Auditor Report of Kaushalya Infrastructure Development Corpn.Ltd.

Mar 31, 2025

We have audited the Standalone Financial
Statements of Kaushalya Infrastructure
Development Corporation Limited (“the
Company”), which comprise the Balance Sheet
as at 31st March, 2025 the Statement of Profit
and Loss (including Other Comprehensive
Income), Statement of Cash flow and the
Statement of Changes in Equity for the year
then ended 31st March, 2025, and notes to the
Standalone Financial Statements including a
summary of material accounting policies and
other explanatory information.

In our opinion and to the best of our information
and according to the explanations given to us,
the aforesaid Standalone Financial Statements
give the information required by the Companies
Act, 2013 (‘the Act’) in the manner so required
and give a true and fair view in conformity with
the Indian Accounting Standards (‘Ind AS’)
specified under section 133 of the Act read with
the Companies (Indian Accounting Standards)
Rules, 2015 and other accounting principles
generally accepted in India, of the state of
affairs of the Company as at 31st March 2025,
and its profit (including other comprehensive
income), its cash flows and the changes in
equity for the year ended on that date.

Basis for opinion

We conducted our audit of the Standalone
Financial Statements in accordance with
the Standards on Auditing specified under
section 143(10) of the Companies Act, 2013.

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

Key Audit Matters

Key audit matters are those matters that, in
our professional judgment, were of most
significance in our audit of the standalone
financial statements for the financial year
ended 31st March, 2025. 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.

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
Board’s Report (and any other information or
Annual Report as the case may be) but does not
include the Standalone Financial Statements
and our auditor’s report thereon.

Our opinion on the Standalone Financial
statements does not cover the other information

and we do not express any form of assurance
conclusion thereon.

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

If, based on the work we have performed, we
conclude that there is a material misstatement
of this other information; we are required to
report that fact.

Management’s Responsibility for the
Standalone Financial Statements

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

misstatement, whether due to fraud or error.

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

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

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

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

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

• Identify and assess the risks of material
misstatement of the standalone financial
statements, whether due to fraud or error,
design and perform audit procedures

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

• Obtain an understanding of internal control
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances.

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

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

• Evaluate the overall presentation, structure
and content of the standalone financial
statements, including the disclosures,
and whether the standalone financial

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

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

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

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

From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the
audit of the standalone financial statements
of the current period and are therefore the key
audit matters. We describe these matters in
our auditor’s report unless law or regulation
precludes public disclosure about the matter
or when, in extremely rare circumstances,
we determine that a matter should not be

communicated in our report because the adverse
consequences of doing so would reasonably
be expected to outweigh the public interest
benefits of such communication.

REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s
Report) Order, 2020 (“the Order”), issued
by the Central Government of India in
terms of sub-section (11) of section 143
of the Companies Act, 2013, we give in
“Annexure 1” a statement on the matters
specified in paragraphs 3 and 4 of the order.

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

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

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

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

(d) In our opinion, the aforesaid Standalone
Financial statements comply with the
Indian Accounting Standards (Ind
AS) specified under section 133 of the
Act, read with the Companies (Indian
Accounting Standards) Rules, 2015, as
amended.

(e) On the basis of the written representations
received from the directors as on 31st

March, 2025 taken on record by the
Board of Directors, none of the directors
is disqualified as on 31st March, 2025
from being appointed as a director in
terms of Section 164 (2) of the Act.

(f) With respect to the matter to be included
in the Auditors’ Report under Section
197(16) of the Act, in our opinion
and according to the information and
explanations given to us, the managerial
remuneration for the year ended March
31, 2025 has been paid / provided by the
Company to its directors in accordance
with the provisions of section 197 read
with Schedule V to the Act.

(g) With respect to the adequacy of
the internal financial controls over
financial reporting of the Company
and the operating effectiveness of such
controls, refer to our separate Report
in “Annexure 2”. Our report expresses
an unmodified opinion on the adequacy
and operating effectiveness of the
Company’s internal financial controls
over financial reporting.

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

i. The Company has disclosed details
regarding pending litigations in
Notes of Standalone Financial
Statements, which may have an
impact on its financial position.

