You are here » Home » Companies » Company Overview » Nakoda Ltd

Nakoda Ltd.

BSE: 521030 Sector: Industrials
NSE: NAKODA ISIN Code: INE559B01023
BSE 00:00 | 20 Jul 0.19 0
(0.00%)
OPEN

0.19

HIGH

0.19

LOW

0.19

NSE 00:00 | 20 Jul 0.20 0
(0.00%)
OPEN

0.15

HIGH

0.20

LOW

0.15

OPEN 0.19
PREVIOUS CLOSE 0.19
VOLUME 2307
52-Week high 0.55
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 0.19
CLOSE 0.19
VOLUME 2307
52-Week high 0.55
52-Week low 0.19
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nakoda Ltd. (NAKODA) - Auditors Report

Company 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 MARCH2017 and the Statement of Profit and Loss and the cash flow statement for the year endedand a summary of significant accounting policies and other explanatory information.

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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules2014. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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

We conducted our audit in accordance with Standards on Auditing specified under Section143(10) of the Act. Those standards required that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialStatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsider internal financial control relevant to the Company's preparation of the financialstatement that give true and fair view in order to design audit procedures that areappropriate in the circumstances but not for purpose of expressing an opinion on whetherthe Company has in place as adequate internal financial controls system over financialreporting and the operative effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprove 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the companyas at 31st March 2017 and its profit/loss and its cash flows for the yearended 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 whichconfirmations are not received from the parties are subject to reconciliation andconsequential adjustment on determination/ receipts on such confirmation.

b) Note No.27 (A) (d): Investments classified as long term investments are stated ascost. Provision is made to recognize decline other than temporary in the value ofinvestments. Consequently Investments of the company in the opinion of management fullprovisions 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 hasaccumulated losses and its net worth has entirely eroded the company has incurred lossduring the current year as well as in previous year and company's current liabilitiesexceeded its current assets as at the balance sheet date and these conditions indicate theexistence of a material uncertainty that cast significant doubt about the company'sability to continue as a going concern. However the financial statements of the companyhave been prepared on a going concern basis. The validity of this depends on the revivaland rehabilitation plan of the company by raising additional financing in support of itsbusiness activities to be approved by the Board for Industrial & FinancialConstruction (BIFR).

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

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

The Company and Directors are defending the cases as advised by Legal Experts. TheManaging Director has been arrested by CBI as the CBI has registered Case U/s 120B 420467 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 JointManaging 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 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 accounts of the branch offices of the Company have been audited by us underSection 143(8) of the Act and have been properly dealt with by us in preparing thisReport.

(d) 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 and with the accountsof the branches.

(e) 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.

(f) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedon 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 Auditor's Report inaccordance With Rule 11 of the Companies (Audit and Auditor's) Rules 2014 in our opinionand 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 financialposition 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 forwhich there were any material foreseeable losses.

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

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

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

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 NAKODALIMITED on the Standalone Financial Statements for the year ended 31st March2017.

On the basis of the information and explanation given to us during the course of ouraudit 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 thephysical verification of fixed assests this year and in our opinion it is reasonablehaving regard to the size of the company and nature of its assets. As explained to us inaccordance with its programme no material discrepancies were noticed on suchverification.

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

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

(b) The procedure of the physical verification of the stock followed by the managementis 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 havebeen properly dealt with in the books of accounts.

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

4. In our opinion and according to the information and explanation given to us thereis adequate internal control procedure commensurate with the size of the company and thenature of its business with regard to the purchase of fixed assets inventory and sale ofgoods. During the course of our audit we have observed some Failure to correct majorweakness 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 tothe rules made by the central government for maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie prescribedaccounts have been made and maintained.

7 (a) According to the Information and explanation given to us and on the basis of ourexamination of the records the company amount deducted/accrued in the books of account inrespect of undisputed statutory dues including provident fund income- tax sales-taxwealth tax service tax custom duty value added tax cess and any other materialstatutory dues have been deposited during the period by the company with appropriateauthorities.

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

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

Name of statute Nature of dues Amount(Rs) Period Forum where disputes pending
Income tax TDS late return filling 1536343 2007-08 to 2015-16 Income tax officer TDS-2
Income tax 143(3) 916620970 2013- 14(A.Y) ACIT 1(1)(2) Surat
Income tax 143(3) 113014230 2011-12 (A.Y.) DCIT 1(1)(2) Surat
Income tax 143(3) 3470330 2014-15 (A.Y.) DCIT 1(1)(2) Surat
Sales tax Sales tax 144722786 2009-10 Joint commissioned Commercial tax) Vadodara
Sales tax Sales tax 6096272330 2013-14 Dy. Commissioner of Commercial Tax Ahmedabad
Sales tax Sales tax 2189434 2010-11 Dy. Commissioner of Commercial tax Surat
Excise Excise Duty and penalty 37317779 Various years Appeal CESTAT Surat.

(c) According the information and explanation given to us there has been no delay intransferring of amount of unclaimed dividend to the Investor Education and Protection Fundthis year accordance with relevant provisions of companies act 1956 (1 of the 1956) andrules there under.

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

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

The company has defaulted in repayment of principal amount and interest accrued thereupon 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 31stMarch 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 givento us we report that as per the Bank's & FI's the Company & Directors of theCompany has done fraud with the Bank's and for that Banks have filed suits with DebtRecovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases andcase under SARFAESI Act.

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

The Company and Directors are defending the cases as advised by Legal Experts. TheManaging Director has been arrested by CBI as the CBI has registered Case U/s 120B 420467 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 JointManaging Directors are taken in Judicial Custody by CBI Mumbai.

