Auditor Report of Shelter Infra Projects Ltd.

Mar 31, 2024

We have audited the accompanying financial statements of Shelter Infra Projects Limited ("the
Company"), which comprise the Balance Sheet as at 31March 2024, the statement of profit and loss (including
other comprehensive income), the statement of changes in Equity and the cash flow statement for the year on that
date, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as
"the tinancial statement").

In our opinion and to the best of information and according to the explanations given to us, the aforesaid
financial statements, subject to items referred to in the basis of qualified opinion, 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
Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting
Standards) Rules, 2015, as amended ("hid AS") and other accounting principles generally accepted in India, of the
state of affairs of the company as at 3I^stMarch 2024, the Loss, comprehensive income, changes in equity and its
cash flows for the year ended on that date.

Basis for Qualified Opinion

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Act (SAs). 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 the Chartered Accountants of India
(ICAI) together with independence requirements that are relevant to our audit of the financial statements under
the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide the basis for our audit opinion on the financial statements. Attention is
invited to our following observations

(i) Non provision against development rights cost amounting to Rs.556.30 lakhs (refer to note No.35(j)
which appears unrecoverable;

(ii) Liability of lease rent against land taken from local municipality for a period of 99 years has not been
provided for in terms of Ind AS - 116 (refer to note no.35(i);

Statutory Audit Report for the year ended 31^s<Mareh, 2024 of Shelter Infra Projects Limited

(iii) Management''s inability to determine fair value of non-current investments in equity instruments book
valuing Its.94.76 lakhs with consequent impact on OC’I

(Iv) Actuarial Valuation not done in this Financial Year as per IND -AS -19 no such Change from the last year
Actuarial Audit Report

ey Audit Matters

Key audit matters are those matters that, in our professional judgement, 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 of opinion thereon, and we do not provide a separate opinion on

Kev audit matter	How our audit addressed the kev audit matters
A. Revenue Recognition		Our key procedures included the following:
Revenues for the company are primarily from	a)	Assessed the appropriateness of the company''s
construction contract on cost plus profit basis and		revenue recognition accounting policies by
related income.		comparing with the applicable accounting standards. No discount, incentive or rebate is i
Bills are raised against construction contract uptoprogressive billing stage in terms of		involved in respect of the company.
certification / acceptance by client as per contract rates.	b)	Tested the operating effectiveness of the general IT control environment and key IT application controls
Rental income is recognized on accrual basis w hich are free from dispute		over recognition of revenue,
Further, the company focuses on revenue as a	c)	Performed test of details:
key performance measure. Therefore, revenue		i)Agrced samples of contractual agreements
was our area of focus included whether the		^tenancy agreement documentation
accruals were misstated and appropriately valued, whether the significant transactions had been accurately recorded in the Statement of		and approvals; and ii) Obtained supporting documents for ;
Profit and Loss.		transactions recorded either side of year end to determine whether revenue was recognized in
Refer corresponding note for amounts recognized		the correct period.
as revenue from sale of products	<0	Performed focused analytical procedures:
		Compared the revenue for the current year with the prior year for variance/ trend analysis and where relevant, completed further inquiries and testing to corroborate the variances bv considering both internal and external benchmarks, overlaying our understanding of enterprise; and
	e)	Considered the appropriateness of the company''s description of the accounting policy, disclosures ; related to revenue, and whether these arc adequately I presented in the financial statement.

these matters.

We have determined the matters described below to the Key Audit matters to be communicated in our Report.