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

iii. There was no amount 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, other than as disclosed in the
notes to the accounts, no funds have
been advanced or loaned or invested
(either from borrowed funds or share
premium or any other sources or kind
of funds) by the company to or in
any other person or entity, including
foreign entities (“Intermediaries”),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, whether,
directly or indirectly lend or invest
in other persons or entities identified
in any manner whatsoever by or on
behalf of the company (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries;
b) The management has represented,
that, to the best of its knowledge
and belief, other than as disclosed in
the notes to the accounts, no funds
have been received by the company
from any person or entity, including
foreign entities (“Funding Parties”),
with the understanding, whether
recorded in writing or otherwise, that
the company shall, whether, directly
or indirectly, lend or invest in other
persons or entities identified in any
manner whatsoever by or on behalf
of the Funding Party (“Ultimate
Beneficiaries”) or provide any
guarantee, security or the like on

behalf of the Ultimate Beneficiaries;
and

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

v. The company has not declared or paid any
dividend during the year hence provisions
of section 123 of the Companies Act, 2013
shall not be applicable.

(i) 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 applicable for
the financial year ended March 31, 2025.
Audit trail feature has been enabled from
July 2023, before which the company
was using a different software. On
having difficulties in the software, they
started using Tally since July 2023 with
proper Audit Trail feature in it.

For KASG & Co.

Chartered Accountants
Firm Regn. No. 002228C

Roshan Kumar Bajaj

Partner
Membership No.068523
Place: Kolkata UDIN: 25068523BMIWMI4447

Date: 30th May, 2025

---

Mar 31, 2024

We have audited the Standalone Financial
Statements of Kaushalya Infrastructure
Development Corporation Limited (“the
Company”), which comprise the Balance Sheet
as at 31st March, 2024, the Statement of Profit
and Loss (including Other Comprehensive
Income), Statement of Cash flow and the
Statement of Changes in Equity for the year
then ended 31st March, 2024, and notes to the
Standalone Financial Statements including a
summary of significant accounting policies and
other explanatory information.

In our opinion and to the best of our information
and according to the explanations given to us,
the aforesaid Standalone Financial Statements
give the information required by the Companies
Act, 2013 (‘the Act’) in the manner so required
and give a true and fair view in conformity with
the Indian Accounting Standards (‘Ind AS’)
specified under section 133 of the Act read with
the Companies (Indian Accounting Standards)
Rules, 2015 and other accounting principles
generally accepted in India, of the state of
affairs of the Company as at 31 March 2024,
and its profit (including other comprehensive
income), its cash flows and the changes in
equity for the year ended on that date.

Basis for opinion

We conducted our audit of the Standalone

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

Key Audit Matters

Key audit matters are those matters that, in
our professional judgment, were of most
significance in our audit of the standalone
financial statements for the financial year
ended 31st March, 2024. 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.

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
Board’s Report (and any other information or
Annual Report as the case may be) but does not
include the Standalone Financial Statements
and our auditor’s report thereon.

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

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

If, based on the work we have performed, we
conclude that there is a material misstatement
of this other information; we are required to
report that fact.

Management’s Responsibility for the
Standalone Financial Statements

The Company’s Board of Directors is
responsible for the matters stated in section
134(5) of the Companies Act, 2013 (“the
Act”) with respect to the preparation of these
standalone financial statements that give a true
and fair view of the financial position, financial
performance of the Company in accordance with
the accounting principles generally accepted
in India, including the accounting standards
specified under section 133 of the Act. This
responsibility also includes maintenance of
adequate accounting records in accordance
with the provisions of the Act for safeguarding

of the assets of the Company and for preventing
and detecting frauds and other irregularities;
selection and application of appropriate
accounting policies; making judgments and
estimates that are reasonable and prudent; and
design, implementation and maintenance of
adequate internal financial controls, that were
operating effectively for ensuring the accuracy
and completeness of the accounting records,
relevant to the preparation and presentation of
the standalone financial statement that give a
true and fair view and are free from material
misstatement, whether due to fraud or error.

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

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

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

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

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

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

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

• Obtain an understanding of internal control
relevant to the audit in order to design
audit procedures that are appropriate in the
circumstances.

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

• Conclude on the appropriateness of
management’s use of the going concern
basis of accounting and, based on the audit
evidence obtained, whether a material

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

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

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

We communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit

and significant audit findings, including any
significant deficiencies in internal control that
we identify during our audit.

