Auditor Report of Ahluwalia Contracts (India) Ltd.

Mar 31, 2025

We have audited the accompanying standalone financial
Statements of Ahluwalia Contracts (India) Limited (''the
Company''), which comprise the Balance Sheet as at March
31, 2025, the Statement of Profit and Loss (including other
comprehensive income), the Statement of Cash Flow, the
Statement of Changes in Equity, Notes to the Standalone
Financial Statements for the year ended on that date, and
a summary of the material accounting policies and other
explanatory information (hereinafter referred to as the
standalone financial statements).

In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 ("the Act") in the manner so required
and give a true and fair view in conformity with the Companies
(Indian Accounting Standards) Rules, 2015, as amended,
("IND AS") and other accounting principles generally accepted
in India, of the state of affairs of the Company as at March 31,
2025, the profit and total comprehensive income, changes in
equity and its cash flows for the year ended on that date.

BASIS FOR OPINION

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

KEY AUDIT MATTERS

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

S. No.	Key Audit Matters	Auditor''s Response
1	Revenue recognition for long term construction contracts: The Company''s significant portion of business is undertaken through long term construction contracts. Revenue from these contracts is recognized over a period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. Due to the nature of the contracts, revenue recognition involves usage of percentage of completion method which is determined based on output method such as surveys of performance completed to date, appraisal of results achieved, milestones reached, units produced or units delivered which involves significant judgements, identification of contractual obligations and the Company''s rights to receive payments for performance completed till date, changes in scope and consequential revised contract price and recognition of the liability for loss making contracts. (Note No. 2.3)	Our audit procedures include the following: • Reading the company''s revenue recognition accounting policies and assessing compliance with the policies in terms of Ind AS 115. • We performed test of controls over revenue recognition with specific focus on determination of progress of completion and recording of costs incurred. • We performed tests of details, on a sample basis, and read the underlying customer contracts and its amendments, if any, key contract terms and milestones etc. for verifying estimation of contract revenue and cost and /or any change in such estimation. • We reviewed the management''s evaluation process to recognize revenue over a period of time, status of completion for projects and total cost estimates. • We tested contracts with exceptions including contracts with low or negative margins, contracts with significant changes in planned cost estimates, contracts with significant contract assets and liabilities, and significant overdue net receivable positions for contracts and tested these exceptions with its correlation with the underlying contracts, documents for the triggers during the period. • We tested that the contractual positions and revenue for the year are presented and disclosed in compliance of Ind AS 115 in the Standalone financial statements.

S. No.	Key Audit Matters	Auditor''s Response
2.	Trade Receivables and Contract Assets Trade receivables and Contract Assets amounting to ''81,297.15 lakhs and ''Lakhs 77,819.76 lakhs respectively represent approximately 42.92% of the total assets of the Company as at March 31, 2025. In assessing the recoverability of the aforesaid balance management''s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract. Management estimation is required in the measurement of work completed during the period for recognition of unbilled revenue. We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above.	Our Audit procedures amongst other included the following: • We understood and tested on a sample basis the design and operating effectiveness of management control over the recognition and the recoverability of the trade receivables and contract assets. • We performed test of details and tested relevant contracts, documents and subsequent settlements for material trade receivable balances and amounts included in contract assets that are due on performance of future obligations. • We tested the aging of trade receivables at year end. • We performed test of details and tested relevant contracts and documents with specific focus on measurement of work completed during the period for material unbilled revenue balances included in contract asset. • We performed additional procedures, in respect of material over-due trade receivables and long outstanding contract assets, i.e. tested historical payment records and legal advice obtained by the management on litigations from legal experts. • We assessed the allowance for impairment made by management.
3.	Litigation and Claims & other Contingent Liabilities The Company is involved in direct, indirect tax and other litigations that are pending with different statutory authorities. (Refer note 40(i)(a) to the Standalone Financial Statements). The level of management judgement associated with determining the need for, and the quantum of, provisions for any liabilities is dependent on a number of significant assumptions and assessments which involves interpreting the various applicable rules, regulations, practices and considering precedents in the various jurisdictions. This matter is considered as a key matter, in view of the uncertainty regarding the outcome of these litigations, the significance of the amounts involved and the subjectivity involved in management''s judgement as to whether the amount should be recognized as a provision or only disclosed as contingent liability in the standalone financial statements.	Our audit procedures amongst others included the following: • Obtained list of pending litigations as at March 31, 2025 from management. • We analysed the completed assessments for pending cases of similar nature. • Discussed the matters with the management to understand the possible outcome of these disputes. • We have also considered legal precedence and other rulings in evaluating management position on these uncertain tax & other litigations. • Obtained experts opinion in major cases to review the management''s assessment of the possible outcome of the disputes relating to direct, indirect tax and other litigations. • Assessed contingent liabilities disclosure in note 40(i)(a) to the accompanying Standalone financial statements.

OTHER INFORMATION

The Company''s Board of Director is responsible for the
other information. The other information comprises the
information included in the Management Discussion and
Analysis, Board''s Report including Annexures to Board''s
Report, Business Responsibility and Sustainability Report,
Corporate Governance and Shareholder''s Information, but
does not include the standalone financial statements and
our auditor''s report thereon. The above-mentioned 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 will 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
identified above when it becomes available 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

The Company''s Board of Director is responsible for the
matters stated in Section 134(5) of the Companies Act, 2013
(''the Act'') with respect to the preparation of these standalone
financial statements to 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 specified in the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) under Section 133 of the
Act. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the
Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the standalone financial statements that give
a true and fair view and are free from material misstatement,
whether due to fraud or error.

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

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

AUDITOR''S RESPONSIBILITY FOR THE AUDIT OF THE
STANDALONE FINANCIAL STATEMENTS

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

could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.

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

• 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.

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

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

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

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

Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the standalone financial

statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in
the standalone financial statements.

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

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

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

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by Section 143(3) of the Act, based on our

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

d) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS 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 March 31, 2025 and taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2025 from
being appointed as a director in terms of Section 164
(2) of the Act.

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

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

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

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

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

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. The Company has
no 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.

iv. (a) The Management has represented that,

to the best of its knowledge and belief, no
funds (which are material either individually
or in the aggregate) have been advanced or
loaned or invested (either from borrowed
funds or share premium or any other
sources or kind of funds) by the Company

to or in any other person or entity, including
foreign entity ("Intermediaries"), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified
in any manner whatsoever by or on behalf
of the Company ("Ultimate Beneficiaries")
or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;

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

c) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as
provided under (a) and (b) above, contain
any material misstatement.

v. The Board of Directors of the Company
have proposed dividend for the year which

is subject to the approval of the members
at the ensuing Annual General Meeting.
The amount of dividend proposed is in
accordance with section 123 of the Act, as
applicable.

vi. Based on our examination, which included
test checks, the Company has used
accounting software for maintaining its
books of account for the financial year
ended March 31, 2025 which has a feature
of recording audit trail (edit log) facility
and the same has operated accordingly
during the year for all relevant transactions
recorded in the software.

Further, during the course of our audit we
did not come across any instance of the
audit trail feature being tampered with and
the audit trail has been preserved by the
Company as per the Statutory requirements
for record retention.

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

For Amod Agrawal & Associates

Chartered Accountants
Firm Registration No. 005780N

Amod Agrawal

Partner

Place: New Delhi Membership No.- 084175

Dated: 30-05-2025 UDIN: 25084175BMNRLX6337

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Mar 31, 2024

AHLUWALIA CONTRACTS (INDIA) LIMITEDREPORT ON THE AUDIT OF STANDALONE FINANCIAL STATEMENTSOpinion

We have audited the accompanying standalone financial Statements of Ahluwalia Contracts (India) Limited (‘the Company’), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flow, the Statement of Changes in Equity, Notes to the Financial Statements for the year ended on that date, and a summary of the material accounting policies and other explanatory information (hereinafter referred to as the standalone financial statements).

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

Basis for Opinion

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

Key Audit Matters

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

S. No.	Key Audit Matters	Auditor''s Response
1	Revenue recognition for long term construction contracts The Company’s significant portion of business is undertaken through long term construction contracts. Revenue from these contracts is recognized over a period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. Due to the nature of the contracts, revenue recognition involves usage of percentage of completion method which is determined based on output method such as surveys of performance completed to date, appraisal of results achieved, milestones reached, units produced or units delivered which involves significant judgements, identification of contractual obligations and the Company’s rights to receive payments for performance completed till date, changes in scope and consequential revised contract price and recognition of the liability for loss making contracts. (Note No. 2.3)	Our audit procedures include the following: • Reading the company’s revenue recognition accounting policies and assessing compliance with the policies in terms of Ind AS 115. • We performed test of controls over revenue recognition with specific focus on determination of progress of completion and recording of costs incurred. • We performed tests of details, on a sample basis, and read the underlying customer contracts and its amendments, if any, key contract terms and milestones etc. for verifying estimation of contract revenue and cost and /or any change in such estimation. • We reviewed the management’s evaluation process to recognize revenue over a period of time, status of completion for projects and total cost estimates. • We tested contracts with exceptions including contracts with low or negative margins, contracts with significant changes in planned cost estimates, contracts with significant contract assets and liabilities, and significant overdue net receivable positions for contracts and tested these exceptions with its correlation with the underlying contracts, documents for the triggers during the period. • We tested that the contractual positions and revenue for the year are presented and disclosed in compliance of Ind AS 115 in the Standalone financial statements.