Slalutorv Audit Report for the sear ended 31st March. 2024 of Shelter Infra Projects Limited /

B. Litigations and claims — provisions and	Our key procedures included the following:
contingent liabilities	• Assessed the appropriates of the company''s
As disclosed in Notes detailing contingent liability	accounting policies, including those relating to
and provision for contingencies, the company is	provision and contingent liability by comparing with the applicable accounting standards;
involved in direct, indirect tax and other
	• Assessed the company process for identification
litigations ( litigations'') that are pending with	of the pending litigations and completeness for
different statutory authorities.	financial reporting and also for monitoring of significant developments in relation to such
Whether a liability Ls recognized or disclosed as a	pending litigations;
contingent liability in the financial statements is	• F.ngaged subject matter specialists to gain an understanding of the current status of litigations
inherently judgmental and dependent on a number	and monitored changes in the disputes, if any,
of significant assumptions and assessments.	through discussions with the management and by reading external advice received by the company.
1 he amounts involved are potentially significant	where relevant, to establish that the provisions had
and determining the amount, if any, to be	been appropriately recognized or disclosed as
recognized or disclosed in the financial	lvquiml;
statements, is inherently	• Assessed the company ''s assumptions and estimates
subjective.	in respect of litigations, including the liabilities or
	provisions recognized or contingent liabilities disclosed in the financial statements. This involved assessing the probability of an unfavorable outcome of a given proceeding and the reliability of estimates of related amounts; • Performed substantive procedures on the underlying calculations sup|M>rting the provisions recorded; • Assessed the management''s conclusions through
C. Valuation of inv estments and impairment	understanding precedents set in similar cases; and
thereof	Considering the appropriateness of the company''s
1. Non-Current Investments in	description of the disclosures related to litigations and
Unquoted equity instruments.	whether these adequately presented in the financial
	statements. Our key procedures included the following: Non ascertainment of fair value by management prompted qualificatory reference to the effect in ou>- report Verified with reference to banks'' confirmation and computation of interest accrued thereon.

Statutory Audit Report for the year ended 3l" March, 2024 of Shelter Infra Projects Limited

D. Evaluation of Uncertain Indirect Tax		Principal Audit Procedures
Provisions
The Company has material indirect tax		Obtained details of completed indirect tax
	arovisions	assessments and demands for the year ended March
including matters under dispute which	involves	31, 2024 in uploaded context from management. We
significant judgment to determine the	possible	involved our internal experts to challenge the
outcome of these disputes.		management’s underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management''s position on these uncertain tax positions. Additionally, we considered the effect of new information in respect of uncertain tax positions as at April 1, 2024 to evaluate whether any change was required to management’s position on these uncertainties.

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

The Company''s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board''s Repor''
including Annexures to Board''s Report 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 ana.
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 Act with
respect to preparation of these financial statements that give a true and fair view of the financial position,
financial performance, total comprehensive income, changes in equity and cash flows of the companies in
accordance with the lnd AS and other accounting principles generally accepted in India. Ihe respective Board

Statutory Audit Report for the year ended 31” March, 2024 of Shelter Infra Projects Limited

of Directors of the companies are also responsible for maintenance of the adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the companies 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, the Board of Directors of the company 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 also 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
skepticism throughout the audit. We also;

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

• Obtain an understanding of internal 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 which has companies incorporated in

Statutory Audit Report for the year ended 31st March, 2024 of Shelter Infra Projects Limited

India, 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
anil ixlated disclosures made by management

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the ability of the Group 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.

• Obtain sufficient appropiiate audit evidence regarding the financial information of the entities or business
activities within the company to express an opinion on the financial statements. We are responsible for the
direction, supervision and performance of the audit of the financial statements of such entities included in
the financial statements.

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 know ledgeable 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 hav e complied with relevant ethical
requirements regarding independence, and to communicate \v ith them all relationships and other matters that

Statutory Audit Report for (lie year ended 31st March. 202-4 of Shelter Infra I’ronsets Limited

may reasonably Ik- 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 Ik- 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 (except Audit trial) which to the best
of our knowledge and belief were necessary for the purposes of our audit of the aforesaid financial
statements.

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

c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income),
Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in
agreement with the relevant books of account maintained for the purpose of preparation of the
financial statements.

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

e) On the basis of w ritten 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. 2024from
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 "Anncxure 1". 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 Auditor''s Report in accordance with the
requirements of Section 197(16) of the Act, we hereby report that in our opinion and to the best of our

Statutory Audit Report tor the year ended 31s March, 2024 of Shelter Infra Projects I imited

/

A /

information according to explanations given to us, no remuneration has been paid by the company to its Directors

during the year attracting provisions of Section 197 of the Act.

