Nakoda Ltd Auditors Report.

To

The Members of

NAKODA LIMITED.

CIN: L17111GJ1984PLC045995~

Report on the Standalone Financial Statements

Report On the Financial Statement:

We have audited the accompanying standalone financial statements of NAKODA LIMITED, ("the company"), which comprise the Balance Sheet as at 31st MARCH, 2017, and the Statement of Profit and Loss and the cash flow statement for the year ended, and a summary of significant accounting policies and other explanatory information.

Managements Responsibility for the Standalone Financial Statements:

The Companys 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 standalone 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 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 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.

Auditors 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 auditing standards and matters which are required to be included in the audit report under the provisions of the act and rules made there under.

We conducted our audit in accordance with Standards on Auditing specified under Section 143(10) of the Act. Those standards required 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 auditors 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 consider internal financial control relevant to the Companys preparation of the financial statement that give true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for purpose of expressing an opinion on whether the Company has in place as adequate internal financial controls system over financial reporting and the operative effectiveness of such controls. 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 financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to prove 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 aforesaid standalone 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, 2017 and its profit/loss and its cash flows for the year ended on that date:

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

a) Note No.27 (B) (2): Trade Receivable, loan and advances and deposits of which confirmations are not received from the parties are subject to reconciliation and consequential adjustment on determination/ receipts on such confirmation.

b) Note No.27 (A) (d): Investments classified as long term investments are stated as cost. Provision is made to recognize decline, other than temporary, in the value of investments. Consequently, Investments of the company, in the opinion of management, full provisions is required to be made since diminution in the value of following investments.

A. Indo Korean Petrochem Ltd. 158480 Shares of Rs.1815.62 lacs
B. Nakoda holdings Mauritius Ltd. 10000 Shares of Rs.471.71 lacs

c) Note No.27 (B)(4) : In the financial statements which indicates that the company has accumulated losses and its net worth has entirely eroded, the company has incurred loss during the current year as well as in previous year and, companys current liabilities exceeded its current assets as at the balance sheet date and these conditions indicate the existence of a material uncertainty that cast significant doubt about the companys ability to continue as a going concern. However, the financial statements of the company have been prepared on a going concern basis. The validity of this depends on the revival and rehabilitation plan of the company by raising additional financing in support of its business activities to be approved by the Board for Industrial & Financial Construction (BIFR).

d) Note No.27 (A) (j): In the Financial statement, in the opinion of management, company has not provided any interest on financial loan taken from various financial institutes as it is under the review at BIFR and symbolic possession of mortgage assets taken by lender banks under section 13(4) of securitization act (SERFASSI) on dated 21st August 2015. So it is not reasonably possible to determine the effects, if any, on the financial statements.

e) Note No. 27 (A) (o): The Company has defaulted on obligations to Banks and as a consequence, the Banks have filed suits with Debt Recovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases and case under SARFAESI Act and taken symbolic possession of the plant at Karanj.

The Company and Directors are defending the cases as advised by Legal Experts. The Managing Director has been arrested by CBI, as the CBI has registered Case U/s 120B, 420, 467, 468 & 471 of IPC. The Company and directors are defending the Civil & Criminal Cases as advised by legal experts. The Chairman cum Managing Director and Joint Managing Directors are taken in Judicial Custody by CBI Mumbai.

Report on Other Legal and Regulatory Requirements:

As required by Section 143(3) of the Act, we report, to the extent applicable, 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 accounts of the branch offices of the Company have been audited by us under Section 143(8) of the Act and have been properly dealt with by us in preparing this Report.

(d) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in agreement with the books of account and with the accounts of the branches.

(e) In our opinion, the aforesaid standalone 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 the written representations received from the directors as on March 31, 2017 taken on record by the Board of Directors, none of the directors is disqualified on 31st March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.

(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:

1. The Company has disclosed the impact of pending litigations on its financial position in its financial statements- Refer Note No. 27(B) for Notes on Accounts.

