Auditor Report of Coromandel Engineering Company Ltd.

Mar 31, 2025

We have audited the accompanying Standalone
Financial Statements of COROMANDEL
ENGINEERING COMPANY LIMITED ("the
Company"), which comprises the Balance Sheet
as at 31^st March 2025, the Statement of Profit and
Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement
of Cash Flows for the year then ended and a
summary of significant accounting policies and
other explanatory information.

In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid Standalone Financial Statements give the
information required by the Companies Act, 2013
("the Act") in the manner so required and give a
true and fair view in conformity with the Indian
Accounting Standards prescribed under Section
133 of the Act read 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 31^st March 2025, the loss 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 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 there under, and
we have fulfilled our other ethical responsibilities
in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence

we have obtained is sufficient and appropriate to
provide a basis for our opinion.

Emphasis of Matter

We draw attention to the outstanding statutory dues
to Government authorities. Delays were observed
in payment of Goods and Service Tax amounting
to ''1,08,93,788 including interest thereon and in
payment of Tax Deducted at Source amounting to
''54,64,310, both of which were subsequently paid.
The amount of '' 3,70,277 towards Employees''
Provident Fund contributions including interest
remains unremitted by the company. Our opinion
is not modified in this regard.

MSME dues including interest amounting to
'' 7,26,40,633 remain unpaid beyond the due dates.
Our opinion is not modified in this regard.

We draw attention to the outstanding long-term
loan from IDFC First Bank. During FY 2024-25,
the loan repayments were not made as per the
scheduled due dates and amounts specified in the
repayment schedule and paid subsequently. Our
opinion is not modified in this regard.

We draw attention to the revaluation of Plant &
Machinery carried out during the quarter ended
31.03.2025, resulting in an increase of ''3,17,09,228
in the carrying value of assets and corresponding
impact on Other Equity. Our opinion is not modified
in this regard.

Due to the voluminous nature of transactions
undertaken by the entity, we have not conducted
comprehensive verification of the Goods and
Services Tax (GST) and Input Tax Credit (ITC) claims.
However, based on our review of the internal audit
report and related records, we noted instances
of mismatched credit, including cases where ITC
pertaining to the State of Tamil Nadu was claimed
under the GST registration of the State of Odisha.
Our opinion is not modified in this regard.

Key Audit Matters

Key audit matters are those matters that, in our
professional judgement, 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 thematters

described helow to he the key audit matters to he communicated in our report

A) Existence and impairment of Trade
Receivables	We performed audit procedures on existence of trade
Trade Receivables are significant to the	receivables, which included substantive testing of
Company''s financial statements. The	revenue transactions, obtaining trade receivable external
Collectahility of trade receivables isa keyelement	confirmations and testing the subsequent payments
of the company''s working capital management,	received. Assessing the impact of trade receivables
which is managed on an ongoing basis hy its	requires judgement and we evaluated management''s
management. Due to the nature of the Business	assumptions in determining the provision for impairment
and the requirements of customers, various	of trade receivables, hy analyzing the ageing of
contract terms are in place which impacts	receivables, assessing significant overdue individual trade
the timing of revenue recognition. There is a	receivables and specific local risks, combined with the
significant element of judgement. Given the	legal documentations, where applicable.
magnitude and judgement involved in the impairment assessment of trade receivahles, we have identified this as a key audit matter.	In calculating the Expected Credit Loss as per Ind AS 109 - "Financial Instruments", the company has also considered the estimation of probable future customer default and has taken into account an estimation of its possible effect.
	We tested the timing of revenue and trade receivables recognition based on the terms agreed with the customers. We also reviewed, on a sample basis, terms of the contract with the customers, invoices raised, etc., as a part of our audit procedures.
	Furthermore, we assessed the appropriateness of the disclosures made in note 10 to the financial statements.
B) Revenue recognition (IND AS 115)
The application of the standard on recognition	Audit procedure involved review of the company''s IND AS
of revenue involves significant judgement	115 implementation process and key judgements made
and estimates made hy the management	hy management, evaluation of customer contracts in
which includes identification of performance	light of IND AS 115 on sample basis and comparison of
ohligations contained in contracts,	the same with management''s evaluation and assessment
determination of the most appropriate method	of design and operating effectiveness of internal controls
for recognition of revenue relating to the	relating to revenue recognition.
identified performance ohligations, assessment of transaction price and allocation of the assessed price to the individual performance obligations. In case of Fixed Price Contracts Revenue is recognized using the Percentage of	Based on the procedures performed, it is concluded that management''s judgements with respect to recognition and measurement of revenue in light of IND AS 115 is appropriate.
Completion computed as per Input method.	Furthermore, the appropriateness of the disclosures
There exists an inherent risk and presumed fraud risk around the accuracy and existence of revenues. These contracts may involve onerous obligations which requires critical assessment of foreseeable losses to he made hy the Group.	made in note 23 to the financial statements was assessed

C) Recognition and measurement of deferred taxes The recognition and measurement of deferred tax items requires determination of differences between the recognition and the measurement of assets, liabilities, income and expenses in accordance with the Income Tax Act and other applicable tax laws including application of ICDS and financial reporting in accordance with IND AS. This involves significant calculations requiring detailed knowledge of applicable tax laws.	The key matter was addressed by performing audit procedures which involved assessment of underlying process and evaluation of internal financial controls with respect to measurement of deferred tax and re¬ performance of calculations and assessment of the items leading to recognition of deferred tax in light of prevailing tax laws and applicable financial reporting standards on sample basis. Based on the representation provided by the management, the deferred tax assets are being recognized by the company and accounted for. Furthermore, disclosures are made in note 7 to the financial statements.
D) Contingent Liability Assessment of Provisions for taxation, litigations and claims: As at 31st March 2025 Coromandel Engineering Company Limited had disputed dues to the tune of '' 407.49 lakhs.	The Audit addressed this Key Audit Matter by reviewing correspondence with tax Authorities. Discussing significant litigations and claims with the Company''s Internal Legal Team. Reviewing previous judgements made by relevant tax Authorities and opinions given by Company''s advisors. Assessing the reliability of the past estimates of the management. Based on the procedures performed, it is concluded that the management''s assessment of the outcome of pending litigations and claims is appropriate. Furthermore, the appropriateness of the disclosures made in note 30 to the financial statements was assessed.
E) Accuracy of Unbilled Revenues in Civil Contracts: Unbilled Revenue in Civil Contracts operations is a critical estimate to determine the revenues. This estimate has a high risk of uncertainty as it requires consideration of progress of the work done, efforts till date and efforts to complete the remaining contract performance obligations.	Audit Procedure involved evaluating the design of the Internal Controls relating to recording of efforts incurred and estimation of efforts incurred to complete the performance obligations. Performed analytical Procedure and test of details for reasonableness of incurred and estimated efforts. The audit procedures performed did not lead to identification of any material misstatement with respect to recognition and measurement of unbilled revenue.