S. No.	Key Audit Matters	Auditor''s Response
2	Trade Receivables and Contract Assets Trade receivables and Contract Assets amounting to '' 78107.74 lakhs and '' 71744.84 lakhs respectively represent approximately 46.88 % of the total assets of the Company as at March 31, 2024. In assessing the recoverability of the aforesaid balance management’s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract. Management estimation is required in the measurement of work completed during the period for recognition of unbilled revenue. We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above.	Our Audit procedures amongst other included the following: • We understood and tested on a sample basis the design and operating effectiveness of management control over the recognition and the recoverability of the trade receivables and contract assets. • We performed test of details and tested relevant contracts, documents and subsequent settlements for material trade receivable balances and amounts included in contract assets that are due on performance of future obligations. • We tested the aging of trade receivables at year end. • We performed test of details and tested relevant contracts and documents with specific focus on measurement of work completed during the period for material unbilled revenue balances included in contract asset. • We performed additional procedures, in respect of material overdue trade receivables and long outstanding contract assets, i.e. tested historical payment records and legal advice obtained by the management on litigations from legal experts. • We assessed the allowance for impairment made by management.
3	Litigation and Claims & other Contingent Liabilities- The Company is involved in direct, indirect tax and other litigations that are pending with different statutory authorities. (Refer note 40(i)(a) to the Standalone Financial Statements). The level of management judgement associated with determining the need for, and the quantum of, provisions for any liabilities is dependent on a number of significant assumptions and assessments which involves interpreting the various applicable rules, regulations, practices and considering precedents in the various jurisdictions. This matter is considered as a key matter, in view of the uncertainty regarding the outcome of these litigations, the significance of the amounts involved and the subjectivity involved in management’s judgement as to whether the amount should be recognized as a provision or only disclosed as contingent liability in the standalone financial statements.	Our audit procedures amongst others included the following: • Obtained list of pending litigations as at March 31, 2024 from management. • We analysed the completed assessments for pending cases of similar nature. • Discussed the matters with the management to understand the possible outcome of these disputes. • We have also considered legal precedence and other rulings in evaluating management position on these uncertain tax & other litigations. • Obtained experts opinion in major cases to review the management’s assessment of the possible outcome of the disputes relating to direct, indirect tax and other litigations. • Assessed contingent liability disclosure in note 40(i)(a) to the accompanying Standalone financial statements.

Other Information

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

report thereon. The above-mentioned 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 will 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

identified above when it becomes available 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

The Company’s Board of Director is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the Act’) with respect to the preparation of these standalone financial statements to 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 specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

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

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

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

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

• 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.

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

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

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

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

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our

audit 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, except for keeping backup on daily basis of Payroll module and the matter stated in paragraph h(vi) below, on reporting under rule 11(g) of the companies (Audit and Auditor’s) Rule, 2014.

c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Other Comprehensive Income, Standalone Statement of

Changes in Equity and the Standalone Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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

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

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

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

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

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

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. The Company has no 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.

iv. (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

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

c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The Board of Directors of the Company have proposed dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

vi. Based on our examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility w.e.f 03.04.2023 and the same has operated accordingly during the year for all relevant transactions recorded in the software except for the software used for payroll which did not have audit trail.

Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

2. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government in terms of Section 143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.

For Amod Agrawal & Associates

Chartered Accountants Firm Registration No. 005780N

AMOD AGRAWAL

Partner

Place: New Delhi Membership No.- 084175

Dated: 29-05-2024 UDIN: 24084175BKHZUV9121

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Mar 31, 2023

AHLUWALIA CONTRACTS (INDIA) LIMITED

REPORT ON THE AUDIT OF STANDALONE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying standalone financial Statements of Ahluwalia Contracts (India) Limited (''the Company''), which comprise the Balance Sheet as at March 31, 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 ended on that date, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the standalone financial statements).

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

Basis for Opinion

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

Key Audit Matters

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

S. No.	Key Audit Matters	Auditor''s Response
1	Revenue recognition for long term construction contracts: The Company''s significant portion of business is undertaken through long term construction contracts. Revenue from these contracts is recognized over a period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. Due to the nature of the contracts, revenue recognition involves usage of percentage of completion method which is determined based on output method such as surveys of performance completed to date, appraisal of results achieved, milestones reached, units produced or units delivered which involves significant judgements, identification of contractual obligations and the Company''s rights to receive payments for performance completed till date, changes in scope and consequential revised contract price and recognition of the liability for loss making contracts. (Note No. 2.3)	Our audit procedures include the following: • Reading the company''s revenue recognition accounting policies and assessing compliance with the policies in terms of Ind AS 115. • We performed test of controls over revenue recognition with specific focus on determination of progress of completion and recording of costs incurred. • We performed tests of details, on a sample basis, and read the underlying customer contracts and its amendments, if any, key contract terms and milestones etc. for verifying estimation of contract revenue and cost and /or any change in such estimation. • We reviewed the management''s evaluation process to recognize revenue over a period of time, status of completion for projects and total cost estimates.

S. No.	Key Audit Matters	Auditor''s Response
		• We tested contracts with exceptions including contracts with low or negative margins, contracts with significant changes in planned cost estimates, contracts with significant contract assets and liabilities, and significant overdue net receivable positions for contracts and tested these exceptions with its correlation with the underlying contracts, documents for the triggers during the period. • We tested that the contractual positions and revenue for the year are presented and disclosed in compliance of Ind AS 115 in the Standalone Ind AS financial statements.
2	Trade Receivables and Contract Assets Trade receivables and Contract Assets amounting to '' 63,875.68 lakhs and '' 50,312.37 lakhs respectively represent approximately 45.78 % of the total assets of the Company as at March 31, 2023. In assessing the recoverability of the aforesaid balance management''s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract. Management estimation is required in the measurement of work completed during the period for recognition of unbilled revenue. We considered this as key audit matter due to the materiality of the amounts and significant estimates and judgements as stated above.	Our Audit procedures amongst other included the following: • We understood and tested on a sample basis the design and operating effectiveness of management control over the recognition and the recoverability of the trade receivables and contract assets. • We performed test of details and tested relevant contracts, documents and subsequent settlements for material trade receivable balances and amounts included in contract assets that are due on performance of future obligations. • We tested the aging of trade receivables at year end. • We performed test of details and tested relevant contracts and documents with specific focus on measurement of work completed during the period for material unbilled revenue balances included in contract asset. • We performed additional procedures, in respect of material over-due trade receivables and long outstanding contract assets, i.e. tested historical payment records and legal advice obtained by the management on litigations from legal experts. • We assessed the allowance for impairment made by management.
3	Litigation and Claims & other Contingent Liabilities- The Company is involved in direct, indirect tax and other litigations that are pending with different statutory authorities. (Refer note 40(i)(a) to the Consolidated Ind AS Financial Statements).	Our audit procedures amongst others included the following: • Obtained list of pending litigations as at March 31, 2023 from management. • We analysed the completed assessments for pending cases of similar nature.

S. No.	Key Audit Matters	Auditor''s Response
	The level of management judgement associated with determining the need for, and the quantum of, provisions for any liabilities is dependent on a number of significant assumptions and assessments which involves interpreting the various applicable rules, regulations, practices and considering precedents in the various jurisdictions. This matter is considered as a key matter, in view of the uncertainty regarding the outcome of theses litigations, the significance of the amounts involved and the subjectivity involved in management''s judgement as to whether the amount should be recognized as a provision or only disclosed as contingent liability in the standalone financial statements.	• Discussed the matters with the management to understand the possible outcome of these disputes. • We have also considered legal precedence and other rulings in evaluating management position on these uncertain tax & other litigations. • Obtained experts opinion in major cases to review the management''s assessment of the possible outcome of the disputes relating to direct, indirect tax and other litigations. • Assessed contingent liability disclosure in note 40(i)(a) to the accompanying Standalone Ind AS financial statements.

Other Information

The Company''s Board of Director is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including Annexures to Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but does not include the standalone financial statements and our auditor''s report thereon. The above-mentioned report is expected to be made available to us after the date of this auditor''s report.

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

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the 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.

Management''s Responsibility for the standalone Financial Statements

The Company''s Board of Director is responsible for the matters stated in Section 134(5) of the Companies Act, 2013

(''the Act'') with respect to the preparation of these standalone financial statements to 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 specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

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

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

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

• 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.

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

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

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

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

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our

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

d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS 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 31-03-2023 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.

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

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

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

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

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

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. The Company has no 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.

iv. (a) The Management has represented that, to

the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in

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

c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement.

v. The Board of Directors of the Company have proposed dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

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

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

For Amod Agrawal & Associates

Chartered Accountants Firm Registration No. 005780N

SMITA GUPTA

Partner

Place: New Delhi Membership No.- 087061

Dated: 27-05-2023 UDIN:23087061BGZGYV4843

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Mar 31, 2018

REPORT ON THE STANDALONE INDIAN ACCOUNTING STANDARDS (‘IND AS’) FINANCIAL STATEMENTS

1. We have audited the accompanying standalone Ind AS Financial Statements of Ahluwalia Contracts (India) Limited (‘the Company’), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE IND AS FINANCIAL STATEMENTS

2. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (‘the Act’) with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the state of affairs( financial position), profit & loss ( financial performance including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

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

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

5. 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.

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

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

OPINION

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 31st March, 2018, 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.

OTHER MATTER

9. The comparative financial information for the year ended 31st March, 2017 and the transition date opening balance sheet as at 01st April, 2016 prepared in accordance with Ind AS included in these financial statements, are based on the previously issued statutory financial statements for the year ended 31st March, 2017 and 31st March, 2016 respectively prepared in accordance with Accounting Standards prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules, 2016 which were audited by the predecessor statutory auditor of the Company, whose reports dated May 30, 2017 and May 24, 2016 respectively expressed unmodified opinion on those financial statements and have been adjusted for the differences in the accounting principles adopted by the company on transition to Ind AS, which have been audited by us. Our opinion is not modified in respect of this matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

10. As required by ‘the Companies (Auditor’s Report) Order, 2016’, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the “Order”), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure-A, a statement on the matters specified in paragraphs 3 and 4 of the Order.

11. 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 Cash Flow Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

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

(e) On the basis of the written representations received from the directors as on April 1, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164(2) of the Act.

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

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

i) The Company has disclosed the impact, if any, of pending litigations as at 31st March, 2018, on its financial position in its standalone Ind AS financial statements - Refer Note 42to the standalone Ind AS financial statements;

ii) The Company has made provision as at 31st March, 2018, as required under the applicable law or Indian 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 during the year ended 31st March, 2018.

iv) The reporting on disclosure relating to specified Bank Notes is not applicable to the company for the year ended 31st March, 2018.

Referred to in paragraph 10 of the Independent Auditors’ Report of even date to the members of Ahluwalia Contracts India Limited on the standalone Ind AS financial statements as of and for the year ended 31st March, 2018

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details. A separate record for movement of fixed assets showing situation is maintained except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties included in fixed assets are held in the name of the Company except given below:

LAND:

Total number	Whether leasehold/	Gross Block (as at Balance	Net Block (as at Balance	Remarks, if any.
of cases	freehold	Sheet date) (Rs. in lakhs)	Sheet date) (‘ in lakhs)
1	Leasehold - (Chattarpur, New Delhi)	13.60	13.60	Registration is pending as per Bye Laws prevailing thereon.

BUILDING ( KOLKATA):

Total number	Gross Block (as at Balance	Net Block (as at Balance	Remarks, if any.
of cases	Sheet date) (Rs. in lakhs)	Sheet date) (Rs. in lakhs)
1	13.60	13.60	Registration is pending as per State Government Directives /Bye Laws prevailing thereon.