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

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

REPORT ON OTHER LEGAL AND
REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor’s
Report) Order, 2020 (“the Order”), issued
by the Central Government of India in
terms of sub-section (11) of section 143
of the Companies Act, 2013, we give in
“Annexure 1” a statement on the matters
specified in paragraphs 3 and 4 of the order.

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

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

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

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

(d) In our opinion, the aforesaid Standalone
Financial statements comply with the
Indian Accounting Standards (Ind
AS) specified under section 133 of the
Act, read with the Companies (Indian
Accounting Standards) Rules, 2015, as
amended.

(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 matter to be included
in the Auditors’ Report under Section
197(16) of the Act, in our opinion
and according to the information and
explanations given to us, the managerial
remuneration for the year ended March

31, 2024 has been paid / provided by the
Company to its directors in accordance
with the provisions of section 197 read
with Schedule V to the Act.

(g) With respect to the adequacy of
the internal financial controls over
financial reporting of the Company
and the operating effectiveness of such
controls, refer to our separate Report
in “Annexure 2”. Our report expresses
an unmodified opinion on the adequacy
and operating effectiveness of the
Company’s internal financial controls
over financial reporting.

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

i. The Company has disclosed
details regarding pending
litigations in Notes of Standalone
Financial Statements, which may
have an impact on its financial
position.

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

iii. There was no amount 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, other than as disclosed
in the notes to the accounts,
no funds have been advanced
or loaned or invested (either
from borrowed funds or share
premium or any other sources or
kind of funds) by the company
to or in any other person or
entity, including foreign entities
(“Intermediaries”), with the
understanding, whether recorded
in writing or otherwise, that the
Intermediary shall, whether,
directly or indirectly lend
or invest in other persons or
entities identified in any manner
whatsoever by or on behalf
of the company (“Ultimate
Beneficiaries”) or provide
any guarantee, security or the
like on behalf of the Ultimate
Beneficiaries;

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

in any manner whatsoever by or
on behalf of the Funding Party
(“Ultimate Beneficiaries”) or
provide any guarantee, security or
the like on behalf of the Ultimate
Beneficiaries; and

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

v. The company has not declared or
paid any dividend during the year
hence provisions of section 123
of the Companies Act, 2013 shall
not be applicable.

(i) 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 applicable for
the financial year ended March 31, 2024.
Audit trail feature has been enabled from
July 2023, before which the company
was using a different software. On
having difficulties in the software, they
started using Tally since July 2023 with
proper Audit Trail feature in it.

For KASG & Co.

Chartered Accountants
Firm Regn. No. 002228C

Roshan Kumar Bajaj

Partner
Membership No.068523
Place: Kolkata UDIN: 24068523BKFDRF2471

Date: 30th May, 2024

---

Mar 31, 2015

1. We have audited the accompanying standalone financial statements of KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet as at 31st 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, which we have signed under reference to this report.

Management's Responsibility for the Standalone Financial Statements

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

Auditor's Responsibility

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

4. While conducing the 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.

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

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

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

Opinion

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

Report on Other Legal and Regulatory Requirements

9. As required by the 'Companies (Auditor's Report) Order, 2015', issued by the Central Government of India in terms of subsection (11) of section 143 of the Act(hereinafter referred to as the "Order") based on the comments in the auditors' reports, we give in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.

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

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

b) In our opinion, proper books of account as required by law relating to preparation of the financial statements have been kept so far as it appears from our examination of those books and the reports of the others;

c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of financial statements;

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

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

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

i) The company disclose the impact of pending litigations on its financial position in its financial statements - Refer Note 25.1 (2) & 25.9(a) to the financial statements;

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

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

Annexure to Independent Auditors' Report

Referred to in paragraph [9] of the Independent Auditors' Report of even date to the members of Kaushalya Infrastructure Development Corporation Limited on the standalone financial statements for the year ended 31st March 2015

(i) (a) The company is maintaining proper records in soft copy format showing full particulars, including quantitative details and situations of fixed assets except for the period before Financial year 2004-05.

(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed on such verification. In our opinion, the frequency of verification is reasonable.

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

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

(c) On the basis of our examination of the inventory records, in our opinion, the company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

(iii) (a) As informed to us, the company have not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 and accordingly the provisions of Clause 3(iii)[(b) and (c)] of the said Order are not applicable to the company.