F) Inventory WIP:
Management judgement is required to establish	Physical Verification of Inventory was conducted as on
the carrying value of inventory particularly in	31st March 2025. With respect to the Net Realizable Value,
relation to determining the appropriate level of	principles of IndAS-2 (Inventories) has not been complied
provisions in relation to obsolete and Surplus	as the Net Realizable Value of Inventories could not be
items. The judgement reflects that inventory is held to support company''s operations which results in the company holding inventory for extended periods before utilization. In cases of disputes with land owners we have relied on Management Representation.	determined due to the nature of the industry and hence inventories in books are recoded at weighted average cost basis. However, this policy of accounting inventory at weight average cost basis has been consistently followed by the entity. With respect to the Net Realizable value of Inventory the company has provided Management Representations that there is no significant impact as all contracts are based on fixed prices.
	Future salability of inventory was assessed based on past track records.
	Based on the audit procedure performed, no material discrepancies were identified.

Information Other than the Standalone Financial
Statements and Auditors'' Report Thereon

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

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

In connection with our audit of the Standalone
Financial Statements, our responsibility is to read
the other information and, in doing so, consider
whether the other information is materially
inconsistent with the Standalone Financial
Statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated.

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

Management''s Responsibility for the Standalone
Financial Statements

The Company''s Board of Directors is responsible
for the matters stated in section 134(5) of the
Companies Act, 2013 ("the Act") with respect to
the preparation of these Standalone Financial
Statements that give a true and fair view of the
financial position, financial performance, total

comprehensive income, changes in equity and
cash flows of the Company in accordance with the
accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS)
specified under section 133 of the Act, read with
the rule 3 of the Companies (Indian Accounting
Standards) Rules, 2015 as amended.

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 implementation
and maintenance of accounting policies; making
judgements 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
Statement 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
Comny''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.

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

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

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 financial statements.

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

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

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

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

• Conclude on the appropriateness of
management''s use of the going concern basis

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

2. As required by Section 143(3) of the Companies
Act,2013, we report that:

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

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

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

(d) In our opinion, the aforesaid 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^st
March, 2025 and taken on record by the
Board of Directors, none of the directors
is disqualified as on 31^st March, 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 B".

(g) With respect to the other matters to
be included in the Auditor''s Report in
accordance with the requirements of
section197(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 as referred to in Note
No. 30 to the Standalone Financial
Statements;

ii. The Company did not have any long¬

term contracts including derivative
contracts as at 31^st March, 2025;

iii. There were no amounts required to be

transferred to the Investor Education
and Protection Fund by the Company
for the year ended 31^st March, 2025.

(i) Management has represented that, to the
best of its knowledge and belief, other than
as disclosed in the notes to the accounts,
no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the company to or in
any other person(s) or entity(is), including
foreign entities ("Intermediaries"), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified

in any manner whatsoever by or on behalf
of the company ("Ultimate Beneficiaries")
or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries.

(j) Management has represented that, to the
best of its knowledge and belief, other than
as disclosed in the notes to the accounts, no
funds have been received by the company
from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with
the understanding, whether recorded in
writing or otherwise, that the company
shall, whether, directly or indirectly, lend
or invest in other persons or entities
identified in any manner whatsoever by or
on behalf of the Funding Party ("Ultimate
Beneficiaries") or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries, and

(k) Based on the audit procedures adopted
by us, nothing has come to our notice
that has caused us to believe that the
representations made by the management

under sub clause (i) and (ii) above, contain
any material misstatement.

(l) The Company has not declared any Dividend
during the year

(m) Based on our examination which included
test checks, the Company, in respect of
financial year commencing on April 01,
2023, has used an accounting software
for maintaining its books of account which
has a feature of recording audit trail (edit
log) facility and the same has operated
throughout the year for all relevant
transactions recorded in the software.
Further, during the course of our audit, we
did not come across any instance of audit
trail feature being tampered with reporting
under Rule 11(g) of the Companies (Audit
and Auditors) Rule, 2014 on preservation
of audit trail as per statutory requirements
for record retention is applicable for the
Financial year ended March 31, 2025.
(Refer Note.53 to the Standalone Financial
Statements).

For CNGSN & ASSOCIATES LLP

Chartered Accountants
F.R.No.004915S

Sonali Khatod M

Place: Chennai Partner

Date: 20.05.2025 Membership No 254938

UDIN : 25254938BMOYTD3191

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Mar 31, 2024

COROMANDEL ENGINEERING COMPANY LIMITED

Report on the audit of Standalone Financial Statements

Qualified Opinion

We have audited the accompanying Standalone Financial Statements of COROMANDEL ENGINEERING COMPANY LIMITED ("the Company"), which comprises the Balance Sheet as at 31^st March 2024, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, except for the effects/possible effects of the matter described in the Basis for Qualified Opinion section of our report, 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 31^st March 2024, and its loss and total comprehensive income, its cash flows and the changes in equity for the year ended on that date.

Basis for Qualified Opinion

Non - Payment of dues to financial institutions and delayed payments to statutory authorities

The Company has amounts due and payable to financial institutions to the tune of Rs. 2,06,97,295 including interest as on 31^st March 2024. These obligations were in default as of the balance sheet date.

Further, there were delays in making statutory payments. However, these dues were paid after the respective due dates of the respective month.

On account of non- payment of financial liabilities and delayed payments of statutory payments, there may be potential non compliances under relevant statutes and regulation. We draw attention to Note No. 16 and Note No.19 of the Financial Statements which discloses the total outstanding financial obligations as on 31^st March

2024 out of which the company has not serviced long term loan to the tune of Rs. 5,83,904 and short term working capital loan to the tune of Rs. 2,01,13,391.

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 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 there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis Of Matter

The events or conditions relating to non-payment of financial obligations indicate that material uncertainty exists that may cast significant doubt on the Company''s ability to continue as a going concern. However, the Company has received a letter of support from its group company to meet its obligations in the normal course of its business and accordingly, the financial statements of the Company have been prepared on a going concern basis.

Based on the findings of Compliance Audit Inspections in various years, the company has to surrender the Provident Fund exemption and make good the loss to the tune of Rs. 1,06,60,151. We draw attention to Note No.30 of the Financial Statements which enumerates the direction of the Regional Provident Fund Commissioner for surrender of exemption.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, 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.

