earlier financial year re-instated advance of RS.32750 Lacs which was earlier written-off as not recoverable. Accordingly, the loss in Surplus (Profit & Loss) is lower and Other NonCurrent Asset is higher by the said amount.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matters described in paragraph of the Basis for Qualified Opinion paragraph, the said standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018 and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Material Uncertainty Related to Going Concern

As referred to in Note no. 29 & 30, the net worth of Companyâs subsidiaries viz. Primesec Investments Limited and Prime Research & Advisory Limited have been eroded but having regard to the circumstances specified in the said Notes, the subsidiaries have prepared their accounts on a going concern basis. Relying on the same, the Company has not considered making any adjustments to its financial exposure in the subsidiaries. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

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

2. As required by Section 143 (3) of the Act, we report 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 the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account,

d) In our opinion, except for the effects of the matters described in paragraph of the Basis for Qualified Opinion paragraph, the aforesaid standalone Ind AS financial statements comply with the 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 March 31, 2018 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ.

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

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements -Refer Note 28 to the standalone Ind AS financial statements,

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

iii. There has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018,

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31, 2018.

1. 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 were physically verified by the management at reasonable intervals during the year. According to the information and explanations given to us, no discrepancies were noticed on such physical verification.

c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable property is yet to be transferred in the name of the Company pending a legal dispute as disclosed in Note 1 to the standalone Ind AS financial statements.

2. The Company does not hold any inventories and therefore Clause 3(ii) of the Order is not applicable to the Company.

3. The Company has granted unsecured loans to wholly-owned subsidiary companies covered in the register maintained under Section 189 of the Act. Considering the loans are to wholly-owned subsidiaries, in our opinion, the terms and conditions of the loans are not prejudicial to the Companyâs interest. The loans are repayable on demand and during the year part of loan to one subsidiary was repaid as demanded. Interest is paid by the subsidiary where applicable.

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

5. The Company has not accepted any deposits within the meaning of the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder and therefore Clause 3(v) of the Order is not applicable to the Company.

6. The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act for any of the services rendered by the Company and hence the provisions of clause 3(vi) of the Order is not applicable to the Company.

7. a) According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, income tax, service tax, goods and service tax and other statutory dues applicable to it. Further, according to the information and explanations given to us, there are no undisputed amounts payable in respect of provident fund, income tax, service tax, goods and service tax and other statutory dues with the appropriate authorities outstanding at the end of the year for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, the particulars of statutory dues outstanding at the end of the year on account of a dispute are as follows:

Statue	Assessment Year	Nature Dues	Forum before whom pending	Rs.Lacs
Income Tax Act 1961	2006-2007	Income Tax	Assessing Officer (Rectification Proceedings)	1318

8. Based on our audit procedures and according to the information and explanations given by the management, the Company has not defaulted in repayment of its loans and borrowings to any financial institution and banks. The Company does not have any loan or borrowing from Government or debenture holders.

9. The Company did not raise any amount by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly Clause 3(ix) of the Order is not applicable.

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

11. The Company has paid/provided for managerial remuneration in accordance with provisions of section 197 read with Schedule V of the Act.

12. In our opinion and according to the information and explanation given to us, the Company is not a nidhi company and therefore, Clause 3(xii) of the Order is not applicable.

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and the details of such transactions have been disclosed in the standalone Ind AS financial statements as required under Indian Accounting standards (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act, read with relevant rules.

14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and therefore, Clause 3(xiv) of the Order is not applicable.

15. On the basis of our examination and according to the information and explanations given to us, the company has not entered into any non-cash transactions with directors or persons connected with him and therefore, Clause 3(xv) of the Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934 and therefore Clause 3(xvi) of the Order is not applicable.

We have audited the internal financial controls over financial reporting the Company as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Managementâs Responsibility for Internal Financial Controls

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

Auditorsâ Responsibility

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

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.

