S S HOTHNRI M€HTN & COMPNNVCHARTERED ACCO U NTA NTS

lndcpendent Auditor's Report

To the Memb€rs Saboo Coatings Private Limited

Report on the lnd AS FinancialStatements

We have auditcd ihe accompanying tnd AS financjit stdtements of Saboo Coatings privatetimited ('the Company') which comprtse the Balance Sheet as at March 31,2018, thestatement of profit and oss (including other comprehensjve income), the Statement of CashF ow and the Statement of Changes ln Equity for the year then ended ancl a summary ofsignlficant accounting policies and other explanatorV inform.tion

Management's Responsibilitv for the Financial Statements

The Conpany's tsoard of Directors is responsible for the nratters stated in Section 134(5) ofthe Companies Act, 2013 {"the Act") \/ith respect to the prepara|on arld presentation ofthese nd AS financia strtements that give a true and fair view of the financial position,financlai performance incl!ding other comprehens ve income and c.sh fiows and ch.nges rn

-aquity of the Company ln accordance with the accounting princlp es genera ly accepted inndia, inc uding the lndlan Accounting Standards { nd AS) spccified under Section 133 ol the

Act, read with relevant rules issued thereundcr.

This responslbllity also inclrrdes maintenance of adequate acco!nting records ln accordancewith thc provisions of the Act for safeguarding the assets of the Compa ny and for preventingand detcctng f.auds and other irregularttes, selecton and appication of approprlateaccounting polictes, making judgrnents and estimates that are reasonable and prudent, anddesign, lmplementation and maintenance of adeq!ate interna lnirncia controls, that wereoperdting eflectively for ensuring the accuracy and conrp eteIess of the rccounIng recofds.relevant to the preparation and presentation of the tnd AS financia statements that give atrue and falr view and are tree from material misstatement, r!hcther dLre to fraud or er ror.

Audiior's Responsibility

Our responsibi ity is to express an opinion on these nd AS financial staterfents based on our

We havc taken into nccount the provisions of the Act, the -ccouni ng and aLrcllIng standardsand .natlirrs which are required to be jn.luded in the a!dii report under the provtsions ol theAct and the Rules r|ade thereunder

We conductcd our audit in accordanc-A with the Standards on A!diting specjfied under subsectron 10 of section i43 of the Act. Those St-ndarcls require ihnt ,.,r'e conrp y w th cth calrequ rcments and plan and perform the aud t to obta n reasonable assurance about \r',/hetherthe lnd AS financia statements are free frorn rnaterial rnisstaternenl.

5.f .O. 19, lst floor.

Pnncrk!all.llllf'lr!).e:0172 5 06ri3li )

i nii : . r.la4!skmin.{ onls!k.hd@gJrn..iollr

5. S- HOTHORI M€Hfn & COnPnNy

An audit involves performing procedures to obtain a ud it evidence about the amounts and thedisclosuras ln the ind AS financlal statements. The proce.lures selected depend on theaudltor's judgrnent, including the assessment of the risks of m;terial nrisstatcrnent of the ndAS financial stat€ments, whether due to fraud or error. n mak ng tho5e rtsk assessments? theauditor considers lnterna f nancia control re evant to thc Company,s preparat on of Lhe lnclAS fina n cia I staternents th at give a true and fa r vlew ln order to desifln a !dit procedures thatare appropriate in the circumstances, An audlt also lncludes evaluating the appropriatenessof the accountirg policies used and the reasonableness ol the accoufting estimates made bythe Company's Directors, as wel as eva uatinE the overa I presentaIon oi the nd AS fjn:n.lil

We be ieve that the a!dlt evldence we have obtained ts suffic ent ancl ippropr ate to prov dea basis for our a udit opinion on the tnd AS financia statements

Opinion

ln our oplnion and to the best of our lnformation and accordlng to tt)e !rpl-nations given torrs. the aforesald Ind AS financlal statements give the information requ.ed bV the Act jn themanner 5{] required and give a true and falr view n conform ty with the accounLing princip esgenera ly accepted in lndia including the lnd AS, of the f nancia posit on of the ConrpdIy dsat March 31, 2018, and its financial performanca tnctucl ng other comprehensive tncome, itscash f o\/s and the changes neq!ityfortheyearendedonthatdate

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Audltor's Report) O.d.:r, 2016 (,,the Orcl-"r,,) issued by theCentra covernment of ndia in terms of sub sectton {11) of section 1,13 of the Act, we g !e inthe 'AnncxLrre A' a statement on the matters specified in prragraphs J nnd :l of the order.

