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Consolidated Construction Consortium Ltd.

BSE: 532902 Sector: Infrastructure
NSE: CCCL ISIN Code: INE429I01024
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OPEN 7.89
PREVIOUS CLOSE 7.74
VOLUME 100175
52-Week high 10.38
52-Week low 2.80
P/E
Mkt Cap.(Rs cr) 293
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.36
Sell Qty 138626.00
OPEN 7.89
CLOSE 7.74
VOLUME 100175
52-Week high 10.38
52-Week low 2.80
P/E
Mkt Cap.(Rs cr) 293
Buy Price 0.00
Buy Qty 0.00
Sell Price 7.36
Sell Qty 138626.00

Consolidated Construction Consortium Ltd. (CCCL) - Auditors Report

Company auditors report

To

The Members of

Consolidated Construction Consortium Ltd.

1. We ASA & Associates LLP Chartered Accountants (Firm’s Registration No.:009571N /N50006) as Statutory Auditors of Consolidated Construction Consortium Limited("the Company") having its Registered Office at No.5 II Link street C.I.TColony Mylapore Chennai - 600004 have examined the compliance of conditions ofcorporate governance by the Company for the year ended on 31 March 2017 as stipulated inRegulation 27 read with Part E of Schedule V of SEBI (Listing Obligations & DisclosureRequirements) Regulations 2015 as amended from time to time of the Company with thestock exchanges.

2. We have been requested by the Management of the Company to provide a certificate oncompliance of corporate governance under the Listing Regulations as amended from time totime.

3. The Management is responsible for the compliance of conditions of corporategovernance. Our examination was limited to a review of procedures and implementationthereof adopted by the Company for ensuring the compliance of the conditions of corporategovernance as stipulated in the said clause. It is neither an audit nor an expression ofopinion on the financial statements of the Company.

4. In our opinion and to the best of our information and according to the explanationsgiven to us by the directors and the management we certify that the Company has compliedwith the conditions of corporate governance as stipulated in Schedule V of ListingRegulations as amended from time to time.

5. We further state that such compliance is neither an assurance as to the futureviability of the Company nor the efficiency or effectiveness with which the management hasconducted the affairs of the Company.

For ASA & ASSOCIATES LLP
Chartered Accountants
Firm Registration No: 009571N/N500006
S. Sundar Rajan
Place : Chennai Partner
Date : May 30 2017 Membership No: 211414

INDEPENDENT AUDITOR’S REPORT

To The Members of Consolidated Construction Consortium Ltd.

1. Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of ConsolidatedConstruction Consortium Limited ("the Company") which comprise the BalanceSheet as at March 31 2017 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

2. Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgements and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to usthe financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2017; and

b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date;

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

5. Emphasis of Matter

i. We draw attention to Note 5.1 to the standalone financial statements regardingerosion in the Net-worth of the Company and preparation of the financial statements as aGoing Concern based on the assessment of its ability to continue as a Going Concern by theManagement.

ii. We draw your attention to Note 5.7 to the standalone financial statementsregarding uncertainties relating to recoverability of trade receivables amounting to Rs.26292 lakhs and provisions thereon for Rs. 9274 lakhs by the management based on theassessment of recoverability; Further the recoverability of the dues from customers underarbitration amounting to Rs 36642 lakhs depends on the outcome of the matters and workdone unbilled amounting to Rs 15500 lakhs included under the Work-in-progress where theclaims are currently under negotiation/ discussion the impact of which is presentlyunascertainable no adjustments have been made in the accompanying standalone financialstatements.

Our opinion is not qualified/modified in respect of these matters.

6. Report on Other Legal and Regulatory Requirements

6.1 As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

6.2 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 bestof 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 theCompany so far as it appears from our examination of those books.

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

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312017 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 financialreporting of the Company and the operating effectiveness of such controls refer ourseparate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the

Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements- refer Note 5.13 to the financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from8th Nov 2016 to30th December 2016. However we are unable to obtain sufficient and appropriate auditevidence to report on whether disclosures are in accordance with the books of accountmaintained by the company and as produced to us by the management. (Refer note 5.14).

