Auditor Report of N R International Ltd.

Mar 31, 2024

We have audited the Financial Statements of N R INTERNATIONAL LIMITED (the "Company"), which
comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss (including Other
Comprehensive Income), the Statement of Changes in Equity, the Statement of Cash Flows ended on that
date, Notes to Financial Statements, a summary of Significant Accounting Policies and Other Explanatory
Information (hereinafter referred to as the "Financial Statements").

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, the loss and total comprehensive income, changes in equity and its
cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing ("SA"s)
specified under section 143(10) of 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 statements.

Key Audit Matters

Key Audit Matters are those matters that, in our professional judgement, were most significance in the 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.

Si. No.	Key Audit Matters	Auditor''s Response
1	Going Concern Assumption
	As communicated by the management of the Company, the management has no intention of liquidating the Company in the foreseeable future and all the necessary actions are being taken to ensure continuity of the Company.	Wehave evaluated management''s plan to analyse whether there exists substantial doubt about the entity''s ability to continue as a going concern for a reasonable period of time. Based on the representations and plans of the management of the Company, we do not express any separate opinion on this matter.
2	Continegent Liabilities	We have evaluated the appeal documents and management strategy to classify the same as contingent in nature and their plan of action to fight in the appeal stages. Based on the representations and plans of the management of the Company, we do not express any separate opinion on this matter.
	We draw your attention towards Note 19.1 of the Financial Statements. The Company has received demands from Income Tax Department towards income escaping proceedings amounting to approximately INR. 14.80 Crores. The management has filed Appeals with respect to the order so passed by the Income Tax Department.

Other Information

The Company''s Board of Directors is responsible for the other information. The other information comprises
the information included in the Management Discussion and Analysis, Board''s Report including Annexures to
Board''s Report, Business Responsibility Report, Corporate Governance and Shareholder''s Information, but
does not include the 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 Responsibilities for the Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these Financial Statements that give a true and fair view of the financial
position, financial performance, including other comprehensive income, changes in equity and cash flows of
the Company in accordance with the accounting standards and other accounting principles generally
accepted in India. 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 is responsible for overseeing the Company''s financial reporting process.

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

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

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

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

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

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the 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 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 financial statements, 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, makes it probable that the economic decisions of a reasonably knowledgeable user of the
Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in
(i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the
effect of any identified misstatements in the Financial Statements.

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

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

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

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

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit we report that:

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

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

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

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

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 directors is disqualified as on March 31,
2024 from being appointed as a director in terms of Section 164(2) of the Act.

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

g) In our opinion, 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;

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

i. The Company has disclosed the impact of pending litigations on its financial position in
its 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.

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(s) or entity(ies), 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(s) or entity(ies), including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the company shall, whether,
directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

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

v. The company has not declared or paid any dividend during the year in contravention of the
provisions of section 123 of the Companies Act, 2013.

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

For M/s A B A & CO.

Chartered Accountants

Firm''s Registration No. 331995E

Sd/-

CA Aditya Agarwal

Partner

Membership No. 313063

UDIN:

Place: Bhubaneswar

Date: 24 May 2024

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Mar 31, 2015

We have audited the accompanying financial statements of N. R. INTERNATIONAL LIMITED, which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and Loss and the Cash Flow Statement, and a summary of significant accounting policies and other explanatory information in which are incorporated the audited accounts for the year ended on that date audited by the branch auditors of the Company's branch / unit located at Ranchi, Jharkhand.

Management's Responsibility for the Consolidated Financial Statements:

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

Auditor's Responsibility

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

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

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

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

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

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

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015("the Order") issued by the Central Government of India in terms of sub-section (II) of section 143 of the Act, are not applicable.

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

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

b) In our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper accounts adequate for the purposes of our audit have been received from the branches not visited by us.

c) the report(s) on the accounts of the branch office(s) of the Company audited under Section 143(8) of the Act by the branch auditors have been sent to us and have been properly dealt with by us in preparing this report.

d) The financial statements dealt with by this Report are in agreement with the books of account and the statement received from the branches not visited by us.

