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• AKSH has produced a series of statements disclosing the particulars of stock of materials lying with various contractors. These statements are unsigned by any one and must be ignored. Similarly, the statements of contractors on record cannot be linked to supply of materials to the Company. These statements cannot have any evidentiary value and are liable to be ignored. The insurance policies relied on by AKSH cannot prove the existence of goods, in the absence of the stock register maintained by the Company. The auditors' report dated 10.07.2006 forming part of the balance sheet for the year ended 31.03.2006 would indicate that no physical verification of fixed assets has been carried out. AKSH has played fraud on the petitioners, APTS and the Government of Andhra Pradesh by siphoning away the entire funds, at the project implementation phase itself and benefited AOFL by supplying poor quality fibre cables through AKSH to the Company's project. AOFL invoiced AKSH for Rs. 75 crores, while the latter invoiced the Company for over Rs. 110 crores. The auditors' certificate dated 05.02.2007 roduced by AKSH certifying supply of equipments and materials by KSH under the EPC Contract during the years 2005-2006 and 2006-2007 (upto 30.09.2006) for an aggregate sum of Rs. 152 crores inclusive of project management fees is under serious dispute. AKSH was not regularly paying the contractors for the work done towards implementation of the project. The outstanding bills presently account for Rs. 9 crores, for payment of which no action has been taken by AKSH, inspite of the intervention of the Government of Andhra Pradesh. The second petitioner was constrained to arrange funds for some of the contractors in excess of Rs. 60 lakhs and paid salaries to the employees which can be produced by adducing oral evidence. These misdeeds of the respondent Nos. 2 to 5, apart from being oppressive and illegal are against the interests of the Company. The petitioners could not have ventilated their grievances before the Company, as the respondents are the majority shareholders. If the work executed by AKSH is evaluated, it would be evident that AKSH has overdrawn an amount of Rs. 82.6 crores from the Company. AKSH never had the capacity to execute the EPC Contract.