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

(v) The Company have not accepted any deposits from the public within the meaning of Sections 73 to 76 of the Act and the rules framed there under.

(vi) The Central Government has not prescribed cost records u/s 148(1) of the Companies Act, 2013 for any of the activities of the company and accordingly the provisions of Clause 3 (vi) of the order is not applicable to the company.

(vii) (a) Accordingly to the information and explanations given to us and the records of the company examined by us, in our opinion, the companion various instances has delayed the deposit of the undisputed statutory dues including Provident Fund, Employees' State Insurance, Income-tax, Sales-tax, Service Tax, Value Added Tax, cess and any other statutory dues applicable to it. According to information and explanations given to us, undisputed amounts payable in respect of Service Tax Rs. 1,44,07,638/-, Tax deducted at Source Rs. 25,000/- and ESI Rs. 4,419/- were in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and records of the Company examined by us, there are no dues of income- tax, sales Tax, service tax, value added Tax, cess and other material dues which have not been deposited on account of dispute. The particulars of dues of service tax & income tax as at 31st March 2015 which have not been deposited on account of a dispute, are as follows:

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

Income Tax Act Income tax 0.91

Income Tax Act Income tax 28.47

Income Tax Act Income tax 30.27

Income Tax Act Income tax 37.61

Income Tax Act Income tax 1.91

Income Tax Act Income tax 51.43

Income Tax Act Interest on TDS 2.46 & Late Fees

Income Tax Act Short Deduction of 3.02 TDS & Late Fees

Income Tax Act Interest & Short Deduction 3.30 of TDS & Late Fees

Income Tax Act Interest on TDS 15.75

Income Tax Act Interest, Short Payment & Deduction of TDS

The Central Service Tax 421.84 Excise Act,1944

The WB.VAT Act, 2003 Vat 87.42

The WB.VAT Act, 2003 Vat 89.53

The WB.VAT Act, 2003 Vat 817.10

The WB.VAT Act, 2003 Vat 6.60

The WB.VAT Act, 2003 Vat 0.35

The WB.VAT Act, 2003 Vat 65.35

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

Income Tax Act Asst. Year 2005-06 I.T. Appellate Tribunal

Income Tax Act Asst. Year 2007-08 I.T. Appellate Tribunal

Income Tax Act Asst. Year 2009-10 I.T. Appellate Tribunal

Income Tax Act Asst. Year 2010-11 I.T. Appellate Tribunal

Income Tax Act Asst. Year 2011-12 I.T. Appellate Tribunal

Income Tax Act Asst. Year 2012-13 Commissioner of Income Tax (Appeals)

Income Tax Act Asst. Year 2015-16 TDS Circle-II

Income Tax Act Asst. Year 2014-15 TDS Circle-II

Income Tax Act Asst. Year 2013-14 TDS Circle-II

Income Tax Act Asst. Year 2012-13 TDS Circle-II

Income Tax Act Prior Assessment TDS Circle-II Years

The Central From 1st april, Service Tax Excise Act,1944 2010- 31st Commisionerate, Kolkata December 2012 under VCES

The WB.VAT Financial Year Revision Board, Kolkata Act, 2003 2006-07

The WB.VAT Financial Year Revision Board, Kolkata Act, 2003 2007-08

The WB.VAT Financial Year Revision Board, Kolkata Act, 2003 2008-09

The WB.VAT Financial Year Sr. Joint Commissioner Act, 2003 2009-10 Appeal, Kolkata

The WB.VAT Financial Year Sr. Joint Commissioner Act, 2003 2010-11 Appeal, Kolkata

The WB.VAT Financial Year Sr. Joint Commissioner Act, 2003 2011-12 Appeal, Kolkata



(c) According to the information and explanations given to us the company has transferred Rs. 1,63,680/- to the investor education and protection fund in accordance with the relevant provisions of Companies Act,1956 and rules made thereunder, with the appropriate authorities.

(viii) The company has accumulated losses as at 31st March, 2015 which is less than fifty percent of the net worth of the Company and it has incurred cash loss of Rs. 6,56,14,996/- in the current year and of Rs. 13,65,80,111/- in the immediately preceding financial year.

(ix) According to the records of the company examined by us and the information and explanations given to us, the company has defaulted in payment of bank interest of Rs. 45,42,695/- and the same has been reversed by the bank in the month of March. The bankers of the Company are considering a second restructuring which is under review by lead banker(The State Bank of India). The Company has not issued any debentures at balance sheet date.