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

i. The financial statements disclose impact of pending litigations on the financial position
of the company in note no.34(b) of financial statements.

ii. The company has not entered into derivative contracts. The company has entered into
long term contract in respect of which no material loss is foreseeable except for forfeiture

I

of development rights appearing at Rs.556.30 lacs in the books of the company.

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

iv. No fund has been advanced or loaned or invested by the Company to or in any other entity
or person including foreign entities or provide any guarantee or security as undertaken by
the Management.

v. No fund has been received by the Company from any person or entity including foreign
entity or provide any guarantee or security as undertaken by the Management.

vi. Nothing has come to our notice that has caused us to believe that the representation under
Clause (iv) and (v) above contain any material misstatement.

vii. No dividend or part was declared by Company during the year as per Section 123 of
Companies Act, 2013.

viii. The Company has used an accounting software for maintaining its books of account that
does not have the feature of recording the audit trail. We are also unable to rely on
automated controls realted to financial reporting in the accounting software. Consequently
, we arc unable to comment on compliance of audit trail requirements by the said
software as envisaged under rule I l(g).

As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by
the Central Government in terms of Section I43(l l) of the Act, we give in "Annexure
2" a statement on the matters specified in paragraphs 3 and 4 of the Order.

pi w . • For BASU CHANCHAKI^DE^^^

Place: Kolkata CHARTERED ACCOUNTANTS

R. No.-304049c A \Pv

Date :27^lh May 2024.

UDIN : 24053036BKBFF13627 / /

(SAWtR KU^aR GH^Sfl)

(y (MTno. 053036)

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Mar 31, 2015

The accompanying summary financial statements, which comprise the summary Balance Sheet as at March 31, 2015, the summary statement of Profit & Loss, and Cash Flow Statement for the year then ended, and related notes, are derived from the audited financial statements of Shelter Infra Projects Limited for the year ended March 31, 2015. Those financial statements, and the summary financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements. The summary financial statements do not contain all the disclosures required by the Accounting Standards referred to in section 133 of the Companies Act, 2013 ("the Act) [applied in the preparation of the audited financial statements of Shelter Infra Projects Limited]. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Shelter Infra Projects Limited.

2. Management's Responsibility for the Summary Financial Statements.

Management is responsible for the preparation of the audited financial statements in accordance with [Accounting Standards referred to in section 133 of the Companies Act, 2013. ("the Act) and accounting principles generally accepted in India].

3. Auditor's Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, "Engagements to Report on Summary Financial Statements" issued by the Institute of Chartered Accountants of India.

4. Basis of qualified opinion

i) Interest on bank borrowings aggregating to Rs. 1217.48 lacs is pending for provision.

This led to understatement of aggregate loss by Rs. 1217.48 lacs which include current year's interest of Rs 470.03 lacs.

ii) Payment against Directors' remuneration since previous financial year aggregating to Rs. 30.41 lacs is pending approval of Department of Company Affairs after application being made to the effect by the Company.

5. Qualified Opinion

In our opinion the summary financial statements derived from the audited financial statements of Shelter Infra Projects Limited for the year ended March 31, 2015, except for possible effect of the matter referred to in '4' above, are fair summary of those financial statements, in accordance with Accounting Standards referred to in of section 133 of the Companies Act, 2013 ("the Act) and accounting principles generally accepted in India.

6. Focus on Emphasis:

a) We invite attention without qualifying of huge amount of overdue debtors lying unrealized as well as unconfirmed for which due scrutiny is warranted for the purpose of creating appropriate provisions if any.

b) Accounts of the company have been complied on the basis of going concern concept despite net worth turning negative with the provision against interest with our consequent inability to comment on extent of adjustments that will be called for against assets and liabilities, if the company loses going concern identity following adverse predicament in days ahead.

