Aksh Optifibre Ltd Auditors Report.

To,

The Members of AKSH OPTIFIBRE LIMITED

Report on the Standalone Indian Accounting Standard (Ind AS) Financial Statements

We have audited the accompanying standalone Ind AS financial statements of AKSH OPTIFIBRE LIMITED (the Company), which comprises the Balance Sheet as at 31st March, 2018, Statement of Profit and Loss (including Other Comprehensive Income), Cash Flow Statement & the Statement of Change in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Managements responsibility for the Standalone Ind AS Financial Statements

The Companys Board of Directors is responsible for the matters in section 134 (5) of the Companies Act, 2013 ("the Act") with respect to the preparation & presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income , cash flows & change in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards ("Ind AS") specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other accounting principles generally accepted in India.

This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these standalone Ind AS 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 thereunder.

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 standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companys preparation of the standalone Ind AS financial statements that give true and fair view 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 Companys Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.

Other Matter

The audited standalone financial statements for the year ended 31st March 2017, were audited by another firm of chartered accountants, vide their unmodified audit report dated 13th November 2017, whose report has been furnished to us by the management and which has been relied upon by us for the purpose of our audit of the standalone financial statements. Our audit report is not qualified in respect of this matter.

Report on other legal and regulatory requirements

1. As required by the Companies (Auditors Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of section 143(11) of the Act, we give in the "Annexure A" a statement on the matters specified in the paragraph 3 and 4 of the Order.

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

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

b) In our opinion proper books of account as required by law relating to preparation of the standalone Ind AS financial statements have been kept by the Company so far as it appears from our examination of those books;

c) The standalone Ind AS financial statement dealt with by this report are in agreement with the books of account;

d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Ind AS specified under Section 133 of the Act as applicable;

e) On the basis of written representations received from the directors as on 31st March, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018, from being appointed as a director in terms of Section 164(2) of the Act;

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

g) 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 according to the explanations given to us:

I. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements - Refer Note 40 to the standalone financial Ind AS 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. The reporting on disclosure relating to Specified Bank Notes is not applicable to the Company for the year ended 31st March, 2018.

For B G G & ASSOCIATES
Chartered Accountants
FRN 016874N
CA Alok Kumar Bansal
Place : New Delhi Partner
Date : May 30, 2018 Membership No. 092854

"Annexure A" to the Independent Auditors Report

Referred to in paragraph 1 under the heading Report on Other Legal & Regulatory Requirement of our report of even date to the financial statements of AKSH OPTIFIBRE LIMITED ("the Company") for the year ended 31st March, 2018:

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

(b) According to the information and explanation given to us, fixed assets except the assets installed at customer premises have been physically verified by the management during the year. No material discrepancies were noticed on such verification. In our opinion, frequency of physical verification of fixed assets is reasonable.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.

ii. According to the information & explanation given to us, physical verification of inventory has been conducted at reasonable intervals by the management during the year except for goods in transit. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the book of accounts.

iii. According to the information & explanation given to us, the Company has granted unsecured loans to its three wholly owned subsidiaries, covered in the register maintained under Section 189 of Companies Act 2013.

(a) In our opinion, the rate of interest and other terms and conditions on which the loan has been granted to its subsidiaries, covered in the register maintained under Section 189 of the Act was not, prima facie, prejudicial to the interest of the Company.

(b) In respect of loans granted to subsidiaries covered under section 189 of the Act, the terms of arrangement for payment of principal and interest are payable on demand. Accordingly, the provisions of paragraph 3 (iii) (b) of the Order are not applicable to the Company.

(c) In respect of the aforesaid advances, as per the information made available to us, there is no overdue amount as at year end.

iv. According to the information & explanation given to us, in respect of loans, investments, guarantees and security, the Company has complied with the provisions of section 185 and I86 of the Companies Act, 2013, to the extent applicable.

v. According to the information and explanations given to us, the Company has not accepted any deposits from the public as mentioned in the directives issued by Reserve Bank of India and provisions of sections 73 to 76 of the Companies Act, 2013 or any other relevant provisions of the Act and the rules framed thereunder.

vi. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under sub section (1) of section 148 the Companies, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained.

vii. (a) According to the information and explanations given to us and according to the books and records produced before us, the Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees state insurance, income tax, sales tax, Goods & Service Tax, service tax, custom duty, excise duty, Cess and other material statutory dues applicable to it.