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

Meaning of Internal Financial Controls over Financial Reporting

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

1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company, and,

2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of standalone Ind AS financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company, and,

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

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

For GANDHI & ASSOCIATES LLP

Chartered Accountants

(FRN 102965W/W100192)

[MILIND GANDHI]

Mumbai, Partner

May 29, 2018 Membership No 043194

Mar 31, 2016

INDEPENDENT AUDITORS'' REPORT

To,

The Members of PRIME SECURITIES LIMITED Report on the Financial Statements

We have audited the accompanying financial statements of PRIME SECURITIES LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31^st March, 2016 the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 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 auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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.

Basis for Qualified Opinion

1. >As referred in Note 23.10(a), the Company has written-back a loan of Rs. 875.00 Lacs as in the opinion of the management the same was no longer payable. Accordingly, the profit for the year is higher by the said amount and the unsecured loans are lower by the said amount.

2. Reference is invited to Note 23.10(b) according to which unsecured loan of Rs. 525.00 Lacs is categorized as interest-free Short-term Borrowing. We have not been able to validate this assertion in absence of confirmation of balance and terms of repayment/interest. Accordingly, we are unable to ascertain the impact on the financial statements of the categorization of the loan and non-provision of interest thereon.

3. As referred in Note 23.7 the Company has not provided for interest of Rs. 1,016.10 Lacs on certain secured loans as in the opinion of the management the same is under renegotiations with the lenders. Had the Company made such provision the loss for the period would have been higher by the said amount and the secured loans would have been higher by Rs. 2,720.92 Lacs (including non-provision of interest in earlier year).

Qualified Opinion

In our opinion and to the best of our knowledge and according to the information and explanations given to us, except for the effects of the matters described in point nos. 1 to 3 of the Basis for Qualified Opinion paragraph, the said financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31, 2016 and its profit and its cash flows for the year ended on that date.

Emphasis of Matter:

Our opinion is not modified in respect of the following:

1. The accompanying financial statements are prepared on a going concern basis, notwithstanding the circumstances referred in Note 23.3 which cast doubts about Companyâs ability to meet its financial obligations as and when they fall due. The appropriateness of the said basis is interalia dependent on the Companyâs ability to generate cash from revenue streams and disposing-off investments to meet its liabilities in normal course of business. Relying on the above, no adjustments have been made to the carrying value of the assets and liabilities in the accompanying financial statements.

2. As referred to in Note 23.4 the Companyâs subsidiary Primesec Investments Limitedâs net worth has been eroded but having regard to the circumstances specified in the said Note, Primes Investments Limited has prepared its accounts on a going concern basis. Relying on the above, the Company has not considered making any adjustments to its financial exposure in the subsidiary.

3. As referred to in Note 23.8 the financial outcome of a complaint filed by a lender is not ascertainable.

4. As referred to in Note 23.9 the loan of Rs. 2,318.39 Lacs is assigned to a subsidiary company subject to consent of the lender.

5. As referred to in Note 23.12 there is a diminution of Rs. 1,194.64 Lacs in value of non-current investments (other than in subsidiary companies). The Company has not provided for such diminution on the basis that the same is temporary in nature.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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

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

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

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

d) In our opinion, except for the effects of the matters described in point nos. 1 to 3 of the Basis for Qualified Opinion paragraph, 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 31^st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 23.2 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.

The annexure referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended

31^st March 2016 we report that:

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

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

2. The Company does not hold any inventories and therefore Clause 3(ii) of the Order is not applicable to the Company.

7. a) According to the information and explanations given to us and the records of the Company examined by us, the Company is generally

regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, income tax, service tax and other statutory dues applicable to it. Further, according to the information and explanations given to us, there are no undisputed amounts payable in respect of provident fund, income tax, service tax and other statutory dues with the appropriate authorities outstanding at the end of the year for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us, the particulars of statutory dues outstanding at the end of the year on account of a dispute are as follows:

Statue	Assessment Year	Nature Dues	Forum before whom pending	Rs. Lacs
Income Tax Act 1961	2006-2007	Income Tax	Assessing Officer (Rectification Proceedings)	13.18

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

11. The Company has not paid or provided for any managerial remuneration and therefore, Clause 3(xi) of the Order is not applicable.