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

f) On the basis of written representations received from the directors as on 3) March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

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

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

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

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

Annexure to the Auditors' Report

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory' Requirements' of our Report of even date to the members of N. R. INTERNATIONAL LIMITED ( "COMPANY") on the accounts of the company for the year ended 31st March, 2015)

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

i) In respect of its fixed assets:

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

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

(c) The company has during the year disposed off it's coke oven plant at Dhenkanal, Orissa in the name of I. B. Industries Ltd and also it's land at Jharsuguda.

ii) The company does not have any inventory during the current year. However there was an inventory in the previous year. In our opinion and according to the information and explanation given to us company has maintained proper record of its inventory during previous year.

iii) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act 2013 and accordingly, paragraphs 3(iii) of the Order arc not applicable.

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

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

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

vii) ln respect of statutory dues

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

(b) According to the information and explanations given to us, there were payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty Cess and other material statutory dues in arrears /were outstanding as at 31 March, 2015 for a period of more than six months from the date they became payable except the following :

Statute Name Period to Forum where matter is Amount which it pending (Rs) relates

Orissa VAT Act 01.04.2005 - Under appeals with 3,06,76,978 31.03.2008 respective department

Orissa CST Act 01.04.2005 - 9,97,627 31.03.2008 --- Do--

Orissa Entry Tax 01.04.2005 - 23,48,038 Act 31.03.2008 --- Do--

Service Tax 2008-09 and 27,33,189 2009-10 --- Do--

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

ix) The company has no dues payable to a financial institutions, banks and debenture holders during the year. Hence the provisions of clause 3(ix) of the order are not applicable.

x) The Company has given corporate guarantee for loans taken by a company from a Bank. Further, in the absence of express terms and conditions of such guarantee and availability of financial information about borrower, we do not opine on the reasonableness thereof.

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

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

For, Agarwal Vishwanath & Associates Chartered Accountants ICAl Registration no.323024E

Sd/- (CA Vishwanath Agarwal) Proprietor Membership No. 054806

Place: Kolkata Date: 30th May 2015

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Mar 31, 2014

We have audited the accompanying financial statements of M/s N. R. INTERNATIONAL LIMITED ("the Company'') which comprise the Balance Sheet as at 31 March 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

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

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

We believe that the audit evidence we have obtained is 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 Act in the manner so required and subject to :

(i) Note No 29.8(d) regarding non ascertainment and provision of interest on delay payments of statutory dues such as TDS, Service Tax, etc.

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 31 March 2014;

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.

Reference to Accounting Standards in Audit Report

"In our opinion, the Balance Sheet and the Statement of Profit and Loss comply with the Accounting Standards notified under the Companies Act, 1956 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."

Report on Other Legal and Regulatory Requirements

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

2. As required by section 227(3) 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 [and proper returns adequate for the purposes of our audit have been received from branches not visited by us];

bb, the report on the accounts of the proprietorship unit-M/s Bharat Hardcok Manufacturers audited under section 228 by a person other than the company's auditor has been forwarded to us as required by clause(c) of sub - section (3) of section 22s and have been dealt with in preparing our report in the manner considered -necessary 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 with the returns received from branches not visited by us

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

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

Annexure to the Auditors' Report

The Annexure referred to in our report to the members of M/s N. R. INTERNATIONAL LIMITED ("the Company") for the year ended 31 March 2014. We report that:

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

(b) As explained to us, the fixed assets of the company have been physically verified by the management at reasonable interval and no material discrepancies were noticed on such verification.

(c) The company has disposed off during the year balance of Tangi Land along with building, shed & plant & machinery. With this the entire fixed assets of the company relating to iron and steel business has been disposed. However, the going concern status of the company is not affected.

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

(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) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification carried out at the end of the year.

(iii) (a) The company has provided interest free advances in the form of advance aggregating to Rs. 6,56,78,243/- (Previous year Rs. 10,00,000/-) and share application money aggregating Rs. NIL (Previous year Rs. 18,25,20,000/-) to the firms / companies covered in the register maintained u/s 301 of the Companies Act, 1956.

(b) In our opinion and according to information's and explanations given to us, the terms and conditions of such advances are prima facie not prejudicial to the interest of the company.

(c) In the absence of stipulations regarding repayment of such advances, we are unable to comment upon the regularity of repayment of the same.

(d) As stated above, no repayment schedule has been specified and hence we are unable to comment upon any overdue amount in excess of Rs. 1.00 Lac in this regard.

(e) The Company has not. taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956. Accordingly, clauses (f) and (g) of paragraph (iii) are not applicable.