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

(a) w€ have sought and obtained al the information afd explanations which to the bost olo!r knowledge and bellefwere necessary for the pLrrpose ofour audit:

(b) n our opin on proper books of account as requi.-.d by avr' have b.,en kept by theCompany so far as it appears from our exa m:na tio n ol those books;

(c) thc 8a ance Sheet, the Statement of profit .nd loss (inctud ng other comprehenstvencome), the Statement of Cash Flow and StaterneIt Of Ctrang. n Eq!ity dealt w th bV

this reDort are in agreemenL with the books of account;

(d) in our opinion, the aforesaid nd ASfnancal statements comp y w th the AccountrngStandnrds specified under Section 133 of th-" Act read witlr relevant rute issuedthereunder;

S. S. HO|HARI MCHIN & COMPANV

Place: ChdndigarhDate: lO.o5 2, rd'

Har;sh Gupta

cn)bcrsh p ll! nber u98ll6

(e) on the basis of written representa|ons rcceived lrom the directors as on Mrrch 31,2018 taken on record by the Board of Directors, none of the directors is disqualifie.i ason iMarch 31, 2018 from being appotnted as a djrector n terms of s!b section 2 oisection 164 of the Actj

(c)

(0 with respect to the adeqLracy of the internal financial controls ovcr ftnancia report ngof the Company and the operaIng effectiveness of such contro s, refer to our separateReport in "Annexure B"j and

with respect to the other matters to be nc uded in the ALrd tor,5 Repo.t in accordanLe!vith Role ll of the Companies (Audit and Auclitors) Rules,2Cr.t4, n our opinioh dnd tothe best of oLrr lnformation and according to the erplanat,ons g ven to usj

r. the Company has disc osed the irnpact of pending itigations on its financia positionln ils lnd AS lrnancialstatements refer note 34 to the tnd-AS financia statemcnts.

ii lhe Company dld not have any ong term contracts inc uding dcr:val ve contracts tor!r/hich there were any rraterlal foreseeable os5es.

iii. there were no amounts which were requjred to be transferred to the lnvestorEdLlcatlon and protection Fund by the Company.

Fo S. S. l(othari Mehta & Company

Firm's ReBistr.ltioj Nunlber 022!SON

Cha rtercd Accountants

5. S. KOIHAR| MaHfn & aOMPnNv

"Annexure A" to the lndependent Auditor's Report

The Anfexure -s referred in paragraph (1) 'Report on orher Legal and RegutatoryRequirenrents of o!r lndependent A!ditors' Rcport to th-' member5 ol Saboo CoatingsPrivatc Limited on the iinancia statements for lhe year endcrl Mar.h :11, 2018, lve reporttha tl

(i) The Conrpany has mnintained proper recorde show ng fu lpirrt cu.rs, includ ngquantit.tivc dctn ls and sitLraljon of property, p ants .n(l !q!ipment (f i.d assets)

{b) The fired assets have been physica ly verllied by thc nr;rnag,:nr-"nt :Lcorclirlg to theproBramme of periodlcal verifcation ln phased rainner over a perod ol thrce ycars\rhich, in cLrr opinion, is rcasonable having regirrd io the size oi lhe CornpnnV and theretrre ol ts fixed assets. Purs!anl to the orcgi-m, ceria r fixel a!9-ats u/ere physicalyver li-ad bV th," rnanagement durng the year Accordng to the nformatlon inderplaratlons given to us, no mater a di5crepan.ia! r"rere riot...lon 5!.h vl]rilic.t cn.

{c) Accord ng to the lnformat on and exp anations glven to !s :ind on thc basis of orrrexirminntion of records, the Company does not have nny inrmovable property lnrerpectol rnmovirbeprope.tyofbuldingthath.!rbeent-(enor cnseanddsclosedns Irroperty, P ant and Eq! pri-anls in thc flnarcin ttater|ellt!, thc c:rre agreementsa.e n th-a Iarn-o ol compirn!

