Auditor Report of Cranex Ltd.

Mar 31, 2024

CRANEX LIMITED

57/1, Industrial Area, Site - IV,

Sahibabad, Ghaziabad,

Uttar Pradesh - 201010

Report on the Standalone Ind AS Financial Statements Qualified Opinion

We have audited the accompanying standalone Ind AS financial statements of CRANEX LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows, and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as Ind AS Financial Statements).

In our opinion and to the best of our information and according to the explanation given to us, except for the effects of the matter described in the basis of Qualified Opinion section of our report, the aforesaid standalone Ind AS financial statements, give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, net profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

a) Property, Plant and Equipment (PPE) register has not been produced before us for verification. Depreciation of Property, Plant and Equipment has been provided on the basis of figures as certified by the management,

b) Goods and Services tax (GST) balances are subject to audit and reconciliation with GST returns.

c) Balances under Trade Receivables and Trade Payables, loans and advances given by the Company and parties from whom unsecured loans have been taken are subject to confirmations and adjustments, if any,

d) The Financial Assets and Liabilities - Trade Receivables and long term borrowings taken from IFE Cranex Elevators and Escalators India Private Limited have not been measured at fair value as required by Ind AS-109 "Financial Instruments". Impairment provisions and fair value measurements have not been measured in accordance with Expected Credit Loss (ECL) method as per Ind AS-109.

e) Inventory register has not been produced before us for verification. Inventory value has been provided on the basis of figures as certified by the management.

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

Key Audit Matters

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

S. No.	Key Audit Matter	Auditor''s Response
1	Revenue from the sale of goods (hereinafter referred to as "Revenue" is recognized when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in the case of sale of goods is when the control over the same is transferred to the customer, which is mainly upon dispatch, delivery or upon formal customer acceptance depending on customer''s terms.	• Our procedures included: • Evaluating the design and implementation of Company''s controls in respect of revenue recognition. • Testing the effectiveness of such controls over revenue cut off at year end. • Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end, including examination of credit notes issued after the year end to determine whether revenue was recognized in the correct period.

S. No.	Key Audit Matter	Auditor''s Response
1	The timing of revenue recognition is relevant to the reported performance of the Company. The management considers revenue as a key measure for evaluation of performance. There is a risk of revenue being recorded before control is transferred. Refer note no. 2.15 - Signicant Accounting Policies; and note no. 21 - Revenue from Operations; of the Financial Statement.	• Performing analytical procedures on current year revenue based on monthly trends and where appropriate, conducting further enquiries and testing. • Assessing the appropriateness of the Company''s revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers" and testing thereof.
3.	Evaluation of tax positions The Company operates in India and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct tax, transfer pricing and indirect tax matters. These involve significant management judgment to determine the possible outcome of the tax litigations, consequently having an impact on related accounting and disclosures in the financial statements. Refer Note 30(A) to the standalone Ind AS financial statements.	• Our audit procedures include the following substantive procedures: • Obtained an understanding of key tax litigations and potential tax exposures • We along with our internal tax experts - • read and analyzed select key correspondence and consultations carried out by management with external tax experts for key tax litigations and potential tax exposures; • discussed with appropriate senior management and evaluated management''s underlying key assumptions and grounds of appeal in estimating the tax provisions; and • evaluated the status of the recent and current tax assessments / inquiries, results of previous tax assessments and changes in the tax environment to assess management''s estimate of the possible outcome of key tax litigations and potential tax exposures.
4.	Taxation Significant judgments are required in determining provision of income taxes, both current and deferred, as well as the assessment of provision for uncertain tax position including estimates where appropriate.	We evaluated the design and implement of controls in respect of provision for current tax and the recognition and recoverability of deferred tax assets. We discussed with management the adequate implementation of policies and control regarding current and deferred tax. We examined the procedure in place for the current and deferred tax calculation for completeness and valuation and audited the related tax computation and estimates in light of our knowledge of the tax circumstances. Our work was conducted with our tax specialist. We performed the assessment of the material components impacting the tax expenses, balance and exposures. We reviewed and challenged the information reported by components with the support of our tax specialist, where appropriate. In respect of deferred tax assets and liabilities, we assess the appropriateness of management''s assumption and Estimates to support deferred tax assets for tax losses carried forward and related disclosures in financial statements. Based on the procedure performed above, we obtain sufficient audit evidence to corroborate management''s estimates regarding current and deferred tax balances.

Information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the Ind AS financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this Auditor''s Report. Our opinion on the Ind AS 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 Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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

Responsibilities of Management and Those Charges with Governance for the Standalone Ind AS Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015.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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

Auditor''s Responsibility for the Audit of Ind AS Financial Statements

Ind AS 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 Ind AS financial statements.

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

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

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

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

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

Materiality is the magnitude of misstatements in the standalone Ind AS financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Ind AS 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 Ind AS 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 Ind AS 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 Companies Act, 2013, we give in the Annexure ''A ''a statement on the matters specified in

paragraphs 3 and 4 of the Order, to the extent applicable.

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

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

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books, the data backup of the books & accounts in electronic mode has been kept on server physically located inside India.

