Unity Infraprojects Ltd Auditors Report.

To the Members of Unity Infraprojects Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone Ind AS financial statements of Unity Infraprojects Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss(including other comprehensive income), Cash Flow Statement and the statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information(herein after referred to as "standalone Ind As financial statements")

Managements Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comphrehensive incom, cash flows and changes 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 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 judgements 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 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 a 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 the 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.

Basis for Qualified Opinion

a. We invite attention to Note 14 relating to loans repayable on demand from other parties, under which loans & advances taken from six parties as at March 31 2017 amounting to Rs. 1,490.98 Lakhs is deemed as public deposit in terms of Section 73 of the Companies Act, 2013, which amounts to violation of the same under the Act;

b. We invite attention to Note 4 relating to loans & advances given to four related parties covered under section 185 of the Companies Act, 2013, under which loans & advances given to four parties during the year after 1 April 2016 amounting to Rs.100.98 Lakhs is in violation of the section 185 of the Companies Act, 2013;

c. We invite attention to Note 14 relating to non current borrowings which includes borrowings from four banks having balance as per books Rs. 53,149.80 Lakhs for which no statement or confirmation is available. Consequent to which we are unable to determine the financial position of the said bank balances and financial impact on loss could not be ascertained as it has not been quantified; and

d. We invite attention to Note 8 relating to other bank balances under which fixed deposits held with 3 banks amounting to Rs.230.05 Lakhs as on 31st March 2017 was not verified by us as it was not provided by the management of the company. Consequent to which we are unable to determine the financial position of the said bank balances and financial impact on loss could not be ascertained as it has not been quantified.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the 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 including the Ind AS, of the state of affairs of the Company as at 31st March, 2017, and its loss (including other comprehensive Income), its cash flows and the changes in equity for the year ended on that date.

Emphasis of Matter

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

Note 45 to the standalone Ind AS financial statements, which indicates that the Company has accumulated losses and its net worth has been substantially eroded, current liabilities are more than current assets and the Company has incurred a net cash loss during the current and previous year. These conditions, along with other matters set forth in the Note 55, cast doubt about the Companys ability to continue as a going concern. However, standalone the Ind AS financial statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note; and

Note 4 related to loans to related Parties which indicates that the Company has given advances to 12 related parties amounting to Rs. 6,555.90 Lakhs whose networth was negative as on 31st March, 2017. Management has given the representation that the said advances are recoverable.

Our opinion is not modified in respect of these matters.

Other Matter

The standalone Ind AS financial statements include the financial statements of 12 joint operations, which have been audited by other auditors, whose reports has been furnished to us, and our opinion, insofar as it relates to the amounts in respect of joint operations

is based solely on reports of the other auditors. the amount of assets, gross revenue of the joint ventures to the extent to which they are reflected in the standalone Ind AS financial statements are Rs. 23,992.29 Lakhs and Rs.7,552.53 Lakhs respectively.

Our opinion is not modified 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 sub-section (11) of section 143 of the Act, we give in the Annexure "I", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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

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

b in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement,statement of changes in equity 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 Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014;

e The matter described in the Basis for Qualified Opinion paragraph and under the Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the functioning of the Company;

f on the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016, from being appointed as a director in terms of section 164 (2) of the Act;

g 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 II"; and

h 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 Ind AS financial statements - Refer Note 37 to the standalone Ind AS financial statements;

ii. the Company did not have any longterm 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; and

iv the Company has provided requisite disclosures in its standalone Ind As financial statements as to the holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016, are in accordance with the books of accounts maintained by the company - Refer Note 49 to the standalone Ind AS financial statements.

For C. B. Chhajed & Co.
Chartered Accountants
(Firms Regn. No. 101796 W)
C. B. Chhajed
Place : Mumbai (Partner)
Dated : 15.05.2017 Membership No : 009447

ANNEXURE "I" TO THE INDEPENDENT AUDITORS REPORT

[Referred to in paragraph 1 of "Report on other legal and regulatory requirements" of our report of even date]

TO THE MEMBERS OF UNITY INFRAPROJECTS LIMITED

(the Company)

1 a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.

b. The fixed assets of the Company have been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. In our opinion,the frequency of verification is reasonable.

c. In our opinion and according to the information and explanations given to us, the title deeds of immovable properties are held in the name of the company except in case of Flat at Taloja carrying value of Rs. 3.91 Lakhs whose title deed is held in the name of Mr. Ramchandran, director of one group company.