For ASA & ASSOCIATES LLP
Chartered Accountants
Firm Registration No: 009571N/N500006
S Sundar Rajan
Place : Chennai Partner
Date : May 30 2017 Membership No:211414

Annexure-A to the Independent Auditors’ Report

Referred to in paragraph 6.1 of the Independent Auditors’ Report of even date tothe members of

Consolidated Construction Consortium Limited on the standalone financial statements forthe year ended March 31 2017

(i) a. The company is maintaining proper records showing full particulars includingquantitative details and situation of the fixed assets.

b. The company has a regular programme of physical verification of major items of fixedassets at periodical interval. Pursuant to the program certain major items of fixedassets were covered by physical verification during the year and no material discrepancieswere noticed by the management;

c. In our opinion and according to the information and explanation given to us thetitle deed of immovable property being land is in the name of the Company. However thesame is offered as Collateral for the loans taken by the Company.

(ii) As explained to us the inventories including site materials stores andconstruction aids have been physically verified by the management at reasonable intervalsand informed that no material discrepancies were noticed on such physical verification;

(iii) According to the information and explanations given to us and records of thecompany examined by us the Company has granted interest free unsecured loans to itswholly owned subsidiary companies and Step down subsidiary companies covered in theregister maintained under section 189 of the Companies Act 2013. In the absence of anyschedule of repayment we could not report on the overdue amounts as required under clause(iii) of the Order 2013;

(iv) According to the information and explanation given to us in respect of the loangranted investments made and guarantees provided provisions of Sections 185 and Sections186 of Companies Act 2013 read with Rule 11 of the Companies (Meeting of Board and itsPowers) Rules 2014 have been complied with except for charging of Interest on the loansas required u/s.186(7) of the Act;

(v) The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof services provided and are of the opinion that prime facie the prescribed accounts andrecords have been made and maintained. We have not however made a detailed examination ofthe records with a view to determine whether they are accurate or complete.

(vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is not regular in depositing theundisputed statutory dues including provident fund investor education and protectionfund employees’ state insurance income-tax sales tax/Value Added Tax(VAT) wealthtax service tax customs duty excise duty cess and other material statutory dues asapplicable with the appropriate authorities. Undisputed statutory dues outstanding formore than six month from the date it became payable is mentioned in the tabled below:

Name of the Statute Nature of the Dues Amount (Rs) Period to which the amount relates Due Date Date of Payment
Income Tax Act 1961 Tax Deducted at Source 13656650 July 2016 to Sep 2016 7th day of succeeding month Not remitted as on the date of the report

b. According to the information given to us the particulars of dues of income-taxsales-tax/ Value Added Tax(VAT) wealth tax service tax customs duty excise duty andcess which have not been deposited on account of a dispute as at March 31 2017 are asfollows: (Rs in lakhs)