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

(d) In our opinion, except for the effects/possible effects of the matters described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act and the rules prescribed there under.

(e) On the basis of the written representations received from the directors as on 31st March, 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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 control over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in "Annexure B" to this report.

(g) The qualifications relating to maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

(h) The matter described in the Basis for Qualified opinion paragraph above, in our opinion, does not have any adverse effect on the functioning of the Company.

(i) In our opinion, the managerial remuneration for the year ended March 31, 2024 has been paid / provided by Company to its directors in accordance with the provision of section 197 read with schedule V to the Act;

(j) 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 Ind AS financial statements. (Refer note no. 30(A))

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

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

(iv) (a) The Management has represented that, to the best of its knowledge and belief, no funds (which are material either

individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether,

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

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

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

(v) As the Company has not declared any dividend during the year. Hence, reporting requirements under rule 11(f) of Companies

(Audit and Auditors) Rules, 2014 are not applicable to the Company.

(vi) (a) Based on our examination carried out in accordance with the implementation Guidance on Reporting on Audit Trail under

Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (Revised 2024 Edition issued by the Institute of Chartered Accountants of India, Which included test checks, we reports that the company 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 all relevant transaction 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.

(b) Additionally, the audit trail has been preserved by the company as per the statutory requirements for record retention. Our examination of the audit trail was in the context of an audit of financial statements carried out in accordance with the standards of auditing and only to the extents required by Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014. We have not carried out any audit or examination of the audit trail beyond the matters required by the aforesaid Rule 11 (g) nor have we carried out any standalone audit or examination of the audit trail.

For V.R.Bansal & Associates Chartered Accountants Firm Registration No. 016534N(Rajan Bansal)Place: Delhi PartnerDated: 30^th May 2024 Membership No. 093591UDIN: 24093591BKFIRG2306

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Mar 31, 2023

We have audited the accompanying standalone Ind AS financial statements of CRANEX LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2023, the Statement of Profit and Loss (including other comprehensive income), the Statement of Cash Flows, and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as Ind AS Financial Statements).

In our opinion and to the best of our information and according to the explanation given to us, except for the effects of the matter described in the basis of Qualified Opinion section of our report, the aforesaid standalone Ind AS financial statements, give the information required by the Companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, net profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

a) We draw attention to the fact that there are differences between Audited Annual Balance sheet and Statement of Profit as on March 31, 2022 furnished in accordance with section 134 of the Companies act 2013 and Statement of audited financial results for the quarter and year ended March 31, 2022 prepared by the company pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The differences are as under:

Difference in Balance Sheet

(Amount in Lakhs)

Particular	As per Audited Financial Statement As on March 31, 2022	As per Published Results As on March 31, 2022
Property Plant and Equipment	605.41	599.09
Long term loans and advances	158.96	-
Other non-current assets	375.39	492.09
Deferred tax assets (net)	7.21	-
Inventories	1247.71	1257.08
Trade Receivable	1589.19	1491.97
Cash and Cash equivalents	16.22	2.11
Other current assets	236.44	340.19
Borrowings	2277.79	2273.41
Other non-current liabilities	-	92.49
Trade Payable	1030.10	939.30
Other Current Liabilities	148.32	109.01
Provisions	27.45	15.45

Difference in Statement of Profit and Loss

Particular	As per Financial Statement For the year ended 31/03/2022	As per Published Results For the year ended 31/03/2022
Other Income	28.05	24.25
Cost of material consumed	2420.77	2167.78
Purchase of stock in trade	50.78	-
Change in Inventories	50.78	199.71
Employee Benefit expenses	391.87	385.68
Depreciation and amortisation	28.80	34.80
Finance cost	122.45	103.75
Other Expenses	883.36	1053.31

We have relied upon the figures as per the audited financial statements for the year ended 31st March 2022 as published in the annual report. The said figures are merely published as previous year figures and not subjected to any audit or review.

b) Property, Plant and Equipment (PPE) register has not been produced before us for verification. Depreciation of Property, Plant and Equipment has been provided on the basis of figures as certified by the management,

c) The Company has not produced to us for verification, the necessary documentation for verification of suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006. Pending such determination, the information as required to be furnished under section 22 of the Act, has not been furnished,

d) Goods and Services tax (GST) balances are subject to audit and reconciliation with GST returns. The subsequent reconciliation of the same could have consequential impact on financial statements,

e) Balances under Trade Receivables and Trade Payables, loans and advances given by the Company and parties from whom unsecured loans have been taken are subject to confirmations and adjustments, if any, required upon such confirmations are not ascertainable and hence not provided for,

f) The Financial Assets and Liabilities - Trade Receivables and long term borrowings taken from IFE Cranex Elevators and Escalators India Private Limited have not been measured at fair value as required by Ind AS-109 "Financial Instruments". Impairment provisions and fair value measurements have not been measured in accordance with Expected Credit Loss (ECL) method as per Ind AS-109.