(ii) In our opinion, the management has conducted physical verification of major items of inventory at reasonable intervals. No material discrepancies were noticed on physical verification of such stocks.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause 3(iii),(iii)(a),(iii)(b),(iii)(c) of the said order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, provisions of section 186 of the Companies Act 2013 in respect of investments made have been complied by the Company. There are no other loans, guarantees and securities granted in respect of which provisions of section 185 & 186 of the Companies Act, 2013 are applicable.

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

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(vii) a) Undisputed statutory dues including provident fund, employees state insurance, income-tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess, goods & service tax and other material statutory dues have generally been regularly deposited with appropriate authorities except for delays in service tax & value added tax, goods & service tax and in case of provident fund & income tax there has been slight delay in few cases.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income-tax, sales tax, service tax, duty of custom, duty of excise, value added tax, cess, goods & service tax and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable except labour cess of Rs.68.69 lakhs which is subsequently deposit on 22-05-2018.

c) According to the records of the company, the dues outstanding of sales-tax, income-tax, duty of custom, duty of excise, service tax, value added tax, goods & service tax and cess on account of any dispute, are as follows: :

Name of the Statute	Nature of Dues	Amount (Rs. in Lakhs)	Period to which the amount relates		Forum where dispute is pending
Central Excise Act,1944	Demand for Excise Duty	14.27	March-2011 to November-2012		Commissioner Bangalore
Central Excise Act,1944	Demand for Excise Duty	360.90	2011-2012 to 2015-2016		Addl. Commissioner, CE Noida
Indian Stamp Act	Stamp duty on Real Estate Project	57.42	1990-1991		Allahabad High Court
Value Added Tax Act, Delhi	VAT Demand	69.88	2013-2014		Asst. Commissioner DVAT
Value Added Tax Act (Haryana),	VAT Demand	254.84	2011-2012		Additional Commissioner HVAT,
2003					Gurgaon
Value Added tax act, Haryana	VAT Demand	236.45	2014-15		Appeal still not filed
Value Added Tax Act (Orissa),	VAT Demand	76.57	2007-2012		Jt. Comm. Sales tax, Sambalpur
2004
Value Added Tax Act	VAT Demand	8.38	2010-2013		Asst. Comm. Commercial tax
(Karnataka), 2014					(Audit), Bangalore
Value Added Tax Act (UP) 2015	VAT Demand	11.37	2005-2007		Appellate Tribunal Ghaziabad
Value Added Tax Act	VAT Demand	16.43	2005-2006		Dy. Commissioner (Audit),
Maharashtra,2014					Mumbai
Value Added Tax Act	VAT Demand	417.69	2010-2011		Jt. Commissioner, Pune
Maharashtra,2014
Value Added Tax Act	VAT Demand	381.60	2010-2011		Dy. Commissioner, Pune
Maharashtra,2014
Value Added Tax Act	VAT Demand	38.13	2009-2010		Jt. Commissioner Sales
Maharashtra,2014					tax(Appeals), Mumbai
Value Added Tax Act	VAT Demand	1717.24	2011-2012		Appeal still not filed
Maharashtra,2014
Value Added Tax Act	VAT Demand	1569.84	2013-2014		Appeal still not filed
Maharashtra,2014
Value Added Tax Act (UP) 2015	VAT Demand	91.48	2008-2009		Addl. Commissioner Appeals-IV, Ghaziabad
Value Added Tax Act (Gujarat),	VAT Demand	21.63	2011-2013		Dy. Commissioner, Vadodara
2013
Value Added Tax Act 2005,West	VAT Demand	3.01	1998-99		Tribunal Kolkata
Bengal
Value Added Tax Act 2005,West	VAT Demand	45.19	2005-2006 & 2006-2007		Directorate of Commercial Tax /
Bengal					Sr. Jt. Commissioner, Kolkata
Value Added Tax Act 2005,West	VAT Demand	1.54	1997-1998		Settlement Commissioner,
Bengal					Kolkata
Value Added Tax Act 2005,West	VAT Demand	1023.48	2012-2013		Sr. Jt Commissioner of Sales Tax
Bengal
Value Added Tax Act 2005,West	VAT Demand	102.31		2008-2009	Additional Commissioner, Kolkata
Bengal
Value Added Tax Act 2005,West	VAT Demand	320.58		2013-2014	Joint Commissioner
Bengal
Value Added Tax Act 2005,West	VAT Demand	119.26		2014-2015	Joint Commissioner
Bengal

The Finance Act, 2004 and the	Service Tax Demand	210.83	2007-08 TO 2011-	Commissioner of Service Tax,
Service Tax Rules			12	Delhi
	Service Tax Demand	174.71	2007-08 TO 201112	Commissioner of Service Tax, Delhi
	Service Tax Demand	765.06	2011-12	Commissioner of Service Tax, Delhi
	Service Tax Demand	13.22	2011-12	Commissioner of Service Tax, Delhi
	Service Tax Demand	1,298.42	April-12 to March-13	Commissioner of Service Tax, Delhi
	Service Tax Demand	36.49	2006-09	Asst. Commissioner, Jamnagar
	Service Tax Demand	2.51	Apr.07 to Feb.08	Asst. Commissioner, Jamnagar
	Service Tax Demand	6.20	Apr.07 to Feb.08	Asst. Commissioner, Jamnagar
	Service Tax Demand	23.03	Dec.-06 to Mar.08	Asst. Commissioner, Jamnagar
	Service Tax Demand	52.83	2008 to-2009	Commissioner Appeal Bangalore
	Service Tax Demand	431.49	2005-06/ 2008-09	Asstt. Commissioner, Service tax, Mumbai
	Service Tax Demand	573.60	2012-2013	Asstt. Commissioner,Service tax, Mumbai
	Service Tax Demand	0.87	2007-2009	Asst. Commissioner, S.Tax, LDH
	Service Tax Demand	12.60	2008-2009	Jt. Commissioner,S.tax, LDH
	Service Tax Demand	3.75	Apr.07 to Sep.07	Commissioner,S.tax, LDH
	Service Tax Demand	769.87	2006-2008	Cestate, Chandigarh
	Service Tax Demand	120.46	July-2004 to Dec-2006	Commissioner CESTAT, Allahabad
	Service Tax Demand	33.09	Mar.12 to Mar.13	Commissioner Appeal, Noida
	Service Tax Demand	18.51	April-2006 to Oct-2009	CESTAT, Chennai
	Service Tax Demand	47.75	Oct 10 to Feb 12	Tribunal,Noida
	Service Tax Demand	71.73	April-12 to March-13	CESTAT,New Delhi
	Service Tax Demand	20.10	April-10 to Dec.2014	CESTAT,New Delhi
	Service Tax Demand	15.07	April-2012 to March-2013	Dy Commissioner, Service Tax, Noida
	Service Tax Demand	5.68	July-2011 to March-2012	Commissioner, Central Excise (Appeals), Noida
	Service Tax Demand	2622.25	01.03.05 TO 31.03.09	CESTAT, Kolkata
	Service Tax Demand	20.37	Apr.08 to Aug.08	CESTAT,Kolkata
	Service Tax Demand	103.48	Oct.05 to Jan.08	CESTAT,Kolkata
	Service Tax Demand	11.92	2008-09 200910	Commissioner, S.tax, Jaipur
	Service Tax Demand	0.71	April-2009 to Mar-2014	Commissioner Appeal,Noida
Employees Provident Fund	Provident Fund Demand	5,457.34	2006-2007 to	Employee Provident Fund
& Miscellaneous Provision			2008-2009	Appellant Tribunal, New Delhi
Act,1952

(viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution and banks. The Company does not have any dues outstanding to debenture holders.

(ix) Based on the audit procedures applied by us and according to the information & explanations provided by the management, the Company has not raised any moneys by further public offer (including debt instruments) during the year. Term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no fraud/ material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the records of the Company examined by us and the information and explanation given to us, the Company has paid and provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act, 2013.

(xii) In our opinion & according to the information & explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.

(xiii) According to the records of the Company examined by us and the information and explanation given to us, the company has complied with section 177 and 188 of the Companies Act 2013 in relation to transaction with related parties and the details have been disclosed in the financial statements, as required by the applicable accounting standards.

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

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

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

REPORT ON THE INTERNAL FINANCIAL CONTROLS

We have audited the internal financial controls over financial reporting of Ahluwalia Contracts (India) Limited (“the Company”) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

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

AUDITORS’ RESPONSIBILITY

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

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, 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 Company’s internal financial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of 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 company’s assets that could have a material effect on the standalone Ind AS financial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

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

OPINION

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

For Amod Agrawal & Associates

Chartered Accountants

Firm Registration No.005780N

Place: New Delhi VIRENDRA KUMAR

Dated: 30th May, 2018 Partner

Membership No.-085380

---

Mar 31, 2017

Independent Auditor’s Report

TO THE MEMBERS OF

AHLUWALIA CONTRACTS (INDIA) LIMITED Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Ahluwalia Contracts (India) Limited (“the Company”), which comprise the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial

Statements

2. The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“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 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 and the Companies (Accounting Standards) Amendment Rules, 2016. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

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

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those

Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

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

Opinion

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules,2016;

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

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure B”; 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, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:

i. The Company has disclosed the impact, if any, of pending litigations as at 31st March 2017, on its financial position in its financial statements -Refer note 30 & 31 to financial statements

ii. The Company has made provision as at 31st March 2017, as required under the applicable law or accounting standards, for material foreseeable losses, 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 during the year ended 31st March 2017.

iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. Based on audit procedures and relying on the management representation we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management- Refer Note 43 to financial statements.

Referred to in paragraph 9 of the Independent Auditors’ Report of even date to the members of Ahluwalia Contracts India Limited on the standalone financial statements as of and for the year ended 31st March 2017

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details. A separate record for movement of fixed assets showing situation is maintained except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) Fixed assets have not been physically verified by the management during the year. There is a regular

programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties included in fixed assets are held in the name of the Company except given below:

Total Number of cases 1	Whether leasehold/ freehold Leasehold - (Chattarpur, New Delhi)	Gross Block (as at Balance Sheet date) (Rs, in Lacs) 13.60	Net Block (as at Balance Sheet date) (Rs, in Lacs) 13.60	Remarks, if any. Registration is pending as per Bye Laws prevailing thereon.
BUILDING (KOLKATA):
Total Number of cases	Gross Block (as at Balance Net Block (as at Balance Sheet date) (Rs, in Lacs) Sheet date) (Rs, in Lacs)		Remarks, if any.
1	345.60	301.87	Registration is pending as per State Government Directives /Bye Laws prevailing thereon.