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

(xi) The company has not taken any term loans and accordingly the provisions of Clause 3(xi) of the order are not applicable to the company.

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

For Sumanta & Co. Firm Registration No. 322554E Chartered Accountants Pradeep Kumar Agarwal Place : Kolkata Partner Date : The 30th day of May, 2015 ICAI Membership No. 056521

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Mar 31, 2014

We have audited the accompanying financial statements of Kaushalya Infrastructure Development Corporation Limited (the company), which comprise the balance sheet as at 31 March 2014, and the statement of profit and loss and cash flow statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Management''s responsibility for the financial statements

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

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

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

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

Opinion

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

i. in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2014;

ii. in the case of the Statement of Profit and Loss, of the loss 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 as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004 (together the "order") issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books and proper records adequate for the purposes of our audit have been received from the branches not visited by us;

(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 and returns;

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

(e) On the basis of written representations received from the directors as on 31st March, 2014 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2014 from being appointed as director in terms of clause (f) of sub-section (1) of section of the Companies Act, 1956.

ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED OF EVEN DATE

(i) (a) The company is maintaining proper records in soft copy format showing full particulars including quantitative details and situations of fixed assets.

(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

(c) In our opinion and according to the information and explanations given to us, the company has not been disposed off any substantial part of fixed assets during the year.

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

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

(c) On the basis of our examination of inventory records, in our opinion, the company is maintaining proper records of inventory and no material discrepancies were noticed on verification between the physical stocks with the book records.

(iii) As informed to us, the company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 and accordingly the provisions of Clause 4 (iii) (a) to 4 (iii) (g) of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across not have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanations given to us and based on our verification, we are of the opinion that the particulars of contracts and arrangements 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 and explanations given to us, and based on our verification, we report that the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakh in respect of any party during the year has been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

(viii) The Central Government has not prescribed cost records u/s 209(1)(d) of the Companies Act, 1956 for any of the activities of the company and accordingly the provisions of Clause 4 (viii) of the order is not applicable to the company.

(ix) (a) Accordingly to the information and explanations given to us and the records of the company examined by us, in our opinion, the company, on various instances has delayed the deposit of the undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues applicable to it.

(b) According to information and explanations given to us, undisputed amounts payable in respect of Service Tax Rs. 81,49,501/-, Tax Deducted at Sources Rs. 3,22,567/- and PF & ESI Rs. 45,513/- were in arrears as at 31st March, 2014 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, the following dues of Sales tax, Income tax, Wealth tax, Service tax, Customs duty, Excise duty and Cess (as applicable) have not been deposited by the Company on account of disputes.

Name of the Nature of Amount Period to which the amount Statute Dues (in RsLacs) relates

Income Tax Act Income Tax 37.72 Assessment Year 2004-2005

Income Tax Act Income Tax 0.72 Assessment Year 2005-2006

Income Tax Act Income Tax 9.24 Assessment Year 2006-2007

Income Tax Act Income Tax 40.99 Assessment Year 2007-2008

Income Tax Act Income Tax 37.61 Assessment Year 2010-2011

Income Tax Act Income Tax 41.66 Assessment Year 2011-2012

Income Tax Act Income Tax 2.59 Assessment Year 2012-2013

Name of thte statue Forum where dispute is pending

Income Tax Act Income Tax Appellate Tribunal

Income Tax Act Commissioner of Income Tax (Appeals)

Income Tax Act Commissioner of Income Tax (Appeals)

Income Tax Act Income Tax Appellate Tribunal Income Tax Act Income Tax Appellate Tribunal

Income Tax Act Commissioner of Income Tax (Appeals)

Income Tax Act Commissioner of Income Tax (Appeals)

(x) The company has no accumulated losses as at 31st March, 2014 and it has incurred cash loss of Rs. 13,65,80,111/- (Prev. Year Rs.1,61,43,555/-) in the current year and company is incurring cash loss for the last two financial year fill 31st March, 2014.

(xi) According to the records of the company examined by us and the informafion and explanafions given to us, the company has not defaulted in repayment of dues to a financial insfitufion or bank. The company has no dues to any debenture holders.

(xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securifies.

(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 (as amended) are not applicable to the Company.