12. In our opinion and according to the information and explanation given to us, the Company is not a nidhi company and therefore, Clause 3(xii) of the Order is not applicable.

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

15. On the basis of our examination and according to the information and explanations given to us, the company has not entered into any noncash transactions with directors or persons connected with him and therefore, Clause 3(xv) of the Order is not applicable.

16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934 and therefore Clause 3(xvi) of the Order is not applicable.

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

We have audited the internal financial controls over financial reporting of PRIME SECURITIES LIMITED (âthe Companyâ) as of 31^st March, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

Auditors'' Responsibility

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

Meaning of Internal Financial Controls over Financial Reporting

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

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

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31^st March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the ICAI.

For GANDHI & ASSOCIATES

Chartered Accountants

(Firm Registration No. 102965W)

[ MILIND GANDHI ]

Mumbai, Partner

Date: May 17, 2016 Membership No. 043194

Mar 31, 2015

We have audited the accompanying financial statements of PRIME SECURITIES LIMITED ("the Company"), which comprises the Balance Sheet as at March 31,2015, the statement of Profit & Loss and the Cash Flow Statement for the period then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (which are deemed to be applicable as per section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014) and other accounting principles generally accepted in India. 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.

Basis for Qualified Opinion

1. As referred in Note 23.8 the Company has not provided for interest of Rs. 1,324.15 Lacs on certain secured loans as in the opinion of the management the same is under renegotiations with the lenders. Had the Company made such provision the loss for the period would have been higher by the said amount and the secured loans would have been higher by Rs. 1,704.82 Lacs (including non-provision of interest in earlier year).

2. Reference is invited to Note 23.9 according to which the Company has written back an unsecured loan of Rs. 250 Lacs as in the opinion of the management the same was no longer payable. Accordingly, the loss for the period and the unsecured loans are lower by the said amount.

3. Reference is invited to Note 23.10 according to which unsecured loan of Rs. 1,400.00 Lacs is categorized as interest-free Short-term Borrowing. We have not been able to validate this assertion in absence of confirmation of balance and terms of repayment/interest. Accordingly, we are unable to ascertain the impact on the financial statements of the categorization of the loan and non-provision of interest thereon.

4. Reference is invited to Note 23.11 according to which the management is hopeful of recovery of a capital advance of Rs. 327.50 Lacs in respect of which we are unable to ascertain the impact, if any, that may arise in case if the same, or part thereof, is subsequently determined to be doubtful of recovery.

Qualified Opinion

In our opinion and to the best of our knowledge and according to the information and explanations given to us, except for the effects of the matters described in paragraph 1 to 4 of the Basis for Qualified Opinion paragraph, the said financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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

Emphasis of Matter:

Our opinion is not modified in respect of the following:

1. The accompanying financial statements are prepared on a going concern basis, notwithstanding the circumstances referred in Note 23.3 which casts significant doubt about Company's ability to meet its financial obligations as and when they fall due. The appropriateness of the said basis is interalia dependent on the Company's ability to generate cash from disposing-off investments and from new revenue streams to meet its liabilities in normal course of business. Relying on the above, no adjustments have been made to the carrying value of the assets and liabilities in the accompanying financial statements.

2. As referred to in Note 23.4 the Company's subsidiary Primesec Investments Limited's networth has been eroded but having regard to receipt of share application monies from the Company, for which shares are proposed to be allotted, Primesec Investments Limited has prepared its accounts on a going concern basis. Relying on the above, the Company has not considered making any adjustments to its financial exposure in the subsidiary.

3. As referred to in Note 23.7 in absence of receipt of demand for interest, the Company has not provided for interest on bank liability in respect of which a one-time settlement proposal is submitted by the Company and the same is pending with the bank for disposal.