2. The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

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

4. The company had provided requisite disclosures in its financial statements as to holding as well as dealings in specified Bank Notes during the Period from 8th November 2016 to 30th

December 2016 and these are in accordance with the books of accounts maintained by the company.

For, Bipinchandra J. Modi & Co.,

Chartered Accountants

(Bipin Modi)

Partner

M. No. 031687

Firm Reg. No. 101521W

Place: Surat Date: 01.11.2017

Annexure to the Independent Auditors Report of even date to the members of NAKODA LIMITED on the Standalone Financial Statements for the year ended 31st March, 2017.

On the basis of the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including

quantitative details and situation of its fixed assets.

(b) As per explanation given to us the company has carry out the programme of the physical verification of fixed assests this year and in our opinion it is reasonable having regard to the size of the company and nature of its assets. As explained to us in accordance with its programme, no material discrepancies were noticed on such verification.

2. (a) On the basis of our verification of the record of the inventory we are of the opinion that the company is maintaining proper records of the inventory other than the traded items.

The management has conducted the physical verification in respect of finished goods, stores and spares and raw materials at reasonable intervals.

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

(c) The material discrepancies noticed on physical verification of the inventories have been properly dealt with in the books of accounts.

3. The Company has granted interest free loan/advances without any stipulation of repayment thereof to eleven bodies corporate listed in the register maintained U/s 189 of the Companies Act, 2013 (the Act).

4. In our opinion and according to the information and explanation given to us, there is adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to the purchase of fixed assets, inventory and sale of goods. During the course of our audit, we have observed some Failure to correct major weakness in the internal control systems in respect of aforesaid areas.

5. The Company has not accepted any deposit from public.

6. We have broadly review the books of accounts maintained by the company pursuant to the rules made by the central government for maintenance of cost records under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie prescribed accounts have been made and maintained.

7 (a) According to the Information and explanation given to us and on the basis of our examination of the records the company, amount deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, income- tax, sales-tax, wealth tax, service tax, custom duty, value added tax, cess and any other material statutory dues have been deposited during the period by the company with appropriate authorities.

According to the Information and explanation given to us, no undisputed amounts payable in respect of provident fund, sales tax, income tax, wealth tax, service tax, custom duty, or other material statutory dues are of the arears as at 31st March, 2017 for the period more than six months from the date they became payable.

(b) According to the Information and explanation given to us, the following dues of income tax, excise, and sales tax have not been deposited by the company on account of disputes.

Name of statute Nature of dues Amount(Rs) Period Forum where disputes pending
Income tax TDS late return filling 15,36,343 2007-08 to 2015-16 Income tax officer TDS-2
Income tax 143(3) 91,66,20,970 2013- 14(A.Y) ACIT 1(1)(2) Surat
Income tax 143(3) 11,30,14,230 2011-12 (A.Y.) DCIT 1(1)(2), Surat
Income tax 143(3) 34,70,330 2014-15 (A.Y.) DCIT 1(1)(2), Surat
Sales tax Sales tax 14,47,22,786 2009-10 Joint commissioned Commercial tax) Vadodara
Sales tax Sales tax 6,09,62,72,330 2013-14 Dy. Commissioner of Commercial Tax, Ahmedabad
Sales tax Sales tax 21,89,434 2010-11 Dy. Commissioner of Commercial tax, Surat
Excise Excise Duty and penalty 3,73,17,779 Various years Appeal CESTAT, Surat.

(c) According the information and explanation given to us, there has been no delay in transferring of amount of unclaimed dividend to the Investor Education and Protection Fund this year, accordance with relevant provisions of companies act, 1956 (1 of the 1956) and rules there under.

8. The Accumulated losses of the company have exceeded the fifty percent of its net worth at the end of the financial year. In arriving the accumulated losseses and net worth as above we have considered the qualifications which are quantifiable in the audit reports of the year to which this loss is pertains.

