Auditor Report of Mukat Pipes Ltd.

Mar 31, 2024

TO THE MEMBERS OF MUKAT PIPES LIMITED Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of Mukat Pipes Limited, (“The Company”) which comprise the Balance Sheet as at March 31, 2024, the statement of Profit and Loss, the statement of changes in Equity and the Cash Flow Statement for the year then ended, and a summary of the 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 financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind As”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2024, and its profit, the changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

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

Key Audit Matters

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

1. Description of Key Audit Matter

The company has not provided for Income Tax, Central Excise & Service Tax liabilities aggregating to Rs. 79.32 Lacs. This is a Key audit matter since it will adversely effect the current ratio.

How our audit addressed the key audit matter

a) Discussed the matter with the management and obtained an understanding of the matter.

b) The company has preferred appeals against the outstanding demand and they have been advised by their counsel that the demands will be dropped.

As a result of the above audit procedure the Managements assessment of not providing was considered to be reasonable.

2. Description of Key Audit Matter

The company has yet to transfer Rs. 11.41 Lac on account of unpaid dividend to Investor Education and Protection Fund.

How our audit addressed the key audit matter

a) Discussed the matter with the management and obtained an understanding of the matter.

b) The company does not have record of share holders to whom the unpaid dividend amount belongs to. The company has several times approached Investor Education Protection Fund (IEPF) through emails to know the procedure to transfer the above said unpaid dividend amount to IEPF in the absence of names of share holders and other concerned records needed in the matter. We have not received any response from the IEPF. The company will pursue the matter with the IEPF to expedite the matter.

As a result of the above audit procedure the Managements plea of not remitting the amount be considered appropriate.

Information other than the Financial Statements and Auditor''s Report thereon

The Company''s Board of Directors is responsible for the preparation of other information. The other information comprises the information included in the Management Discussion and Analysis, Board''s Report including annexures to Board''s Report, Report on Corporate Governance and business responsibility report, but does not include the financial statements and our auditor''s report thereon.

Our opinion on the 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 financial statements, our responsibility is to read the other information and in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained 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. We have nothing to report in this regard.

Management''s Responsibility for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“The Act”) with respect to the preparation of the financial statements that give a true and fair view of the financial position, financial performance changes in equity & cash flows of the Company in accordance with the accounting principles generally accepted in India including The Indian Accounting Standard, 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 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.

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

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

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

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

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

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

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

d) 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 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 going concern.

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

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

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

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

From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the 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 Section 143(11) of the Act, we give in the "Annexure “A" a statement on the matters specified in paragraphs 3 and 4 of the order, to the extent applicable.

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

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

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

(c) The Balance Sheet, the statement of Profit and loss, statement of changes in equity and the cash flow statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards "Ind AS" prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended).

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

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

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

i) the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 25 to the financial statements.

ii) the Company does not have any material foreseeable losses on long-term contracts including derivative contracts, therefore no provision is required.

iii) there has been delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company Refer Note 36 of the financial statements.

iv) (a) The management has represented to us that, to the best of its knowledge and belief no

funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other persons or entities, 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 to us that, to the best of its knowledge and belief no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

v) The Company has not declared or paid any dividend during the year.

vi) The company has used such accounting software for maintain its books of account for the financial year ended 31^st March, 2024 which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all transactions recorded in the software and the audit trail feature has not been tempered with and the audit trail has been preserved by the company as per the statutory requirements for record retention.

FOR GURPREET KAUR & ASSOCIATES CHARTERED ACCOUNTANTS Firm Registration No. 015358N

-sd-

HIMANSHU

(PARTNER)

M.No. 549225

Place : RAJPURA

Dated : 22/05/2024

UDIN No.24549225BKFEAD7836

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Mar 31, 2014

We have audited the accompanying financial statements of Mukat Pipes Limited (the Company) which comprises the Balance Sheet as at March 31, 2014, the statement of Profit and Loss and the Cash Flow Statement for the year then ended, and notes to the financial statements comprising of a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, 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 the explanations given to us, the aforesaid 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:

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

(b) In the case of the statement of Profit and Loss, of the loss of the Company for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 (the Order) as amended, issued by the Central Government of India in terms of section 227(4A) of the Companies Act, 1956 we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

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

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

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

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

d. In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

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

Annexure

Referred to in paragraph under the heading of "report on other legal & regulatory requirements" of our report of even date.