7) Report on Other Legal and Regulatory Requirements:

a) As required by the companies (Auditor's Report) order 2015 ( "the Order'') issued by central Government of India in terms of subsection (11) of section 143 of the Companies Act 2013,we give in the Annexure –'A' a statement of the matters specified in paragraph 3 and 4 of the order ,to the extent applicable.

As required by section 143(3) of the act ,we report that

i) We have sought and obtained all the information's and explanations which to the best of our knowledge and belief were necessary for the purpose of the 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, statement of Profit and Loss, and cash flow statements dealt with by this report, are in agreement with the books of account.

iv) 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 (Account) Rules, 2014

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

vi) With respect to the other matters to be included in the Auditors report in accordance with Rule 11 of the companies (Audit and Auditors) Rules 2014, in our opinion and to the best of our information and explanations given to us

A) The company has disclosed the impact of pending litigations on its financial positions in its financial statements-refer note 21(c)(9) of the financial statements

B) The company did not have derivative contract. Long term contracts undertaken by the company is presently meager in quantum and as such not expected to sustain material loss.

C) There has been no delay in transferring amounts required to be transferred to the Investors Education and Protection fund by a company.



Place: Kolkata

Date: May 28, 2015

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Mar 31, 2014

The accompanying summary Financial statements, which comprise the Summary Balance sheet as at March 31, 2014, the Summary statement of Profit & Loss, and Summary Cash Flow statement for the year then ended and related notes, are derived from the audited financial statement of Shelter Infra Projects Limited for the eyar ended March 31, 2014. We expressed a modified audit opinion on those financial statement in our report dated May 26th, 2014. (for details refer Annexure to this report)

The Summary financial statement do not contain all the disclosures required by the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") applied in the preparation of the audited financial statements of Shelter Infra Projects Limited. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Shelter Infra Projects Limited.

Management''s Responsibility for the Summary Financial Statements

Management is responsible for the preparation of a summary of the audited financial statements in accordance with [Accounting Standards referred to in Sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") and accounting priniciples generally accepted in India].

Auditor''s Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, "Engagements to Report on Summary Financial Statements" issued by the Institute of Chartered Accountants of India.

Modified Opinion

In our opinion the summary financial statements derived from the audited financial statements of Shelter Infra Projects Limited for the year ended March 31, 2014, subject to our comments in Annexure are a fair summary of those financial statements, in accordance with Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act") and accounting principles generally accepted in India.

Annexure to Independent Auditors Report

BASIS FOR MODIFIED OPINION

1. No actuarial valuation for retirement gratuity to the employees of the Company has been conducted by the Company as per requirement of AS 15 issued by the Institute of Chartered Accountants of India the impact of which on profit for the year has remained unascertainable.

2. Remuneration paid to Whole-time Director amounting to Rs.20.70 lacs (including Rs.4.76 lacs for current year) is subject to approval by the Central Government as per Section 198(4) of the Companies Act, 1956. There is no impact for this on profit for the year. (Refer Note 10 in Notes on Accounts)

3. The Company has not made any provision for Interest on Term Loans and Cash Credit from State Bank of India for the period from 01st October, 2012 to 31st March, 2013 amounting to Rs.747.45 lacs (including Rs.600.75 lacs for current year) resulting in an overstatement of profit for the year by Rs. 600.75 lacs (Refer Note 11 in Notes on Account) Above accounting treatment is contrary to requirement of AS 1 issued by the Institute of Chartered Accountants of India.

4. From the available information, we are unable to ascertain whether provision for Taxation and Advance Income Tax / Tax Deducted at source as on 31st March, 2014 amounting to Rs. 51.54 lacs and Rs. 341.60 Lacs respectively have been properly reflected. There may be revenue impact, which is not ascertainable at this stage. Disputed liability if any has remained undetected.

5. The overall impact of all the observation (Item 1 to 4 above) on the profit for the year and net worth of the Company is not readily ascertainable.