4. As referred to in Note 23.12 there is a diminution of Rs. 939.47 Lacs in value of non-current investments (other than in subsidiary companies). The Company has not provided for such diminution on the basis that the same is temporary in nature.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors' Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 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 Companies Act, 1956, 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 the books;

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

d) In our opinion, except for the effects of matters described in Basis for Qualified Opinion paragraph, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the dealt with by this report, comply with the Accounting Standards notified under the Companies Act, 1956 [which are deemed to be applicable as per section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014].

e) On the basis of written representation received from the directors as on March 31, 2015 under section 164(2) of the Companies Act, 2013 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2015, from being appointed as a director in terms of section 164(2) of the Companies Act, 2013 which corresponds to clause (g) of sub-section (1) if section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITORS' REPORT

Referred to in paragraph 1 of report on Other Legal and Regulatory requirement of our report of even date

On the basis of records produced to us for our verification/perusal, such checks as we considered appropriate, and in terms of information and explanations given to us on our inquiries, we state that:

1. 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 were physically verified by the management at reasonable intervals during the period. According to the information and explanations given to us, no discrepancies were noticed on such physical verification.

c) The Company has not disposed off substantial part of its fixed assets during the period.

2. a) The Company does not hold any inventories and therefore Clause 4(ii) of the Companies (Auditor's Report) Order 2003 is not applicable to the Company.

3. a) The Company has taken unsecured interest-free loans, from three parties listed in the register maintained under section 301 of the Companies Act, 1956. As at the period-end the amount of loan outstanding was Rs. 719.04 Lacs and the maximum amount of loan involved during the period under review was Rs. 839.04 Lacs.

b) As per the information given to us, in our opinion, the terms and conditions of the loan is prima facie non-prejudicial to the interest of the Company.

4. In our opinion and according to the information and explanation 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 and sale of inventories and fixed assets and the sale of services. During the course of our audit no major weaknesses have been observed in the internal controls.

5. a) On the basis of audit procedures performed by us and according to the information and explanation given to us and on our inquiries in this behalf and the records produced to us for our verification, the transactions that need to be entered into the register maintained in pursuance of section 301 of the Companies Act, 1956 have been so entered.

b) As per the information and explanations given to us, the contracts entered into during the period from the parties covered under the register maintained under section 301 of the Companies Act, 1956 are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits within the meaning of the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA of the Companies Act, 1956 and rules framed there under.

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

8. To the best of our knowledge and according to the information and explanation given to us, the Central Government has not prescribed the maintenance of cost records for the services rendered by the Company and hence the provisions of clause 4(viii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

9. a) According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, income tax, sales tax, service tax and other statutory dues applicable to it.

b) Further, according to the information and explanations given to us, the particulars of statutory dues outstanding at the end of the period on account of a dispute are as follows:

Statue Assessment Nature Forum before Rs. Lacs Year Dues whom pending

Income Tax 2006-2007 Income Assessing Officer 13.18 Act 1961 Tax (Rectification Proceedings)

10. The accumulated losses of the Company are not in excess of 50% of its net worth. However it has incurred cash loss during the current period as well as in the immediately preceding financial year.

11. According to the examination of documents and records and the information and explanations given to us, the Company has not defaulted in repayment of any dues to any financial institution or a bank except in case of an unsecured loan of Rs. 1097.64 Lacs due to a bank in respect of which the Company has submitted a proposal for one-time settlement which is pending with the bank for disposal.

12. According to the examination of documents and records and the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. In our opinion, the Company is neither a chit fund nor a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order 2003 are not applicable to the Company.

14. Based on our examination of the records and according to the information and explanation given to us, we are of the opinion that the Company has maintained proper records of transaction and contracts in respect of its investments in shares and securities. The shares and securities have been held in the name of the Company except in case of shares pledged as security for loan taken by the Company.

15. According to the information and explanations given to us and the records of the Company examined by us, the Company has not given any guarantee during the period for loans taken by others from banks or financial institutions.

16. According to the information and explanations given to us and the records of the Company examined by us, term loans, prima facie, have been applied for the purpose for which the loans were obtained.

17. On an overall examination of the balance sheet of the Company, we report that funds to the extent of Rs. 6,431.34 Lacs raised on short term basis have been used for long term investments.