(I) In respect of its fixed assets:

(a) The Company is in the process of updating records showing full particulars including quantitative details and situation of fixed assets.

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

(ii) In respect of its inventory:

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

(b) The procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company maintains proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.

(iii)

(a) According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the companies Act, 1956 (hereinafter referred to as the Act).

(b) The parties have, barring a few cases, repaid the principal amount as stipulated and have been regular in the payment of interest, if stipulated.

(c) According to the information and explanations given to us, the terms and conditions of secured/unsecured loans taken by the company from companies, firms or other parties concerned in the register maintained under prejudicial to the interest of the company. The maximum amount involved during the year was Rs. 6.19 Crores and the year end balance of loans taken from such parties was Rs. 6.11 Crores.

(d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act. 1956.

(iv) In our opinion and according to the information and explanation given to us, there is adequate internal control procedure, commensurate with the size of the company and the nature of its business with regards to purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control procedure. However, they are required to be strengthened.

(v)

(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 are in the process of being updated.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any fixed deposit from the public.

(vii) The company has not appointed any external internal auditor.

(viii) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the account and records, though not in the prescribed format, have been maintained.

(ix) According to the information and explanation given to us and the records of the company examined by us in respect of statutory dues.

(a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues of provident fund, employees'' state insurance, applicable to it. The amount of unpaid dividend due to be transferred to the investor education and protection fund is Rs. 12.13 Lacs.

(b) According to the information and explanations given to us, the undisputed amounts as at 31st March, 2014 which are outstanding for a period of more than six months from the date they became payable, in respect of Income Tax, Sales Tax & Wealth Tax, Customs duty and Excise Duty are NIL.

(c) According to the information given to us, there are no dues of customs duty, wealth tax and cess except for Income Tax, Excise Duty and Sales Tax, which are disputed.

(I) Income Tax Rs. 175.87 Lac Matter pending with Hon''ble BIFR

(ii) Excise Duty Rs.169.12 Lac Matter pending with Appellate Authorities

(iii) Sales Tax Rs. 126.32 Lac Matter pending with Hon''ble BIFR

(x) The company has incurred cash loss during the year and the accumulated losses of the company are more than 50% of its net worth. The company is already registered with BIFR for rehabilitation and reconstruction.

(xi) The company has settled/repaid its dues outstanding with banks and financial institutions under the OTS approved by them.

(xii) The company has not granted loans 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 Reports) order, 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the companies (Auditor''s Reports) Order, 2003 are not applicable to the company.

(xv) According to the information and explanation given to us the company has not given any guarantee during the year for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanation given to us the Term Loan taken during the year has been applied for the purpose for which that was obtained.

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

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register to be maintained under section 301 of the Act.

(xix) According to the information and explanation given to us, during the period covered by our audit, the company has not issued any debentures or created security in respect of debentures.

(xx) According to the information and explanations given to us, no fraud in the company has been reported during the course of our audit.

(xxi) No money was raised by public issue by the Company during the year.

Place: Rajpura For R.P. BHAMBRI & CO., Date : 28-05-2014 CHARTERED ACCOUNTANTS (Firm Registration No.001312N)

(RANJIT PARKASH) Proprietor M.No. 080084

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Mar 31, 2013

1. We have audited the attached balance sheet of Mukat Pipes Ltd; as at 31st March 2013 and the profit and loss account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company''s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. These 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 (Auditor''s Report) order, 2003 (CARO) issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

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

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

(iii) The balance sheet, profit and loss account and cash flow statement, dealt with by this report are in agreement with the books of account;

(iv) In our opinion, the balance sheet and profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred in sub- section (3C) of section 211 of the Companies Act, 1956; except As-22.

(v) On the basis of written representations received from the directors, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2013 from being appointed as a director in terms of section 274 (1)(g) of the Companies Act, 1956;

(vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with notes to the accounts subject to the following:-

(i) Non availability of documents relating to transactions of Baramati Unit as mentioned in Note No. 30 impact of which on profit and loss account and Balance Sheet is not ascertainable.