(xiv) In our opinion, the company is not a dealer or trade in shares, securifies, debentures and other investments.

(xv) In our opinion and according to the informafion and explanafions given to us, the company has not given any guarantee for loans taken by others from bank or financial insfitufions.

(xvi) The company has not taken any term loans and accordingly the provisions of clause 4(xvi) of the order are not applicable to the company.

(xvii) On the basis of an overall examinafion of the Balance Sheet of the company, in our opinion and according to the informafion and explanafions given to us, there are no funds raised on a short-term basis which have been used for long-term investment.

(xviii) During the year, the company has allotted 15025000 equity shares of F.V. Rs.10/- each at a premium of Rs.1/- after conversion of same numbers of warrants to parfies and companies covered in the Register maintained under secfion 301 of the Companies Act, 1956.

(xix) During the year, the company has not issued any debentures and accordingly the provisions of Clause 4(xix) of the order are not applicable to the company.

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

(xxi) During the course of our examinafion of the books and records of the company, carried out in accordance with the Generally Accepted Audifing Pracfices in India, and according to the informafion and explanafions given to us, we have neither come across any instance of fraud on or by the company, noficed or reported during the year, nor have we been informed of such case by the management.

For Sumanta & Co. Firm Registration No. 322554E Chartered Accountants Pradeep Kumar Agarwal Partner ICAI Membership No. 056521

Place : Kolkata Date : The 30th day of May, 2014

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Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Kaushalya Infrastructure Development Corporation Limited (the company), which comprise the balance sheet as at 31 March 2013, and the statement of profit and loss and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management''s responsibility for the financial statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including accounting standards referred to in sub- section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor''s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

i. in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2013;

ii. in the case of the Statement of Profit and Loss, of the loss 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 as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004 (together the "order") issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books and proper records adequate for the purposes of our audit have been received from the branches not visited by us;

(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 and returns;

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

(e) On the basis of written representations received from the directors as on 31st March, 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 director in terms of clause (f) of sub-section (1) of section of the Companies Act, 1956.

ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED OF EVEN DATE

(i) (a) The company is maintaining proper records showing full particulars including quantitative details and situations of fixed assets.

(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

(c) In our opinion and according to the information and explanations given to us, the company has not been disposed off any substantial part of fixed assets during the year.

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

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

(c) On the basis of our examination of inventory records, in our opinion, the company is maintaining proper records of inventory and no material discrepancies were noticed on verification between the physical stocks with the book records.

(iii) As informed to us, the company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 and accordingly the provisions of Clause 4 (iii) (a) to 4 (iii) (g) of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across not have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanations given to us and based on our verification, we are of the opinion that the particulars of contracts and arrangements 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 and explanations given to us, and based on our verification, we report that the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakh in respect of any party during the year has been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

(viii)The Central Government has not prescribed cost records u/s 209(l)(d) of the Companies Act, 1956 for any of the activities of the company and accordingly the provisions of Clause 4 (viii) of the order is not applicable to the company.

(ix) Accordingly to the information and explanations given to us and the records of the company examined by us, in our opinion, the company, on various instances has delayed the deposit of the undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income- tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues applicable to it.

According to information and explanations given to us, undisputed amounts payable in respect of Service Tax Rs. 54,41,873/-, VAT Rs. 5,13,124/- and PF & ESI Rs. 30,385/- were in arrears as at 31st March, 2013 for a period of more than six months from the date they became payable. (x) The company has no accumulated losses as at 31st March, 2013 and it has incurred cash loss of Rs. 161,43,555/- in the current year and it has not incurred cash loss in the immediately preceding Financial Year.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank. The company has no dues to any debenture holders.

(xii) The company has not granted any loans and advances 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 (as amended) are not applicable to the Company.

(xiv) In our opinion, the company is not a dealer or trade in shares, securities, debentures and other investments.

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

(xvi) The company has not taken any term loans and accordingly the provisions of clause 4(xvi) of the order are not applicable to the company.

(xvii) On the basis of an overall examination of the Balance Sheet of the company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment.

(xviii) During the year, the company has not made any preferential allotment of shares warrants to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956 but the company received the due amount of share warrant during the financial year.

(xix) During the year, the company has not issued any debentures and accordingly the provisions of Clause 4(xix) of the order are not applicable to the company.