(ii) The management has conducted physical verification of major items of inventory at reasonable intervals. No material discrepancies were noticed on physical verification of such stocks.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provisions of clause 3(iii),(iii)(a),(iii)(b),(iii)(c) of the said order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, provisions of section 186 of the Companies Act 2013 in respect of investments made have been complied by the Company. There are no other loans, guarantees and securities granted in respect of which provisions of section 185 & 186 of the Companies Act, 2013 are applicable.

(v) The Company has not accepted any deposits from the public within the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(vii) a) Undisputed statutory dues including provident fund,

employees state insurance, income-tax, sales tax, service tax, duty of custom, duty of excise, value

added tax,, cess & other material statutory dues have generally been regularly deposited with appropriate authorities except for delays in Service tax & Value added tax and in case of Provident fund there has been slight delay in few cases.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income-tax, sales tax, service tax, duty of custom, duty of excise, value added tax,, cess & other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

c) According to the records of the company, the dues outstanding of sales-tax, income-tax, duty of custom, duty of excise, service tax, value added tax and cess on account of any dispute, are as follows:

Name of the Statute	Nature of Dues	Amount Period to which the amount (Rs, in Lacs) relates	Forum where dispute is pending
Central Excise Act,1944	Demand for Excise Duty	14.27 March-2011 to November-2012	Commissioner Bangalore
Central Excise Act,1944	Demand for Excise Duty	360.90 2011-2012 to 2015-2016	Addl. Commissioner, CE Noida
Indian Stamp Act	Stamp duty on Real Estate Project	57.42 1990-1991	Allahabad High Court
Value Added Tax, West	VAT Demand	3.01 1998-1999	Appellate Tribunal, Kolkata
Bengal, 2005
Value Added Tax Act	VAT Demand	254.84 2011-2012	Additional Commissioner HVAT,
(Haryana), 2003			Gurgaon
Value Added Tax Act	VAT Demand	76.57 2007-2012	Jt. Comm. Sales tax,
(Orissa), 2004			Sambalpur
Value Added Tax Act	VAT Demand	22.99 2010-2013	Asst. Comm. Commercial tax
(Karnataka), 2014			(Audit), Bangalore
Value Added Tax Act (UP)	VAT Demand	11.37 2005-2007	Appellate Tribunal Ghaziabad
2015
Value Added Tax Act	VAT Demand	16.43 2005-2006	Dy. Commissioner (Audit),
Maharashtra, 2014			Mumbai
Value Added Tax Act	VAT Demand	1,363.94 2009-2011	Jt. Commissioner, Pune
Maharashtra, 2014
Value Added Tax Act	VAT Demand	381.60 2010-2011	Dy. Commissioner, Pune
Maharashtra,2014
Value Added Tax Act (UP)	VAT Demand	91.48 2008-2009	Addl. Commissioner Appeals-
2015			IV, GZB
Value Added Tax Act	VAT Demand	21.63 2011-2013	Dy. Commissioner, Vadodara
(Gujarat), 2013
Value Added Tax Act 2005,	VAT Demand	45.19 2005-2006 & 2006-2007	Directorate of Commercial Tax /
West Bengal			Sr. Jt. Commissioner, Kolkata
Value Added Tax Act 2005,	VAT Demand	1.54 1997-1998	Settlement Commissioner,
West Bengal			Kolkata
Value Added Tax Act 2005,	VAT Demand	497.15 2011-2012	West Bengal Commercial Tax
West Bengal			Appellate & Revision Law Board, Kolkata
Value Added Tax Act 2005,	VAT Demand	422.47 2008-2009	Additional Commissioner,
West Bengal			Kolkata
Value Added Tax Act 2005,	VAT Demand	2,324.86 2012-2013	Joint Commissioner, Kolkata
West Bengal
The Finance Act, 2004	Service Tax Demand	637.34 2012-2013	CESTAT, Mumbai
and the Service Tax Rules
	Service Tax Demand	2,622.25 March-2005 to March-2009	CESTAT, Kolkata
	Service Tax Demand	3,054.05 June-2007 to September-2010	CESTAT, Allahabad

Name of the Statute	Nature of Dues	Amount (Rs, in Lacs)	Period to which the amount relates	Forum where dispute is pending
	Service Tax Demand	47.75	0ctober-2010 to February-2012	CESTAT, Allahabad
	Service Tax Demand	120.46	July-2004 to December-2006	CESTAT, Allahabad
	Service Tax Demand	59.52	2006-2008	Superintendent (AR Service Tax), Jamnagar
	Service Tax Demand	431.49	2005-06/2008-09	Asstt. Commissioner, Service Tax, Mumbai
	Service Tax Demand	218.09	2014-2016	Asstt. Commissioner, Service Tax, Mumbai
	Service Tax Demand	8.71	2007-2008	Asstt. Commissioner Service Tax, Rajkot
	Service Tax Demand	20.37	April-2008 to August-2008	Joint Commissioner Service Tax, Kolkata
	Service Tax Demand	18.51	April-2006 to 0ctober-2009	Commissioner (Appeal), Service Tax, Chennai
	Service Tax Demand	787.09	2006-2009	Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax, Ludhiana
	Service Tax Demand	11.92	2008-2009, 2009-2010	Commissioner Service Tax, Jaipur
	Service Tax Demand	1,298.42	April-2012 to March-2013	Commissionerate Service Tax, Delhi
	Service Tax Demand	385.54	2007-2008 to 2011-2012	Commissioner of Service Tax Delhi.
	Service Tax Demand	778.28	April-2011 to March-2013	Commissioner Service Tax, Delhi
	Service Tax Demand	103.48	0ctober-2005 to January-2008	Commissioner Service Tax, Kolkata
	Service Tax Demand	965.47	2008-2009 to 2011-2012	Commissioner Service Tax, Bangalore
	Service Tax Demand	202.05	April-2012 to June-2012	Commissioner Service Tax, Bangalore
	Service Tax Demand	193.85	2009-2012	Superintendent Service Tax, Bangalore
	Service Tax Demand	642.29	2008-2012	Commissioner Service Tax, Bangalore
	Service Tax Demand	125.63	April-2009 to December-2014	Commissioner Appeal, Service Tax, Meerut
	Service Tax Demand	15.07	April-2012 to March-2013	Dy Commissioner, Service Tax, Noida
	Service Tax Demand	5.68	July-2011 to March-2012	Commissioner, Central Excise (Appeals), Noida
Employees Provident Fund & Miscellaneous Provision Act,1952	Provident Fund Demand	5,457.34	2006-2007 to 2008-2009	Employee Provident Fund Appellant Tribunal, New Delhi

(viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution and banks. The Company does not have any dues outstanding to debenture holders.

(ix) Based on the audit procedures applied by us and according to the information & explanations provided by the management, the Company has not raised any moneys by further public offer (including debt instruments) during the year. Term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no fraud/ material fraud on the company by the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the records of the Company examined by us and the information and explanation given to us, the Company has paid and provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act, 2013.

(xii) I n our opinion & according to the information & explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.

(xiii) According to the records of the Company examined by us and the information and explanation given to us, the company has complied with section 177 and 188 of the Companies Act 2013 in relation to transaction with related parties and the details have been disclosed in the financial statements, as required by the applicable accounting standards.

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

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

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

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

We have audited the internal financial controls over financial reporting of Ahluwalia Contracts (India) Limited (“the Company”) as of 31st March 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

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

Auditors'' Responsibility

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

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

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

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For ARUN K GUPTA & ASSOCIATES

Firm Registration No. 000605N

Chartered Accountants

(SACHIN KUMAR)

Place: New Delhi Partner

Dated: 30.05.2017 M.No. 503204

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Mar 31, 2016

TO THE MEMBERS OF AHLUWALIA CONTRACTS (INDIA) LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of Ahluwalia Contracts (India) Limited ("the Company”), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

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

Auditor’s Responsibility

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

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

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

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

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

Opinion

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

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

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B”; 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, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:

i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2016, on its financial position in its financial statements -Refer note 30 & 31;

ii. The Company has made provision as at March 31,2016, 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 during the year ended March 31, 2016.

Referred to in paragraph 9 of the Independent Auditors’ Report of even date to the members of Ahluwalia Contracts India Limited on the standalone financial statements as of and for the year ended March 31, 2016

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of the immovable properties included in fixed assets are held in the name of the Company except given below:

LAND:

Total Number of cases	Whether leasehold/ freehold	Gross Block (as at Balance Sheet date) (Rs. in Lacs)	Net Block (as at Balance Sheet date) (Rs. in Lacs)	Remarks, if any.
1	Leasehold- (Chattarpur, New Delhi)	13.60	13.60	Matter is pending before SDM Court

BUILDING ( KOLKATA):

Total Number of cases	Gross Block (as at Balance Sheet date) (Rs. in Lacs)	Net Block (as at Balance Sheet date) (Rs. in Lacs)	Remarks, if any.
1	136.80	117.62	Registration is pending as per State Government Directives /Bye Laws prevailing thereon.

(ii) (a) The management has conducted physical verification

of major items of inventory at reasonable intervals. No material discrepancies were noticed on physical verification of such stocks.

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

(c) The company is mainly engaged in the business of civil construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained.

(iii) The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013.

Therefore, the provisions of clause 3(iii),(iii)(a),(iii)(b),(iii)(c) of the said order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us , provisions of section 186 of the Companies Act 2013 in respect of investments made have been compiled by the Company. There are no other loans, guarantees and securities granted in respect of which provisions of section 185 & 186 of the Companies Act, 2013 are applicable.

(v) The Company has not accepted any deposits from the public within the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund, employees state insurance, income-tax, value added tax, custom duty, excise duty, service tax, cess & other material statutory dues have generally been regularly deposited with appropriate authorities except for delays in Service tax & Provident fund.