Place: Kolkata Dated: May 26, 2014

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Mar 31, 2013

The accompanying summary Financial statements, which comprise the Summary Balance Sheet as at March 31, 2013, the Summary Statement of Profit & Loss, and Summary Cash Flow statement for the year then ended and related notes, are derived from the audited financial statement of Shelter Infra Projects Limited for the year ended March 31, 2013. We expressed a modified audit opinion on those financial statement in our report dated May 17th, 2013.[for details refer Annexure to this report)

The Summary financial statement do not contain all the disclosures required by the Accounting Standards referred to in sub-section [3C) of section 211 of the Companies Act, 1956 ["the Act"] applied in the preparation of the audited financial statements of Shelter Infra projects Limited . Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Shelter Infra Projects Limited.

Management''s Responsibility for the Summary Financial Statements Management is responsible for the preparation of a summary of the audited financial statements in accordance with [Accounting Standards referred to in Sub-section [3C) of section 211 of the Companies Act, 1956 ["the Act") and accounting principles generally accepted in India).

Auditor''s Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Standard on Auditing (SA) 810, "Engagements to Report on Summary Financial Statements" issued by the Institute of Chartered Accountants of India

Modified Opinion

In our Opinion the summary financial statements derived from the audited financial statements of Shelter Infra Projects Limited for the year ended March 31, 2013 subject to our comments in Annexure are a fair summary of those financial statements, in accordance with Accounting Standards referred to in sub-section [3C) of section 211 of the Companies Act, 1956 ("the Act") and accounting principles generally accepted in India.

Annexure to Independent Auditors Report

BASIS FOR MODIFIED OPINION

1. No actuarial valuation for retirement gratuity to the employees of the Company has been conducted by the Company as per requirement of AS 15 issued by the Institute Of Chartered of India, the impact of which on loss for the year has remained unascertainable.

2. Remuneration paid to Whole - time Director amounting to Rs.15.94 Lac is subject to approval by the Central Government as per Section 198(4) of the Companies Act 1956. There is no impact for this on loss for the Year. (Refer Note 10 in Notes on Accounts)

3. The Company has not made any provision for Interest on Term Loans and Cash Credit from State bank Of India for the period from 01s1 October, 2012 to 31s1 March, 2013 amounting to Rs.l46.70Lac resulting in an understatement of Loss for the year by the said amount (Refer Note 11 Notes on Accounts) Above accounting treatment is contrary to requirement of AS 1 issued by the institute of Chartered Accounts of India.

4. From the available information, we are unable to ascertain whether provision for Taxation and Advance Income Tax / Tax Deducted at source as on 31st March, 2013 amounting to Rs.51.54Lac and Rs.289.84Lac respectively have been properly reflected. There may be revenue impact, which is not ascertainable at this stage . Disputed liability if any has remained undetected.

5. From the available information and explanations we are unable to from an opinion whether advances to certain parties amounting to Rs. 31.10 Crore (included in Short Term Loans Advances under Current Assets in Balance Sheet) are not prejudicial to the interest of the Company. Revenue implication of the observation is not ascertainable at this stage.

6. The Company has received Advance from customers amounting to Rs.17.37 Crore against booking of Residential Flats (included in "Advance from Customers Under Short Term Unsecured Loans in Balance Sheet) which are outstanding around two years without any construction activity for Flats. Under such circumstance we are unable to form an opinion whether such advances are not to be treated as "Public Deposit" as per Rule 2(VI) of the Companies (Acceptance of Deposit Rules) 1975. Revenue implication of the observation is not ascertainable at this stage.

7. The overall impact of all the observation (item 1 to 6above) on the loss for the year and net worth of the Company is not readily ascertainable.

Place: Kolkata

Date:17th May, 2013

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Mar 31, 2012

1. We have audited the attached Balance Sheet of CCAP Limited as at 31st March, 2012 and also the Profit and Loss Statement and the Cash Flow Statement for the year ended on that date annexed there to. 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. The 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. No actuarial valuation of retirement gratuity has been conducted by the company as per requirement of AS-15 issued by the ICAI, the impact of which on loss for the year has remained unascertainable.