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

Key Audit Matters

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

S. No.	Key Audit Matter	Auditor''s Response
1.	Revenue from the sale of goods (hereinafter referred to as "Revenue" is recognized when the Company performs its obligation to its customers and the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such recognition in the case of sale of goods is when the control over the same is transferred to the customer, which is mainly upon dispatch, delivery or upon formal customer acceptance depending on customer''s terms.	Our procedures included: • Evaluating the design and implementation of Company''s controls in respect of revenue recognition. • Testing the effectiveness of such controls over revenue cut off at year end. • Testing the supporting documentation for sales transactions recorded during the period closer to the year end and subsequent to the year end, including examination of credit notes issued after the year end to determine whether revenue was recognized in the correct period.

S. No.	Key Audit Matter	Auditor''s Response
2.	The timing of revenue recognition is relevant to the reported performance of the Company. The management considers revenue as a key measure for evaluation of performance. There is a risk of revenue being recorded before control is transferred. Refer note no. 2.15 - Signicant Accounting Policies; and note no. 21 - Revenue from Operations; of the Financial Statement.	• Performing analytical procedures on current year revenue based on monthly trends and where appropriate, conducting further enquiries and testing. • Assessing the appropriateness of the Company''s revenue recognition accounting policies in line with Ind AS 115 ("Revenue from Contracts with Customers" and testing thereof.
3.	Evaluation of tax positions The Company operates in India and is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct tax, transfer pricing and indirect tax matters. These involve significant management judgment to determine the possible outcome of the tax litigations, consequently having an impact on related accounting and disclosures in the financial statements. Refer Note 30(A) to the standalone Ind AS financial statements.	• Our audit procedures include the following substantive procedures: • Obtained an understanding of key tax litigations and potential tax exposures • We along with our internal tax experts - • read and analyzed select key correspondence and consultations carried out by management with external tax experts for key tax litigations and potential tax exposures; • discussed with appropriate senior management and evaluated management''s underlying key assumptions and grounds of appeal in estimating the tax provisions; and • evaluated the status of the recent and current tax assessments / inquiries, results of previous tax assessments and changes in the tax environment to assess management''s estimate of the possible outcome of key tax litigations and potential tax exposures.
4.	Taxation Significant judgments are required in determining provision of income taxes, both current and deferred, as well as the assessment of provision for uncertain tax position including estimates where appropriate.	We evaluated the design and implement of controls in respect of provision for current tax and the recognition and recoverability of deferred tax assets. We discussed with management the adequate implementation of policies and control regarding current and deferred tax. We examined the procedure in place for the current and deferred tax calculation for completeness and valuation and audited the related tax computation and estimates in light of our knowledge of the tax circumstances. Our work was conducted with our tax specialist. We performed the assessment of the material components impacting the tax expenses, balance and exposures. We reviewed and challenged the information reported by components with the support of our tax specialist, where appropriate. In respect of deferred tax assets and liabilities, we assess the appropriateness of management''s assumption and Estimates to support deferred tax assets for tax losses carried forward and related disclosures in financial statements. Based on the procedure performed above, we obtain sufficient audit evidence to corroborate management''s estimates regarding current and deferred tax balances.

Information Other than the Standalone Financial Statements and Auditor''s Report Thereon

The Company''s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report but does not include the Ind AS financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this Auditor''s Report. Our opinion on the Ind AS 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 Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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

Responsibilities of Management and Those Charges with Governance for the Standalone Ind AS Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act'') with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015.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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

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

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

Auditor''s Responsibility for the Audit of Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS 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 Ind AS financial statements.

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

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

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

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

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

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

Other Matter

The audit of standalone audited financial results for the year ended March 31, 2022, was carried out and reported by M/s PRYD & ASSOCIATES, Chartered Accountants, having firm registration no. 011626N, who have expressed unmodified opinion on standalone financial statements vide their report dated May 30, 2022, whose report have been furnished to us and which have been relied upon by us for the purpose of review of the statement. Our conclusion is modified in respect of above matter so far as figures reported for the year ended 31st March, 2022 as stated in our Basis of qualified opinion paragraph above. For the purpose of review of this financial statement, the figures for the year ended March 2022 have been taken as per the audited financial statement furnished by the Company in accordance with section 134 of the companies Act 2013.

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 Companies Act, 2013, we give in the Annexure ''A ''a statement on the matters specified in

paragraphs 3 and 4 of the Order, to the extent applicable.

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

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

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books, the data backup of the books & accounts in electronic mode has been kept on server physically located inside India.

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

(d) In our opinion, except for the effects/possible effects of the matters described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act and the rules prescribed there under.

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

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

(g) The qualifications relating to maintenance of accounts and other matters connected therewith are as stated in the Basis for Qualified Opinion paragraph above.

(h) The matter described in the Basis for Qualified opinion paragraph above, in our opinion, does not have any adverse effect on the functioning of the Company.

(i) In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / provided by Company to its directors in accordance with the provision of section 197 read with schedule V to the Act;

(j) 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 Ind AS financial statements.

(Refer note no. 30(A))

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

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

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

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

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

(v) As The Company has not declared any dividend during the year. Hence, reporting requirements under rule 11(f) of Companies (Audit and Auditors) Rules, 2014 are not applicable to the Company.