Name of the Statute	Nature of Dues	Amount (Rs. in Lacs)	Period to which the amount relates	Forum where dispute is pending
Central Excise Act,1944	Demand for Excise Duty	14.27	Mar 11 to Nov 12	Commissioner Bangalore
Indian Stamp Act	Stamp duty on Real Estate Project	57.42	1990-1991	Allahabad High Court
Value Added Tax, West Bengal,2005	VAT Demand	3.01	1998-1999	Appellate Tribunal, Kolkata
Value Added Tax Act (UP) 2015	VAT Demand	0.30	2006-2007	Appellate Tribunal Ghaziabad
Value Added Tax Act Maharashtra,2014	VAT Demand	16.43	2005-2006	Dy. Commissioner (Audit), Mumbai
Value Added Tax Act (UP) 2015	VAT Demand	79.28	2008-2009	Addl. Commissioner Appeals-IV, GZB
Value Added Tax Act 2005,West Bengal	VAT Demand	45.19	2005-2006 & 2006-2007	Directorate of Commercial Tax / Sr. Jt. Commissioner, Kolkata
Value Added Tax Act 2005,West Bengal	VAT Demand	1.54	1997-1998	Settlement Commissioner, Kolkata
Value Added Tax Act 2005,West Bengal	VAT Demand	497.15	2011-12	West Bengal Commercial Tax Appellate & Revison Law Board, Kolkata
Value Added Tax Act 2005,West Bengal	VAT Demand	422.47	2008-2009	Additonal Commissioner, Kolkata
Value Added Tax Act 2005,West Bengal	VAT Demand	1,057.73	2012-2013	Joint Commissioner, Kolkata
The Finance Act, 2004 and the Service Tax Rules	Service Tax Demand	7,361.61	2004-2009	Appeal Tribunal, CESTAT, New Delhi
	Service Tax Demand	3,110.33	Oct.08 to Mar. 09	CESTAT, New Delhi
	Service Tax Demand	9,631.57	Apr-09 to March 10	CESTAT, New Delhi
	Service Tax Demand	1,543.79	Oct 08 to Sep 09 & Oct 09 to March 10	CESTAT, New Delhi
	Service Tax Demand	2,622.25	Mar 05 to Mar 09	CESTAT, Kolkata
	Service Tax Demand	3,054.05	June 07 to Sep 10	CESTAT, Allahabad
	Service Tax Demand	47.75	Oct 10 to Feb 2012	CESTAT, Allahabad
	Service Tax Demand	120.46	July 04 to Dec 06	CESTAT, Allahabad
	Service Tax Demand	764.67	June 06 to March 08	CESTAT, Chandigarh
	Service Tax Demand	59.52	2006-2009	Superintendent (AR Service Tax), Jamnagar

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, service tax, sales tax, custom duty, excise duty, value added tax, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.

(b) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, excise duty, service tax, value added tax and cess on account of any dispute, are as follows:

(viii) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution and banks. The Company does not have any dues outstanding to debenture holders.

Name of the Statute	Nature of Dues	Amount (Rs. in Lacs)	Period to which the amount relates	Forum where dispute is pending
	Service Tax Demand	1,091.54	2004-2012	Asstt. Commissioner/ Commissioner (Appeal), Service Tax, Mumbai
	Service Tax Demand	8.71	2007-2008	Asstt. Commissioner Service Tax, Rajkot
	Service Tax Demand	33.09	March 12 to March 13	Additional Commissioner Service Tax, Noida
	Service Tax Demand	20.37	Apr 08 To Aug 08	Joint Commissioner Service Tax, Kolkata
	Service Tax Demand	18.51	Apr.06 to Oct.09	Commissioner (Appeal), Service Tax, Chennai
	Service Tax Demand	22.42	2006-2009	Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax, Ludhiana
	Service Tax Demand	11.92	2008-2009, 2009-2010	Commissioner Service Tax, Jaipur
	Service Tax Demand	1,298.42	April 12 to March 2013	Commissioner ate Service Tax, Delhi
	Service Tax Demand	385.54	2007-08 to 2011-12	Commissioner of Service Tax Delhi.
	Service Tax Demand	778.28	April 11 to March 13	Commissioner Service Tax, Delhi
	Service Tax Demand	103.48	Oct 05 To Jan 08	Commissioner Service Tax, Kolkata
	Service Tax Demand	10.57	April 07 To March 2012	Commissioner Service Tax, Kolkata
	Service Tax Demand	965.47	2008-09 To 2011-12	Commissioner Service Tax, Bangalore
	Service Tax Demand	202.05	Apr 12 To June 12	Commissioner Service Tax, Bangalore
	Service Tax Demand	0.71	2009-2014	Dy Commissioner, Service Tax, Noida
	Service Tax Demand	10.05	April-10 to Dec.2014	Dy Commissioner, Service Tax, Noida
	Service Tax Demand	35.87	April-12 to March-13	Dy Commissioner, Service Tax, Noida
Employees Provident Fund & Misc Provision Act,1952	Provident Fund Demand	5,457.34	2006-07 to 2008-09	Employee Provident Fund Appellant Tribunal, New Delhi

(ix) Based on the audit procedures applied by us and according to the information & explanations provided by the management, the Company has not raised any moneys by further public offer (including debt instruments) during the year. Term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

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

(xi) According to the records of the Company examined by us and the information and explanation given to us, the Company has paid and provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Companies Act, 2013.

(xii) In our opinion & according to the information & explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.

(xiii) According to the records of the Company examined by us and the information and explanation given to us, the company has complied with section 177 and 188 of the Companies Act 2013 in relation to transaction with related parties and the details have been disclosed in the financial statements, as required by the applicable accounting standards.

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

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

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

For ARUN K GUPTA & ASSOCIATES

Firm Registration No. 000605N Chartered Accountants

(SACHIN KUMAR)

Place : New Delhi Partner

Dated: 24.05.2016 M.No. 503204

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Mar 31, 2015

1. We have audited the accompanying standalone financial statements of Ahluwalia Contracts (India) Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Standalone Financial Statements

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

Auditor's Responsibility

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

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

5. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements 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.

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

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

Opinion

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

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

e) On the basis of the written representations received from the directors as on March 31, 2015, 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 Act.

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

i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2015, on its financial position in its financial statements - Refer note 31 & 32;

ii. The Company has made provision as at March 31,2015, 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 during the year ended March 31, 2015.

I Annexure to Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to the members of Ahluwalia Contracts India Limited on the financial statements as of and for the year ended March 31, 2015

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(ii) (a) The management has conducted physical verification of major items of inventory at reasonable intervals.

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

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) According to the information & explanations given to us,the company has granted interest free unsecured loans to its five subsidiary companies listed in the register maintained under Section 189 of the Companies Act, 2013 prior to 31/03/2014. The maximum amount involved during the year was Rs. 4,74,55,163 and the year end balance of loans granted to such companies was Rs. Nil and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

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

(v) The Company has not accepted any deposits from the public within the directives issued by the Reserve Bank of India and the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(vii) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with appropriate authorities except for delays in Service tax & Provident fund. Based on the overall examination of the deposit of the statutory dues we have not come across any undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty. excise duty, service tax(net of cenvat credit claimed),cess and any other material undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(b) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount (in Rs.)

Central Excise Act Demand for Excise 14,26,506 Duty

Indian Stamp Act Stamp duty on Real 57,41,980 Estate Project

Value Added Tax, West Bengal VAT Demand 3,01,000

Value Added Tax Act VAT Demand 7,79,105 Karnataka

Value Added Tax Act GZB VAT Demand 30,000

Value Added Tax Act VAT Demand 16,42,553 Maharashtra

Value Added Tax Act VAT Demand 79,28,365 Ghaziabad

Value Added Tax Act, VAT Demand 45,19,093 West Bengal

Value Added Tax Act, VAT Demand 1,53,920 West Bengal

Value Added Tax Act, West VAT Demand 14,86,79,781 Bengal

Value Added Tax Act, Delhi VAT Demand 21,00,78,270

Value Added Tax Act, Delhi VAT Demand 57,72,34,957

Value Added Tax Act, Delhi VAT Demand 93,83,13,512

Value Added Tax Act, Delhi VAT Demand 56,02,27,045

Value Added Tax Act, M.P VAT Demand 23,24,793

Value Added Tax Act, M.P VAT Demand 57,17,874

The Finance Act 2004 and the Service Tax Demand 73,61,60,788

Service Tax Rules

Service Tax Demand 31,10,32,656

Service Tax Demand 3,85,54,216

Service Tax Demand 22,89,62,484

Service Tax Demand 7,78,28,291

Service Tax Demand 96,31,57,070

Service Tax Demand 15,43,78,707

Service Tax Demand 26,22,24,712

Service Tax Demand 18,51,036

Service Tax, Chennai Service Tax Demand 36,49,119

Service Tax Demand 11,77,89,271

Service Tax Demand 30,54,05,022

Service Tax Demand 47,75,170

Service Tax Demand 1,20,45,835

Service Tax Demand 21,99,068

Service Tax Demand 8,71,461

Service Tax Demand 22,42,128

Service Tax Demand 7,64,66,740

Service Tax Demand 11,91,697

Service Tax Demand 12,98,41,827

Service Tax Demand 1,03,47,956

Service Tax Demand 20,36,815

Service Tax Demand 10,57,250

Service Tax Demand 9,65,47,009

Service Tax Demand 2,02,04,633

Service Tax Demand 8,74,150

Service Tax Demand 5,34,242

Employees Provident Fund & Provident Fund 54,57,34,315 Misc Provision Act Demand

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

Central Excise Act Mar 11 to Nov 12 Commissioner Bangalore

Indian Stamp Act 1990-1991 Allahabad Revenue Tribunal

Value Added Tax 1998-1999 Tribunal, Kolkata West Bengal

Value Added Tax Act 2006-2007 Tribunal Court Bangalore Karnataka

Value Added Tax Act GZB 2006-2007 Tribunal Court GZB

Vale Added Tax Act 2005-2006 Dy. Commissioner (Audit), Maharashtra Mumbai

Value Added Tax Act 2008-2009 Addl. Commissioner Ghaziabad Appeals-IV, GZB

Value Added Tax Act, West Bengal 2005-2006 & 2006- Directorate of Commercial 2007 Tax/Sr.Jt. Commissioner, Kolkata

Value Added Tax Act, West Bengal 1997-1998 Settlement Commissioner, Kolkata

Value Added Tax Act, West Bengal 2011-12 Joint Commissioner, Kolkata

Value Added Tax Act, Delhi 2006-2007 DVAT Authority and High Court

Value Added Tax Act, Delhi 2007-2008 DVAT Authority and High Court

Value Added Tax Act, Delhi 2008-2009 DVAT Authority and High Court

Value Added Tax Act, Delhi 2009-2010 DVAT Authority

Value Added Tax Act, M.P 2010-2011 Dy. Commissioner of Commercial Tax, Satna M.P

Value Added Tax Act, M.P 2011-2012 Dy. Commissioner of Commercial Tax, Satna M.P

The Finance Act 2004 and the Service Tax Rules 2004-2009 Appeal Tribunal, CESTAT, New Delhi

Oct.08 to Mar. 09 CESTAT, New Delhi

2007-08 to 2011-12 Commissioner of Service Tax Delhi.