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

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with the Generally Accepted Auditing Practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of such case by the management.

For Sumanta & Co.

Firm Registration No. 322554E Chartered Accountants

Pradeep Kumar Agarwal

Place : Kolkata Partner

Date : The 29th day of May, 2013 ICAI Membership No. 056521

---

Mar 31, 2012

We have audited the accompanying financial statements of Kaushalya Infrastructure Development Corporation Limited (the company), which comprise the balance sheet as at 31 March 2012, and the statement of profit and loss and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s responsibility for the financial statements

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

Auditor''s responsibility

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

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

Opinion

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

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

ii. in the case of the Statement of Profit and Loss, of the profit 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 as amended by the Companies (Auditor''s Report) (Amendment) Order, 2004 (together the "order") issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

(b) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books and proper records adequate for the purposes of our audit have been received from the branches not visited by us;

(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 and returns;

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

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

ANNEXURE REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF KAUSHALYA TOWNSHIP PRIVATE LIMITED OF EVEN DATE

(i) (a) The company is maintaining proper records showing full particulars including quantitative details and situations of fixed assets.

(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

(c) In our opinion and according to the information and explanations given to us, the company has not been disposed off any substantial part of fixed assets during the year.

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

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

(c) On the basis of our examination of inventory records, in our opinion, the company is maintaining proper records of inventory and no material discrepancies were noticed on verification between the physical stocks with the book records.

(iii) As informed to us, the company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 and accordingly the provisions of Clause 4 (iii) (a) to 4 (iii) (g) of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across not have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanations given to us and based on our verification, we are of the opinion that the particulars of contracts and arrangements 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 and explanations given to us, and based on our verification, we report that the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakh in respect of any party during the year has been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

(viii) The Central Government has not prescribed cost records u/s 209(l)(d) of the Companies Act, 1956 for any of the activities of the company and accordingly the provisions of Clause 4 (viii) of the order is not applicable to the company.

(ix) (a) Accordingly to the information and explanations given to us and the records of the company examined by us, in our opinion, the company, on various instances has delayed the deposit of the undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues applicable to it.

(b) According to information and explanations given to us, undisputed amounts payable in respect of Service Tax Rs. 39,10,390/-, and VAT Rs. 5,08,544/- were in arrears as at 31st March, 2012 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, the following dues of Sales tax, Income tax, Wealth tax, Service tax, Customs duty, Excise duty and Cess (as applicable) have not been deposited by the Company on account of disputes.

Name of the Nature of Dues Amount Period to which Forum where Statute (in Rs. Lacs) the amount relates dispute is pending

Income Tax Act Income Tax 37.72 Assessment Year 2004-2005 Income Tax Appellate Tribunal

Income Tax Act Income Tax 0.72 Assessment Year 2005-2006 Commissioner of Income Tax (Appeals) Income Tax Act Income Tax 9.24 Assessment Year 2006-2007 Commissioner of Income Tax (Appeals)

Income Tax Act Income Tax 40.99 Assessment Year 2007-2008 Income Tax Appellate Tribunal

(x) The company has no accumulated losses as at 31st March, 2012 and it has not incurred cash loss in the current and immediately preceding Financial Year.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank. The company has no dues to any debenture holders.

(xii) The company has not granted any loans and advances 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 (as amended) are not applicable to the Company.

(xiv) In our opinion, the company is not a dealer or trade in shares, securities, debentures and other investments.

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

(xvi) In our opinion and according to the information and explanations given to us, on an overall basis, the term loan have been taken, from SBI (FCNR-B) for meeting the working capital requirements but not utilized for any purpose, during the entire tenure of the loan and it has been consequently repaid during the year.

(xvii) On the basis of an overall examination of the Balance Sheet of the company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment.

(xviii)During the year, the company has made preferential allotment of shares warrants to parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956. In our opinion, the prices at which the same are issued are prima facie not prejudicial to the interests of the company.

(xix) During the year, the company has not issued any debentures and accordingly the provisions of Clause 4(xix) of the order are not applicable to the company.

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

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with the Generally Accepted Auditing Practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of such case by the management.

For Sumanta & Co.