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

For V.R. Bansal & Associates Chartered Accountants Firm Registration No. 016534N

(Rajan Bansal)

Place: Delhi Partner

Dated: 30th May 2023 Membership No. 093591

UDIN: 23093591BGVOHO6742

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Mar 31, 2015

We have audited the accompanying financial statements of M/s CRANEX LIMITED ("the company"),which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the 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 and presentation 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made 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 true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and operating effectiveness of such controls. 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 31stMarch2015, its profit/loss and its cash flows for the year ended on that date.

Emphasis of matters

We draw attention to the following matters in the financial statements.

a. It has been observed that the Company is not complying with accounting standards 22 i.e. provision of deferred tax liability either for the current year or in respect of the past.

Report on other Legal and Regulatory Requirements

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

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

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

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

c) the Balance Sheet, the Statement of Profit and Loss, and 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) In our opinion, and to the best of our information and according to the explanations given to us, we have no observation or comments on financial transactions or matters which have any adverse effect on the functioning of the company.

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

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

i. The Company does not have any pending litigations which would impact its financial position.

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

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

Annexure to the Auditors' Report

[Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements' of our Report of even date to the members of M/s Cranex Limited on the accounts of the company for the year ended 31st March, 2015]

On the basis of such checks as we considered appropriate and according to the information and Explanations given to us during the course of our audit, we report that:

(i) In respect of its fixed assets:

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

(b) As explained to us, fixed assets have been physically verified by the management during the year in accordance with the phased programme of verification adopted by the management which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(ii) In respect of its inventory:

a) As explained to us, the inventories of work in progress were physically verified at the end of the year by the Management. There is no inventory lying with third parties.

b) In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories 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 and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of stocks as compared to book records.

(iii) According to the information and explanations given to us, the Company has not granted any loans to companies, firms or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013; and therefore paragraph 3(iii) of the Order is not applicable.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory, fixed assets and for the sale of goods (and/ services). During the course of our Audit, we have not observed any continuing failure to correct major weaknesses in internal control.

(v) The company has not received any public deposits during the year.

(vi) As informed to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the Company.

(vii) In respect of statutory dues:

(a) According to the records of the company and information and explanations given to us, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, employees state insurance (ESI), Investor Education and Protection Fund, Income-tax, Tax deducted at sources, Tax collected at source, Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it, with the appropriate authorities.

(b) According to the information and explanations given to us, there were no undisputed amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material statutory dues in arrears /were outstanding as at 31 March, 2015 for a period of more than six months from the date they became payable.

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

(viii) The accumulated losses of the company are not more than 50% of its Net Worth. The company has not incurred any Cash loss during the financial covered by our Audit and also in the immediately preceding financial year.

In arriving at the accumulated losses and net worth as above, we have considered the quantifications which are quantifiable in the audit reports of the years to which these losses pertain.

(ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions, banks and debenture holders.

(x) In our opinion, and according to the information and the explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

(xi) The company has not obtained any term loan during the year, so this para of order is not applicable.

(xii) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

For P. D MITTAL & COMPANY Chartered Accountants (Firm Registration No. : 11320N)

Sd/-

(P.D Mittal) Partner (Membership No.: 009459 )

Place: New Delhi Date: 30 / 05 /2015

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Mar 31, 2014

We have audited the accompanying Financial Statements of CRANEX LIMITED ("the company") which comprises the Balance Sheet as at 31st March, 2014, and the statement of Profit and Loss and Cash Flow statement for the year then ended, and Notes to the Financial Statements comprising of a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting standards referred to in sub-section (3C) of section 211of the Companies Act, 1956 ("the Act") read with the general circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. This responsibility includes the design, implementation, and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are fair from material misstatements, whether due to fraud or error.

Auditor''s Responsibility

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

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

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

In our opinion and to the best of our information and according to the explanations given to us, the said accounts 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:-

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

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

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

Report on Other Legal and Regulatory Requirements

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

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

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

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

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

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting standards referred to in sub-section(3C) of section 211 of the Act, read with the General circular 15/2013 dated 13th September, 2013 of the Ministry of Corporates Affairs in respect of section 133 of the Companies Act, 2013;

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

ANNEXURE TO THE AUDITOR''S REPORT

(Referred to in paragraph (1) of our report of even date)

REG : CRANEX LIMITED

FINANCIAL YEAR : 2013-14

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

I.b All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

I. c During the year, the company has not disposed off a major part of the plant & machinery& accordingly the clause is not applicable to this extent.

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

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

II. c. The company is not maintaining adequate records of inventories. Further, the descripancies between the physical records & the book record hence not been taken careof.

III. a The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance of loan taken from such parties are as under:

Maximum amount involved Year end balance During the year Directors & their relatives 78702947.02 76366278

The company has not granted loan to any company, firms or director or their relative during the year under audit & there is nil balance at the end of the year.

III.b. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to companies, firms or other parties listed in the register maintained U/S 301 of the companies act,1956 are not, prima facie, prejudicial to the interest of the company.