2010-2011 CESTAT, New Delhi

April 11 to Commissioner March 13 Service Tax, Delhi

Apr-09 to March 10 CESTAT, New Delhi

Oct 08 to Sep 09 & CESTAT, New Delhi Oct 09 to March 10

Mar 05 to Mar 09 CESTAT, Kolkata Apr.06 to Oct.09 Commissioner (Appeal),

2006-2009 Superintendent (AR Service Tax),Jamnagar

2004-2012 Asstt. Commissioner/ Commissioner (Appeal), Service Tax, Mumbai

June 07 to Sep 10 CESTAT, New Delhi

Oct 10 to Feb 2012 CESTAT, New Delhi

July 04 to Dec 06 CESTAT, New Delhi

March 12 to Additional Commissioner March 13 Service Tax, Noida

2007-2008 Asstt. Commissioner Service Tax, Rajkot

2006-2009 Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax, Ludhiana

June 06 to March 08 CESTAT, New Delhi

2008-2009, Commissioner 2009-2010 Service Tax, Jaipur

April 12 to March Commissionerate 2013 Service Tax, Delhi

Oct 05 Tojan 08 Commissioner Service Tax, Kolkata

Apr 08 To Aug 08 Joint Commissioner Service Tax, Kolkata

April 07 To Commissioner March 2012 Service Tax, Kolkata

2008-09 To Commissioner 2011-12 Service Tax, Bangalore

Apr 12 To Commissioner June 12 Service Tax, Bangalore

2009-2011 Jt. Commissioner (Appeal), Jharsuguda

2009-2014 Dy Commissioner, Service Tax, Noida

Employees Provident 2006-07 to Employee Provident Fund Fund & Misc Provision 2008-09 Appellant Tribunal, Act New Delhi

c) According to the information and explanations given to us, the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 2013(1 of 2013) and rules made there under has been transferred to such fund within time.

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

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

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

(xi) Based on the audit procedures applied by us & according to the information & explanations provided by the management, the term loans taken by the company during the year have been applied for the purpose for which the loans were obtained.

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

For ARUN K GUPTA & ASSOCIATES

Chartered Accountants

Firm Registration No. 000605N

(SACHIN KUMAR)

Place : New Delhi Partner

Dated: 21.05.2015 M.No. 503204

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Mar 31, 2014

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

management''S ReSponSibility FoR the Financial StatementS

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956 ("the Act") read with the general circular 8/2014 dated April 4, 2014 issued by the Ministry of Corporate Affairs and in accordance with the 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 sufcient and appropriate to provide a basis for our audit opinion.

opinion

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

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

b) In the case of the Profit & 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.

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 those books;

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

d) in our opinion, the Balance Sheet, and Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956, read with the general circular 8/2014 dated April 4, 2014 issued by the Ministry of Corporate Affairs.

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualifed as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure independent auditors'' Repor

Referred to in paragraph (1) under the heading oF "Report on other legal and Regulatory RequirementS" our Report of even date- (i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verifed by the management during the year. There is a regular programme of verifcation of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verifed by the management during the year. As informed, no material discrepancies were noticed on such verifcation.

(c) There was no substantial disposal of fixed assets during the year.

(ii) (a) The management has conducted physical verifcation of major items of inventory at reasonable intervals during the year.

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

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difculties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verifcation of such stocks.

(iii) (a) According to the information & explanations given to us,the company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 28,25,75,138 and the year end balance of loans granted to such companies was Rs. 4,74,55,163 and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company. However, the company has made a provision/ written off Rs. 14,51,19,975/- during previous year due from a subsidiary company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) According to the information & explanations given to us, the company has taken interest free unsecured loan taken from one party listed in the register maintained u/s 301 of the Companies Act 1956 & terms & conditions of the loan are not prima facie prejudicial to the interest of the company.. However no stipulation with regard to the payment have been made hence no comments are offered whether the company is regular in repayment of principal and if there is any overdue payment. The maximum amount involved during the year was Rs. 20,66,53,887 and the year end balance of loan taken from such party was Rs. 14,08,19,350

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

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

(vii) In our opinion, the internal audit system needs to be strengthened with regard to its scope to commensurate with the size and nature of its business.

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the (Cost Accounting Records) Rules, 2011prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in Service Tax & Provident fund.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales- tax, wealth-tax, custom duty, excise duty, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable except service tax(net of cenvat credit claimed) amounting to Rs. 2,95,84,317/.

(c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of dues Amount period to (inRs.) which the amount relates

Central Excise Act Demand for Excise Duty 14,26,506 Mar 11 to Nov 12

Indian Stamp Act Stamp duty on Real 57,41,980 1990-1991 Estate Project

Value Added Tax, West Bengal VAT Demand 3,01,000 1998-1999

Value Added Tax Act VAT Demand 7,79,105 2006-2007 Karnataka

Value Added Tax Act GZB VAT Demand 30,000 2006-2007

Value Added Tax Act VAT Demand 16,42,553 2005-2006 Maharashtra

Value Added Tax Act VAT Demand 1,00,64,163 2008-2009 Ghaziabad

Value Added Tax Act, VAT Demand 45,19,093 2005-2006 & West Bengal 2006-2007

Value Added Tax Act, VAT Demand 1,53,920 1997-1998 West Bengal

Name of the Statute Forum where dispute is pending

Central Excise Act Commissioner Bangalore

Indian Stamp Act Allahabad Revenue Tribunal

Value Added Tax, West Bengal Tribunal, Kolkata

Value Added Tax Act Karnataka Tribunal Court Bangalore

Value Added Tax Act GZB Tribunal Court GZB

Value Added Tax Act Maharashtra Dy. Commissioner (Audit), Mumbai

Value Added Tax Act Ghaziabad Addl..Commissioner Appeals-IV, GZB

Value Added Tax Act, West Bengal Directorate of Commercial Tax /Sr Jt. Commissioner, Kolkata

Value Added Tax Act,West Bengal Settlement Commissioner, Kolkata

Name of the Statute Nature of dues Amount period to (inRs.) which the amount relates

The Finance Act 2004 and Service Tax Demand 73,61,60,788 2004-2009 the Service Tax Rules

Service Tax Demand 31,10,32,656 Oct.08 to Mar. 09

Service Tax Demand 3,85,54,216 2007-08 to 2011-12

Service Tax Demand 22,89,62,484 2010-2011

Service Tax Demand 7,78,28,291 Aril 11 to March 13

Service Tax Demand 96,31,57,070 Apr-09 to March 10

Service Tax Demand 15,43,78,707 Oct 08 to Sep 09 & Oct 09 to March 10

Service Tax Demand 26,22,24,712 Mar 05 to Mar 09

Service Tax Demand 61,18,14,574 April 10 to Mar 11 Service Tax Demand 21,69,98,386 April 11 to Mar 12 Service Tax Demand 18,51,036 Apr.06 to Oct. 09

Service Tax Demand 15,74,161 2006-2009

Service Tax Demand 11,77,95,189 2004-2012

Service Tax Demand 30,54,05,022 June 07 to Sep 10

Service Tax Demand 47,75,170 Oct 10 to Feb 2012

Service Tax Demand 1,20,45,835 July 04 to Dec 06

Service Tax Demand 21,99,068 March 12 to March 13

Service Tax Demand 8,71,461 2007-2008

Service Tax Demand 22,42,129 2006-2009

Service Tax Demand 7,64,66,740 June 06 to March 08

Service Tax Demand 1,03,47,956 Oct 05 To Jan 08

Service Tax Demand 20,36,815 Apr 08 To Aug 08

Service Tax Demand 9,65,47,009 2008-09 To 2011-12

Employees Provident Provident Fund Demand 54,57,34,315 2006-07 to Fund & Misc Provision 2008-09 Act

Name of the Statute Forum where dispute is pending

The Finance Act 2004 and Appeal Tribunal, CESTAT, New Delhi the Service Tax Rules

CESTAT, New Delhi

Commissioner of Service Tax Delhi.

CESTAT, New Delhi

Commissioner Service Tax, Delhi

CESTAT, New Delhi

CESTAT, New Delhi

CESTAT, Kolkata

CESTAT, New Delhi

Commissioner Service Tax, Delhi Commissioner (Appeal), Service Tax, Chennai

Superintendent (AR Service Tax), Jamnagar

Asstt. Commissioner/ Commissioner (Appeal), Service Tax, Mumbai

CESTAT, New Delhi

CESTAT, New Delhi

CESTAT, New Delhi

Additional Commissioner Service Tax, Noida

Asstt. Commissioner Service Tax, Rajkot

Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax, Ludhiana

CESTAT, New Delhi

Commissioner Service Tax, Kolkata

Joint Commissioner Service Tax, Kolkata

Commissione Service Tax, Bangalore

Employees Provident Fund Employee Provident Fund Appellant & Misc Provision Act Tribunal, New Delhi

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

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

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

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

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

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

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

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

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

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

For Arun K Gupta & Associates Chartered Accountants FRN.-000605N

(Gireesh Kumar Goenha) Partner M.No. 096655

Place : New Delhi Dated: 30.05.2014

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Mar 31, 2013

Report on the Financial Statements

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

Management''s Responsibility for the Financial Statements

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

Auditors'' Responsibility

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

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

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

Opinion

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors'' Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

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

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

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

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

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

Annexure Independent Auditors'' Report

Referred to in paragraph (1) under the heading of "Report on Other Legal and Regulatory Requirements" our report of even date- Ahluwalia Contracts (India) Limited

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

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

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

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) According to the information & explanations given to us,the company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 2656.20 lacs and the year end balance of loans granted to such companies was Rs. 2485.51 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) According to the information & explanations given to us,the company has taken interest free unsecured loan taken from one party listed in the register maintained u/s 301 of the Companies Act 1956 & terms & conditions of the loan are not prima facie prejudicial to the interest of the company.. However no stipulation with regard to the payment have been made hence no comments are offer whether the company is regular in repayment of principal and if there is any overdue payment. The maximum amount involved during the year was Rs.3865.00 lacs and the year end balance of loan taken from such party was Rs 752.14 lacs.