We have been exp a ned by thc managerfent that the r!entor,,/ have beerr phy5i.rllyverilied at reasonnb c interva s during the vear A5f.rirswecannscertnlnandaccordtngto informetion and exp anations given to !s, th| discrepanc rs, r/r'hanever naterianoliced on such physica verfcation of inventorV as conrpareai io bcol recor.ls u/crcpror-ar y deilt with n the bo oks of dccounts

The Cornpany has not granted rny oans, secured or un5ec!r!.1 to comprn e5, Irms,Limited Llabi ity Partnerships or other parties covcrcd in the Re?ister rna ntained undersccl of 189 of tir,a A.t

A..orrlingl!, ihc prov s ons of c ause,? (l i) (al Lo (rl of lli. Orc..r ire .ct rppt i.b c toihe Company

Ac.orciirg lo the inlormation and explan.tions t vcn to u! thc { ompany has nor mndcaf\r, olns and in,,/estffents under the prov s cr al ! ect oI t 85 a |d 186 of thc Act

ALcording y, provlsion ol c duse 3(iv) of "the oder" ls not iipp cJb:e to thc Cornpany.

v. The Company has nol accepted deposlts durlng rhe year aId docs not havrt anyLrnc aimed deposits as at March 31, 2018 and the.eforc, the F.ov slons ol the c ause3(v)oi the order arc not appllcab e to the Comp-n,,'.

vi AcLoftling to th.r lnforrration and explanirtjons g\rcn tc:s, r-ll aomDirnies Act,2013ha5 not prescr bed maintenance of cost rccord5 !nder ie.iirn t48itl oi rhc Act n

s. s. HofHnBt GHfn & coMpANv

respect of the production carried out by the company. Thereforc, provision of the c ause3(v ) of the Order is not a ppllcab e to the company

vii. (a) According to the informatlon and explanations given ro !s and on the basis ofexamination of the records of the Company, the Company ts generaly regular indepositing !ndisputed statutory d!es incuding provident lund, employees, s!ateinsurance, sa es tax, goods & service tax, income tax, service tax, goods and service tax,custom duty, excise duty, va ue added tax, cess an,l dny ctl)er fftaterlal statLltory duesw lh thir appropriate authorltles to the exten! applicab c, e.yc€pa there hos been dightdelays in few.{rsei. FLrrther/ there ire no undlsputecl staturor! dues payable for a

period of more than s x months from the date they become payable as at March 31,2018.

(b) Accordlng to the records and information and erp anat ons gjvcn to us, there are nodues in respect of lncome tax, sa es tax, service tax, goods and service tax, duty ofexcise, duty of custom, or va ue added tax which have not bean deposited on accountof iny dispLrte except as given below:

vil . ln oLir cpin on, on the basls of a!dit procedures arC accofding to the nformatonandexp anations givan to us, the Company has not delaui(ed n repayi !nt of loan orborrowing to any banks and financial instltutions as at 8a .nce Sheet cl:rtc.

Name of Nature of Period towhich

amou ntrelates

Amount involved(Rs. ln Lakhs )* dispute is

pe nding

Act, 19 61 AX

1995 96 ?)1rl Bh Court

As per lnformat on and exp anailon g ven to us thc aompany hnd not taken any loan orborrowings from the goveTnment,

x. According to th-. inforrnation and explanatlons g ven to us, the Co np;Jjv has not raisedmoney by way of initia publ c offer or further pub ic olfcr (inclLrding dcbt instrunrenis)dur ng the year The company his not taken any term loall dL]l ng the f nancial ye.rr.

x. Accordjng to the information and explanations given to us, no nstancc offraud bytheCornpany or on the Company by its officers or ernp oyees iras b!en noIced or reporteddurlng the year.

According io the information and expanatlcns gvcn to Lrs and based onex.m nation of the records ot ihe company, 1nr company las pa d/ provided

anageria remunerat on in accordance with the requis i. approva s rJlandated byprovisrons of sect on 197 read \rlth Schedu e V of tne Act.

s. s. ,{ofHant MeHfn & cotnPnNy

xii. ln our opinion and according to the information and erpanations given to us, theCompany is not a Ndhi Company. Accordingy, cause 3(xtl ol tt)e Order is notapplicab e.

xiii. According to the information and expanatons given to Lrs and based on ourexamlnatlon of the record of the Compa ny, transactions with the re ated partres are n

compliance with section 188 of the Act where app icabtc and detais of s!chtrrnsactions have been djsclosed ln the tnd AS financial statements as rcq!ired by thea pplica ble Accountlng standards.