According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, Goods & Service Tax, Service Tax, sales tax, custom duty, excise duty and Cess were in arrears, as at 31st March, 2018 for a period of more than six months from the date they became payable.

(B) According to the information and explanations given to us, there are

no dues of income tax or Goods & Service Tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute except of the following amounts: -

Name of the Statute Nature of Dues Disputed amount (Rs. in Lakhs) Period to which amount relates Forum where dispute is pending
CUSTOMS
Customs Act, 1962 Duty, Interest & Penalty 7.39 2000-01 & 2013-14 CESTAT, New Delhi
EXCISE
Central Excise Act, 1944 Excise duty, Interest & Penalty 13.81 2003-05 CESTAT, New Delhi
Central Excise Act, 1944 Excise duty 32.79 2011-12 Assistant Commissioner, Bhiwadi
Central Excise Act, 1944 Excise duty 22.35 2010-11 Assistant Commissioner, Bhiwadi
SERVICE TAX
Finance Act, 1994 Service tax & Interest 31.20 November 2006 to August 2008 Honble High Court, Jaipur
Finance Act, 1994 Service tax 0.91 January 2011 to November 2011 Assistant Commissioner, Bhiwadi
Finance Act, 1994 Service tax 3.14 October 2013 to September 2014 Commissioner of Central Excise (Appeals)
INCOME TAX
Income Tax Act, 1961 Income Tax 91.01 A.Y 2010-11 CIT (Appeals), Alwar (Rajasthan)
Income Tax Act, 1961 Income Tax 1.71 A.Y 2015-16 CIT (Appeals), Delhi
PROVIDENT FUND
Provident Fund Act Provident Fund 7.60 2004-05 Honble High Court, Jaipur

viii. 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, bank, Government or debenture holders.

ix. According to the information and explanations given to us and our examination of the records of the Company, the term loans have been applied for the purposes for which they were obtained. The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments).

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

xi. According to the information and explanations given to us, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.

xii. According to the information and explanations given to us, the Company is not a Nidhi Company. Therefore, the provisions of paragraph 3 (xii) of the Order are not applicable to the Company.

xiii. According to the information and explanations given to us and our examination of the records of the Company, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Ind AS Financial Statements as required by the applicable Indian Accounting Standards.

xiv. According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under audit.

xv. According to the information and explanations given to us and based on our examination of the records, the Company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of paragraph 3 (xv) of the Order are not applicable to the Company.

xvi. According to the information and explanations given to us, the Company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934.

For B G G & ASSOCIATES
Chartered Accountants
FRN 016874N
CA Alok Kumar Bansal
Place : New Delhi Partner
Date : May 30, 2018 Membership No. 092854

"Annexure B" to the Independent Auditors Report

(Referred to in paragraph 2(f) under Report on Other Legal and Regulatory Requirements section of our report of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporfing of AKSH OPTIFIBRE LIMITED ("the Company") as of 31st March, 2018 in conjuncfion with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporfing criteria established by the Company considering the essenfial components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporfing issued by the Insfitute of Chartered Accountants of India (the Guidance Note). These responsibilifies include the design, implementafion and maintenance of adequate internal financial controls that were operafing effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevenfion and detecfion of frauds and errors, the accuracy and completeness of the accounfing records, and the fimely preparation of reliable financial informafion, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporfing based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporfing (the "Guidance Note") and the Standards on Audifing, issued by ICAI and deemed to be prescribed under secfion 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Insfitute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporfing was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporfing and their operafing effecfiveness. Our audit of internal financial controls over financial reporfing included obtaining an understanding of internal financial controls over financial reporfing, assessing the risk that a material weakness exists, and tesfing and evaluafing the design and operafing effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, cluding the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporfing.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporfing is a process designed to provide reasonable assurance regarding the reliability of financial reporfing and the preparafion of financial statements for external purposes in accordance with generally accepted accounfing principles. A companys internal financial control over financial reporfing includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transacfions and disposifions of the assets of the company; (2) provide reasonable assurance that transacfions are recorded as necessary to permit preparafion of financial statements in accordance with generally accepted accounfing principles, and that receipts and expenditures of the company are being made only in accordance with authorizafions of management and directors of the company; and (3) provide reasonable assurance regarding prevenfion or fimely detecfion of unauthorized acquisifion, use, or disposifion of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2018, based on internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For B G G & ASSOCIATES
Chartered Accountants
FRN 016874N
CA Alok Kumar Bansal
Place : New Delhi Partner
Date : May 30, 2018 Membership No. 092854