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

(v) (a) According to information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered.

(b)In our opinion and according to the information and explanation given to us, the transactions in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs have been entered during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposit during the year from the public within the meaning of the provisions of Section 58A and 58AA of the Companies Act, 1956 or any other relevant provisions of the Companies Act, 1956 and the Rules framed there under.

(vii) The internal audit of the company has been done by the audit committee under the supervision of the Managing Director on periodical basis. In our opinion, the Internal Audit System of the company is needs to be strengthened commensurate to the size and nature of its business.

(viii) We have reviewed the books of account maintained by the Company pursuant to Rules made by the Central Government for the maintenance of cost records u/s 209(l)(d) of the Companies Act, 1956 and are of the opinion that prima-facie the prescribed accounts and records have been made and maintained. However, we have not made a. detailed examination of the same.

(ix) (a) According to the records of the Company, the Company is regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth-tax, Service-tax, Custom Duty, Excise Duty, Cess and any other material statutory dues wherever applicable to it. However in certain cases the said amount has been deposited beyond the due date.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of sales tax, PF, ESI, Service Tax, Income Tax and other statutory dues were in arrears as at 31st March 2014 payable for a period of more than six months from the date they become payable.

(c) According to the information and explanation given to us, there are no dues of income tax, sales-tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute except the following ;

Statute Name Period to Forum where matter is pending which it

Orissa VAT Act 01.04,2005 Under appeals with respective 31.03.2008 department

Orissa CST Act 01.04.2005 Do 31.03.2008

Orissa Entry Tax 01.04.2005 Do Act 31.03.2008

Service Tax 2008-09 and Do 2009-10

Statute Name Amount (Rs)

Orissa VAT Act 3,06,76,978

Orissa CST Act 9,97,627

Orissa Entry Tax 23,48,038 Act

Service Tax 27,33,189

(x) The Company has accumulated loss of Rs. 1,28,31,875/- as at the end of the financial year. It has incurred cash loss of Rs. 14,20,904/- (Previous Year - 65,65,761/-) during the year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, it is observed that the credit facilities of the company with The Federal Bank Ltd, 1 R N Mukherjee Road, Kolkata - 700 001 has become non performing assets and the bank has initiated recovery proceedings against the company. Apart from that he Company has not defaulted in repayment of dues to a financial institution or debenture holders.

(xii) According to records of the Company and on the basis of information and explanations given to us, 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 dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 (as amended) are not applicable to the Company.

(xv) The Company has given corporate guarantee for loans taken by an associate company from a Bank without complying with the provisions of section 295 and 372 A of the Companies Act, 1956. Further, in the absence of express terms and conditions of such guarantee and availability of financial information about borrower, we do not opine on the reasonableness thereof.

(xvi) The company has not obtained any term loan during the year hence sub clause 4(xvi) is not applicable.

(xvii) According to the Financial Statements and other records examined by us and the information and explanations given to us, on an overall basis, it appears that portion of funds raised on short term basis have been utilized for long term investments. We are not in a position to quantify the same in the absence of proper segregation and audited accounts of associate concerns

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

(xix) The Company has not issued any debentures during the year,

(xx) The Company has not raised any money by public issue.

(xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year.

For, Sanjay Jagdish & Co. Chartered Accountants

Firm's Registration Number: 324645E

SD/- Place : Cuttack Sanjay Kumar Agarwal Date : 8th August, 2014 Proprietor Membership Number; 057794

---

Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of M/s N. R. INTERNATIONAL LIMITED ("the Company") which comprise the Balance Sheet as at 31 March 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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 i/i accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

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

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

We believe, that the audit evidence we have obtained is 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 Act in manner so required and subject to :

(i) Note No 29.8(j) regarding non ascertainment and provision of interest on payments of statutory dues such as TDS, Service Tax, etc. 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 31 March 2013;

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 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) 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 [and proper returns adequate for the purposes of our audit have been received from branched 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 with the returns received from branches not visited by us];

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

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

The Annexure referred to in our report to the members of M/s N. R. INTERNATIONAL LIMITED ("the Company") for the year ended 31 March 2013. We report that:

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

(b) As explained to us, the fixed assets of the company have been physically verified by the management at reasonable interval and no material discrepancies were noticed on such verification.