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

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

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

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the (Cost Accounting Records) Rules, 2011prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(x) The company has no accumulated losses at the end of the financial year and it has incurred cash losses in the current year and there were no cash losses in the immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

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

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given corporate guarantee of Rs. 1650 lacs for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank. In our opinion the terms & conditions are not prejudicial to the interest of the company.

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

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that the funds amounting to Rs.1515.19 lacs raised on short term basis have been used for long –term investment.

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

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

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

For ARUN K GUPTA & ASSOCIATES

Chartered Accountants FRN.-000605N

(GIREESH KUMAR GOENKA)

Place:New Delhi Partner

Dated:30.05.2013 M.No. 096655

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Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. Ahluwalia Contracts (India) Limited, as at 31st March, 2012 and also the Statement of Profit and Loss of the Company for the year ended on that date annexed thereto and the cash fow statement for the year ended on that date. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors' Report) Order, 2003, issued by Central Govt. of India in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters applicable to the company as specified in the paragraph 4 and 5 of the said order.

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

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

b) In our opinion, proper books of accounts as required by law, have been kept by the company so far as appears from our examination of the books except for as referred to in point No.(i)(a) of the Annexure to the report;

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

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

e) On the basis of written representations received from the directors as on 31st March 2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2012 from being appointed as a director in terms of clause (g) of Sub-section (1) of section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and notes there on give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

iii) in the case of Cash Flow statement of the cash fow for the year ended on that date.

Annexure referred to in paragraph 3 of our report of even date

Ahluwalia Contracts (India) Limited

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its fixed assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

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

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

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) The company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 594.55 lacs and the year end balance of loans granted to such companies was Rs. 594.55 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) As informed to us, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause 4(iii) (e, f and g) of the companies (Auditor's Report) order, 2003 are not applicable to the company.

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

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

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

(viii) We have broadly reviewed the books of account maintained by the company pursuant to the (Cost Accounting Records) Rules, 2011prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out detailed examination of such accounts and records with a view to determining whether they are accurate or complete.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Lacs)

Central Excise Act Demand for Excise 46.37 Duty

Indian Stamp Act Stamp duty on Real 57.42 Estate Project

Work Contract Tax Works Contract Tax 15.26 Act, Delhi Demand

Work Contract Tax Works Contract Tax 3.01 Act, West Bengal Demand

Value Added Tax Act VAT Demand 5.93 Haryana

Value Added Tax Act VAT Demand 7.79 Karnataka

Value Added Tax Act VAT Demand 92.49 Karnataka

Value Added Tax Act VAT Demand 16.43 Maharashtra

Value Added Tax Act VAT Demand 473.40 Punjab

Value Added Tax Act VAT Demand 20.06 Ghaziabad

Value Added Tax Act, VAT Demand 12597.39 Delhi

Value Added Tax Act, VAT Demand 45.19 West Bengal

Value Added Tax Act VAT Demand 19.57 Punjab

Value Added Tax Act, VAT Demand 1.54 West Bengal

The Finance Act Service Tax Demand 7361.61 2004 and the Ser- Service Tax Demand 211.95 vice Tax Rules

Service Tax Demand 802.43

Service Tax Demand 13483.26

Service Tax Demand 4203.88

Service Tax Demand 965.47

Service Tax Demand 1434.97

Service Tax Demand 472.02

Service Tax Demand 25.55

Service Tax Demand 15.74

Service Tax Demand 942.80

Service Tax Demand 1647.62

Service Tax Demand 8.71

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

Central Excise Act 1998-1999 & 2000- CESTAT, New Delhi 2001

Indian Stamp Act 1990-1991 Allahabad Revenue Tribunal

Work Contract Tax Act, Delhi 2004-2005 Hon'ble Delhi High Court

Work Contract Tax Act, West Bengal 1998-1999 Tribunal, Kolkata

Value Added Tax Act Haryana 2005-2006 VAT Tribunal Chandigarh

Value Added Tax Act Karnataka 2006-2007 Tribunal Court Bangalore

Value Added Tax Act Karnataka 2006-2010 Joint Commissioner (Ap- peal-3), Karnataka

Value Added Tax Act Maharashtra 2005-2006 Dy Commissioner (Audit), Mumbai

Value Added Tax Act Punjab 2006-2008 High Court, Chandigarh

2006-2008 Addl..Commissioner Value Added Tax Act Appeals-IV / Tribunal-I, Ghaziabad

Value Added Tax Act, Delhi 2006-2009 Commissioner, DVAT, New Delhi

Value Added Tax Act, West Bengal 2005-2006 & 2006- Directorate of Commercial 2007 Tax /Sr. Jt. Commissioner, Kolkata Value Added Tax Act Punjab 2005-06 DETC(A), Ludhiana

Value Added Tax Act, West Bengal 1997-1998 Settlement Commissioner, Kolkata

The Finance Act 2004 and the Service Tax Rules 2004-2009 CESTAT, New Delhi

2004-2008 CESTAT, New Delhi

Oct.08 to Sept. 09 CESTAT, New Delhi

2008-2010 CESTAT, New Delhi

2010-2011 Commissioner Service Tax, New delhi

2008-2012 Commissioner of Service Tax, Karnatak

Sept. 04 to Jan 08 & Asst Commissioner/Commis- Apr 08 to Aug 08 sioner Service Tax, Kolkata

2006-2009 Commissioner/Asst. Com- missioner Service Tax, Ludhiana

Apr.06 to Oct.09 Additional Commissioner, Chennai.

2006-2009 Superintendent (AR Service Tax), Jamnagar

2004-2009 Asstt. Commissioner,/Com- missioner (A), Service Tax, Mumbai

July 2004 to Febru- Asstt. Commissioner,/Com- ary 2012 missioner S.Tax, Noida

2007-2008 Asstt. Commissioner Service Tax, Rajkot

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

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

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

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chit fund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given guarantee for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank amounting to Rs. 27.00 crore. In our opinion the terms & conditions are not prejudicial to the interest of the company.

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

(xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that the funds amounting to Rs. 5,158.47 lacs raised on short term basis have been used for long -term investment.

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

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

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

For Arun K. Gupta & Associates

Firm Registration No. 000605N

Chartered Accountants

Gireesh Kumar Goenka

Place : New Delhi Partner

Date : 30-05-2012 M.No. 96655

---

Mar 31, 2011

1. We have audited the attached Balance Sheet of M/s. Ahluwalia Contracts (India) Limited, as at 31st March, 2011 and also the Profit and Loss Account of the Company for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors’ Report) Order, 2003, issued by Central Govt. of India in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters applicable to the company as specified in the paragraph 4 and 5 of the said order.

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

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

b) In our opinion, proper books of accounts as required by law, have been kept by the company so far as appears from our examination of the books except for as referred to in point No.(i)(a) of the Annexure to the report;

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

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

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

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and notes there on in schedule 19 give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

iii) in the case of Cash Flow statement of the cash flow for the year ended on that date.

Annexure to Auditors’ Report Annexure referred to in paragraph 3 of our report of even date Ahluwalia Contracts (India) Limited

(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets except for shuttering and scaffolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

(b) All fixed assets have not been physically verified by the management during the year. There is a regular programme of verification of fixed assets except for shuttering and scaffolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fixed assets have been physically verified by the management during the year. As informed, no material discrepancies were noticed on such verification.

(c) There was no substantial disposal of fixed assets during the year.

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

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

(c) The company is mainly engaged in the business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verification of such stocks.

(iii) (a) The company has granted interest free unsecured loans to its five subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.472.25 lacs and the year end balance of loans granted to such companies was Rs.472.25 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

(b) The aforesaid loan is repayable on demand & there is no repayment schedule.

(c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

(d) As informed to us, the company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause 4(iii) (e, f and g) of the companies (Auditor’s Report) order, 2003 are not applicable to the company.

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

(v) (a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered into the register maintained under section 301 of the Companies Act 1956 have been made at prices which are reasonable having regard to prevailing market prices wherever available at the relevant time.

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

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

(viii) The Central Government has not prescribed for maintenance of cost records under Section 209 (I) (d) of the Companies Act, 1956, for the Company.

(ix) (a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

(c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount Period to (Rs.in Lacs) which the amount relates

Central Excise Act Demand for Excise Duty 46.37 1998-1999 & 2000-2001

Income Tax Act Income Tax Demand 1.37 2008-2009

Indian Stamp Act Stamp duty on Real Estate 57.42 1990-1991 Project

Work Contract Tax Act, Works Contract Tax Demand 15.26 2004-2005 Delhi

Work Contract Tax Act, Works Contract Tax Demand 3.01 1998-1999

West Bengal Value Added Tax Act, VAT Demand 5.93 2005-2006 Haryana

Value Added Tax Act, VAT Demand 7.79 2006-2007 Karnataka

Value Added Tax Act, VAT Demand 305.75 2006-2010 Karnataka

Value Added Tax Act, VAT Demand 16.43 2005-2006 Maharashtra

Value Added Tax Act, VAT Demand 492.98 2005-2008 Punjab

Value Added Tax Act, VAT Demand 31.59 2006-2007 Ghaziabad

Value Added Tax Act, VAT Demand 12597.39 2006-2009 Delhi

Name of the Statute Forum where dispute is pending

Central Excise Act CESTAT, New Delhi

Income Tax Act Commissioner of Income Tax (Appeal), New Delhi

Indian Stamp Act Allahabad Revenue Tribunal

Work Contract Tax Ac Delhi Hon’ble Delhi High Court

Work Contract Tax Ac West Bengal Tribunal, Kolkata

Value Added Tax Act, Haryana VAT Tribunal, Chandigarh

Tribunal Court, Bangalore

Value Added Tax Act, Karnataka Joint Commissioner (Appeal-3), Karnataka

Value Added Tax Act, Maharashtra Dy. Commissioner (Audit), Mumbai

Value Added Tax Act, Punjab High Court, Chandigarh

Value Added Tax Act, Ghaziabad Commissioner Appeals-IV / Tribunal-I, Ghaziabad Value Added Tax Act, Delhi Commissioner, DVAT, New Delhi



Name of the Statute Nature of Dues Amount Period to (Rs.in Lacs) which the amount relates

Value Added Tax Act, VAT Demand 56.66 2004-2005 West Bengal & 2006-2007

Value Added Tax Act, VAT Demand 1.54 1997-1998 West Bengal

The Finance Act 2004 Service Tax Demand 7309.99 2004-2009 and the Service Tax Rules

Service Tax Demand 211.95 2008-2009

Service Tax Demand 7078.83 2008-2010

Service Tax Demand 829.80 2008-2009

Service Tax Demand 1434.97 Sept.04 to Jan & Apr 08 to Aug 08 Service Tax Demand 99.09 2006-2009

Service Tax Demand 15.74 2006-2009

Service Tax Demand 1240.99 2004-2008

Service Tax Demand 1381.42 July 2004 to March 2008

Service Tax Demand 8.71 2007-2008

Name of the Statute Forum where dispute is pending

Value Added Tax Act, Directorate of Commercial Tax/ West Bengal Jt. Commissioner, Kolkata

Value Added Tax Act, Settlement Commissioner, West Bengal

The Finance Act 2004 Appeal Tribunal, CETATE, and the Service Tax Rules Tribunal, CESTATE, New Delhi Commissioner Service Tax, Delhi

Commissioner Service Tax, Gurgaon

Commissioner Service Tax, Kolkata Commissioner / Joint Commissioner Service Tax, Ludhiana

Superintendent (AR Service Tax), Jamnagar Asstt. Commissioner, Division- III, Service Tax, Mumbai Superintendent, Service Tax, Range-27, Noida Asstt. Commissioner Service Tax, Rajkot

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

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution or banks.