III.c. The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

III.d. There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the companies act, 1956.

IV In our opinion and according to the information & 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 with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

V.a. According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

Vb. In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained U/S 301 of the companies act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

VI In our opinion and according to the information & explanations given to us, the company has complied with the provisions of section 58A and 58AA of the companies act,1956 and the companies (Acceptance of Deposits) Rules,1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

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

VIII The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt. for the maintenance of cost record are not applicable, hence not commented.

IXa. The company is regular in depositing with appropriate authorities, undisputed statutory dues including P.F., Investor Education Protection Fund, Empoyees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

IX .b. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31-3-2014 for the period of more than six months from the date they become payable.

IX.c According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sales tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess NIL

X In our opinion, the accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

XI In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures.

XII This clause in not applicable as the company has not granted any loan or advance on the basis of security by way of pledge of shares debentures and other securities.

XIII In our opinion, the company is not a chit fund or a nidhi/ mutual benefit fund/ society. Therefore, the provisions of clause 4 (XIII) of the companies (auditor''s report) order, 2003 are not applicable to the company.

XIV In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clauses 4(XIV) of the companies (auditors report) order, 2003 ate not applicable to the company.

XV The company has not given any guarantee for loans taken by others, from banks or financial intuition & accordingly the sub-clause in sot applicable.

XVI In our opinion the company has not raised any term-loan during this period hence the clause is not applicable.

XVII According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, we report that the no funds raised on short term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

XVIII The company has not made any allotment of shares during this period hence the clause is not applicable.

XIX The co. has not issued any debentures during the period under audit, thus the sun-clause is not applicable.

XX The co. has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

For: P.D MITTAL & CO. CHARTERED ACCOUNTANTS

(P.D. MITTAL) PARTNER M. NO. 009459 Dated : 30.05.2014

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Mar 31, 2013

1. We have audited the attached Balance Sheet of M/s. CRANEX LIMITED as at 31st March, 2013. The statement of profit & loss & the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with 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 financial statements. An audit also includes assessing the accounting principles used the significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. The companies (Auditor''s Report) Order,2003, issued by the Central Govt, of India under sub-section (4A) of section 227 of the companies act, 1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to u, we enclosed in the Annexure a statement on the matter specified in paragraph 4 & 5 of the said order.

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

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

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and the statement of profit & loss dealt by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the companies act,1956.

V. On the basis of the written representations received from directors as on 31s1 March,2013, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March,2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act, 1956;

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

1) In the case of the balance sheet, of the state of affairs of the company as at 31st March 2013.

2) In the case of the statement of profit & loss, of the profit for the yearended on that date.

3) In the case of the Cash Flow statement of the cash flow for the yearended on that date.

ANNEXURE TO THE AUDITORS'' REPORT:

(Reffered to in paragraph (1) of our Report of even date)

Reg. CRANEX LIMITED

Financial Year : 2012-13

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

I.b All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

I.c During the year, the company has not disposed off a major part of the plant & machinery& accordingly the clause is not applicable to this extent.

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

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

Il.c. The company is not maintaining adequate records of inventories. Further, the descripancies between the physical records & the book record hence not been taken careof.

111.a The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance of loan taken from such parties are as under:

The company has not granted loan to any company, firms or director or their relative during the year under audit & there is nil balance at the end of the year.

Ill.b. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to companies, firms or other parties listed in the register maintained U/S 301 of the companies act, 1956 are not, prima facie, prejudicial to the interest of the company.

Ill.c. The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

Ill.d. There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the Companies Act, 1956.

IV In our opinion and according to the information & 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 with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

V.a. According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

Vb. In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained U/S301 of the companies act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

VI. In our opinion and according to the information & explanations given to us, the company has complied with the provisions of section 58A and 58AAof the companies act, 1956 and the companies (Acceptance of Deposits) Rules, 1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

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

VIII The provision of section 209 (1)(d) of the companies act, 1956 read with rules made by the Cent. Govt, for the maintenance of cost record are not applicable, hence not commented.

IXa. The company is regular in depositing with appropriate authorities, undisputed statutory dues including P.F., Investor Education Protection Fund, Empoyees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

IX .b. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31-3-2012 for the period of more than six months from the date they become payable.

IX.c. According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sales tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess, NIL

X. In our opinion, the accumulated losses of the company are not more than 50% of its net worth. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceeding financial year.

XI. In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures.

XII. We are of the opinion that company maintained adequate records where the company has granted loans and advance on the basis of securities by way of pledge of shares, debentures and other securities.

XIII. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/ society. Therefore, the provisions of clause 4 (XIII) of the companies (auditor''s report) order, 2003 are not applicable to the company.

XIV. In out opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clauses 4(XIV) of the companies (auditors report) order, 2003 ate not applicable to the company.

XV The Company has not given any guarantee for loans taken by others, from banks or financial intuition & accordingly the sub-clause in not applicable.

XVI. That the Company has not granted loan and advances on the basis of security by way of pledge of Share, Dividenture and other securities.