2 The inventory (excluding stocks with third parties) has been physically verified by the management during the year. In respect of inventory lying with third parties, these have substantially been confirmed by them. In our opinion, the frequency of verification is reasonable. No discrepancies were noticed on physical verification of inventory.

3 According to the information and explanations given to us, the Company has granted secured / unsecured loans, to a eight subsidiary companies, five associate companies and one partnership firm covered in the register maintained under Section 189 of the Act. In respect of aforesaid loans

a In our opinion and according to the information and explanations given to us, the terms and conditions of such loans are not prima facie prejudicial to the interest of the Company.

b The principal amounts are repayable on demand and there is no repayment schedule. The interest is payable on demand.

c In respect of the aforesaid loans, the same are repayable on demand and therefore the question of overdue amounts does not arise. In respect of interest, no interest is charged by the company.

4 In our opinion, the company has given loan to four companies in contravention of Section 185 of the Act. However, the company has complied with the provisions of section 186 in respect of the loans, investments, guarantees and securities, wherever applicable.

5 In our opinion and according to the information and explanations given to us, the Company has not complied with the directives issued by Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposits) Rules, 2014 with regard to the amount received from six parties. which is deemed as public deposit in terms of Section 73 of the Act. According to the information and explanations given to us, no Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the company in respect of the aforesaid deposits.

6 "We have broadly reviewed the books of account maintained by the Company in respect of products where, pursuant to the Rules made by the Central Government of India, the maintenance of cost records has been prescribed under sub-section (1) of Section 148 of the Act and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained as confirmed by the cost auditor appointed by the company. The cost audit for the financial year 2015-16 has been completed.

We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete."

7 a) Based on verification of Books of Accounts and other records of the company examined by us, in our opinion, the Company is not regular in depositing undisputed statutory dues namely provident fund, investor education and protection fund, employees state insurance, income-tax, sales-tax, service tax, customs duty, excise duty, cess and other statutory dues as applicable, with the appropriate authorities. The Statutory dues outstanding as on Balance Sheet date for a period of more than six months from the date they became payable, are listed below:

Name of the Statute Nature of Dues Amount (Rs. In Lakhs) Period to which the amount relates Date of Payment
The Income Tax Act, 1961 Tax Deducted at Source 2,075.19 F.Y. 2013-14 Not Paid
1,012.17 F.Y. 2014-15 Not Paid
620.43 F.Y. 2015-16 Not Paid
168.09 F.Y. 2016-17 Not Paid
Corporate Dividend Tax 120.19 F.Y. 2011-12 Not Paid
24.04 F.Y. 2012-13 Not Paid
Interest on CDT 23.32 F.Y. 2012-13 Not Paid
Interest on CDT 20.11 F.Y. 2014-15 Not Paid
Interest on CDT 14.51 F.Y. 2015-16 Not Paid
Interest on CDT 8.65 F.Y. 2016-17 Not Paid
Interest on TDS 526.57 F.Y. 2014-15 Not Paid
Interest on TDS 718.58 F.Y. 2015-16 Not Paid
Interest on TDS 387.08 F.Y. 2016-17 Not Paid
Employee State Insurance Act Employers Contribution 0.60 F.Y. 2015-16 Not Paid
Employees Contribution 0.20 F.Y. 2015-16 Not Paid
Employers Contribution 0.22 F.Y. 2016-17 Not Paid
Employees Contribution 0.16 F.Y. 2016-17 Not Paid
Sales Tax Act TDS on Works Contract 19.14 F.Y. 2014-15 Not Paid
61.28 F.Y. 2013-14 Not Paid
37.11 F.Y. 2015-16 Not Paid
Provident Fund & Misc Act Provident Fund - Employers Contribution 121.53 F.Y. 2015-16 Not Paid
Provident Fund - Employers Contribution 13.86 F.Y. 2016-17 Not Paid
Provident Fund - Employees Contribution 21.06 F.Y. 2016-17 Not Paid
GVAT Value Added Tax 8.05 F.Y. 2014-15 Not Paid
Finance Act, 1994 Service Tax 89.52 F.Y. 2014-15 Not Paid
126.82 F.Y. 2015-16 Not Paid
23.47 F.Y. 2016-17 Not Paid
Various Profession Tax Laws Professional tax 23.81 F.Y. 2013-14 Not Paid
12.61 F.Y. 2014-15 Not Paid
8.48 F.Y. 2015-16 Not Paid
1.14 F.Y. 2016-17 Not Paid

b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of income-tax, sales-tax, service tax, customs duty, excise duty and cess as on Balance Sheet Date which have not been deposited on account of a dispute, are as follows -

