TO

THE MEMBERS

ANKIT METAL & POWER LIMITED

Report on the Financial Statements

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of ANKIT METAL & POWER LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

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

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.

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

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

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

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

Opinion

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

(a) In the case of Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

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

(c) In the case of Cash Flow statement, of the Cash Flows of the Company for the year ended on that date.

Emphasis of Matter

Without qualifying we draw your attention to Note No. 28 of the Standalone Financial Statements, relating to CDR Package. The CDR Package of the Company has been sanctioned vide LOA dated 17th September, 2014. Pursuant to the said LOA, implementation of the CDR policy is completed and the effect has been given in these accounts w.r.t the CDR scheme as per the said LOA. The said accounts are subject to confirmation and reconciliation with the lenders. The reported financials would have consequential impact once the reconciliation is completed, the quantum where of remains unascertained

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2015 ('the order') issued by the Central Government of India in terms of subsection (11) of the section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraphs 3 and 4 of the order, to the extent applicable.

2. As required by section 143(3) of the Act, we report, to the extent applicable 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 it appears from our examination of those books;

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

d. In our opinion, the Standalone Financial Statements comply with the Account! ng Standards specified under section 133 of the Companies Act, 2013; read with Rule 7 of the Companies (Accounts) Rules, 2014.

e. On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of section 164(2) of the Act.

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

i. The Company has disclosed the impact of pending litigations on the financial position in the Financial Statements - Refer Note No. 29 (c) to (g) to its Financial Statements.

ii. The Company has no material foreseeable losses for which the provision under the applicable law or accounting standards needs to be made.

iii. During the year Company has transferred to Investor Education and Protection Fund ' 0.24 Lacs pertaining to share application money for the year 2007.

For R. Kothari & Company

Chartered Accountants

FRN : 307069E

Manoj Kumar Sethia

Partner

Membership No. 064308

Kolkata, 30th May, 2015

ANNEXURE TO INDEPENDENT AUDITORS' REPORT

Annexure referred to in paragraph 1 under the heading of "Report on Other Legal and Regulatory Requirements" of even date to the members of Ankit Metal & Power Limited on the accounts of the Company for the year ended 31st March, 2015. On the basis of such checks as we considered appropriate and accordingly to the information and explanations given to us during the course of our audit, we report that:

(i) (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation,

of fixed assets.

(b) The Fixed Assets of the Company have been physically verified by the management during the year and in our opinion, the frequency of such verification is reasonable. No material discrepancies were noticed on such verification.

(ii) (a) The inventory, except goods-in-transit has been physically verified by the management during the year. In respect of inventory lying with the third parties, these have substantially been confirmed by them. In our opinion, the frequency of such verification is reasonable.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of stocks followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material having regard to the size of the operations of the Company and the same have been properly dealt with in the books of account

(iii) The Company has not granted any loan, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 189 of the Companies Act, 2013. Therefore the provisions of the clause iii (a) & (b) of the said order are not applicable to the Company.

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

(v) The Company has not accepted any deposits from the public and consequently, the directives issued by Reserve Bank of India and provisions of Section 73 to Section 76 of the Companies Act, 2013 and the rules framed there under are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company in respect of manufacture of Iron & Steel product & Power generation unit pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 148(1) of the Companies Act, 2013, and we are of the opinion that prima facie, the records have been maintained. We have however not made a detailed examination for the records with a view to determining whether they are accurate and complete.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has generally been regular in depositing undisputed statutory dues including Provident Fund, Income tax, sales tax, Wealth Tax, Service Tax, duty of customs, value added tax, cess and other statutory dues during the year with appropriate authorities except service tax.

According to the information's and explanations given to us, no undisputed amount payable in respect of Provident fund, Income tax, sales tax, Wealth Tax, duty of customs, value added tax, cess and other statutory dues were in arrears as at 31st March, 2015 for a period of 6 months from the date they became payable except Service Tax & Income tax deducted at source ' 58.91 lacs & ' 16.80 Lacs respectively.