XVII. According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

XVIII. The Assessee Company has not applied/obtain any tern loan during the period under audit hence the clause not applicable.

XIX. The Company has not issued any debentures during the period under audit, thus the sub-clause is not applicable.

XX. The Company has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI. According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

FOR P.D. MITTAL & CO.

Chartered Accountants

P.D. MITTAL

Place : New Delhi Partner

Dated: 31-05-2013 Membership No. 009459

---

Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. CRANEX LIMITED as at 31st March,2012 the statement of profit & loss & the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on ouraudit.

2. 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 financial statements. An audit also includes assessing the accounting principles used the significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis forour opinion.

3. The companies (Auditor''s Report) Order,2003, issued by the Central Govt. of India under sub-section (4A) of section 227 of the companies act,1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to u, we enclosed in the Annexure a statement on the matter specified in paragraph 4 & 5 of the said order.

4. Furtherto our comments in the annexure referred to above, we report that:

I. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary forthe purpose of ouraudit.

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and the statement of profit & loss dealt by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the companies act,1956.

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

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the companies act,1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India.

1) In the case of the balance sheet, of the state of affairs of the company as at 31st March,2012.

2) In the case of the statement of profit & loss, of the profitforthe year ended on that date.

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

ANNEXURE TO THE AUDITORS'' REPORT:

(Reffered to in paragraph (1) of our Report of even date)

Reg. : CRANEX LIMITED

Financial Year : 2011-12

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

I.b All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

I.c During the year, the company has not disposed off a major part of the plant & machinery& accordingly the clause is notapplicable to this extent.

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

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

II.c. The company is not maintaining adequate records of inventories. Further, the descripancies between the physical records & the book record hence not been taken care of.

III.a The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 &299 read with section of 301 of the companies act,1956. The maximum amount involved during the year & the year end balance of loan taken from such parties are as under:

Maximum amount involved Yearend balance

During the year

Directors & their relatives 7,50,36,400 7,18,26,399

The company has not granted loan to any company, firms or director or their relative during the year under audit & there is nil balance at the end of the year.

III.b. In our opinion, the rate of interest and other terms and conditions on which loans have been taken from/granted to companies, firms or other parties listed in the register maintained U/S 301 of the companies act,1956 are not, prima facie, prejudicial to the interest of the company.

III.c. The company is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

III.d. There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S301 of the Companies Act, 1956.

IV In our opinion and according to the information & 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 with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

V.a. According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

Vb. In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained U/S 301 ofthe companies act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

VI. In our opinion and according to the information & explanations given to us, the company has complied with the provisions of section 58A and 58AAof the companies act,1956 and the companies (Acceptance of Deposits) Rules,1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

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

VIII The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt. for the maintenance of cost record are not applicable, hence not commented.

IXa. The company is regular in depositing with appropriate authorities, undisputed statutory dues including P.F., Investor Education Protection Fund, Empoyees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

IX .b. According to the information and explanations given to us, no undisputed amounts payable in respect of

income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears, as at 31-3-2012 for the period of more than six months from the date they become payable.

IX.c. According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sales tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess, NIL

X. In our opinion, the accumulated losses of the company are not more than 50% of its net worth. The company has not incurred cash losses during the financial year covered by our audit and the immediately preceeding financial year.

XI. In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment dustcoat financial institution, bankordebentures.

XII. We are ofthe opinion that company maintained adequate records where the company has granted loans and advance on the basis of securities by way of pledge of shares, debentures and other securities.

XIII. In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/ society. Therefore, the provisions of clause 4 (XIII) of the companies (auditor''s report) order, 2003 are not applicable to the company.

XIV. In out opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clauses 4(XIV) of the companies (auditors report) order, 2003 ate notapplicable to the company.

XV. The Company has not given any guarantee for loans taken by others, from banks or financial intuition & accordingly thesub-clause in notapplicable.

XVI. That the Company has not granted loan and advances on the basis of security by way of pledge of Share, Dividenture and other securities.

XVII. According to the information and explanations given to us, and on an overall examination of the balance sheet of the company, we report that no funds raised on short term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

XVIII. The Assessee Company has not applied/obtain any tern loan during the period under audit hence the clause notapplicable.

XIX. The Company has not issued any debentures during the period under audit, thus the sub-clause is not applicable.

XX. The Company has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI. According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

FOR P.D. MITTAL & CO.

Chartered Accountants

P.D. MITTAL

Place : New Delhi Partner

Dated: 25-06-2012 Membership No. 009459

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s. CRANEX LIMITED as at 31st March, 2010 the profit & loss account & the cash flow statement for the ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We 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 wheather the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in financial statements. An audit also includes assessing the accounting principles used the significant estimates made by management, as well as evaluating the overall financial statements presentation, We believe that our audit provides a reasonable basis for our opinion.

3. The companies (Auditors Report) Order 2003, issued by the Central Govt. of India under sub-section (4A) of section 227 of the companies act 1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to us, are enclosed in the Annexure as statement of the matter specified in paragraph 4 & 5 of the said order.

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

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

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and profit & loss account statement dealt by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the companies act, 1956.