9. Based on our Audit procedures and on the information and explanation given by the Management we are of the opinion that the company has made default in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.

The company has defaulted in repayment of principal amount and interest accrued there upon amounting to Rs.1878.42cr in respect of the loan borrowed Amount from

a) Canara Bank e) Andhra Bank i) Union Bank of India
b) Bank of India f) Laxmi villas bank j) State Bank of Patiala
c) Central Bank of India g) Syndicate Bank k) Corporation Bank
d) IFCI Venture Capital Fund h) UCO Bank n) Indian Overseas Bank
o) Karur Vaysaya Bank
p) Axis Bank

The defaults occurred during the previous year were not cleared until the 31st March 2017 and was, thus due for more than six months as on that date.

10. Based on the audit procedures performed and the information and explanation given to us we report that as per the Banks & FIs the Company & Directors of the Company has done fraud with the Banks and for that Banks have filed suits with Debt Recovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases and case under SARFAESI Act.

The Company has defaulted on obligations to Banks and as a consequence, the Banks have filed suits with Debt Recovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases and case under SARFAESI Act and taken symbolic possession of the plant at Ka ra nj.

The Company and Directors are defending the cases as advised by Legal Experts. The Managing Director has been arrested by CBI, as the CBI has registered Case U/s 120B, 420, 467, 468 & 471 of IPC. The Company and directors are defending the Civil & Criminal Cases as advised by legal experts. The Chairman cum Managing Director and Joint Managing Directors are taken in Judicial Custody by CBI Mumbai.

11. The Company has given guarantee in connection with loans taken by others from financial installation in previous year and this year such guarantee of Koncept Infotement Pvt. Ltd. are paid by the company and the assets of Koncept Infotement Pvt. Ltd. are taken over by the company.

12. 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. The Clause is Not Applicable as No Remuneration is Provided.

13. According the records of the company the company has not obtained any term loans during the financial year. And hence the comments under the clause are not called for.

14. All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards;

For, Bipinchandra J. Modi & Co.,

Chartered Accountants

(Bipin Modi)

Partner

M. No. 031687

Firm Reg. No. 101521W

Place: Surat Date: 01.11.2017

Independent Auditors Report

To The Members of NAKODA LIMITED.

CIN: L17111GJ1984PLC045995

Report on the Consolidated Financial Statements

Report On the Financial Statement

We have audited the accompanying financial statements of NAKODA LIMITED, ("the Holding company and its subsidiary together referred to as "the Group") comprising the Consolidated Balance Sheet as at 31st MARCH, 2017, the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow statement for the year ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the Consolidated Financial Statement").

Managements Responsibility for the Consolidated Financial Statements:

The Holding Companys Board of Directors is responsible for the preparation of these consolidated financial statements in terms of requirement of the Companies Act, 2013 (hereinafter referred as "the Act") that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the group 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 provisions of the Act for safeguarding the assets of the Group 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 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.

Auditors Responsibility:

Our responsibility is to express an opinion on these consolidated 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 rules made there under.

We conducted our audit in accordance with Standards on Auditing specified under Section 143(10) of the Act. Those standards required 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 consolidated financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Holding Companys preparation of the consolidated financial statement that give true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for purpose of expressing an opinion on whether the holding Company has in place as adequate internal financial controls system over financial reporting and the 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 Holding Companys Directors, as well as evaluating the overall presentation of the consolidated 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 consolidated financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated 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 Group as at 31st March, 2017, and their consolidated cash flow for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

a) Group has not consider its two foreign subsidiary for the preparation of Consolidated Financial Statements as their long terms restriction on fund transfer as estimates and certified by the management, and our report in terms of Section 143(11) (3) of the Act, insofar as it relates to the aforesaid subsidiaries is based on solely on the certificate of management.

b) The Company has defaulted on obligations to Banks and as a consequence, the Banks have filed suits with Debt Recovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases and case under SARFAESI Act and taken symbolic possession of the plant at Karanj.