A) Existence and impairment of Trade Receivables Trade Receivables are significant to the Company''s financial statements. The Collectability of trade receivables is a key element of the company''s working capital management, which is managed on an ongoing basis by its management. Due to the nature of the Business and the requirements of customers, various contract terms are in place which impacts the timing of revenue recognition. There is a significant element of judgement. Given the magnitude and judgement involved in the impairment assessment of trade receivables, we have identified this as a key audit matter.

We performed audit procedures on existence of trade receivables, which included substantive testing of revenue transactions, obtaining trade receivable external confirmations and testing the subsequent payments received. Assessing the impact of trade receivables requires judgement and we evaluated management''s assumptions in determining the provision for impairment of trade receivables, by analyzing the ageing of receivables, assessing significant overdue individual trade receivables and specific local risks, combined with the legal documentations, where applicable. In calculating the Expected Credit Loss as per Ind AS 109 - "Financial Instruments", the company has also considered the estimation of probable future customer default and has taken into account an estimation of its possible effect. We tested the timing of revenue and trade receivables recognition based on the terms agreed with the customers. We also reviewed, on a sample basis, terms of the contract with the customers, invoices raised, etc., as a part of our audit procedures. Furthermore, we assessed the appropriateness of the disclosures made in note 10 to the financial statements.

B) Revenue recognition (IND AS 115) The application of the standard on recognition of revenue involves significant judgement and estimates made by the management which includes identification of performance obligations contained in contracts, determination of the most appropriate method for recognition of revenue relating to the identified performance obligations, assessment of transaction price and allocation of the assessed price to the individual performance obligations. In case of Fixed Price Contracts Revenue is recognized using the Percentage of Completion computed as per Input method. There exists an inherent risk and presumed fraud risk around the accuracy and existence of revenues. These contracts may involve onerous obligations which requires critical assessment of foreseeable losses to be made by the Group.

Audit procedure involved review of the company''s IND AS 115 implementation process and key judgements made by management, evaluation of customer contracts in light of IND AS 115 on sample basis and comparison of the same with management''s evaluation and assessment of design and operating effectiveness of internal controls relating to revenue recognition. Based on the procedures performed, it is concluded that management''s judgements with respect to recognition and measurement of revenue in light of IND AS 115 is appropriate. Furthermore, the appropriateness of the disclosures made in note 34 to the financial statements was assessed

C) Recognition and measurement of deferred taxes The recognition and measurement of deferred tax items requires determination of differences between the recognition and the measurement of assets, liabilities, income and expenses in accordance with the Income Tax Act and other applicable tax laws including application of ICDS and financial reporting in accordance with IND AS. This involves significant calculations requiring detailed knowledge of applicable tax laws.	The key matter was addressed by performing audit procedures which involved assessment of underlying process and evaluation of internal financial controls with respect to measurement of deferred tax and reperformance of calculations and assessment of the items leading to recognition of deferred tax in light of prevailing tax laws and applicable financial reporting standards on sample basis. Based on the representation provided by the management the deferred tax assets are being recognised by the company and accounted for. Furthermore, disclosures are made in note 7 to the financial statements.
D) Contingent Liability Assessment of Provisions for taxation, litigations and claims: As at 31st March 2024 Coromandel Engineering Company Limited had disputed tax dues to the tune of Rs 2,179.70 lakhs.	The Audit addressed this Key Audit Matter by reviewing correspondence with tax Authorities. Discussing significant litigations and claims with the Company''s Internal Legal Team. Reviewing previous judgements made by relevant tax Authorities and opinions given by Company''s advisors. Assessing the reliability of the past estimates of the management. Based on the procedures performed, it is concluded that the management''s assessment of the outcome of pending litigations and claims is appropriate. Furthermore, the appropriateness of the disclosures made in note 30 to the financial statements was assessed.
D) Accuracy of Unbilled Revenues in Civil Contracts: Unbilled Revenue in Civil Contracts operations is a critical estimate to determine the revenues. This estimate has a high risk of uncertainty as it requires consideration of progress of the work done, efforts till date and efforts to complete the remaining contract performance obligations.	Audit Procedure involved evaluating the design of the Internal Controls relating to recording of efforts incurred and estimation of efforts incurred to complete the performance obligations. Performed analytical Procedure and test of details for reasonableness of incurred and estimated efforts. The audit procedures performed did not lead to identification of any material misstatement with respect to recognition and measurement of unbilled revenue.

F) Inventory WIP:
Management judgement is required to establish the	Physical Verification of Inventory was conducted as on
carrying value of inventory particularly in relation to	31st March 2024. With respect to the Net Realizable
determining the appropriate level of provisions in	Value, principles of IndAS-2 (Inventories) has not been
relation to obsolete and Surplus items.	complied as the Net Realizable Value of Inventories could
The judgement reflects that inventory is held to support company''s operations which results in the company holding inventory for extended periods before utilization. In cases of disputes with land owners we have relied on Management Representation.	not be determined and hence inventories in books are recoded at weighted average cost basis. However, this policy of accounting inventory at weight average cost basis has been consistently followed by the entity. With respect to the Net Realizable value of Inventory the company has provided Management Representations that there is no significant impact as all contracts are based on fixed prices.
	Future salability of inventory was assessed based on past track records.
	Based on the audit procedure performed, no material discrepancies were identified.

Information Other than the Standalone Financial Statements and Auditors'' Report Thereon

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

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

In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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

Management''s Responsibility for the Standalone Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation

of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with the rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended.

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 implementation and maintenance of accounting policies; making judgements 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 Statement 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.

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

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

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 financial statements.

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

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

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

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

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the 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 the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act (here in after 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, to the extent applicable

2. As required by Section 143(3) of the Companies Act,2013, 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 and the backup of the books of accounts and other books and papers of the Company maintained in electronic mode has been maintained on servers physically located in India, on a daily basis.

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

(d) In our opinion, the aforesaid 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^st March, 2024 and taken on record by the Board of Directors, none of the directors is disqualified as on 31^st March, 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 B".

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with the requirements of section197(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 as referred to in Note No. 30 to the Standalone Financial Statements;

Place: Chennai Date: 24.05.2024

ii. The Company did not have any long-term contracts including derivative contracts as at 31st March, 2024;

iii. There were no amounts required to be transferred to the Investor Education and Protection Fund by the Company for the year ended 31st March, 2024.

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

(j) Management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest

in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, and

(k) Based on the audit procedures adopted by us, nothing has come to our notice that has caused us to believe that the representations made by the management under sub clause (i) and (ii) above, contain any material misstatement.