(c) The company has disposed off during the year part of Tangi Land along with building, shed & plant & machinery. However, the going concern status of the company is not affected.

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

(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) The Company has maintained proper records of inventory. No material discrepancies were noticed on physical verification carried out at the end of the year.

(iii) (a) The company has provided interest free advances in the form of advance aggregating to Rs. 18,00,000/- and share application money aggregating Rs. 18,25,20,000/- to the firms / companies covered in the register maintained u/s 301 Of the Companies Act, 1956.

(b) €n our opinion and according to information''s and explanations given to yes, the terms and conditions of such advances are prima facie not prejudicial to the interest of the company.

(c) In the absence of stipulations regarding repayment of such advances, we are unable to comment upon the regularity of repayment of the same.

(d) As stated above, no repayment schedule has been specified and hence we are unable to comment upon any overdue amount in excess of Rs. 1.00 Lac in this regard.

(e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act 1956. Accordingly, clauses (f) and (g) of paragraph (iii) are not applicable.

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

(v) (a) According to information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered.

(b)In our opinion and according to the information and explanation given to us, the transactions in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs have been entered during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposit from the Public.

(vii) The internal audit of the company has been done by the audit committee under the supervision of the Managing Director on periodical basis. In our opinion, the Internal Audit System of the company is needs to be strengthened commensurate to the size and nature of its business.

(viii) As informed to us, we understand that the company is maintaining cost records as prescribed by the Central Government to the Company under clause (d) of sub-section (1) of section 209 of the Act. However, the said records could not be produced to us for verifications.

(ix) (a) According to the records of the Company, the Company is regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth-tax, Service-tax, Custom Duty, Excise Duty, Cess and any other material statutory dues wherever applicable to it. However in certain cases they said amount has been deposited beyond the due date.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of sales tax, PF, ESI, Service Tax, Income Tax and other statutory dues were in arrears as at 31st March 2013 payable for a period of more than six months from the date they become payable.

(c) According to the information and explanation given to us, there are no dues of income tax, sales-tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute except the following :

Statute Name Period to Forum where matter is Amount which it pending (Rs) relates

Orissa VAT Act 01.04.2005 - Under appeals with 5,22,86,361 31.03.2008 respective department

(x) The Company has accumulated loss of Rs. 2,02,16,315/-. as at the end of the financial year. It has incurred cash loss of Rs. 65,65,761/- (Previous Year - NIL) during the year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, it is observed that the credit facilities of the company with The Federal Bank Ltd:

Road, Kolkata - 700 001 has become nonperforming assets and the has initiated recovery proceedings against the company. Apart from -.{Ebb the Company has not defaulted in repayment of dues to a finality institution or debenture holders.

(xii) According to records of the Company and on the basis of information and explanations given to us, 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 dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 (as amended) are not applicable to the Company.

(xv) The Company has given corporate guarantee for loans taken by an associate company from a Bank without complying with the provisions of section -295 and 372 A of the Companies Act, 1956. Further, in the absence of express terms and conditions of such guarantee and availability of financial information about borrower, we do not opine on the reasonableness thereof.

(xvi) The Company has obtained term loans from banks / financial institutions against hypothecation of machineries, vehicles .etc which has been utilized for the purpose for the purpose for which these loans were obtained.

(xvii) According to the Financial Statements and other records examined ''by us and the information and explanations given to us, on an overall basis, portion of funds raised on «short term basis have been utilized for long term investments. We are not in a position to quantify the same in the absence of proper segregation and audited accounts of associate concerns.

(xviii)The Company has not raised any fund ;on short-term basis or on long-term-basis by way of equity share capital.

(xix) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

(xx) The Company has not issued any debentures during the year.

(xxi) The Company has not raised any money by public issue.

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

For, Sanjay Jagdish & Co.

Chartered.Accountants

Place : Cuttack Sanji Kumar Agarwal

Date : 27th August, 2013

Membership mumber: 0SS94

---

Mar 31, 2012

We have audited the annexed Balance Sheet of N. R. INTERNATIONAL LIMITED as at 31st March 2012, Statement of Profit & Loss and also the Casli 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.