The Company and Directors are defending the cases as advised by Legal Experts. The Managing Director has been arrested by CBI, as the CBI has registered Case U/s 120B, 420, 467, 468 & 471 of IPC. The Company and directors are defending the Civil & Criminal Cases as advised by legal experts. The Chairman cum Managing Director and Joint Managing Directors are taken in Judicial Custody by CBI Mumbai.

Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditors Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Annexure" Statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable, that.

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 of the aforesaid consolidated financial statements.

(b) In our opinion, proper books of account as required by law have been kept by the Group so far as it appears from our examination of those books. In our Opinion, We have not received the any books of account of foreign subsidiaries as there are not consider for consolidation.

(c) As two foreign subsidiaries are not considered for consolidation so we have not received the audited financial statements of the foreign subsidiaries. Otherwise Consolidated Balance Sheet, the consolidated Statement of Profit and Loss, and the consolidated Cash Flow Statement dealt with by this Report are in agreement with the books of account.

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

(e) On the basis of the written representations received from the holding directors as on March 312017 taken on record by the Board of Directors, none of the directors is disqualified on March 31, 2017 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 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:

1. The Consolidated Financial Statement has disclosed the impact pending litigations on its financial position in its financial statements.

2. The Group did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

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

4. The company had provided requisite disclosures in its financial statements as to holding as well as dealings in specified Bank Notes during the Period from 8th November 2016 to 30th

December 2016 and these are in accordance with the books of accounts maintained by the company.

For, Bipinchandra J. Modi & Co.,

Chartered Accountants

(Bipin Modi)

Partner

M. No. 031687

Firm Reg. No. 101521W

Place: Surat Date: 01.11.2017

Annexure to the Independent Auditors Report of even date to the members of NAKODA LIMITED on the Consolidated Financial Statements for the year ended 31st March, 2017.

On the basis of the information and explanation given to us during the course of our audit, we report that:

1. (a) The company has maintained proper records showing full particulars including

quantitative details and situation of its fixed assets.

(b) As per explanation given to us the company has carry out the programme of the physical verification of fixed assests this year and in our opinion it is reasonable having regard to the size of the company and nature of its assets. As explained to us in accordance with its programme, no material discrepancies were noticed on such verification.

2. (a) On the basis of our verification of the record of the inventory we are of the opinion that the company is maintaining proper records of the inventory other than the traded items.

The management has conducted the physical verification in respect of finished goods, stores and spares and raw materials at reasonable intervals.

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

(c) The material discrepancies noticed on physical verification of the inventories have been properly dealt with in the books of accounts.

3. The Company has granted interest free loan/advances without any stipulation of repayment thereof to eleven bodies corporate listed in the register maintained U/s 189 of the Companies Act, 2013 (the Act).

4. In our opinion and according to the information and explanation given to us, there is adequate internal control procedure commensurate with the size of the company and the nature of its business with regard to the purchase of fixed assets, inventory and sale of goods. During the course of our audit, we have observed some failure to correct major weakness in the internal control systems in respect of aforesaid areas.

5. The Group has not accepted any deposit from public.

6. We have broadly review the books of accounts maintained by the holding company pursuant to the rules made by the central government for maintenance of cost records under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie prescribed accounts have been made and maintained. In Case of Subsidiary company, the central government has not prescribed to maintenance of cost record under section 148(1) of the Companies Act, 2013.

7 (a) According to the Information and explanation given to us and on the basis of our examination of the records the company, amount deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, income- tax, sales-tax, wealth tax, service tax, custom duty, value added tax, cess and any other material statutory dues have been deposited during the period by the company with appropriate authorities.

According to the Information and explanation given to us, no undisputed amounts payable in respect of provident fund, sales tax, income tax, wealth tax, service tax, custom duty, or other material statutory dues are of the arears as at 31st March, 2017 for the period more than six months from the date they became payable.