4. As required by the Company's (Auditor's Report) Order 2003 issued by the Government of India in terms of subsection (4A) of Section 227 of Company's Act 1956, we enclose in Annexure A statement on the matters specified in paragraphs 4 & 5 of the said order.

5. Further to our comments in the annexure refer to the above 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 Accounts, as required by law we have been kept by the Company so far as appears from our examination of these books.

c) The Balance Sheet and Profit and Loss Statement and Cash Flow Statement dealt with by this report are in agreement with the Books of accounts.

d) In our opinion, the Balance Sheet and Profit & Loss Statement and Cash Flow Statement dealt with by the report, comply with the accounting standards referred to in Sub-Section 3(C) of Section 211 of the Companies act, 1956.

e) On the basis of written representations received from the Directors as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of Clause (G) of Sub-Section (1) of section 274 of the Companies Act, 1956.

f). In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956 in the manner so required and subject to our comment on actuarial valuation of Gratuity in Para 3 above give a true and fair view on conformity with accounting principles generally accepted in India.

i) In case of Balance Sheet of the state of affairs of Company as on 31st March, 2012 and

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

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

ANNEXURE TO AUDITORS' REPORT

Annexure referred to in paragraph 4 of our report on even date

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

b) The fixed assets have been physically verified by the management during the year and no material discrepancies between the book of records and physical inventory have been noticed.

c) During the year, there has been no significant disposal of the fixed assets.

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

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

C) The Company is maintaining proper records of the inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

III a) The company has not granted any loan, secured of unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the Companies Act 1956 during the year under audit.

IV. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets, billing for construction jobs and services. During the course of our audit, though we have not observed any continuing failure to correct major weaknesses in internal control

V. According to the information and explanations given to us a particular of contracts referred to in Section 301 of the Act have been entered in the register required to be maintained under that section and transactions made in pursuance of such contract have been made at prices which are reasonable having regard to the prevailing market at relevant time.

VI. The company has not accepted any deposit from public.

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

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

IX a) The company is generally regular in depositing with appropriate authorities undisputed Provident Fund. Employees State Insurance, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess with the appropriate authorities. However, there were delays in the few cases as and those outstanding above six months are indicated in item(b) below.

b) According to the information and explanations given to us, the following undisputed statutory dues are outstanding for a period of more than six months at the last day of the financial year from the date they became payable :

SL. Particulars Amount

(a) Income Tax on Dividend 5,92,263

(b) Fringe Benefit Tax 27,749

(c) Service Tax 56,89,487 (d) Municipal Tax 19,57,025 Total 82,66,526

C) According to the information and explanations 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 as under :

Statue Nature of Amount Period Forum where dispute Dues (Rs) pending to which the Amount Relates

VAT Act 2003 Sales Tax 18,56,304 2006-07 Joint Commissioner Kolkata, South Circle

Do Do 8,47,015 2008-09 Do

X The Company has no accumulated loss as on 31st March 2012. It has incurred cash losses during the financial year covered by our audit but not in the immediately preceding financial year.

XI The Company has defaulted in repayment of installments of Term Loan of Rs. 16,03,838/- from State Bank of India and interest thereon for Rs. 5,50,736/- and interest on Cash credit for Rs. 87,81,863/-

XII T he Company has not granted any loans or 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 are not applicable to the Company.

XIV As the company did not deal/trade in securities, and therefore, Clause (XIV) of the Order is not applicable.

XV According to the information and explanations given to us, the Company has not given guarantee for loans taken by others from Bank and Financial Institutions.

XVI In our opinion, the Term Loans have been applied for the purpose for which they were raised.

XVII According to the information and explanations given to us and on overall examination of the Balance Sheet of the Company, we report that the Company used Rs. 24.72 lacs for long term investment in fixed assets for which no long term funds was raised by the Company during the year.

XVIII The Company has not made any allotment of shares to parties and companies covered in register maintained u/s 301 of the Act, during the year under audit.

XIX. The Company did not issue any Debenture during the year under audit.

XX The Company did not make any Public Issue during the year.