(l) The Company has not declared any Dividend during the year.

(m) Based on our examination which included test checks, the Company, in respect of financial year commencing on April 01, 2023, has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit, we did not come across any instance of audit trail feature being tampered with.

(n) As proviso to Rule 3 (1) of the Companies (Accounts) Rules, 2014 is applicable from April 01, 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rule, 2014 on preservation of audit trail as per statutory requirements for record retention is not applicable for the financial year ended March 31, 2024

For CNGSN & ASSOCIATES LLP

Chartered Accountants F.R.No.004915S

Sonali Khatod M Partner

Membership No 254938 UDIN :24254938BKLAZA2693

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Mar 31, 2018

INDEPENDENT AUDITOR''S REPORT TO THE MEMBERS OF COROMANDEL ENGINEERING COMPANY LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of M/s COROMANDEL ENGINEERING COMPANY LIMITED ("the Company"), which comprise the Balance sheet as at 31st March 2018, the Statement of Profit and Loss and the Cash Flow Statement for the financial period then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian 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

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

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

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

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

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

Opinion

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

(a) of the Balance Sheet, of the state of affairs of the Company as at 31st March 2018;

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

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

Report on Other Legal and Regulatory Requirements

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

2. As required by Sectionl43 (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 accounts.

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

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

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Group and the operating effectiveness of such controls, refer to our separate report in "Annexure 2".

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

i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements-Refer Note 30.

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

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

For CNGSN & ASSOCIATES LLP
Chartered Accountants
F.R.N0.004915S/S200036
	C N GANGADARAN
Place: Chennai	Partner
Date: 26.04.2018	Membership No 011205

ANNEXURE 1 TO THE AUDITOR''S REPORT

Referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements of our Report of even date

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

b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such physical verification.

c) There are no immovable properties held by the company.

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

iii. According to the information and explanations given to us, during the year, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

iv. In our opinion and according to the information and explanations given to us, the Company has not given any loans, guarantees and securities and has not made any investments.

v. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits during the year. Accordingly, reporting under this clause does not arise.

vi. The Central Government has vide notification dated 3rd June 2011 prescribed the maintenance of cost records by various classes of companies. We have broadly reviewed books of accounts maintained by the company pursuant to the rules under section 148 (1) of the Companies Act 2013 and are of the opinion, prima facie, the prescribed accounts and records have been made and maintained

vii. a) According to the records of the Company and information and explanations given to us, the company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There are no undisputed statutory dues outstanding for more than six months.

b) As at 31st March 2018 according to the records of the Company, the following are the particulars of the disputed dues on account of value added tax and entry tax:

S.No	Nature of Dues	Amount Disputed {Rs in Lakhs)	Amount paid under protest {Rs in Lakhs)	Forum where Pending
1	Andhra Pradesh VAT	43.32	28.37	The Appellate Deputy Commissioner(CT) (2006-07 & 2007-08)
2	Telangana VAT	86.50	26.62	STAT, Hyderabad (2010-11 to 2012-13)
3	Tamil Nadu Entry Tax	2.99	2.99	Additional Commissioner, Chennai (AY 2012-13)

viii. Based on our audit procedures and according to the information and explanations given to us by the management, we are of the opinion that the company has not defaulted in repayment of loans or borrowings to a financial institution, bank, Government. The company has not issued any debentures.

ix. The company has not raised money by way of initial public offer or further public offer during the Current year and the term loans were applied for the purposes for which those were raised.

x. In our opinion and according to the information and explanations given to us, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the financial period.

xi. In our opinion and according to the information and explanations given to us, managerial remuneration has been provided in accordance with the requisite approvals mandated by Section 197 read with Schedule V of the Companies Act,2013.

xii. In our opinion, the Company is not a Nidhi Company. Accordingly, clause xii of Para 3 of Companies (Auditors Report) Order 2016 is not applicable.

xiii. In our opinion and according to the information and explanation given to us, all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements, as required by the applicable accounting standards.

xiv. The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Based on the above para, matters referred in clause (xiv) of paragraph 3 of Companies (Auditors Report) Order 2016 is not applicable.

xv. In our opinion and according to the information and explanations given to us, the Company has not entered into any non - cash transactions with directors or persons connected with the Directors. Accordingly, clause xv of Para 3 of Companies (Auditors Report) Order 2016 is not applicable.

xvi. In our opinion and according to the information and explanations given to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause xvi of Para 3 of Companies (Auditors Report) Order 2016 is not applicable.

For CNGSN & ASSOCIATES LLP	Chartered Accountants LLP - F.R.N0.004915S/S200036
Place : Chennai	C.N GANGADARAN
Date : 26.04.2018	Partner
	Membership No. 11205

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 M/s COROMANDEL ENGINEERING COMPANY LIMITED ("the Company") as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of 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 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 March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For CNGSN & ASSOCIATES LLP	Chartered Accountants LLP - F.R.N0.004915S/S200036
Place : Chennai	C.N GANGADARAN
Date : 26.04.2018	Partner
	Membership No. 011205

---

Mar 31, 2017

Report on the Financial Statements

We have audited the accompanying financial statements of Coromandel Engineering Company Limited (“the Company”) which comprise the Balance Sheet as at 31^stMarch 2017, the statement of Profit and Loss, Cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and 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 accounting policies used and the reasonableness of the accounting estimates made by Company’s Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

INDEPENDENT AUDITOR’S Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”) is enclosed in Annexure A.

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

Report on Other Legal and Regulatory Requirements

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, Statement of Profit & Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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

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

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 25 to the financial statements.

(ii) The company has made provision as required under any law or accounting standards for material foreseeable losses, if any, on long term 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) The company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8^th November, 2016 to 30^th December, 2016 and these are in accordance with the books of accounts maintained by company.

g. As required by the Companies (Auditor’s Report) order, 2016, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the Annexure B a statement on the matters specified in paragraphs 3 & 4 of the Order.

ANNEXURE B ANNEXURE TO THE AUDITOR’S REPORT OF EVEN DATE TO THE MEMBERS OF COROMANDEL ENGINEERING COMPANY LIMITED

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

(b) According to the information given to us, major portion of fixed assets have been physically verified by the management during the year at reasonable intervals. Certain discrepancies which were noticed on such verification have been properly dealt with in the books of account.

(c) There are no immovable properties held by the company.