(b) According to the Information and explanation given to us, the following dues of income tax, excise, and sales tax have not been deposited by the company on account of disputes.

Name of statute Nature of dues Amount(Rs) Period Forum where disputes pending
Income tax TDS late return filling 15,36,343 2007-08 to 2015-16 Income tax officer TDS-2
Income tax 143(3) 91,66,20,970 2013-14(A.Y) ACIT 1(1)(2) Surat
Income tax 143(3) 11,30,14,230 2011-12 (A.Y.) DCIT 1(1)(2), Surat
Income tax 143(3) 34,70,330 2014-15 (A.Y.) DCIT 1(1)(2), Surat
Sales tax Sales tax 14,47,22,786 2009-10 Joint commissioned Commercial tax) Vadodara
Sales tax Sales tax 6,09,62,72,330 2013-14 Dy. Commissioner of Commercial Tax, Ahmedabad
Sales tax Sales tax 21,89,434 2010-11 Dy. Commissioner of Commercial tax, Surat
Excise Excise Duty and penalty 3,73,17,779 Various years Appeal CESTAT, Surat.

(c) According the information and explanation given to us, there has been no delay in transferring of amount of unclaimed dividend to the Investor Education and Protection Fund this year, accordance with relevant provisions of companies act, 1956 (1 of the 1956) and rules there under.

8. The Accumulated losses of the company have exceeded the fifty percent of its net worth at the end of the financial year. In arriving the accumulated losseses and net worth as above we have considered the qualifications which are quantifiable in the audit reports of the year to which this loss is pertains.

9. Based on our Audit procedures and on the information and explanation given by the Management we are of the opinion that the company has made default in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders.

The company has defaulted in repayment of principal amount and interest accrued there upon amounting to Rs.1878.42cr in respect of the loan borrowed Amount from

a) Canara Bank e) Andhra Bank i) Union Bank of India
b) Bank of India f) Laxmi villas bank j) State Bank of Patiala
c) Central Bank of India g) Syndicate Bank k) Corporation Bank
d) IFCI Venture Capital Fund h) UCO Bank n) Indian Overseas Bank
o) Karur Vaysaya Bank
p) Axis Bank

The defaults occurred during the previous year were not cleared until the 31st March 2017 and was, thus due for more than six months as on that date.

10. Based on the audit procedures performed and the information and explanation given to us we report that as per the Banks & FIs the Company & Directors of the Company has done fraud with the Banks and for that Banks have filed suits with Debt Recovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases and case under SARFAESI Act.

The Company has defaulted on obligations to Banks and as a consequence, the Banks have filed suits with Debt Recovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases and case under SARFAESI Act and taken symbolic possession of the plant at Ka ra nj.

The Company and Directors are defending the cases as advised by Legal Experts. The Managing Director has been arrested by CBI, as the CBI has registered Case U/s 120B, 420, 467, 468 & 471 of IPC. The Company and directors are defending the Civil & Criminal Cases as advised by legal experts. The Chairman cum Managing Director and Joint Managing Directors are taken in Judicial Custody by CBI Mumbai.

11. The Company has given guarantee in connection with loans taken by others from financial installation in previous year and this year such guarantee of Koncept Infotement Pvt. Ltd. are paid by the company and the assets of Koncept Infotement Pvt. Ltd. are taken over by the company.

12. 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. The Clause is Not Applicable as No Remuneration is Provided.

13. According the records of the company the company has not obtained any term loans during the financial year. And hence the comments under the clause are not called for.

14. All transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc. as required by the applicable accounting standards;

For, Bipinchandra J. Modi & Co.,

Chartered Accountants

(Bipin Modi)

Partner

M. No. 031687

Firm Reg. No. 101521W

Place: Surat Date: 01.11.2017

NAKODA LIMITED

CIN NO.: L17111GJ1984PLC045995