V. On the basis of the written representations received from Directors an on 31st March, 2010 and taken on record by the Board of Directors we report that none of the directors is disqualified as on 31st March, 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act, 1956.

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the companies act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in India.

(i) In the case of the balance sheet, of the state of affairs of the company as at 31st March, 2010.

(ii) In the case of the profit & loss account, of the profit for the year ended on that date.

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

AUDITORS REPORT ANNEXURE TO THE AUDITORS REPORT : (Refer to in paragraph (1) of our Report of even date)

Reg. : CRANEX LIMITED

Financial Year : 2009-2010

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

(b) All the assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, 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) During the year, the company has not disposed off a major part of the plant & Machinery & accordingly the clause not applicable to this extent.

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

(b) The procedures for physical verification during the year by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is not maintaining adequate records of inventories. Further, the discrepancies between the physical records & the book record hence not been taken in record.

III (a) The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance loan taken from such parties are as under :

Maximum amount involved Year end balance During the year

Companies Nil Nil

Firms Nil Nil

Directors & their relatives 5,85,12,222 5,85,12,222

The company has not granted loan to any company, firms or director of their relative during the year under audit & there is nil balance at the end of the year.

(b) In our opinion, the rate of interest and other terms and condition on which loans have been taken from/granted to companies, firms of other parties listed in the register maintained U/S 301 of the companies act, 1956 are not, prima facie, prejudicial to the interest of the company.

(c) The company is regular in repaying the principal amounts as stipulated and have been regular in the payment of interest. The parties have repaid the principal amounts as stipulated and have been regular in the payment of interest.

(d) There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the companies act, 1956.

IV. In our opinion and according to the information & 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 with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

V. (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the companies Act, 1956 have been so entered.

(b) In our opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts of arrangements entered in the register maintained U/S 301 of the companies act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

VI. In our opinion and according to the information & explanations given to us, the company has complied with provisions of section 58A and 58AA of the companies act, 1956 and the companies (acceptance of Deposits) Rules, 1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed by the company law board.

VII. In our opinion, the company has an internal audit system commensurate with the size and nature of the business.

VIII. The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt. for the maintenance of cost record are not applicable, hence not commented.

IX. (a) The company is regular in depositing with appropriate authorities (undisputed statutory P.F., Investor Education protection funds, Employs State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty, cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty, excise duty and cess were in arrears as at 31-3-2010 for the period of more than six months from the date they become payable.

(c) According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sale tax NIL

Income tax NIL

Excise duty NIL

Custom duty NIL

Wealth tax NIL

Cess NIL

X. The company had accumulated losses in the preceding financial year and is a sick industrial company in terms of section 3(1)(0) of the sick industrial companies (Special Provisions) Act 1985. The company has incurred cash loss in the current year under audit.

XI. In our opinion and according to the information & explanations given to us, the company has not defaulted in repayment of dues to a financial institution, bank or debentures.

XII. We are of the opinion that company maintained adequate records where the company has granted loans and advance on the basis of securities by way of pledge shares, debentures and other securities.

XIII. In our opinion, the company is not chit fund or nidhi mutual benefit fund/society. Therefore, the provisions of class 4 (XIII) of the companies (auditors report) order 2003 or not applicable to the company.

XIV. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4 (XIV) of the companies (auditors report) 2003 or not applicable to the company.

XV. The company has not given any guarantee for loans taken by others from banks financial institutions and accordingly the sub clauses is not applicable.

XVI. The Co. has not granted loans and advances on the basis of securities by way of Share, Dividenture and other securities.

XVII. According to information and explanations given to us, and on an overall examination of the balance sheet of the company, we report that the no funds raised on short term basis have been used for long-term investment. No long-term funds have been used to finance short-terms assets.

XVIII. The assessee company has not applied / obtained any term loan during the period under audit hence the clause not applicable.

XIX. The Co. has not issued any debentures during the period under audit, thus the sub-clause in not applicable.

XX. The Co. has not raised any money by public issue. Thus the sub-clause is not applicable.

XXI. According to the information & explanations given to us, no fraud on or by the co. has been noticed or reported during the course of our audit.

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

For P.D. Mittal & Co.

Chartered Accountants

P.D. Mittal

(Partner)

M. No. 009459

Place : New Delhi

Date : 16-08-2010

---

Mar 31, 2009

1 We have audited the attached Balance Sheet of M/s. CARNEX LIMITED as at 31st March, 2009 the profit & loss account & the cash flow statement for the ended on that date ennexed thereto. These financila statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2 We 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 wheather the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amount and disclosures in financial statements. An audit also includes assessing the accounting principles used the significant estimates made by management, as well as evaluating the overall financial statements presentation, We believe that our audit provides a reasonable basis for our opinion.

3. The companies (Auditors Report) Order 2003, issued by the Central Govt, of India under sub-section (4A) of section 227 of the companies act 1956, and on the basis of such checks of the books & records of the company as we considered appropriate & according to the information & explanations given to u, we enclosed in the Annexure a statement of the matter specified in paragraph 4 & 5 of the ssd order.