The provislons of the section 1lJ of the Act ls not app i.abte to the iompany.According y, provislon of the c ause 3{xi) of the Order in so far as tt relates to sect on177 ofthe act is not applicable to the company

xiv. Based upon the audlt procedures performed and the nforniatloq and expl.nntionsgivcn to us, the Company has not made any preferentia n lotrnent of shares d u ring th€Vear under revlew. ConseqLrently, provlsions of caLrse (xiv) ol the order arc notapp ica ble

nccording to the information and explanations glver] to Lrs ancl basecl on ourelaminal on of the records of the Company, the Company has nct entered into non,cash transactlons with directors oT peTsons connected \{,th him Accordingy,provisions of cla use 3(xv) of the Order is not a pp icable.

xvi. The Company s not required to be registered undcr Sect on ,1: A Df the Rescrve Bankof lndla Act, 193 4. According y, provlsions of c a use 3(xvi) of thc Order s not app icable.

For S. S. Kothari Mehta & CompanyChartered Accountants

Flrm's Reg st13ilo! Nu

Pldce:ChandigarhDate: lo.o5.2aid'

Harish GuptaPa rtne r

bcrship Number 098336

;^,,u

S. S. KO|HNNI M€H|N & COMPNNI

"Annexure B" to the lndependent Auditor,s Report

Report on the lnternal Fjnancial Controls under Clausethe Companies Act, 2013 (,,the Act,,) as referred to inLegal and Regulatory R€quirements/ section

(i) of sub'sccrion 3 of Section 143 ofparagriph 2{f) of'Rcport on Other

We hnve aud tcd the internal flnancial controlsoverfnancia reporttrrg of Saboo CoatingsPri,,,ate Limited ("the Company,,) irs ol March 31, 2018 in conl!nctirrn w th o!r aud t of thend AS fin:rncial statcments of the Company for the year ended on ihrt .l.te

Management's Responsibility for lnternal Financial Controls

The Company's management is responsib e for estab ishirg and mainlnining interna f n. n ciacontrol5 based on the internal .nnirol .ver financtn reportrn: cr 1-.r a estab ished by theLompany considering the essential cornponcnts of intcrna .c.rtrot stat€cl in the cLr LlanccNote on Audit of tnterna Financa Controls over Firlanca Report nl js!Lted by the nsttuteof Chartered Accountants of ndta (lCA). These responsibilite1, inc u.l-" the dcsign,implementationandmaintenanceofadequate nterna lfJncia cont.ols that were operattngeflective y for ensur ng the order y and efftcient corjdL ct of jts bus n-.ss, inc uLl ng ad herenceto Cornpany's po icles, Lhe safeguarding of its asscts, the preveJ)tion an.l deie.tion ol ir.udsand errors, the accuracy and completeness of Lhe aacounling rcaords, nnd the tmelypreparation of re iable financ al informatjon, as requ re.l under ihc Ccrmprnie! Act. 21J13.

Auditor's Responsibility

our responsibiiity is io express an op n on on the corfpirny s niernn fifrnca contror5overf nnncia reporting based on our a!dit.

We conducted our audit in accordance with the cuidancl: Note on ALiilit of fierna F nanciaContro s Over Financ a Reporting and the Standarcls on AudiIng, tss!r:d by tCAt and clcemeclto bc pre!cribed under section 143(10) ofthe Compantc5 Act,2013, tr Lhe extent applc;b eto an aLrdit of interna financia controls, both app icab e to an au!ltt of nternat F nanciaControsinLl,bothis!LredbythetnstiiuteofCharteredA.counti]ntsol ln.l;;. fhoseSt.na:r.jsand the Guidance Note require that we comply \,vjth e1hic, req!i.erncnL5 ancl pan andperform the audlt to obtain reasonab e assurance about n,helhcr adrqua t{: internallifanciacontrols over financal reporiing was estabIshed anct maintaine. nnd f such controlsoperated effect vely in ai materi.l respecl5