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

For G. Basu & Co

Chartered Accountants Firm Registration No. 301174E

T.K. Batabyal

Partner

Kolkata, 29th May, 2012 Membership No. : 008033

---

Mar 31, 2010

1. We have audited the attached Balance Sheet of CCAP Limited as at 31st March, 2010 and also 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 Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order 2003 as amended issued by 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 & 5 of the said order.

Non compliance of AS-15 (Revised) on actuarial valuation of Gratuity.

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 Accounts, as required by law have been kept by the Company so far as appears from our examination of these books.

c) The Balance Sheet and Profit & Loss Account and the Cash Flow Statement dealt with by this report are in agreement with the Books of accounts.

d) In our opinion, the Balance Sheet and Profit & Loss Account and the Cash Flow Statement dealt with by the report, subject to our comments on accounting of construction contract, comply with the accounting standards referred to in Sub-Section 3(C) of Section 211 of the Companies Act, 1956.

e) On the basis of the written representations received from the Directors as on 31s1 March, 2010 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31s1 March, 2010 from being appointed as a Director in terms of clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956.

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

i) In the case of Balance Sheet of the state of affairs of Company as at 31st March 2010 and

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

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

Annexure referred to in paragraph 3 of our report of even date.

a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed asset, which is to be updated.

b) The fixed assets have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been no- ticed.

c) During the year, there has been no significant disposal of fixed assets.

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

b) The procedures 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 is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

III. a) The company has not granted any loans, secured or unsecured to companies, firms and other parties covered in the register maintained under Section 301 of the Companies Act 1956 during the year under audit. Accordingly, we have no comments for items (iii) (a), (b), (c) and (d) of the said order.

b) The Company has taken interest free unsecured loan of Rs. 20 lacs from a Company in earlier which was covered under Section 301 of the Companies Act 1956 for part of this year. The said loan is yet to be refunded.

According to information and explanations given to us terms and conditions are prima facie not prejudicial to the interest of the Company.

IV. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets, billing for construction jobs and serv- ices. During the course of our audit, though we have not observed any continuing failure to correct major weaknesses in internal control but the same is to be strengthended.

V. According to the information and explanations given to us, we are of the opinion that there are no transactions of purchase or sale of goods during the year that needed to be entered into the register maintained under 301 of the Companies Act 1956. Accordingly, we have no comments for items V(a) and (b) of the said order.

VI. The company has not accepted any deposit from public.

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

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

IX. a) The company is regular in depositing with appropriate authorities undisputed Provident Fund,

Investor Education Protection Fund, Employees State Insurance, Sales Tax, Wealth Ta,x, Service Tax, Custom Duty, Excise Duty, Cess with the appropriate authorities.

b) According to the information and explanations given to us, the following undisputed statutory dues are outstanding for a preiod of more than six months at the last day of financial year from the date they became payable.

a) Income Tax on Dividend 3,03,010.00

b) Fringe Benefit Tax 1,87,383.00

c) Service Tax 19,38,180.00

d) Tax deducted at source 1,27,024.00

TOTAL 25,75.597.00

c) According to the information and explanations 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.

X. The Company has no accumulated loss as on 31st March, 2010 and has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

XI. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a Financial Institution or Bank.

XII. The Company has not granted any loans or 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/Mutuai Benefit Fund/Society. Therefore the provisions of Clause 4(XIII) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

XIV. As the company did not deal / trade in securities, and therefore, clause ( XIV ) of the Order is not applicable.

XV. According to the information and explanations given to us, the Company has not given guarantee for loans taken by others from Bank and Financial Institutions.

XVI. In our opinion, the Term Loans have been applied for the purpose for which they were raised.

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 by the company on short term basis during the year was used for long term investment.

XVIII. The Company has not made any allotment of shares during the year under audit.

XIX. The Company did not issue any Debenture during the year under audit.

XX. The Company did not make any Public Issue during the year.

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

For G. Basu & Co.

Chartered Accountants

Sd/-

P.K. Chaudhuri

Kolkata (Partner)

18th May, 2010 (M. No. 003814)