(b) According to the information and explanations given to us, there are no dues of Income tax, Wealth tax, Sales tax, Value added tax, Service tax, Customs duty, Excise duty and Cess which have not been deposited with the appropriate authorities on account of any dispute except the following cases which are as follows:

Name of the Statute Nature of Dues Amount Period to which the amount relates Forum where the dispute is pending
(Rs in Lacs)
Income Tax Act, 1961 Income Tax 21.11 (Already paid under protest ' 16.11) A.Y. 2006-2007 Commissioner of Income Tax (Appeals)-I, Kolkata.
217.90 25.28 (Petition filed u/s 154) A.Y. 2008-09 A.Y. 2009-2010 High Court Deputy Commissioner/Additional Commissioner of Income Tax- Circle-3 Kolkata.
6692.78 A.Y. 2012-13 Deputy Commissioner/Additional Commissioner of Income Tax- Circle 3 Kolkata
W.B.VAT Act, 2003 Sales Tax 222.89 F.Y. 2005-2006 Sr. Joint Commissioner of Commercial Taxes, Dharmtala Circle.
917.91 F.Y. 2006-2007 Sr. Joint Commissioner of Commercial Taxes, Dharmtala Circle.
358.16 F.Y. 2007-2008 Sr. Joint Commissioner of Commercial Taxes, Dharmtala Circle.
92.94 F.Y. 2008-2009 Sr.J oint Commissioner of Commercial Taxes, Dharmtala Circle.
87.95 F.Y. 2008-2009 Joint Commissioner of Commercial Taxes, Durgapur Circle
W.B.VAT Act, 2003 Sales Tax 1946.82 F.Y. 2008-09 Sr. Joint Commissioner of Commercial Taxes, Dharmtala Circle.
37.28 F.Y 2009-2010 Sr. Joint Commissioner of Commercial Taxes, Dharmtala Circle.
446.29 F.Y 2011-2012 Sr. Joint Commissioner of Commercial Taxes, Dharmtala Circle.
The finance Act, 1944 Service Tax 5.00 A.Y. 2007-08 Commissioner Appeal IV
The Central Excise Act, 1944 Excise Duty 36.66 September' 2007- January' 2008 Joint Commissioner, Central Excise, Bolpur Commissionerate
14.95 (15.00 paid as duty under protest) A.Y. 2012-13 Directorate General of Central Excise Intelligence, Kolkata
5.15 (5.00 paid as duty under protest) 2011 - 2012 Commissioner of Central Excise- Bolpur
4.32 July' 2007- October' 2007 Additional Commissioner, of Central Excise, & Service Tax, Durgapur
37.46 (30.00 paid as duty under protest) 2006 - 2007 Joint Commissioner, Central Excise,
2007 - 2008 Bolpur Commissionerate
2008 - 2009
75.51 2008 - 2009 Joint Commissioner, Central Excise, Bolpur Commissionerate
2009 - 2010
132.60 2008 - 2009 Joint Commissioner, Central Excise, Bolpur Commissionerate
2009 - 2010
73.05 Aug'2009 to Joint Commissioner, Central Excise, Bolpur Commissionerate
Feb'2011

(c) During the year Company has transferred to Investor Education and Protection Fund ' 0.24 Lacs pertaining to share application money for the year 2007.

(viii) The Company does not have accumulated losses at the end of the financial year but has incurred cash losses amounting to ' 11,962.29 Lacs during the financial year ended 31.03.2015 and ' 4,684.58 Lacs in the immediately preceding financial year.

(ix) Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to the financial institutions or banks.

(x) The Company has not given any guarantee for loans taken by others from banks or financial institutions during the year.

(xi) In our opinion and according to the information and explanations given to us, the term loan have been applied for the purpose they were obtained.

(xii) 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 R. Kothari & Company

Chartered Accountants

FRN : 307069E

Manoj Kumar Sethia

Partner

Membership No. 064308

Place: Kolkata

Date : 31.05.2015