(ii) The inventory has been physically verified by the management at reasonable intervals. The discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us, during the year, the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

(iv) In our opinion and according to the information and explanations given to us, the company has not given any loans, guarantees and securities and has not made any investments.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has vide notification dated 3^rd June 2011 prescribed maintenance of cost records by various classes of companies. We have broadly reviewed books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under Section 148 of the Companies Act, 2013 and are of the opinion, prima facie, the prescribed accounts and records have been made and maintained.

(vii) (a) According to the records, information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, service tax, VAT, cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as on 31^st March, 2017 for a period of more than six months from the date they become payable.

(b) According to the information and explanation given to us, the following are the details of disputed VAT dues with the authorities concerned.

NAME OF THE	FORUM	DISPUTED
STATUTORY	WHERE	AMOUNT (Rs. in
DUES	DISPUTE IS PENDING	lakhs)
Andhra	The Appellate	43.32
Pradesh VAT	Deputy Commissioner (CT) 2006-07 & 2007-08 (Rs.20.49 lakhs deposited)

(viii) The company has not defaulted in repayment of loans or borrowing to a financial institution, bank and Government. The company has not issued any debentures.

(ix) The company had not raised moneys either by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised.

(x) According to the information and explanations given to us by the management and based on audit procedures performed, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit.

(xi) Managerial remuneration has been provided in accordance with the requisite approvals mandated by section 197 read with schedule V to the Companies Act.

(xii) The company is not a Nidhi company.

(xiii) All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.

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

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

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

For SUNDARAM & SRINIVASAN

Chartered Accountants

Regn.No.004207S

Place : Chennai (M PADHMANABHAN)

Date : 29.04.2017 Partner

Membership No. F13291

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Mar 31, 2016

Report on the Financial Statements

We have audited the accompanying financial statements of Coromandel Engineering Company Limited ("the Company") which comprise the Balance Sheet as at 31^stMarch 2016, the statement of Profit and Loss, Cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and 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 accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

INDEPENDENT AUDITOR''S Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") is enclosed in Annexure A.

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

Report on Other Legal and Regulatory Requirements

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, Statement of Profit & Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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

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

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 26 to the financial statements.

(ii) The company has made provision as required under any law or accounting standards for material foreseeable losses, if any, on long term contracts.

(iii) There has been no delay in transferring amounts, required to be transferred, to the investor education and protection fund by the company.

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

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

(b) According to the information given to us, major portion of fixed assets have been physically verified by the management during the year at reasonable intervals. Certain discrepancies which were noticed on such verification have been properly dealt with in the books of account.

(c) There are no immovable properties held by the company.

(ii) The inventory has been physically verified by the management at reasonable intervals. The discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us, during the year the Company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

(iv) In our opinion and according to the information and explanations given to us, the company has not given any loans, guarantees and securities and has not made any investments.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has vide notification dated 3rd June 2011 prescribed maintenance of cost records by various classes of companies. We have broadly reviewed books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under Section 148 of the Companies Act, 2013 and are of the opinion, prima facie, the prescribed accounts and records have been made and maintained.

(vii) (a) According to the records, information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, VAT, cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as on 31st March, 2016 for a period of more than six months from the date they become payable.

(b) According to the information and explanation given to us the following are the details of disputed VAT dues with the authorities concerned.

NAME OF THE STATUTORY DUES	FORUM WHERE DISPUTE IS PENDING	DISPUTED AMOUNT (Rs.in lakhs)
Andhra Pradesh VAT	The Appellate Deputy Commissioner (CT) 2006-07 & 2007-08 (Rs.20.49 lakhs deposited)	43.32
VAT TN	AO passed based on audit disallowances (2006-07 to 201415). Stay granted by Madras High court. Includes penalty of Rs. 400.38 Lakhs.	1109.66

(viii) The company has not defaulted in repayment of loans or borrowing to a financial institution, bank and Government. The company has not issued any debentures.

(ix) The company had not raised moneys either by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised.

(x) According to the information and explanations given to us by the management and based on audit procedures performed, no fraud by the company or any fraud on the company by its officers or employees has been noticed or reported during the course of our audit.

(xi) Managerial remuneration has been provided in accordance with the requisite approvals mandated by section 197 read with schedule V to the Companies Act.

(xii) The company is not a Nidhi company.

(xiii) All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013 where applicable and the details have been disclosed in the financial statements as required by the applicable accounting standards.

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

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

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

For SUNDARAM & SRINIVASAN

Chartered Accountants

Regn.No.004207S

M. PADHMANABHAN

Place: Chennai Partner

Date: 25.04.2016 Membership No.F13291

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Mar 31, 2015

Report on the Financial Statements

We have audited the accompanying financial statements of Coromandel Engineering Company Limited ("the Company") which comprise the Balance Sheet as at 31st March 2015, the statement of Profit and Loss, Cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and 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 accounting policies used and the reasonableness of the accounting estimates made by Company's Directors, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

Report on Other Legal and Regulatory Requirements

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, Statement of Profit & Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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

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

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No. 27 to the financial statements.

(ii) The company has made provision as required under any law or accounting standards for material foreseeable losses, if any, on long term contracts.

(iii) There has been no delay in transferring amounts, required to be transferred, to the investor education and protection fund by the company.

ANNEXURE TO THE AUDITOR'S REPORT OF EVEN DATE TO THE MEMBERS OF COROMANDEL ENGINEERING COMPANY LIMITED

(i) (a) The Company has maintained proper

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

(b) According to the information given to us, major portion of fixed assets have been physically verified by the management during the year. In our opinion, the frequency of verification of fixed assets by the management is reasonable having regard to the size of the Company and the nature of its assets. Certain discrepancies which were noticed on such verification were rectified and the same has been properly dealt in the books.

(ii) (a) The inventory has been physically verified by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanation given to us, the procedure for physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, the Company has maintained proper records of inventory. The discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us, during the year the Company has not granted or taken any loans to or from companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013.

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

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has vide notification dated 3rd June 2011 prescribed maintenance of cost records by various classes of companies. We have broadly reviewed books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under Section 148 of the Companies Act, 2013 and are of the opinion, prima facie, the prescribed accounts and records have been made and maintained.

(vii) (a) According to the records, information and

explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues in respect of provident fund, employees' state insurance dues, income- tax, wealth-tax, sales-tax, service tax, cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as on 31st March, 2015 for a period of more than six months from the date they become payable.

(b) According to the information and explanation given to us, the following are the details of disputed Sales Tax dues with the authorities concerned.

(Rs. in lakhs)

NAME OF THE FORUM WHERE DISPUTE IS DISPUTED STATUTORY PENDING AMOUNT DUES

Andhra The Appellate Deputy 43.32 Pradesh VAT Commissioner (CT) 2006-07 & 2007-08 (Rs.20.49 lakhs deposited)

(c) According to the records, 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 and rules made thereunder has been transferred to such fund within the time as prescribed.