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

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual benefit fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given corporate guarantee for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank amounting to Rs.27.00 crores. In our opinion the terms & conditions are not prejudicial to the interest of the company.

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

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

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

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

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

For Arun K. Gupta & Associates

Firm Registration No. 000605N

Chartered Accountants

Gireesh Kumar Goenka

Place : New Delhi Partner

Date : 30.05.2011 M.No. 96655

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. Ahluwalia Contracts (India) Limited, as at 31st March, 2010 and also the Proft and Loss Account of the Company for the year ended on that date annexed thereto and the cash fow statement for the year ended on that date. These fnancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these fnancial statements based on our audit.

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

3. As required by the Companies (Auditors’ Report) Order, 2003, issued by Central Govt. of India in terms of section 227(4A) of the Companies Act, 1956, we annex hereto a statement on the matters applicable to the company as specifed in the paragraph 4 and 5 of the said order.

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

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

b) In our opinion, proper books of accounts as required by law, have been kept by the company so far as appears from our examination of the books except for as referred to in point No.(i)(a) of the Annexure to the report;

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

d) In our opinion, the Balance Sheet, Proft and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in section 211(3C) of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on

31st March, 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualifed as on 31st March, 2010 from being appointed as a director in terms of clause (g) of Sub-section (1) of section 274 of the Companies Act, 1956;

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with signifcant accounting policies and notes there on in schedule 19 give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of Balance Sheet, of the state of afairs of the Company as at 31st March, 2010;

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

iii) in the case of Cash Flow statement of the cash fow for the year ended on that date.

Annexure to Auditors Report Annexure referred to in paragraph 3 of our report of even date Ahluwalia Contracts (India) Limited

(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fxed assets except for shuttering and scafolding materials for which considering the nature of the business of the company, maintenance of record is not feasible.

b) All fxed assets have not been physically verifed by the management during the year. There is a regular programme of verifcation of fxed assets except for shuttering and scafolding materials which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with the said programme part of the fxed assets have been physically verifed by the management during the year. As informed, no material discrepancies were noticed on such verifcation.

c) There was no substantial disposal of fxed assets during the year.

(ii) a) The management has conducted physical verifcation of major items of inventory at reasonable intervals during the year.

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

c) The company is mainly engaged in the business of construction. In view of multifarious jobs at diferent sites spread at diferent locations and practical difculties, proper records of inventory of only major inputs have been maintained. No material discrepancies were noticed on physical verifcation of such stocks.

(iii) a) The company has granted interest free unsecured loans to its six subsidiary companies listed in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1027.34 lacs and the year end balance of loans granted to such companies was Rs. 472.25 lacs and the terms and conditions of the loans are not prima facie prejudicial to the interest of the company.

b) The aforesaid loan is repayable on demand & there is no repayment schedule.

c) Since the loan is repayable on demand, we are unable to comment whether there has been default in repayment.

d) As informed to us, the company has not taken any loans, secured or unsecured from companies, frms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly the provisions of clause 4(iii) (e, f and g) of the companies (Auditor’s Report) order, 2003 are not applicable to the company.

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

(v) a) According to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

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

(vi) According to the information and explanations given to us, the company has not accepted any deposits from the public within the meaning of section 58A & 58AA of the companies Act, 1956 and the rules framed there under.

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

(viii) The Central Government has not prescribed for maintenance of cost records under Section 209 (I) (d) of the Companies Act, 1956, for the Company.

(ix) a) Undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income-tax, value added tax, wealth-tax, custom duty, excise duty, service tax, cess have generally been regularly deposited with the appropriate authorities except for delays in some cases in Service Tax & TDS.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, wealth-tax, custom duty, excise duty, service tax, cess and other undisputed statutory dues were outstanding at the year end for a period of more than six months from the date they became payable.

c) According to the records of the company, the dues outstanding of sales-tax, income-tax, custom duty, wealth-tax, excise duty, service tax, cess on account of any dispute, are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Lacs)

Central Excise Act Demand for Excise Duty 46.37

Indian Stamp Act Stamp dutyonReal Estate 57.42 Project

Work Contract Tax Act, Delhi Works Contract Tax Demand 15.26

Service Tax (DGCEI) Service Tax Demand 423.90

Service Tax (AE), Delhi Service Tax Demand 7214.73

Service Tax, Jamnagar Service Tax Demand 33.33

Service Tax, Rajkot Service Tax Demand 8.71

Haryana Value Added Tax Act VAT Demand 5.93

Karnataka Value Added VAT Demand 7.79 Tax Act

Service Tax, Bangalore Service Tax Demand 255.92

Service Tax, Mumbai Service Tax Demand 441.71

Name of the Statute Period to Forum where which the dispute is pending amount relates Central Excise Act 1998-1999 & CESTAT, New Delhi 2000-2001

Indian Stamp Act 1990-1991 Allahabad Revenue Tribunal

Work Contract Tax Act, 2004-2005 Honble Delhi High Court

Service Tax (DGCEI) 2008-2009 Tribunal, CETATE, New Delhi

Service Tax (AE), Delhi 2004-2009 Appeal Tribunal, CETATE, New Delhi

Service Tax, Jamnagar 2006-2009 Superintendant (AR Ser vice Tax), Jamnagar

Service Tax, Rajkot 2007-2008 Asstt. Commissioner Ser vice Tax, Rajkot

Haryana Value Added 2005-2006 Joint Commissioner, Exc ise & Tax (Appeals), Faridabad

Karnataka Value Added 2006-2007 Tribunal Court Bangalore

Service Tax, Bangalore 2006-2008 Asstt. Commissioner (Audit), Bangalore

Service Tax, Mumbai 2004-2008 Asstt. Commissioner, Division-III, Service Tax, Mumbai

Name of the Statute Nature of Dues Amount (Rs. in Lacs)

Maharashtra Value Added VAT Demand 16.43 Tax Act

Punjab Value Added Tax Act VAT Demand 132.14

Punjab Value Added Tax Act VAT Demand 360.84

Service Tax, Ludhiana Service Tax Demand 0.87 Service

Service Tax, Noida Service Tax Demand 76.98

Service Tax, Kolkata Service Tax Demand 1311.12

Work Contract Tax Act, VAT Demand 3.01

West Bengal

Commercial Taxes Andhra VAT Demand 0.87 Ofcer, Hyderabad

Service Tax Rajkot Service Tax Demand 8.71

Service Tax Gurgaon Service Tax Demand 835.86

Service Tax Ludhiana Service Tax Demand 12.60

Value Added Tax Ghaziabad VAT Demand 63.17

Service Tax Kolkata Service Tax Demand 123.85

Value Added Tax, West VAT Demand 44.97 Bengal

Value Added Tax, VAT Demand 11.47 West Bengal

Value Added Tax, West VAT Demand 1.75 Bengal

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

Maharashtra Value 2005-2006 Dy. Commissioner (Audit), Mumbai

Punjab Value Added 2005-2008 High Court, Chandigarh

Punjab Value Added 2006-2007 High Court, Chandigarh

Service Tax, Ludhiana 2007-2009 Asstt. Commissioner, Tax, Ludhiana

Service Tax, Noida July 2004 to Superintendent, Service March 2007 Tax, Range-27, Noida

Service Tax, Kolkata Sep. 2004 to Commissioner, Service Tax Work Contract Tax Act, Jan 2007 Kolkata

Commercial Taxes Andhra 1998-1999 Tribunal, Kolkata

Service Tax Rajkot 2009-2010 Deputy Commercial Tax Hyderabad

Service Tax Gurgaon 2007-2008 Commissioner (Appeal), Rajkot

Service Tax Ludhiana 2008-2009 Commissioner Service Tax, Delhi

Value Added Tax 2008-2009 Commissioner Service Tax, Ludhiana

Service Tax Kolkata 2006-2007 Joint Commissioner Appeals, Ghaziabad

Value Added Tax, West Oct 05 to Jan 08 Commissioner Service Tax, & Apr 08 to Kolkata Aug 08

Value Added Tax, 2006-2007 Directorate of Comme rcial Tax, Kolkata

Value Added Tax, West 2004-2005 Sr. Jt. Commissioner, Paraganas, West Bengal

Value Added Tax, 1997-1998 Settlement Commissioner, Kolkata

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

(xi) Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a fnancial institution or banks.

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

(xiii) In our opinion and according to the information and explanations given to us, the nature of activities of the Company does not attract any special statute applicable to chitfund, nidhi / mutual beneft fund and societies.

(xiv) In respect of dealing in shares, securities, debentures and other investments, in our opinion and according to the information and

explanations given to us, proper records have been maintained for the transactions and contracts and timely entries have been made therein. The shares, debentures and other securities have been held by the company in its own name.

(xv) According to the information and explanations given to us, the company has given guarantee for loans taken by its wholly owned subsidiary namely M/s. Ahlcon Ready Mix Concrete Pvt. Ltd. from bank amounting to Rs. 27.00 crore. In our opinion the terms & conditions are not prejudicial to the interest of the company.

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

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

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

(xix) The company did not have any debenture outstanding during the year.

(xx) The company has not raised any money by public issue during the year.

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

For Arun K. Gupta & Associates

Firm Registration No. 000605N

Chartered Accountants

Gireesh Kumar Goenka Place:New Delhi Partner Date:29-05-2010 M.No. 96655