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

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

1. Further to our Comments in the Annexure referred to above, we report that:

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

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

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

e) On the basis of written representations received from'the Directors, as on 3 V' March 2012, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2012 from being appointed as a Director in terms of clause (g) of subsection (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 accounts give the information required by the companies Act, 1956 in the manner so required and give a true & 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 March 31,2012,

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

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

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

(b) As explained to us, the fixed assets of the company have been physically verified by the management at reasonable interval and no material discrepancies were noticed on such verification.

(c) The company has disposed off the entire fleet of heavy commercial vehicles and some of the office land and buildings during the year. However, the going concern status of the company is not affected.

(ii) (a) The management has conducted physical verification of inventor)' at reasonable intervals during the year.

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

(c) The Company is maintaining proper records of inventory' and no material discrepancies were noticed on physical verification carried out at the end of the year.

(iii ) (a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act and accordingly, paragraphs 4(iii), (b), (c) and (d) of the Order are not applicable.

(iii)(e) The Company has not taken any loans,'Secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act and accordingly, paragraph 4(iii) (f), (g) and (h) of the Order are not applicable.

(iv) In our opinion there is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of investments and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

(v) (a) According to information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transactions in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs have been entered during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposit from the Public.

(vii) The internal audit of the company has been done by the audit committee under the supervision of the Managing Director on periodical basis. In our opinion, the Internal Audit System of the company is needs to be strengthened commensurate to the size and nature of the business.

(viii) As informed to us, we understand tluit the company (viii) maintaining cost records as prescribed by the Central Government to the Company under clause (ii) of sub-section (1) of section 209 of the Act. However, the said records could not he produced to us for verifications.

(ix)(a) According to the records of the Company, the Company is regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth-tax, Servicetax, Custom Duty, Excise Duty, Cess and any other material statutory dues wherever applicable to it. However in certain cases the said amount has been deposited beyond the due date.

(b) According to the information and explanations given to is an undisputed sum of Rs. 920.00 on account of professional tax and Rs. 14,7777- on account of IDS has been outstanding at the year end for a period of more than six months.

(c) According to the information and explanation given to us, there are no dues of income tax, sales-tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute except the following :

StatuteN ame Period to which Forum where matter is Amount it relates pending (Rs.)

Income Tax Act, 1961 A.Yr: 1998-99 Income Tax Appellate 12,97,859 Tribunal, Kolkata

Income Tax Act, 1961 A.Yr: 1998-66 Commissioner of Income Tax 1,13,292 -IV, Kolkata

Orissa VAT Act 01.04.2005- Under appeals with respective 5,22,86,361 31.03.2008 department

(x) The Company has accumulated loss of Rs. 1,15,54,7377- as at the end of the financial year. It has not incurred any cash loss during the year. Cash loss of Rs. 22,52,5947- was incurred in the immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by the management, it is observed that the credit facilities of the company with The Federal Bank Ltd, 1 R N Mukherjee Road, Kolkata - 700 001 has become non performing assets and the hank has initiated recovery proceedings against the company. Apart from that he Company has not defaulted in repayment of dues to a financial institution or debenture holders.

(xii) According to records of the Company and on the basis of information and explanations given to us, 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 7 mutual benefit fund 7 society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) OrjkL 2003 (as amended) 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 Report) Order, 2003 (as amended) are not applicable to the Company.

(xv) The Company lias given corporate guarantee for loans taken by an associate company from a Bank without complying with the provisions of section 295 and 372 A of the Companies Act, 1956. Further, in the absence of express terms and conditions of such guarantee and availability of financial information about borrower, we do not opine on the reasonableness thereof.

(xvi) The Company has obtained term loans from banks / financial institutions against hypothecation of machineries, vehicles etc which has been utilized for the purpose for the purpose for which these loans were obtained.

(xvii) According to the Financial Statements and other records examined by us and the information and explanations given to us, on an overall basis, portion of funds raised on short term basis have been utilized for long term investments. We are not in a position to quantify the same in the absence of proper segregation and audited accounts of associate concerns.

(xviii) The Company has not raised any fund on short-term basis or on long-term-basis by way of equity share capital.

(xix ) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

(xx) The Company has not issued any debentures during the year.

(xxi) The Company has not raised any money by public issue.

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

For, Sanjay Jagdish & Co.

Chartered Accountants

Firm's Registration Number; 324645E

Sanjay Kumar Agarwal

Proprietor

Membership Number: 057794

Place of Signature: Cuttack

Date: 09.07.2012

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Mar 31, 2010

We have audited the annexed Balance Sheet of N. R. INTERNATIONAL LIMITED as at 31st March 2010 and also the Profit & Loss Account 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.