(viii) The company has made a profit after tax amounting to Rs. 112.41 lakhs during the current financial year and the accumulated losses at the end of the financial year is Rs. 2141.87 Lakhs. The company has not incurred any cash losses during the current financial year and had incurred a cash loss of Rs. 1020.17 lakhs in the immediately preceding financial year.

(ix) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to Banks or financial institutions.

(x) 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.

(xi) In our opinion and according the information and explanations given by the management, the term loans were applied for the purpose for which they were obtained.

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

For SUNDARAM & SRINIVASAN Chartered Accountants Regn.No.004207S

M. PADHMANABHAN Place: Chennai Partner Date: 28.04.2015 Membership No.F13291

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Mar 31, 2014

We have audited the accompanying financial statements of Coromandel Engineering Company Limited which comprises of the Balance Sheet as at 31st March 2014, the statement of profit and Loss and Cash fow statement for the year then ended and a summary of significant accountng policies and other explanatory informaton.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparaton of the financial statements that give a true and fair view of the financial positon, financial performance and cash flows of the company in accordance with the Accountng Standards referred to in sub secton (3c) of secton 211 of Companies Act 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Afairs in respect of secton 133 of the Companies Act, 2013. This responsibility includes the design, implementaton and maintenance of internal control relevant to the preparaton and presentaton of the financial statements that give a true and fair view and are free from material misstatements, 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 Auditng issued by the Insttute 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 misstatements.

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 judgement, including the assessment of the risk 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 preparaton and fair presentaton of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluatng the appropriateness of accountng policies used and the reasonableness of the accountng estmates made by management, as well as evaluatng the overall presentaton 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 informaton and according to the explanatons given to us, the financial statements give the informaton required by the Act in the manner so required and give a true and fair view in conformity with the accountng policies generally accepted in India:

a) in the case of Balance sheet, of the state of afairs of the company as at March 31, 2014;

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

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

Report on Other Legal and Regulatory Requirements

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

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

a. We have obtained all the informaton and explanatons, 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 examinaton of those books;

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

d. In our opinion, the Balance Sheet, Statement of profit & Loss and Cash Flow Statement comply with the Accountng Standards referred to in subsecton (3C) of Secton 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Afairs in respect of secton 133 of the Companies Act, 2013.

e. On the basis of writen representatons received from the directors, as on 31st March, 2014 and taken on record by the Board of Directors, none of the directors is disqualifed as on 31st March, 2014, from being appointed as a director in terms of clause (g) of sub-secton (1) of Secton 274 of

ANNEXURE REFERRED TO IN PARA 1 OF THE AUDITORS'' REPORT OF EVEN DATE TO THE MEMBERS OF COROMANDEL ENGINEERING COMPANY LIMITED

(i) (a) The Company has maintained proper records showing full partculars, including quanttatve details and situaton of its fixed assets.

(b) According to the informaton given to us, major porton of fixed assets have been physically verifed by the management during the year. In our opinion, the frequency of verifcaton of fixed assets by the management is reasonable having regard to the size of the Company and the nature of its assets. Certain discrepancies which were notced on such verifcaton were rectfed and the same has been properly dealt in the books.

(c) There was no disposal of a substantal part of fixed assets during the year.

(ii) (a) The inventory has been physically verifed by the management at reasonable intervals. In our opinion, the frequency of verifcaton is reasonable.

(b) In our opinion and according to the informaton and explanaton given to us, the procedure for physical verifcaton of inventory followed by the management were reasonable and adequate in relaton to the size of the Company and the nature of its business.

(c) In our opinion, the Company has maintained proper records of inventory. The discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.

(iii) According to the informaton and explanatons given to us, during the year the Company has not granted or taken any loans to or from companies, firms or other partes covered in the register maintained under Secton 301 of the Companies Act, 1956.

(iv) In our opinion and according to the informaton and explanatons given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness in internal control has been notced.

(v) In our opinion and according to the informaton and explanaton given to us, there were no transactons during the year that were required to be entered in the register maintained under secton 301 .

(vi) The Company has not accepted any deposits from the public.

(vii) The Company has a system of internal audit which, in our opinion, is commensurate with its size and nature of business.

(viii) The Central Government has vide notfcaton dated 3rd June 2011 prescribed maintenance of cost records by various classes of companies. We have broadly reviewed books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under Secton 209 (1) (d) of the companies Act 1956 and are of the opinion, prima facie, the prescribed accounts and records have been made and maintained.

(ix) (a) According to the records, informaton and explanatons given to us, the Company is generally regular in depositng with appropriate authorites undisputed statutory dues in respect of provident fund, employees'' state insurance dues, Investor Educaton and Protecton fund, income-tax, wealth-tax, sales-tax, service tax, excise duty, cess and other statutory dues applicable to

it and no undisputed amounts payable were outstanding as on 31st March, 2014 for a period of more than six months from the date they become payable. (b) According to the informaton and explanaton given to us, the following are the details of disputed Income Tax and Sales Tax dues with the concerned authorites.

NAME OF THE FORUM WHERE DISPUTE IS DISPUTED STATUTORY PENDING AMOUNT DUES

Andhra The Appellate Deputy 43.32 Pradesh VAT Commissioner (CT) 2006-07 & 2007-08 (Rs. 20.49 lakhs deposited)

Income tax Commissioner of Appeals 64.46

TNVAT – Entry Before the Joint Commissioner 2.99 Tax of Sales Tax, Vellore (entire amount is deposited)

Utarkhand Dy. Commissioner – II, 25.00 VAT Haridwar, Uttarakhand

(x) The company incurred a loss of Rs. 888.17 lakhs during the current financial year and the accumulated losses at the end of the financial year is Rs. 2,212.61 lakhs. The company has incurred cash losses before tax of Rs. 664.86 lakhs during the current financial year. The company has incurred a loss of Rs. 544.05 lakhs in the immediately preceding financial year.

(xi) In our opinion and according to the informaton and explanatons given by the management, the Company has not defaulted in repayment of dues to Banks.

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

(xiii) The Company is not a chit/nidhi/mutual benefit fund/society and hence clause xiii of the Order is not applicable.

(xiv) The Company is not dealing or trading in shares, securites, debentures and other investments and hence clause xiv of the order is not applicable.

(xv) According to the informaton and explanatons given to us, the Company has not given any guarantee for loans taken by others from bank or financial insttutons.

(xvi) In our opinion and according the informaton and explanatons given by the management, the term loans were applied for the purpose for which they were obtained.