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

19. The Company has not issued debentures.

20. The Company has not raised any money by public issue.

21. On the basis of our examination and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period.

For GANDHI & ASSOCIATES Chartered Accountants (Firm Registration No. 102965W)

[MILIND GANDHI] Partner Mumbai, May 27, 2015 Membership No. 043194

Sep 30, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of PRIME SECURITIES LIMITED ("the Company"), which comprises the Balance Sheet as at 30th September 2013 and the statement of Profit & Loss Account for the period 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. Basis for Qualified Opinion

1. Reference is invited to Note 27 according to which inter-corporate deposits ofRs. 2,075.00 Lacs is outstanding which are categorized under Short-term Borrowings, as represented by the management. We have not been able to validate this assertion in absence of confirmation of balances, terms of repayments and charge of interest. Accordingly, we are unable to ascertain the impact on the financial statements of the categorization of the deposits and non-provision of interest thereon.

2. As referred in Note 28 the Company has not provided for interest of Rs. 380.67 Lacs on certain secured loans as in the opinion of the management the same is under renegotiations with the lenders. Had the Company made such provision the loss for the period and the amount of secured loans would have been higher by that amount.

3. Reference is invited to Note 29 according to which the management is hopeful of recovery of a capital advance of Rs. 327.50 Lacs in respect of which we are unable to ascertain the impact, if any, that may arise in case if the same, or part thereof, is subsequently determined to be doubtful of recovery.

Qualified Opinion

In our opinion and to the best of our knowledge and according to the information and explanations given to us, except for the effects of the matters described in paragraph 1 to 3 of the Basis for Qualified Opinion paragraph, the said 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 September 30, 2013;

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

c) In the case of the Cash Flow Statement, of the cash flow for the period ended on that date. Emphasis of Matter:

Our opinion is not modified in respect of the following:

1. The accompanying financial statements are prepared on going concern basis, notwithstanding the circumstances referred in Note 26 which casts significant doubt about Company''s ability to meet its financial obligations as and when they fall due. The appropriateness of the said basis is interalia dependent on the Company''s ability to generate cash from disposing-off investments and from new revenue streams to meet its liabilities in normal course of business. Relying on the above, no adjustments have been made to the carrying value of the assets and liabilities in the accompanying financial statements.

2. As referred to in Note 25 the Company''s subsidiary Primesec Investments Limited''s networth has been eroded but having regard to receipt of share application monies from the Company, for which shares are proposed to be allotted, Primesec Investments Limited has prepared its accounts on a going concern basis. Relying on the above, the Company has not considered making any adjustments to its financial exposure in the subsidiary.

3. As referred to in Note 32 there is a diminution of Rs. 1,866.74 Lacs in value of non-current investments (other than in subsidiary companies). The Company has not provided for such diminution on the basis that the same is temporary in nature.

4. Attention is invited to Note 33 in respect of transactions in Company''s demat accounts. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' 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 the books;

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

d) In our opinion, except for the effect of matter described in Basis for Qualified Opinion paragraph, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report, comply in all material respects, with the mandatory Accounting Standards referred to in subsection (3C) of section 211 of the Act.

e) Except for the possible effects of the matter described in the Basis for Adverse Opinion paragraph, In our opinion, the Balance Sheet and the Statement of Profit & Loss, comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Act;

f) On the basis of written representations received from the directors as on 30th September 2013 and taken on record by the Board of Directors, none of the directors is disqualified as on 30th September 2013 from being a''ppointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Act.

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

Referred to in paragraph 1 of report on Other Legal and Regulatory requirement of our report of even date

On the basis of records produced to us for our verification/perusal, such checks as we considered appropriate, and in terms of information and explanations given to us on our inquiries, we state that:

1. 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 were physically verified by the management at reasonable intervals during the period. According to the information and explanations given to us, no discrepancies were noticed on such physical verification.

c) The Company has not disposed off substantial part of its fixed assets during the period.

2. a) The Company does not hold any inventories and therefore Clause 4(ii) of the Companies (Auditor''s Report) Order 2003 is not applicable to the Company.