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

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

II. In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books.

III. The balance sheet, the profit & loss account dealt with by this report are in agreement with the books of account.

IV. In our opinion, the balance sheet and profit & loss account statement dealt by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the companies act, 1956

V. On the basis of the written representations received from directors an on 31 st March, 2009 and taken on record by the Board of Directors we report that none of the directors is disqualified as on 31 st March, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the companies act, 1956

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, read together with the significant accounting policies in schedules Q, notes appearing thereon, give the information required by the companies act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principle generally accepted in India.

(i) In the case of the balance sheet, of the state of affairs of the company as at 31 st March, 2009

(ii) In the case of the profit & loss account, of the profit for the year ended on that date.

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

AUDITORS REPORT

ANNEXURE TO THE AUDITORS REPORT: (Refer to in paragraph (1) of our Report of even date)

Reg. CRANEX LIMITED

Financial Year 2008-2009

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

(b) All the assets have not been physically verified by the management during the year but there is a regular program of verification which, in our opinion, 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) During the year, the company has not disposed off a major part of the plant & Machinery & accordingly the clause not applicable to this extent.

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

(b) The procedures for physical verification during the year by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company is not maintaining adequate records of inventories. Further, the discrepancies between the physical records & the book record hence not been taken in record.

III (a) The company has taken loan from other companies & firm & also directors & their relatives covered by the provision of section 297 & 299 read with section of 301 of the companies act, 1956. The maximum amount involved during the year & the year end balance loan taken from such parties are as under:

Maximum amount involved Year end balance During the year

Companies 6875722 6875722

Firms Nil Nil

Directors & their relatives 56929554 56929554

The company has not granted loan to any company, firms or director of their relative during the year under audit & there is nil balance at the end of the year.

(b) In our opinion, the rate of interest and other terms and condition on which loans have been taken from/granted to companies, firms of other

(c) The company is regular in repaying the principal amounts as stipulated and have been regular in the payment of interest.

(d) There is no overdue amount of loans taken from or granted to companies, firm or other parties listed in the register maintained U/S 301 of the companies act, 1956.

IV In our opinion and according to the information & 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 with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

V (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the companies Act, 1956 have been so entered.

(b) In oUr opinion and according to the information & explanations given to us, the transactions made in pursuance of contracts of arrangements entered in the register maintained U/S 301 of the companies act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

VI In our opinion and according to the information & explanations given to us, the company has complied with provisions of section 58Aand 58AAof the companies act, 1956 and the companies (acceptance of Deposits) Rules, 1975 are not applicable as the company has not accepted any deposit from public falling within the definition of deposit. No order has been passed the company law board.

VII In our opinion, the company has an internal audit system commensurate with the size and nature of the business.

VIII The provision of section 209 (1) (d) of the companies act, 1956 read with rules made by the Cent. Govt, for the maintenance of cost record are not applicable, hence not commented.

IX (a) The company is not regular in depositing with appropriate authorities, undisputed statutory dues. We have observed inordinate delay/default while depositing the undisputed statutory dues. These delays & defaults if any are being shown in the separate annexure forming part of tax audit report/this report.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, custom duty, excise duty and cess were in arrears as at 31-3-2009 for the period of more than six months from the date they become payable.

(c) According to the information & explanations given to us the following statutory dues have not been deposited on account of dispute.

Sale tax NIL

Income tax Nil

Excise duty Nil

Custom duty NIL

Wealth tax NIL

Cess NIL

X The company had accumulated losses in the preceding financial year and is a sick industrial company in terms of section 3(1 )(0) of the sick industrial companies (Special Provisions) Act 1985. However, the company has not incurred any cash loss in the current year under audit and has reported a cash profit.

XI In our opinion and according to the information and explanations given to us the company has defaulted in the repayment of dues to a financial institutions, Banks all debentures. The Co. has made a reference to BIFR according to the provisions of the law and has offered PICUP to pay of the terms loan dues in terms of RBI guidelines.

XII we are of opinion that company maintained adequate record where the company has guaranteed loans & advances on the basis of security by way of pledge of shares, Debenture & other security.

XIII In our opinion, the company is not a chit fund or a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4 (XIII) of the companies (auditors report) order, 2003 are not applicable to the company.

XIV In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4(XIV) of the companies (auditors report)order, 2003 are not applicable to the company.

XV The company has not given any guarantee for loans take by others, from banks or financial intuition & accordingly the sub-clause is not applicable.

XVI that the company has not granted loan & advances on the basis of security by way of pledge of shares Debenture or any other security.

XVII According to the information and explanations given to us, and on overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long term investment. NO long terms funds have been used to finance short term asset except permanent working capitals.

XVIII The Aassessee Company have not applied obtained in any terms loan during the period under audit hence the clause is not applicable.

XIX The Company has not issued any debentures during the period under audit, thus the sum-clause is not applicable.

XX The Company has not raised any money by public issue. Thus the sub-clause is not applicable.

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

For P.D. Mittal & Co.

Charted Accountants

P.D. Mittal Place : New Delhi Partner

Date : 01-09- 2009 Membership No. 009459