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

12. Managerial remuneration has been paid or provided in accordance with the requisiteapprovals Mandated by the provisions of section 197 read with Schedule V to the CompaniesAct. The Clause is Not Applicable as No Remuneration is Provided.

13. According the records of the company the company has not obtained any term loansduring 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 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial 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 Auditor's 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 ("theHolding company and its subsidiary together referred to as "the Group")comprising the Consolidated Balance Sheet as at 31st MARCH 2017 theConsolidated Statement of Profit and Loss and the Consolidated Cash Flow statement for theyear ended and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Consolidated Financial Statement").

Management's Responsibility for the Consolidated Financial Statements:

The Holding Company's Board of Directors is responsible for the preparation of theseconsolidated financial statements in terms of requirement of the Companies Act 2013(hereinafter referred as "the Act") that give a true and fair view of theconsolidated financial position consolidated financial performance and consolidated cashflows of the group in accordance with the accounting principles generally accepted inIndia including the accounting standards specified under section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Group and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring accuracy and completeness of the accounting records relevant to the preparationand presentation of the financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility:

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

We conducted our audit in accordance with Standards on Auditing specified under Section143(10) of the Act. Those standards required that we comply with ethical requirements andplan and Perform the audit to obtain reasonable assurance about whether the financialStatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe consolidated financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the HoldingCompany's preparation of the consolidated financial statement that give true and fair viewin order to design audit procedures that are appropriate in the circumstances but not forpurpose of expressing an opinion on whether the holding Company has in place as adequateinternal financial controls system over financial reporting and the operatingeffectiveness of such controls. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made byHolding Company's Directors as well as evaluating the overall presentation of theconsolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid consolidated financial statements give the information requiredby the act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Group asat 31st March 2017 and their consolidated cash flow for the year ended onthat 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 ofConsolidated Financial Statements as their long terms restriction on fund transfer asestimates 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 thecertificate of management.

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

The Company and Directors are defending the cases as advised by Legal Experts. TheManaging Director has been arrested by CBI as the CBI has registered Case U/s 120B 420467 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 JointManaging Directors are taken in Judicial Custody by CBI Mumbai.

Report on Other Legal and Regulatory Requirements:

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Annexure" Statement on the matters specified in paragraphs 3 and 4 of the Orderto 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 bestof our knowledge and belief were necessary for the purposes of our audit of the aforesaidconsolidated financial statements.

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

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

(d) In our opinion the aforesaid consolidated 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 holding directors ason March 312017 taken on record by the Board of Directors none of the directors isdisqualified 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 Auditor's Report inaccordance With Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 onits financial position in its financial statements.

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

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

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

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

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 NAKODALIMITED on the Consolidated Financial Statements for the year ended 31st March2017.

On the basis of the information and explanation given to us during the course of ouraudit 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 thephysical verification of fixed assests this year and in our opinion it is reasonablehaving regard to the size of the company and nature of its assets. As explained to us inaccordance with its programme no material discrepancies were noticed on suchverification.

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

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

(b) The procedure of the physical verification of the stock followed by the managementis 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 havebeen properly dealt with in the books of accounts.

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

4. In our opinion and according to the information and explanation given to us thereis adequate internal control procedure commensurate with the size of the company and thenature of its business with regard to the purchase of fixed assets inventory and sale ofgoods. During the course of our audit we have observed some failure to correct majorweakness 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 companypursuant to the rules made by the central government for maintenance of cost records undersection 148(1) of the Companies Act 2013 and are of the opinion that prima facieprescribed accounts have been made and maintained. In Case of Subsidiary company thecentral 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 ourexamination of the records the company amount deducted/accrued in the books of account inrespect of undisputed statutory dues including provident fund income- tax sales-taxwealth tax service tax custom duty value added tax cess and any other materialstatutory dues have been deposited during the period by the company with appropriateauthorities.

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

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

Name of statute Nature of dues Amount(Rs) Period Forum where disputes pending
Income tax TDS late return filling 1536343 2007-08 to 2015-16 Income tax officer TDS-2
Income tax 143(3) 916620970 2013-14(A.Y) ACIT 1(1)(2) Surat
Income tax 143(3) 113014230 2011-12 (A.Y.) DCIT 1(1)(2) Surat
Income tax 143(3) 3470330 2014-15 (A.Y.) DCIT 1(1)(2) Surat
Sales tax Sales tax 144722786 2009-10 Joint commissioned Commercial tax) Vadodara
Sales tax Sales tax 6096272330 2013-14 Dy. Commissioner of Commercial Tax Ahmedabad
Sales tax Sales tax 2189434 2010-11 Dy. Commissioner of Commercial tax Surat
Excise Excise Duty and penalty 37317779 Various years Appeal CESTAT Surat.

(c) According the information and explanation given to us there has been no delay intransferring of amount of unclaimed dividend to the Investor Education and Protection Fundthis year accordance with relevant provisions of companies act 1956 (1 of the 1956) andrules there under.

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

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

The company has defaulted in repayment of principal amount and interest accrued thereupon 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 31stMarch 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 givento us we report that as per the Bank's & FI's the Company & Directors of theCompany has done fraud with the Bank's and for that Banks have filed suits with DebtRecovery Tribunal and also filed FIR with the CBI. Banks have also filed civil cases andcase under SARFAESI Act.

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

The Company and Directors are defending the cases as advised by Legal Experts. TheManaging Director has been arrested by CBI as the CBI has registered Case U/s 120B 420467 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 JointManaging Directors are taken in Judicial Custody by CBI Mumbai.

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

12. Managerial remuneration has been paid or provided in accordance with the requisiteapprovals Mandated by the provisions of section 197 read with Schedule V to the CompaniesAct. The Clause is Not Applicable as No Remuneration is Provided.

13. According the records of the company the company has not obtained any term loansduring 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 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial 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