(xvii)According to the informaton and explanaton given to us and on an overall examinaton of the Balance Sheet, in our opinion, the Company has utlized the funds raised on Long- term basis (Rights Issue) towards repayment of long-term loans, redempton of preference shares and working capital purpose.

(xviii)During the year, the Company has not made any preferental allotment of shares to partes and companies covered in the register maintained under Secton 301 of the Act.

(xix) The Company has not issued any debentures.

(xx) The Company has raised money by way of Rights issue during the year to the extent of Rs. 5987.76 lakhs (Gross) and the end use of the money as disclosed by the management has been verifed.

(xxi) According to the informaton and explanatons given to us by the management and based on audit procedures performed, no fraud on or by the company has been notced or reported during the course of our audit.

For SUNDARAM & SRINIVASAN

Chartered Accountants Regn.No.004207S

M. PADHMANABHAN Place: Chennai Partner

Date: April 29, 2014 Membership No.F13291

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Mar 31, 2012

We have audited the attached Balance Sheet of Coromandel Engineering Co Ltd as at 31st March, 2012 and the Profit & Loss Statement for the year ended on that date annexed thereto and 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.

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

1. As required by the Companies (Auditor's Report) Order, 2003, as amended by the Companies (Auditor's Report)(Amendment) Order, 2004 issued by the Central Government of India in terms of subsection (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure, a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. 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 account as required by law have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet, Profit & Loss Statement 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 & Loss Statement and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors, as on 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 give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

i) In the case of the Balance Sheet, of the State of Affairs of the Company as at 31st March, 2012;

ii) In the case of the Profit & Loss Statement, of the loss for the year ended on that date and

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

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

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

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

(ii) (a) The inventory has been physically verified by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanation given to us, the procedure for physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion, the Company has maintained proper records of inventory. The discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.

(iii) According to the information and explanations given to us, during the year, the Company has not granted or taken any loans to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

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

(v) In our opinion and according to the information and explanation given to us, there were no transactions during the year that were required to be entered in the register maintained under section 301 .

(vi) The Company has not accepted any deposits from the public.

(vii) The Company has a system of internal audit which, in our opinion, is commensurate with its size and nature of business.

(viii)The Central Government has vide notification dated 3rd June 2011 prescribed maintenance of cost records by various classes of companies. We have broadly reviewed books of accounts maintained by the company pursuant to the rules made by the Central Government for the maintenance of the cost records under Section 209 (1) (d) of the companies Act 1956 and are of the opinion, prima facie, the prescribed accounts and records have been made and maintained.

(ix) (a) According to the records, information and explanations given to us, the Company is generally regular in depositing with appropriate authorities, undisputed statutory dues in respect of provident fund, employees' state insurance dues, Investor Education and Protection fund, income- tax, wealth-tax, sales-tax, service tax, excise duty, cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as on 31st March, 2012 for a period of more than six months from the date they become payable.

(b) According to the information and explanation given to us, the following are the details of disputed Excise Duty and Sales Tax dues that have not been deposited with the concerned authorities.

NAME OF THE FORUM WHERE UNPAID STATUTORY DISPUTE IS AMOUNT DUES PENDING (Rs.in lacs)

Excise Duty Central Excise 22.84 and Service Tax Appellate Tribunal

Andhra The Appellate 22.83 Pradesh VAT Deputy Commissioner (CT)

Income tax Commissioner of 342.79 Appeals

(x) The company incurred a loss of Rs 2145.22 lacs during the current financial year and the accumulated losses at the end of the financial year is Rs 780.39 lacs (previous year - Nil). The company has incurred cash losses before tax of Rs 3088.12 lacs during the current financial year. The company has not incurred any losses in the immediately preceding financial year. The networth of the company at the end of the financial year is at Rs. 2269.92 lacs.

(xi) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to Banks.

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

(xiii) The Company is not a chit/nidhi/mutual benefit fund/society and hence clause xiii of the Order is not applicable.

(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments and hence clause xiv of the order is not applicable.

(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) In our opinion and according the information and explanations given by the management, the term loans were applied for the purpose for which they were obtained.

(xvii)According to the information and explanation given to us and on an overall examination of the Balance Sheet, in our opinion, the Company has not used any funds raised on short-term basis towards long-term investment.

(xviii) During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act.

(xix) The Company has not issued any debentures.

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

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

For SUNDARAM & SRINIVASAN

Chartered Accountants

Regn.No.004207S

M PADHMANABHAN

Place: Chennai Partner

Date: April 26, 2012 Membership No.F13291

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Mar 31, 2011

We have audited the attached Balance Sheet of Coromandel Engineering Co Ltd as at 31st March, 2011 and the Profit & Loss Account for the year ended on that date annexed thereto and Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

1. As required by the Companies (Auditors Report) Order, 2003, as amended by the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of subsection (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. 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 account as required by law have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet, Profit & 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 & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in subsection (3C) of Section 211 of the Companies Act, 1956.

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

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

i) In the case of the Balance Sheet, of the State of Affairs of the Company as at 31sMarch,2011;

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

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

ANNEXURE REFERRED TO IN PARA 1 OF THE AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF COROMANDEL ENGINEERING COMPANY LIMITED

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

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

(c) No major part of fixed assets have been disposed off during the year.

(ii) (a) The inventory have been physically verified by the management at reasonable intervals. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanation given to us, the procedure for physical verification of inventory followed by the management were reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion the Company has maintained proper records of inventory. The discrepancies between the physical stocks and the book stocks were not material and have been properly dealt with in the books of account.

(hi) According to the information and explanations given to us, during the year the Company has not granted or taken any loans to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations given to us there are adequate internal control procedures

commensurate with the size of the Company and the nature of its business with regard to purchase of inventory, fixed assets and for sale of goods. During the course of our audit, no major weakness in internal control has been noticed.

(v) (a) In our opinion and according to the information and explanation given to us, the particulars of contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956 have been so entered

(b) Where each such transaction is in excess of Rs.5 lacs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public.

(vii) The Company has a system of internal audit which, in our opinion, is commensurate with its size and nature of business.

(viii) The Central Government has not prescribed maintenance of cost records by the company under Section 209 (1) (d) of the Companies Act 1956.

(ix) (a) According to the records, information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues in respect of provident fund, employees state insurance dues, Investor Education and Protection fund, income-tax, wealth-tax, sales-tax, service tax, excise duty, cess and other statutory dues applicable to it and no undisputed amounts payable were outstanding as on 31st March, 2011 for a period of more than six months from the date they become payable.