Firm Registration No. 322554E

Chartered Accountants

Pradeep Kumar Agarwal

Place : Kolkata Partner

Date : The 14th day of November, 2012 ICAI Membership No. 056521

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of KAUSHALYA INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED (the company) as at 31st March, 2010, and the related Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004 (together the "order") issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks of the books and records of the company as we considered appropriate and according to the information and explanations given to us, we give in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

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

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

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

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

(e) on the basis of the written representations received from the directors as on 31st March, 2010 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2010 from being appointed as director in terms of clause (g) of sub section (1) of Section 274 of the Companies Act, 1956;

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

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

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

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

[Referred to in Para 3 of the Auditors Report of even date to the members of Kaushalya Infrastructure Development Corporation Limited on the Financial Statements for the year ended 31st March, 2010]

(i) (a) The company is maintaining proper records showing full particulars including quantitative details and situations of fixed assets.

(b) The fixed assets are physically verified by the management according to a phased programme designed to cover all the items over a period of three years, which in our opinion, is reasonable having regard to the size of the company and nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed.

(c) In our opinion and according to the information and explanations given to us, the company has not been disposed off any substantial part of fixed assets during the year.

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

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

(c) On the basis of our examination of inventory records, in our opinion, the company is maintaining proper records of inventory and no material discrepancies were noticed on verification between the physical stocks with the book records.

(iii) As informed to us, the company has not granted/taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956 and accordingly the provisions of Clause 4 (iii) (a) to 4 (iii) (g) of the order are not applicable to the company.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchases of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have neither come across not have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

(v) (a) In our opinion and according to the information and explanations given to us and based on our verification, we are of the opinion that the particulars of contracts and arrangements 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 and explanations given to us, and based on our verification, we report that the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of Rupees five lakh in respect of any party during the year has been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposits from the public within the meaning of Sections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

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

(viii) The Central Government has not prescribed cost records u/s 209(1)(d) of the Companies Act, 1956 for any of the activities of the company and accordingly the provisions of Clause 4 (viii) of the order is not applicable to the company.

(ix) (a) Accordingly to the information and explanations given to us and the records of the company examined by us, in our opinion, the company generally regular in depositing the undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth Tax, Custom Duty, Excise Duty, cess and other statutory dues applicable to it. According to information and explanations given to us, undisputed amounts payable in respect of Service Tax Rs. 56,93,675/- were in arrears as at 31st March, 2010 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, the following dues of Sales tax, Income tax, Wealth tax, Service tax, Customs duty, Excise duty and Cess (as applicable) have not been deposited by the Company on account of disputes.

Name of the Statute Nature of Dues Amount Period to which the

(Rs. in

Lacs) amount relates

Income Tax Act Income Tax 32.66 Assessment Year

2005-2006

Income Tax Act Income Tax 117.97 Assessment Year

2006-2007

Income Tax Act Income Tax 54.34 Assessment Year

2007-2008



Name of the Statute Forum where dispute is pending

Income Tax Act Income Tax Appellate Authority

Income Tax Act Income Tax Appellate Authority

Income Tax Act Commissioner of

Income Tax (Appeals



(x) The company has no accumulated losses as at 31st March, 2010 and it has not incurred cash loss in the current and immediately preceding Financial Year.

(xi) According to the records of the company examined by us and the information and explanations given to us, the company has not defaulted in repayment of dues to a financial institution or bank. The company has no dues to any debenture holders.

(xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute applicable to chit fund/nidhi/ mutual benefit fund/society are not applicable to the company.

(xiv) In our opinion, the company is not a dealer or trade in shares, securities, debentures and other investments.

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

(xvi) In our opinion and according to the information and explanations given to us, on an overall basis, the term loans have been applied for the purposes for which they were obtained.

(xvii) On the basis of an overall examination of the Balance Sheet of the company, in our opinion and according to the information and explanations given to us, there are no funds raised on a short-term basis which have been used for long-term investment.

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

(xix) During the year, the company has not issued any debentures and accordingly the provisions of Clause 4(xix) of the order are not applicable to the company.

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

(xxi) During the course of our examination of the books and records of the company, carried out in accordance with the Generally Accepted Auditing Practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the company, noticed or reported during the year, nor have we been informed of such case by the management.



For SUMANTA & CO.

Chartered Accountants

Firm Registration No. 033534E

Pradeep Kumar Agarwal

Place : Kolkata Partner

Date : 27th day of August, 2010 Membership No. 056521