Name of Statue Nature of Dispute Reference Amount Periods to which the amount relates (F.Y.) Forum where the disputes are pending
Kerala VAT Sales made to SEZ claimed as exempt (Extension of benefit in KGST Sought) Assessment No. D/753/ 06/2005-06 dated 31.07.2008 55.10 2005-2006 Appellate Assistant Commissioner Cochin
Karnataka VAT Inputs Rejected by applying the Centum industries judgement i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 31/03/2015 165.77 2010-2011 We appealed with FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore. to justifying the Facts
Inputs Rejected by applying the Centum industries judgement i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 04/05/2015 173.89 2011-2012 We appealed with FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore to justifying the Facts
Karnataka Disallowance of Margin on sub contract portionSecurity service and repairs Order Dated 19.10.2010 34.22 2009-2010 Joint Commissioner of Commercial tax (Appeals) Banglore
VAT Inputs Rejected by applying the Centum industries judgement i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 12/05/2015 224.86 2012-2013 We appealed with FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore to justifying the Facts
Inputs Rejected by applying the Centum industries judgement i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 04/06/2015 180.86 2013-2014 We appealed with FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore to justifying the Facts
Assessment order dated 28/04/2016 488.62 2014-2015 Writ petition before HC Karnataka
Inclusion of turnover of SEZ under Section 6 TNVAT and Stock Transfers Based on Sworn Statement 407.85 Jan. 2007 to March 2008 Commercial Tax Officer Chennai
TNVAT
Reversal of Input Tax Credit for SEZ projects Stock Transfers Unregistered Purchases and schedule rate variation in RMC Notice dated 28.11.2011 552.56 April 2008 to March 2010 Commercial Tax Officer Chennai
Tax is already discharged on receipt basis subsequent year but tax is levied based on WCT TDS Notice dated 26/03/2016 9.51 2008-2009 The Appellate Authority Commercial Taxes (Appeal)-1 Jaipur
R VAT
Tax is already discharged on receipt basis subsequent year but tax is levied based on WCT TDS Notice dated 26/03/2016 8.38 2009-2010 The Appellate Authority Commercial Taxes (Appeal)-1 Jaipur
WB VAT The Sub Contractor expenditure is disallowed Notice dated 3/12/2015 160.6 2011-2012 The Joint Commissioner Commercial Taxes Alipore Charge Kolkata -700034
The expenditure is added back to turnover Assessment order date 29/06/2015 167.62 2012-2013 West Bengal Taxation TribunalSalt Lake Kolkata
Customs Short payment of Customs Duty for import of Equipment on SCN 1908 dated 2.93 2008-2009 Directorate of Revenue Intelligence Mumbai
Duty High Sea Sale 21.02.2013
Stay Order 8022.06 April 2006 - Customs Excise and
Service Tax CENVAT Credit on Capital Goods utilized in discharging Service Tax where Notification 1/2006 is availed No.166 to 169/12 obtainted from CESTAT on 21/03/2012
Sep. 2008 Service Tax Appellate
Tribunal
(CESTAT) Chennai
Order -in- Original No. 19 & 20 /2013 dated 28/02/2013 462.41 Oct. 2009 to Sep. 2010 Customs Excise and Service Tax Appellate Tribunal
Order -in- Original No. 19 & 20 /2013 dated 28/02/2013 263.70 October 2010 to March 2011 (CESTAT) Chennai
Service Tax CENVAT Credit on Capital Goods utilized in discharging Service Tax where Notification 1/2006 is availed SCN 227/2013 dt. 02.07.2013 170.58 April 2011 to March 2012 Commissioner of Service Tax Chennai
SCN No. 243/2014 dated 27/08/2014 19.67 April 2012 to June 2012 Joint Commissioner of Service Tax Service Tax Commissionerate Chennai
SCN No. 02/2015 dated 06/01/2015 21.15 July 2012 to March 2013 Joint Commissioner of Service Tax II Commissionerate Chennai
SOD No. 50/2016 dated 25/05/2016 36.77 April 2013 to March 2015 Additional Commissioner of Service Tax Chennai
Service Tax demanded on Retention monies held by client as the same is yet to receive from Client by us Capital Goods used in SEZ Zone and Order -in- Original No. 65/2011 dated 446.21 2008-2009
Wrong availment of CVD in respect of 30/11/2011 Customs Excise and
'Schwing Boom Placer' and CENVAT Service Tax Appellate
Credit on Capital Goods utilized in discharge Order -in- Original No. 66/2011 dated 30/11/2011 394.74 2009-2010 Tribunal (CESTAT) Chennai
Service Tax demanded on Retention monies held by client as the same is yet to receive from Client by us Capital Goods and Scaffolding Materials which are exclusively used in Airport Order -in- Original No. 50 & 51 -13-14 dated 80.17 2010-2011
22/01/2014 Service Tax Appellate Tribunal (CESTAT) Chennai
Order -in- Original No. 50 & 51 -13-14 dated 22/01/2014 13.76 April 2011 to June 2011
SOD No. 93.07 Sep 2011 to Commissioner of
Service Tax on Works Contract Service
237/2013 Sep 2012 Service Tax
provided to M/s. Bangalore
Service Tax dated Chennai
Metropolitan Transport Corporation
10/07/2013
Bangalore
SOD No. 6.05 Oct 2012 to Joint Commissioner of
29/2014 June 2014 Service Tax II
dated Commissionerate
09/12/2014 Chennai
Short Payment of Service Tax on SCN No. 41.07 April 2011 to Commissioner of Service
Service Tax
Rebate Allowed by the 174/2014 Sep 2012 Tax (Appeals-II) Service
Sub-Contractors dated Tax Commissionerate
23/07/2014 Chennai
SOD No. 20.20 Oct 2012 to Commissioner of Service
30/2014 Mar 2014 Tax (Appeals-II) Service
dated Tax Commissionerate
09/12/2014 Chennai
SOD No 10.22 April 2014 to Assistant Commissioner
01/2017 Sep 2015 of Service Tax
dated Chennai
06/02/2017
O/o No.27/2013 14.78 April 2011 to Customs Excise and
dated January 2012 Service Tax Appellate
30/05/2013 & Tribunal (CESTAT)
Appeal No.59/2013 Chennai
dt. 16/08/2013
O/o No.147/2013 1.02 February 2012 to Customs Excise and
dated 30/12/2013 & March 2012 Service Tax Appellate
Appeal No.17/2014 Tribunal (CESTAT)
(M-IV) Chennai
dt. 03/03/2014
Levy of Excise Duty on manufacture of O/o No.10/2013 dated 28/01/2013 1.62 March 2011 Customs Excise and Service Tax Appellate
Ready Mix Concrete vide Notification (REFUND) & Tribunal (CESTAT)
Central 1/2011 dated 1.3.2011 for removal from Appeal No.32/2013 Chennai
Excise a Batching plant located outside the
(M-IV)
Act 1944 Project location and used exclusively for the project. dt. 26/04/2013
O/o No.02/2013 dated 21/02/2013 & Appeal No.31/2013 (M-IV) dt. 25/04/2013 3.96 July 2011 to March 2012 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Chennai
O/o 10/2014 dated.30/05/2014 & Appeal No. 58/2014 (M-IV) dated 13/08/2014 25.05 April 2012 to March 2013 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Chennai
Order-in- Appeal No. 204 dated 09/01/2014 4.39 2011-2012 ( March 2011 to Jan 2012) Customs Excise and Service Tax Appellate Tribunal (CESTAT) Principal Bench New Delhi
SCN No. 66/2011-12/2273 dt 30.07.2013 4.59 Aug 2012- Dec 2012 Commissioner of Central Excise(Appeals) New Delhi
O/o No.MLR- EXCUS-000- 10.07 May 2011 to Jan- 2013 Customs Excise and
UDDN-JTC-KDK- 029-14-15 dt. 23/07/2014 Service Tax Appellate Tribunal (CESTAT) Bangalore
Central Levy of Excise Duty on manufacture of
Excise Ready Mix Concrete vide Notification SCN 843 dt. 09/04/2014 4.78 Jan 2013 to June 2013 The Assistant Commissioner of Central Excise Division - VI Nehru Place New Delhi
Act 1944 1/2011 dated 1.3.2011 for removal from a Batching plant located outside the Project location and used exclusively for the project.
SCN 22/2014 dt. 28/04/2014 16.36 April 2013 to March 2014 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Chennai

(viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has not defaulted in repayment of dues to FinancialInstitution or banks or debenture holders as at the balance sheet date.

(ix) According to the information and explanations provided to us and examination ofthe books of account Company has not raised any moneys by way of initial public offer orfurther public offer or the term loans. Accordingly reporting as to application of themoneys under clause (ix) of the Order is not applicable.

(x) According to the information and explanation provided to us there were no fraud bythe Company or any fraud on the Company by its officers or employees has been noticed orreported during the year;

(xi) According to the information and explanation provided and records of the companyexamined by us no managerial remuneration is paid or provided during the year; During theyear ended March 31 2014 the company had paid Rs.118 lakh excess remuneration to itswhole-time directors approval for which is pending from Central Government;

(xii) The Company is not a Nidhi Company;

(xiii) According to the information and explanation given to us all the transactionswith the related parties are in compliance with section 177 and 188 of Companies Act2013where applicable and the details have been disclosed in the Financial Statements asrequired by the applicable accounting standards.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review;

(xv) According to the information and explanation given to us the company has notentered into any non-cash transactions with the directors or persons connected with him;

(xvi) According to the information and explanation provided to us the Company is not aNon- Banking Financial Corporation and accordingly registration under section 45IA of theReserve Bank of India Act 1934 is not required.

For ASA & ASSOCIATES LLP
Chartered Accountants
Firm Registration No: 009571N/N500006
S Sundar Rajan
Place : Chennai Partner
Date : May 30 2017 Membership No:211414

ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT

Referred to in paragraph 6.2 (f) of the Independent Auditors’ Report of even dateto the members of Consolidated Construction Consortium Limited on the standalone financialstatements for the year ended March 31 2017 with regard to report on the InternalFinancial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act2013 ("the Act")

We have audited the internal financial controls over financial reporting of ConsolidatedConstruction Consortium Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company’s policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's 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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India".

For ASA & ASSOCIATES LLP
Chartered Accountants
Firm Registration No: 009571N/N500006
S Sundar Rajan
Place : Chennai Partner
Date : May 30 2017 Membership No:211414