Ou. a!dit n!o vcs perlormtng procedures to obtain audit evid e I ce :rb(rut the e.lequacy ot theinterndl f nancia controis systern over financia repo(ing and thcir rpcraiItl: efrectiveness.Our audit of interna flnancial contro\ over financial rcporting rnc!ded obtarn ng:n!nderstanding oI nterna] financia controls over finarcia rcporting, .ssessing the risk that amaterialweakness exrsts. and testing and eval!ating the desigf and operaIng effecIvenessof intern-l control based on ihe asses5ed ris\ Thc p oceLlu.e5 9F ected .t-epend on theauditols judgement, inc udlnB the assessment of thc r 5ks ol mater rl nr s5tatemcnt o1 thelnd aS finrncial staterir-ants, whether due to fraud or ertu)r

s. s. HofHont MeHfa & coMPnNy

P a.e: ch. ndigarhDa\c l\.o 5,z-et&,

partner

b!isirlp ILrn]ber: 09!1136

We bellc\,e Lhat the aLrdit evidence we have obtnined s sufftcicIt an.l .ppropri.te to providea basls for oLrr aud t opinion on tho Corr1pany,s interia t.anciFtrontrotssysr.nroveriin,lnciareporting

Meaning of lnternal Financial Controls over Financial Reporting

A Comprnys nternal financia contTo oveT finrncal reportifg is a procc5s deslgned toprovide reasonabe assurrnce regarding thc reiabillty ol fnan.a reporting afd theprepnration ol nd nS fifancialstaterients for erterna pr rposes in ac.ordance with eenera lVaccepted accounting prlncples A Companys jntern.| firrn.tcl.l aontro over fnnfcareporllng lncludes those po clcs and proced!res thrt (j) p!rt;i,r to the nainte;ance ofrccords th.t, ln reasonab e detail, accuratc y dnd fr rV nrflc.1 thc rrnr)sactions anddisposit ons of the nssets of the Companyj (2) prov de reJsonal-rle arsi .ance ih.rt transact onsare r-eco ed as nccessary to permit preparation of nC A! fjnancia stiitcn entg n accordi cewith generniV .ccepted .cco!nt ng princ p es, irnd tha,. r-pcc ots ;nd erpenditures of theCompany are beng m-de ony ln accord.nce !vtl.r!tho !.ttcr! ol ntrnagerNent nnddirs616;., .1 the Conrp.ny: and (3) provtde rcnsofab e ;ssLr.e rcc r.gird ng prev-o jL on ort m,"ly CeLectiof of !.iulhoriscd acqulsition, use, or dispos titrf cfthi. Crmp:iry s a5spts that.ould have a materia cffeci on the nd AS finan.ia sr.teme.i\

lnherent Limitations of lnternal Financial ControJs over Financ;al Reporting

Becd!sc of lhe lnhereni inr tat ons oF interna finnnc a aontro s rj,.,ei f narnaia reporl ng,lnc udine the possib I ty ol col usion or improper man.gc menl ovear i e iij coItrrjl5. a:eriam sstatements duc to error or fra!d fitay occur rnd nal le detected. ,\ so, p rrjecilonr of irnVcva uatron of the nterna financia controls ovcr I nant d rrrport n! tr tLrlLrre per o(ls aresLrblecl to the rist that the lnternnl finrncta conLro or.,er frincai reportfg.nay beaomelnadcquale because of changes n condltions, or thnt ihe di,ijrel: Oi comir irnce with thepo cics o proccd!res rnry deter or.ttc

Op in ion

ln our opinion, the Company has, in at m.teria respccts,:in a{lequ;rte nternr fn.nciacontrois 5ystem over fillafcia reporl ng dnd guch interfai fij)enc a contro s over f nanc air-aportlng were operat ng elfectlvely as at March 31, 2018, base{l on tlre ntcrna control overflna.ci. reportingcriteriaestabljshedbytheCoorpanyconsdcingth.,csserrtiir compon€nrsol interndl contro stated in the Guidance Note on Audlt oi nterna []nanciJ ControsOvefFinancial ReDortlng issued by the tnstltute of Charterect Accountants .,f n.l r

For S. S. J(oth.ri Mehta & CompanyLlh.rter cd Accountants

Harish Gupta