(ii) No confirmation letters have been obtained as a result variance if any and its impact on profit/loss and reserves is not ascertainable. 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.

(a) in the case of the balance sheet, of the state of affairs of the company as at 31st March 2013

(b) in the case of profit and loss account, of the loss for the year ended on that date.

(c) In the case of the cash flow statement of the cash flow of the company for the year ended on that date.

Annexure

Referred to in paragraph 3 of our report of even date,

(i) In respect of its fixed assets:

(a) The Company is in the process of updating records showing full particulars including quantitative details and situation of fixed assets.

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

(ii) In respect of its inventory:

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

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

(c) The company maintains proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.

(iii)

(a) According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the companies Act, 1956 (hereinafter referred to as the Act).

(b) The parties have, barring a few cases, repaid the principal amount as stipulated and have been regular in the payment of interest, if stipulated.

(c) According to the information and explanations given to us, the terms and conditions of secured/unsecured loans taken by the company from companies, firms or other parties concerned in the register maintained under prejudicial to the interest of the company. The maximum amount involved during the year was Rs. 6.24 Crores and the year end balance of loans taken from such parties was Rs. 6.19 Crores.

(d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act. 1956.

(iv) In our opinion and according to the information and explanation given to us, there is adequate internal control procedure, commensurate with the size of the company and the nature of its business with regards to purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control procedure. However, they are required to be strengthened.

(v)

(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 are in the process of being updated.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any fixed deposit from the public.

(vii) The company has not appointed any external internal auditor.

(viii) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the account and records, though not in the prescribed format, have been maintained.

(ix) According to the information and explanation given to us and the records of the company examined by us in respect of statutory dues. (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues of provident fund, employees'' state insurance, applicable to it. The amount of unpaid dividend due to be transferred to the investor education and protection fund is Rs. 12.13 Lacs.

(b) According to the information and explanations given to us, the undisputed amounts as at 31st March, 2013 which are outstanding for a period of more than six months from the date they became payable, in respect of Income Tax, Sales Tax & Wealth Tax, Customs duty and Excise Duty are NIL.

(c) According to the information given to us, there are no dues of customs duty, wealth tax and cess except for Income Tax, Excise Duty and Sales Tax, which are disputed.

(I) Income Tax Rs. 206.79 Lac Matter pending with Hon''ble BIFR

(ii) Excise Duty Rs.136.55 Lac Matter pending with Appellate Authorities & Hon''ble BIFR

(iii) Sales Tax Rs. 126.32 Lac Matter pending with Hon''ble BIFR

(x) The company has incurred cash loss during the year and the accumulated losses of the company are more than 50% of its net worth. The company is already registered with BIFR for rehabilitation and reconstruction.

(xi) The company has settled/repaid its dues outstanding with banks and financial institutions under the OTS approved by them.

(xii) The company has not granted loans 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 Reports) order, 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the companies (Auditor''s Reports) Order, 2003 are not applicable to the company.

(xv) According to the information and explanation given to us the company has not given any guarantee during the year for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanation given to us the Term Loan taken during the year has been applied for the purpose for which that was obtained.

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

(xviii) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register to be maintained under section 301 of the Act.

(xix) According to the information and explanation given to us, during the period covered by our audit, the company has not issued any debentures or created security in respect of debentures.

(xx) According to the information and explanations given to us, no fraud in the company has been reported during the course of our audit.

(xxi) No money was raised by public issue by the Company during the year.

Place: Patiala For R.P. BHAMBRI & CO.,

Date : 23-05-2013 CHARTERED ACCOUNTANTS

(Firm Registration No.001312N)

(RANJIT PARKASH)

Proprietor

M. No. 080084

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Mar 31, 2012

1. We have audited the attached balance sheet of Mukat Pipes Ltd; as at 31st March 2012 and the profit and loss account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. These 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 (Auditor's Report) order, 2003 (CARO) issued by the Central Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order.

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

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; (ii) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of those books; (iii) The balance sheet, profit and loss account and cash flow statement, dealt with by this report are in agreement with the books of account;

iv) In our opinion, the balance sheet and profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred in sub- section (3C) of section 211 of the Companies Act, 1956; except As-22.