3. a) The Company has taken an unsecured interest-free loan, from a party listed in the register maintained under Section 301 of the Companies Act, 1956. As at the period-end the amount of loan outstanding was Rs. 3,000,000 and the maximum amount of loan involved during the period under review was Rs. 3,000,000. b) As per the information given to us, in our opinion, the terms and conditions of the loan is prima facie non-prejudicial to the interest of the Company.

4. In our opinion and according to the information and explanation 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 and sale of inventories and fixed assets and the sale of services. During the course of our audit no major weaknesses have been observed in the internal controls.

5. a) On the basis of audit procedures performed by us and according to the information and explanation given to us and on our inquiries in this behalf and the records produced to us for our verification, the transactions that need to be entered into the register maintained in pursuance of Section 301 of the Companies Act, 1956 have been so entered.

b) As per the information and explanations given to us, the contracts entered into during the period from the parties covered under the register maintained under Section 301 of the Companies Act, 1956 are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits within the meaning of the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA of the Act and rules framed there under.

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

8. To the best of our knowledge and according to the information and explanation given to us, the Central Government has not prescribed the maintenance of cost records for the services rendered by the Company and hence the provisions of clause 4(viii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

9. a) According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, income tax, sales tax, service tax and other statutory dues applicable to it.

b) According to the information and explanations given to us, there are undisputed amounts payable in respect tax deducted at source of Rs. 1,664,269 at the end of the period outstanding for more than six months from the date they became payable.

c) Further, according to the information and explanations given to us, the particulars of statutory dues outstanding at the end of the period on account of a dispute are as follows:

Statue Assessment Year Nature Dues Forum before whom pending Total

2006-2007 Assessing Officer (Rectification Proceedings)

Income Tax Act 1961 Income Tax

2008-2009 Commissioner of Income-tax

10. The Company does not have any accumulated losses at the end of the period. However it has incurred cash loss during the current period as well as in the immediately preceding financial year.

11. According to the examination of documents and records and the information and explanations given to us, the Company has not defaulted in repayment of any dues to any financial institution or bank.

12. According to the examination of documents and records and the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. In our opinion, the Company is neither a chit fund nor a nidhi/mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

14. Based on our examination of the records and according to the information and explanation given to us and subject to Note 31 of the financial statements, we are of the opinion that the Company has maintained proper records of transaction and contracts in respect of its investments in shares and securities. The shares and securities have been held in the name of the Company except in case of (a) shares given as margin for derivative transactions; (b) shares pledged as security for loan taken by the Company and its subsidiary; and (c) given to a party pending completion of a contract.

15. The Company has given corporate guarantee to banks on behalf of its subsidiary company against the credit facilities availed by the subsidiary companies. According to the information and explanations given to us, we are of the opinion that the terms and conditions thereof are not prima facie prejudicial to the interest of the Company.

16. According to the information and explanations given to us and the records of the Company examined by us, term loans, prima facie, have been applied for the purpose for which the loans were obtained.

17. On an overall examination of the balance sheet of the Company, we report that funds to the extent ofRs. 916,746,332 raised on short term basis have been used for long term investments.

18. The Company has not made any preferential allotment of shares to parties covered or companies covered in the register maintained under section 301 of the Act.

19. The Company has not issued debentures.

20. The Company has not raised any money by public issue.

21. On the basis of our examination and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the period.

For Gandhi & Associates

Chartered Accountants

Registration No. 102965W

Milind Gandhi

Partner

Mumbai, November 29, 2013 Membership No. 043194

Mar 31, 2011

We have audited the attached Balance Sheet of PRIME SECURITIES LIMITED as at March 31,2011, the Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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.

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

1. Further to our comments in the annexure referred to in paragraph (1) above:

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

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

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

iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the directors and taken on record by the Board of Directors, we report that none of the directors are disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

2. Without qualifying our opinion, we draw attention to Note no. 11 in Schedule P relating to the Company's investment in, and loans to, its subsidiary Prime Broking Company (India) Limited in respect of which we are unable to express our opinion in view of the circumstances specified in the said note.