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

As required by the Companies (Auditors Report) Order, 2003 (as amended) issued by the Central Government of India in terms of subsection (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure, a statement on the matter specified in paragraphs 4 & 5 of the said Order.

1. Further to our Comments in the Annexure referred to above, we report that:

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

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

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

e) On the basis of written representations received from the Directors, as on 31st March 2010, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2010 from being appointed as a Director in terms of clause (g) of subsection (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 accounts give the information required by the companies Act, 1956 in the manner so required and give a true & 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 Profit & Loss of the loss of the Company for the year ended on that date and

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

Annexure Re; N. R. INTERNATIONAL LIMITED

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

(b) As explained to us, the fixed assets of the company have been physically verified by the management at reasonable interval and no material discrepancies were noticed on such verification.

(c) No substantial part of fixed assets has been disposed off during the year which has bearing on the going concern assumption.

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

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

(c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification carried out at the end of the year.

(iii) (a) The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act and accordingly, paragraphs 4(iii), (b), (c) and (d) of the Order are not applicable.

(iii)(e) The Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act and accordingly, paragraph 4(iii) (f), (g) and (h) of the Order are not applicable.

(iv) Tn our opinion there is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of investments and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas.

(v)(a) According to information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered.

(b) In our opinion and according to the information and explanation given to us, the transactions in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs have been entered during the financial year at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) The Company has not accepted any deposit from the Public.

(vii) The internal audit of the company has been done by M/s R. Gopal & Associates, Chartered Accountants at Bhubaneshwar on quarterly basis. In our opinion, the Internal Audit System of the company is commensurate to size and nature of its business.

(viii) The company is maintaining cost records as prescribed by the Central Government to the Company under clause (d) of sub-section (1) of section 209 of the Act. However, the said records have not been verified by us.

(ix)(a) According to the records of the Company, the Company is regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth-tax, Service-tax, Custom Duty, Excise Duty, Cess and any other material statutory dues wherever applicable to it. However in certain cases the said amount has been deposited beyond the due date.

(b) According to the information and explanations given to us an undisputed sum of Rs. 32,43,024.19 on account of service tax has been outstanding at the year end for a period of more than six months.

(c) According to the information and explanation given to us, there are no dues of income tax, sales-tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute except the following :

Statute Name Period to which it Forum where matter is pending Amount relates (Rs)

Income Tax Act, A Yr: 2006-07 Commissioner of Income 4,01,202 1961 Tax(Appeals) - XII, Kolkata

Income Tax Act, A Yr: 1998-99 Income Tax Appellate 12,97,859 1961 Tribunal, Kolkata

Income Tax Act, A Yr: 1998-99 Commissioner of Income 1,13,292 1961 Tax - IV, Kolkata

(

x) The Company has no accumulated losses at the end of the financial year. However, it has incurred cash loss of Rs. 2,00,41,842/- in the current financial year but there has not been any cash loss in the immediately preceding financial year.

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

(xii) According to records of the Company and on the basis of information and explanations given to us, 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 (Auditors Report) Order, 2003 (as amended) arc 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 (Auditors Report) Order, 2003 (as amended) are not applicable to the Company.

(xv) The Company has given corporate guarantee for loans taken by an associate company from a Bank without complying with the provisions of section 295 and 372 A of the Companies Act, 1956. Further, in the absence of express terms and conditions of such guarantee and availability of financial information about borrower, we do not opine on the reasonableness thereof.

(xvi) The Company has obtained term loans from banks / financial institutions against hypothecation of machineries, vehicles etc which has been utilized for the purpose for the purpose for which these loans were obtained.

(xvii) According to the Financial Statements and other records examined by us and the information and explanations given to us, on an overall basis, part of funds raised on short term basis have been utilized for long term investments.

(xviii)The Company has not raised any fund on short-term basis or on long-term-basis by way of equity share capital.

(xix) The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

(xx) The Company has not issued any debentures.

(xxi) The Company has not raised any money by public issue.

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

For Sanjay Jagdish &

Co Chartered Accountants

Sanjay Kumar Agarwal

Proprietor Place : Kolkata Membership No.057794

Date : 22nd September, 2010 Firm Regn No.324645E