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

(vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read with notes to the accounts subject to the following:- (I) Non availability of documents relating to transactions of Baramati Unit as mentioned in Note No. 34 impact of which on profit and loss account and Balance Sheet is not ascertainable.

(ii) No confirmation letters have been obtained as a result variance if any and its impact on profit/loss and reserves is not ascertainable. 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.

(a) in the case of the balance sheet, of the state of affairs of the company as at 31st March 2012

(b) in the case of profit and loss account, of the Profit for the year ended on that date.

(c) In the case of the cash flow statement of the cash flow of the company for the year ended on that date.

Annexure

Referred to in paragraph 3 of our report of even date,

(I) In respect of its fixed assets:

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

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

(ii) In respect of its inventory:

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

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

(c) The company maintains proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material.

(iii)

(a) According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the companies Act, 1956 (hereinafter referred to as the Act).

(b) The parties have, barring a few cases, repaid the principal amount as stipulated and have been regular in the payment of interest, if stipulated.

(c) According to the information and explanations given to us, the terms and conditions of secured/unsecured loans taken by the company from companies, firms or other parties concerned in the register maintained under prejudicial to the interest of the company. The maximum amount involved during the year was Rs. 6.24 Crores and the year end balance of loans taken from such parties was Rs. 6.24 Crores.

(d) There is no overdue amount of loans taken from or granted to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act. 1956.

(iv) In our opinion and according to the information and explanation given to us, there is adequate internal control procedure, commensurate with the size of the company and the nature of its business with regards to purchase of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control procedure. However, they are required to be strengthened.

(v)

(a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 are in the process of being updated.

(b) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to prevailing market prices at the relevant time.

(vi) In our opinion and according to the information and explanations given to us, the company has not accepted any fixed deposit from the public. (vii) The company has not appointed any external internal auditor, however, it has employed professionals who undertake internal audit.

(viii) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 and we are of the opinion that prima facie the account and records, though not in the prescribed format, have been maintained.

(ix) According to the information and explanation given to us and the records of the company examined by us in respect of statutory dues. (a) The company is generally regular in depositing with appropriate authorities undisputed statutory dues of provident fund, employees' state insurance, applicable to it. The amount of unpaid dividend due to be transferred to the investor education and protection fund is Rs. 12.13 Lacs.

(b) According to the information and explanations given to us, the undisputed amounts as at 31st March, 2012 which are outstanding for a period of more than six months from the date they became payable, in respect of Income Tax, Sales Tax & Wealth Tax, Customs duty and Excise Duty are NIL.

(c) According to the information given to us, there are no dues of customs duty, wealth tax and cess except for Income Tax, Excise Duty and Sales Tax, which are disputed.

(I) Income Tax Rs. 255.16 Lac Matter pending with Appellate Authorities

(ii) Excise Duty Rs.136.55 Lac Matter pending with Appellate Authorities

(iii) Sales Tax Rs. 126.32 Lac Matter pending with Appellate Authorities

(x) Although the company has not incurred any cash loss during the year but still the accumulated losses of the company are more than 50% of its net worth. The company is already registered with BIFR for rehabilitation and reconstruction. (xi) The company has settled/repaid its dues outstanding with banks and financial institutions under the OTS approved by them.

(xii) The company has not granted loans 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 Reports) order, 2003 are not applicable to the company.

(xiv) In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the companies (Auditor's Reports) Order, 2003 are not applicable to the company. (xv) According to the information and explanation given to us the company has not given any guarantee during the year for loans taken by others from banks or financial institutions.

(xvi) In our opinion and according to the information and explanation given to us the Term Loan taken during the year has been applied for the purpose for which that was obtained.

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

(xviii)According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register to be maintained under section 301 of the Act.

(xix) According to the information and explanation given to us, during the period covered by our audit, the company has not issued any debentures or created security in respect of debentures. (xx) According to the information and explanations given to us, no fraud in the company has been reported during the course of our audit.

(xxi) No money was raised by public issue by the Company during the year.

Place: Patiala For R.P. BHAMBRI & CO.,

Date : 28-05-2012 CHARTERED ACCOUNTANTS

(Firm Registration No.001312N)

(RANJIT PARKASH)

Proprietor

M. No. 80084