3. We further draw attention to:

- Note no. 5 in Schedule P relating to managerial remuneration which is subject to the approval of the Central Govern- ment and the Shareholders

- Note no. 11 in Schedule P relating to the Company's investment in, and loans to, its subsidiary Primesec Investments Limited in respect of which we are unable to express our opinion in view of the circumstances specified in the said note.

4. Subject to para 3 above, in our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit and Loss Account and Cash Flow Statement read with the notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India:

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

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

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

ANEXURE TO THE AUDITOR 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, the fixed assets were physically verified by the management as at the year end and that discrepancies noticed have been property deaft with in the books of account. In our opinion, such discrepancies were not materia) in nature and that the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets.

c. During the year the Company has not disposed off any substantial part of its fixed assets.

ii) According to the information and explanations given to us, the Company has neither granted nor taken any loan secured or unsecured to/ from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

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

iv) According to the information and explanations given to us, there are no contracts or arrangements that need to be entered into a register maintained in pursuance of section 301 of the Companies Act, 1956. Accordingly, paragraph 4(v)(a) and (b) of the Order is not applicable.

v) The Company has not accepted any deposits within the meaning of the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA of the Companies Act, 1956 and rules framed there under.

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

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

viii) a. According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, income tax, sales tax, service tax and other statutory dues applicable to it.

b. According to the information and explanations given to us no undisputed amounts payable in respect of aforesaid dues were outstanding as at 31st March, 2011 for a period more than six months from the date they became payable.

c. According to the information and explanations given to us, there are no statutory dues outstanding on account of any dispute as of 31 st March, 2011.

ix) The Company does not have any accumulated loss as at the year end. The Company has neither incurred any cash loss during the current financial year nor in the immediately preceding financial year.

x) The Company has not defaulted in repayment of dues to a financial institution or a bank during the year.

xi) The Company has not granted any loans or advances against security by way of pledge of shares, debentures and other securities.

xii) The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the Company.

xiii) The Company has maintained proper records of the transactions and contracts in respect of the investments and timely entries have been made therein. Further, such investments have been held by the Company in its own name except for those pending transfer in the name of the Company.

xiv) The Company has given corporate guarantee to banks on behalf of its subsidiary company against the credit facilities availed by the subsidiary company. According to the information and explanations given to us, we are of the opinion that the terms and conditions thereof are not prima facie prejudicial to the interest of the Company.

xv) According to the information and explanations given to us and the records of the Company examined by us, term loans, prima facie, have been applied for the purpose for which the loans were obtained.

xvi) Based on the overall examination of Balance sheet of the Company, as at 31 st March 2011, we are of the opinion that there are no funds raised on short term basis that has been used for long term application.

xvii) The Company has issued and allotted equity shares under the Employee Stock Option Plan to a party covered in the register maintained under Section 301 of the Companies Act, 1956. As explained to us the price at which the shares have been issued is prima facie not prejudicial to the interest of the Company.

xviii) The Company has not raised any money by public issues during the year.

xix) According to the information and explanations given to us, no fraud on, or, by the Company has been noticed or reported during the year. Looking to the nature of activities being carried on by the Company and also considering the nature of the matters referred to in the said Order, clauses no. (ii) and (xix) of Paragraph 4 of the said Order are, in our opinion, not applicable to the Company.

For Gandhi & Associates

Chartered Accountants

Registration No. 102965W

Milind Gandhi

Partner

Mumbai, May 28, 2011 Membership No. 043194

Mar 31, 2010

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

We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 evaluat- ing the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of Section 227(4A) of the Companies Act 1956, we enclose, in the annexure, a statement on the matters specifed in paragraphs 4 and 5 of the said Order.

1. Further to our comments in the annexure referred to in paragraph (1) above:

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

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

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

iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

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

2. Without qualifying our opinion, we draw attention to:

Note no. 10 in Schedule P relating to the Companys investment in, and loans to, its subsidiary Prime Broking Company (India) Limited in respect of which we are unable to express our opinion as to whether they are good and recoverable in view of the circumstances specified in the said note.

