INDEPENDENT AUDITOR'S REPORT ON STANDALONE FINANCIAL STATEMENTS

To

The Members of

M/s UNIVERSAL AUTOFOUNDRY LIMITED

Report on Standalone Financial Statements

We have audited the accompanying financial statements of M/s UNIVERSAL AUTOFOUNDRY LIMITED ("the Company"}, which comprise the Balance Sheet as at March 31. 2018. the Statement of Profit & Loss and Cash Flow Statement for the year then ended, and a summary of financial accountlng 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 Section 134(5} of the Companies Ad. 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flow of the Company in accordance with the accounting principles generally accepted in india, including the Accounting Standards specified under Sectioni 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 Safe-guarding of the assets of thei Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records. relevant to the preparation and presentation of the financial statements that give a true and fair view and are free Iron material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken in to 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 there under.

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 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's Judgment. Including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's, preparation and fair presentation of the financial statements 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 management, as well as evaluating the overalI presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

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

Report on Other Legal and Regulatory Requirements

1. 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 of the Act. we give in the"Annexure A"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;

(3} We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit-

(b) In our opnion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet .the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report agreement with the books of account.

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

(e}ln our opinion there are no observattions or comments on the financial transactions,which may have an eanadven5e effect on the functioning of the Company,

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

(g) Report on the internal Financial Controls under Clause (I) of Sub-section 143 of the Companies Act, 2013 (the Act is enclosed as "Annexure B" to this report and

(h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies {Audit and Audilors) 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 impact of pending litigations on its financial position in its financial statements as. refer referred to in Note Q to the financial statements-

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

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

ANNEXURE - A to the Auditors' Report

The Annexure referred to in Independent Auditors' Repot to the members of the Company on me standalone financial statements for the year ended 31 March 2018, we report that:

1. a) The company has maintained proper records showing, full particulars Including quantitative details and situation of fixed assets.

b) As explained to us. the Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner of a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets-c) According to the information and explanations given to us and on the basis of our examination of the records of the Company- the little deeds of immovable properties are held in the name of the Company.

2. As explained to us. the inventory has been physically verified at reasonable intervals during the year by the management. In our opinion, the frequency of verification is reasonable- No any discrepancies noticed on verification between the physical stocks and the book records during the year.

3. As explained to us. the company granted unsecured loan to a company covered in the register maintained under section 139 of the. Act. a) No any agreemerit and terms & conditions prepare by the company regarding this transaction.

4. In our opinion and according to information & explanations given to us the company has complied with the provisions of sections 185 and 186 of the Act in respect of grant of loan, making investment and providing guarantees and securities, as applicable.

5. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits in contravention of Directives issued by Reserve Bank of India and the provisions of section 73 to 76 of any other relevant provisions of the Act and the rules framed there under where applicable.

6. We have broadly reviewed the books of accounts and records maintained by the company pursuant to the rules prescribed under section 14(l)of the Act for maintenance of cost records, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of records-

7. a}According to the information and explanations given to us and on the details of our examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund: income- tax, sales tax. value added tax duly of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of employees state insurance and duty of excise.

According to the information and explanations given to us, no undispuled amounts payable m respect of providenl fund, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2018 for a period of more than six months from the date they became payable. b) According to the information and explanations given to us, there are no material dues of duty of customs which have not been deposited with the appropriate authorities on account of any dispute. However. according to information and explanations given to us. the following dues of duly of excise and service tax have not been deposited by the Company on account of disputes:

3. Based on our audit procedures and according to the information and explanations given to us. we are of the opinion, the company has not defaulted in repayment of dues to a financial institution. bank. Government or dues to debenture holders.

9. The company has not raised moneys by way of initiall public offer during the year.

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

11. According to the information and explanations give to us and based on our examination of the records or the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act..

12. In our opinion and according to the information and explanations given to us, the Company is not a company. Accordingly. paragraph3{xii)of the Order is (9 not applicable.

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected wtth him.

16. The company is not required to be registered under section 45-IA of the Reserve Bank of lndia Act.1934.

Annexure - B to the Auditors' Report 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 UNIVERSAL AUTOFOUNDRV LIMITED ('the Company') as of 31st March, 2018 in conjunction with our audit Of the standalone financial statements of the Company for the year ended on that date, Management's Responsibility for internal Financial Controls

The Company's management is responsible tor establishing and maintaining internal financial controls. 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 company's 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 Companies Act, 2013. Auditors' Responsibility

Our responsibility is to express an opinion on the Company's 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 ICAl 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 168 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 auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

A company's 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 company's 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 authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company'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 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 we re ope rating effectively as at 31 March 2013, 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-