Name of the Statute Nature of Dues Amount (Rs. In Lakhs)

Period to which the amount relates

Forum where the dispute is pending
Income Tax Act,1961 Income Tax 47.27

A.Y.2005-06

Income Tax Appellate Tribunal, Mumbai
Income Tax Act,1961 Income Tax 17.55

A.Y.2006-07

Income Tax Appellate Tribunal, Mumbai
Income Tax Act,1961 Income Tax 180.11

A.Y.2006-07

Commissioner of Income Tax, Appeal
Income Tax Act,1961 Income Tax 209.36

A.Y.2007-08

Income Tax Appellate Tribunal, Mumbai
Income Tax Act,1961 Income Tax 11.99

A.Y.2007-08

Commissioner of Income Tax, Appeal
Income Tax Act,1961 Income Tax 33.20

A.Y.2008-09

Income Tax Appellate Tribunal, Mumbai
Income Tax Act,1961 Income Tax 1,160.92

A.Y.2008-09

Commissioner of Income Tax, Appeal
Income Tax Act,1961 Income Tax 327.39

A.Y.2009-10

Commissioner of Income Tax, Appeal
Income Tax Act,1961 Income Tax 4,753.12

A.Y.2010-11

Commissioner of Income Tax, Appeal
Income Tax Act,1961 Income Tax 3,689.33 A.Y.2011-12

Commissioner of Income Tax, Appeal

Income Tax Act,1961 Income Tax 2,916.86 A.Y.2012-13

Commissioner of Income Tax, Appeal

Income Tax Act,1961 Income Tax 4,848.83 A.Y.2013-14

Commissioner of Income Tax, Appeal

Income Tax Act,1961 Income Tax 1,918.20 A.Y.2014-15

Commissioner of Income Tax, Appeal

Maharashtra Value Added Tax Act, 2002 Maharashtra Value Added Tax 162.22 A.Y.2006-07

Joint Commissioner of Sales Tax (Appeal - VI)

Maharashtra Value Added Tax Act, 2002 Maharashtra Value Added Tax 1.90 AY 2007-08

Joint Commissioner of Sales Tax (Appeal - VI)

Maharashtra Value Added Tax Act, 2002 Maharashtra Value Added Tax 4,301.22 A.Y.2009-10

Joint Commissioner of Sales Tax (Appeal - VI)

Maharashtra Value Added Tax Act, 2002 Maharashtra Value Added Tax 8.94 AY2010-11

Joint Commissioner of Sales Tax (Appeal - VI)

Maharashtra Value Added Tax Act, 2002 Maharashtra Value Added Tax 123.25 A.Y.2011-12

Joint Commissioner of Sales Tax (Appeal - VI)

Maharashtra Value Added Tax Act, 2002 Maharashtra Value Added Tax 157.19 A.Y.2007-08

Joint Commissioner of Sales Tax (Appeal - VI)

Madhya Pradesh Value Added Tax Act, 2002 Madhya Pradesh Value Added Tax 323.57 A.Y.2013-14

Commissioner of Sales Tax

Central Excise Act, 1944 Excise 9.09 F.Y. 2012-13

Appellate Tribunal Cestat

Central Excise Act, 1944 Excise 30.42 F.Y. 2013-14

Appellate Tribunal Cestat

Central Excise Act, 1944 Excise 8.36 F.Y. 2014-15

Appellate Tribunal Cestat

Finance Act 1994 Service Tax 56,015.21 F.Y. 2010-11 to F.Y. 2014-15

Adjudication Cell, Principal Commissioner Service Tax -III

Finance Act 1994 Service Tax 31.52 F.Y. 2009-12

Commissioner of Central Excise Appeals

Finance Act 1994 Service Tax 10.37 F.Y. 2012-14

Commissioner of Central Excise Appeals

Finance Act 1994 Service Tax 4.89 F.Y. 2014-16

Commissioner of Central Excise Appeals

8 According to the records of the Company examined by us and the information and explanation given to us, the Company has not paid installment including interest thereon, to financial institutions and banks since amount payable has been converted into Working Capital Term Loan, Funded Interest Term Loan and equity shares as per the CDR Scheme with CDR Lenders. However the amount payable during the year as per the CDR Scheme has not been paid by the company. Details of the said default is as follows :