(b) According to the information and explanation given to us the following are the details of disputed Excise Duty and Sales Tax dues that have not been deposited with the concerned authorities.

Name Of The Forum Where Dispute Unpaid

Statutory Dues Is Pending Amount

(Rs.in Lacs)

Excise Duty Central Excise And Service Tax 22.84 Appellate Tribunal

Andhra Pradesh VAT Sales Tax Appellate Tribunal, Andhra Pradesh 22.83

Income Tax Commissioner of Appeals 132.38



(x) The company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during the financial year and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of dues to Banks.

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

(xiii) The Company is not a chit/ nidhi/ mutual benefit fund/society and hence clause xiii of the Order is not applicable.

(xiv) The Company is not dealing or trading in shares, securities, debentures and other investments and hence clause xiv of the order is not applicable.

(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) In our opinion and according to the information and explanations given by the management the term loans were applied for the purpose for which they were obtained.

(xvii) According to the information and explanation given to us and on an overall examination of the Balance Sheet, in our opinion, the Company has not used any funds raised on short-term basis towards long-term investment.

(xviii)During the year, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act.

(xix) The Company has not issued any debentures.

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

(xxi) According to the information and explanations given to us by the management and based on audit procedures performed no fraud on or by the company has been noticed or reported during the course of our audit.

For SUNDARAM & SRINIVASAN Chartered Accountants Regn.No.004207S



M.PADHMANABHAN Partner Membership No.F13291

Place: Chennai Date: 20.04.2011

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Mar 31, 2000

We have audited the attached Balance Sheet of The Coromandel Engineering Company Limited, as at 31st March, 2000 and the relative Profit and Loss Account for the year ended on that date, both signed by us under reference to this report and report that:

1. 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;

2. 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 subject to Note No. 7 b (ii) of Schedule 19 regarding accounting of earned leave salary to staff on cash basis instead of accrual basis.

3. The Balance Sheet and Profit & Loss Account dealt with by this report are in agreement with the books of account;

4. In our opinion the Profit and Loss account and Balance sheet comply with the Accounting Standards referred to in Sec. 211(3)(c) of the Companies Act, 1956, except Accounting Standard 15 in respect of earned leave salary referred to in para 2 above.

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read with the statement on Accounting policies, Notes pn accounts and Schedules annexed thereto* give the information required by the Companies Act, 1956, in the manner so required and subject to the following Notes under Schedule 19:-

a) Note No. 4(v)(A) regarding non provision for estimated liabilities for (a) Sales Tax Liability on Works Contracts, (b) Central Sales Tax demands, (c) Sales Tax demands from Madhya Pradesh Sales Tax Authorities.

b) Note No. 4 (v)(B) regarding Central Excise duty demand;

c) Note No. 5 regarding Investment allowance;

d) Note No. 9 regarding realisability of dues from Companys overseas project; give a true and fair view:

i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March 2000, and

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

6. As required by the Manufacturing and other Companies (Auditors Report) Order, 1988 issued by the Company Law Board in terms of Section 227 (4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we further report that:

A (i) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets of significant value. As per information given to us, a physical verification of almost all assets of significant value has been conducted by the Management at periodical intervals, and on the basis of explanations received, no serious discrepancies have been noticed on such verification.

(ii) None of the Fixed Assets have been revalued during the year.

(iii) Physical verification has been conducted by the Management at reasonable intervals in respect of Stock-in-trade, Finished goods, Raw materials, Stores, Spare parts and Materials at sites.

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

(v) The discrepancies noticed on such verification as compared to book records, were not material and have been properly dealt with in the books of account.

(vi) On the basis of the examination of the stock records, we are of the opinion that the valuation of the stocks is fair and proper, in accordance with normally accepted accounting principles and is on the same basis as in the preceding year.

(vii) The Company has not taken any loan from Companies, firms or other parties listed in the register maintained under Section 301, and from Companies under the same management as defined under Section 370 (IB) of the Companies Act, 1956.

(viii) The company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956 or to companies under the same management as defined under Sub- section (IB) of Section 370 of the said Act.

(ix) The parties including employees to whom loans or advances in the nature of loans have been given by the company are repaying the principal amounts as stipulated and are also regular in payment of interest where applicable.

(x) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to Purchase of stores, raw materials including components, plant and machinery, equipments and other assets and with regard to the sale of goods.

(xi) In our opinion, the transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies Act 1956 and aggregating during the year to Rs. 50,000/- or more in respect of each party were made at prices which are reasonable having regard to prevailing market prices as available with company or the price at which transactions for similar goods, materials or services have been made with other parties;

(xii) The Company has a regular procedure for the determination of unserviceable or damaged stores and raw materials including components and finished goods and necessary provision for the loss arising on the items so determined has been made in the accounts.

(xiii) The Company has not accepted any deposit from public under the provisions of Section 58(A) of the Companies Act, 1956 during the year.

(xiv) In our opinion the Company is maintaining reasonable records for the sale and disposal of realisable scrap. The company does not have any by-products.

(xv) In our opinion, the Company has an Internal Audit System, commensurate with the size and nature of its business.

(xvi) The Central Government has not prescribed the maintenance of cost records by the Company under Section 209 (l)(d) of the Companies Act, 1956 for any of its products.

(xvii) The Company has been generally regular in depositing, during the year, the Provident Fund and Employees State Insurance dues with the appropriate authorities, where applicable.

(xviii) Subject to Note No. 4(v)(A) and 4(v)(B) no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty were outstanding as at 31st March, 2000, for a period of more than six months from the date they became payable.

(xix) In the course of our Audit, we have not come across any personal expenses of employees or Directors which have been charged to Profit and Loss account other than those payable under contractual obligations or in accordance with generally accepted business practice.

(xx) The Company is not a sick industrial company within the meaning of clause (0) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985.

B. In respect of the service activities of the Company:-

(i) The Company has a reasonable system of recording receipts, issues and consumption of materials and stores, commensurate with its size and nature of its business and this system provides for a reasonable allocation of materials to the relative jobs.

(ii) The Company has a reasonable system of allocating labour and wages to the relative jobs, commensurate with its size and nature of its business.

(iii) The Company has a reasonable system of authorisation at proper levels and an adequate system of internal control, commensurate with the size of the Company and nature of its business on issue of stores and allocation of stores and labour to jobs.

C. In respect of the trading activities of the Company, damaged goods have been determined and necessary provision for losses, which were not significant, have been made in the accounts.

For SUNDARAM & SRINIVASAN

Chartered Accountants

Chennai K. SRINIVASAN

29th May 2000 Partner