3. In our opinion and to the best of our information and according to the explanations given to us, the Balance Sheet, Profit and Loss Account and Cash Flow Statement read with the notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with accounting principles generally accepted in India:

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

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

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

ANNEXURE TO THE AUDITORS REPORT Referred to in Paragraph 3 of our report of even date

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

b. As explained to us, the fixed assets were physically verified by the management as at the year end and that discrepancies noticed have been properly dealt with in the books of account. In our opinion, such discrepancies were not material in nature and that the frequency of verification is reasonable having regard to the size of the Company and the nature of its assets.

c. During the year the Company has not disposed off any substantial part of its fixed assets.

ii) According to the information and explanations given to us, the Company has neither granted nor taken any loan secured or unsecured to

from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. iii) In our opinion and according to information and explanations given to us, there are adequate internal control procedures commensurate

with the size of the Company and nature of its business with regards to purchase of fixed assets and sale of services. During the course of

our audit, no major weakness has been noticed in the internal control. iv) According to the information and explanations given to us, there are no contracts or arrangements that need to be entered into a register

maintained in pursuance of section 301 of the Companies Act, 1956. Accordingly, paragraph 4(v)(a) and (b) of the Order is not applicable.

v) The Company has not accepted any deposits within the meaning of the directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA of the Companies Act, 1956 and rules framed there under.

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

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

viii) a. According to the information and explanations given to us and the records of the Company examined by us, the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, income tax, sales tax, service tax and other statutory dues applicable to it.

According to the information and explanations given to us, income-tax dues amounting to Rs. 13.46 lacs have remained outstanding as at 31st March, 2010 for a period more that six months from the date they became payable.

b. According to the records of the Company, the particulars of statutory dues as at 31st March, 2010 which have not been deposited on account of a dispute are as follows: Statue Form before whom pending Total (Rs In lacs)

Income tax Act, 1961 Commissioner of Income-tax (Appeals), Mumbai. 8.45

ix) The Company does not have any accumulated loss as at the year end. The Company has not incurred any cash loss during the current financial year but had incurred cash loss in the immediately preceding financial year.

x) The Company has not defaulted in repayment of dues to a financial institution or a bank during the year.

xi) The Company has not granted any loans or advances against security by way of pledge of shares, debentures and other securities.

xii) The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund/Societies are not applicable to the Company.

xiii) The Company has maintained proper records of the transactions and contracts in respect of the investments and timely entries have been made therein. All investments are held in the name of the Company except shares of Tunip Agro Limited amounting to Rs. 381.50 lacs are yet to be transferred in the name of the Company.

xiv) The Company has given corporate guarantee of Rs. 1,624.64 lacs to banks on behalf of its subsidiary company against the credit facili- ties availed by the subsidiary Company. Read with clause 2 of the audit report, in our opinion, the terms and conditions thereof are not prejudicial to the interests of the Company. According to the information and explanations given to us, the Company has not given any other guarantee for loans taken by others from banks or financial institutions.

xv) According to the information and explanations given to us and the records of the Company examined by us, term loans, prima facie, have

been applied for the purpose for which the loans were obtained. xvi) Based on the overall examination of Balance Sheet of the Company, as at 31st March 2010, short term funds of Rs. 38.48 crores have been

utilized for long term application. The Company has explained that steps are being taken to augment long term funds.

xvii) The Company has not made any preferential allotment of shares during the year to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956.

xviii) The Company has not raised any money by public issues during the year.

xix) According to the information and explanations given to us, no fraud on, or, by the Company has been noticed or reported during the year. Looking to the nature of activities being carried on by the Company and also considering the nature of the matters referred to in the said Order, clauses no. (ii) and (xix) of Paragraph 4 of the said Order are, in our opinion, not applicable to the Company.

For Gandhi & Associates Chartered Accountants Registration No. 102965W

K. V. Sahasrabudhe

Partner Mumbai, May 29, 2010 Membership No.: 106172

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