Name of Lender Amount of Default Period of Default
Abhyudaya Bank 275.72 30th April 2016 to 31st March 2017
Allahabad Bank 633.63 30th April 2016 to 31st March 2017
Axis Bank 104.03 30th April 2016 to 31st March 2017
Bank of Baroda 190.34 30th April 2016 to 31st March 2017
Bank of Maharashtra 370.50 30th April 2016 to 31st March 2017
Catholic Syrian Bank 124.82 30th April 2016 to 31st March 2017
Central Bank Of India 1,003.73 30th April 2016 to 31st March 2017
Corporation Bank 239.42 30th April 2016 to 31st March 2017
DBS BANK LTD 50.48 30th April 2016 to 31st March 2017
Dena Bank 172.40 30th April 2016 to 31st March 2017
ICICI Bank 718.02 30th April 2016 to 31st March 2017
IDBI Bank 121.37 30th April 2016 to 31st March 2017
Indian Bank 149.22 30th April 2016 to 31st March 2017

 

Name of Lender Amount of Default Period of Default
Indian Overseas Bank 180.99 30th April 2016 to 31st March 2017
Indusind Bank Ltd 60.22 30th April 2016 to 31st March 2017
Ing Vysya Bank 34.29 30th April 2016 to 31st March 2017
L & T Infrastructure Finance Co. Ltd. 30.73 30th April 2016 to 31st March 2017
Standard Chartered Bank 138.37 30th April 2016 to 31st March 2017
State Bank Of India 404.83 30th April 2016 to 31st March 2017
State Bank Of Mysore 103.86 30th April 2016 to 31st March 2017
State Bank Of Patiala 102.53 30th April 2016 to 31st March 2017
Uco Bank 484.84 30th April 2016 to 31st March 2017
Union Bank Of India 307.97 30th April 2016 to 31st March 2017
Total 6,002.36

9 The Company has not raised money by way of initial public offer or further public offer or debt instruments. Term loans taken by the company, in our opinion, and according to the information and explanations given to us, on an overall basis, have been applied for the purposes for which they were obtained.

10 During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.

11 In our opinion and according to the information and explanations given to us, the Company has not paid or provided any managerial remuneration. Accordingly, clause (xi) of paragraph 3 of the Order is not applicable to the Company.

12 In our opinion and according to the information and explanations given to us, the company is not a nidhi company. Accordingly, clause (xii) of paragraph 3 of the order is not applicable to the company.

13 In our opinion and according to the information and explanations given to us, the company has complied with sections 177 and 188 of the Act in respect of transactions entered with the related parties during the year. Details of the transactions have been adequately disclosed in Note 34 of the standalone Ind AS financial statements.

14 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. Accordingly, clause (xiv) of paragraph 3 of the order is not applicable to the company.

15 According to the information and explanations given to us, the Company has not entered into any noncash transactions during the year with the directors or persons connected with directors. Accordingly, clause (xv) of paragraph 3 of the order is not applicable to the company.

16 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. Accordingly, clause (xvi) of paragraph 3 of the order is not applicable to the company.

For C. B. Chhajed & Co.
Chartered Accountants
(Firms Regn. No. 101796 W)
Place : Mumbai C. B. Chhajed
Dated : 15.05.2017 (Partner)

ANNEXURE "II" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS OF UNITY INFRAPROJECTS LIMITED

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 reporting of Unity Infraprojects Limited ("the Company") as of March 31, 2017 in conjunction 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 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. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 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 Institute 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 reporting 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 reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the standalone Ind AS 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 reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition 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, 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 March 31, 2017, based on the 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.

Other Matter

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting insofar as it relates to 12 joint ventures, is based on the corresponding reports of the other auditors.

For C. B. Chhajed & Co.
Chartered Accountants
(Firms Regn. No. 101796 W)
C. B. Chhajed
Place : Mumbai (Partner)
Dated : 15.05.2017 Membership No : 009447