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AARIFA PART HISTORY OF KASHYAP B L Kashyap and Sons Ltd is a construction and infrastructure development company with a pan

India presence. Their service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial and residential complexes, malls and hotels. The company's operations extend over North, South and Western India and are coordinated through the corporated office at New Delhi and regional offices at Bangalore and Pune. The company major projects includes The Grand Great Eastern Hotel in Kolkata, Biocon Research & Manufacturing Facility in Bangalore, Britannia Biscuit Plant in Uttarakhand, Carraro India Factory and Office Complex in Pune, Escorts Heart & Research Institute in Faridabad, Jaipur Golden Hospital in New Delhi and Specialty Cardiac Center for Fortis Healthcare in Mohali. B L Kashyap and Sons Ltd was incorporated on May 8, 1989 as B L Kashyap and Sons Pvt Ltd and subsequently converted into a public limited company on June 7, 1995. Then the name was changed to B L Kashyap and Sons Ltd. In April 2005, the company acquired 11000 equity shares of BLK Furnishers & Contractors pvt Ltd, thereby making the company as a wholly owned subsidiary company. In November 2005, the company formed a wholly owned subsidiary company with the Soul space Projects Ltd to focus mainly on the residential sector. In May 2006, the company bagged new projects worth over Rs. 3700 million for nearly 5.17 Million sq ft all over India. The company was among the top five construction companies in India for the year 2006 which was listed by Construction World in January 2007. Also, the company was ranked 249 on the Bangalore Times 500 list of India's most valuable companies. In May 2007, the company bagged fresh construction orders for Rs. 1007 crore. In February 2008, they bagged a new project worth over Rs. 1100 crore and in March 2008, a new projects worth Rs. 344 crore, for construction of 3.60 million sq ft of space. One of India's fastest-growing construction firms has been charged with carrying out the country's biggest provident fund (PF) evasion. BL Kashyap and Sons Ltd whose clients include Microsoft, IBM, Taj Hotels and Delhi's international airport has been asked to fork out Rs 593 crore in PF dues and penalties.

Incorporated as a limited company in 1989, BLK is now promoted by his sons Vinod Kashyap, Vineet Kashyap and Vikram Kashyap, and managed by a team of management and industry professionals. Today, BLK is one of India's most respected construction and infra- structure development companies with a pan India presence. Our service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial & residential complexes, malls and hotels. MANAGEMENT Professional management is what distinguishes BLK and provides us with strategic advantage. Our management cadres are staffed by veterans with professional education and years of hands-on industry experience. A flat and decentralized organization with clearly defined structures and open lines of communication ensure that everyone on a project is on the same page at all times. The advantage - rapid and quality decision making and efficient trouble shooting where needed. What separates us from the rest is our distinct management style and the professionalism of our staff of over 1850. This enables us to provide superior quality and wider range of construction services anywhere across the nation . INFRASTRUCTURE Behind BLK's ability to offer world-class construction solutions is modern infrastructure across our offices and works establishments in North, South and Western India. At the heart of our success is the perfect blend of man and machine, working in unison and to a precise plan, to create world-class constructions and infrastructure. Continuing investments in machinery and equipment backed by consistent repairs and maintenance allows BLK to provide customers with world-class constructions at any location.

PROJECT MANAGEMENT BLK's success and reputation of excellence is a direct result of our superior project management systems. This ensures perfect synchronization of manpower,

Services INDUSTRIAL BLK undertakes turnkey construction of industrial facilities. From automotive plants to biotechnology plants, from food production facilities to newspaper printing facilities and more, BLK has done it all. We understand that time is money and have been known to complete the most demanding projects on or before time, to exacting standards.

RESIDENTIAL With the growing demand for quality housing across the country, the development of residential complexes and high rise apartment blocks has emerged as an industry in itself, calling for specialized skills and ability to deliver at shorter time frames. BLK has emerged as a leading name in the segment, and has to its credit many of the landmarks around the country. From budget apartments to the super-premium category, BLK has delivered outstanding residential spaces on time and to defined costs for some of India's most discerning builders. IT CAMPUSES BLK has constructed some of the finest IT campuses that dot the Indian landscape for leading Indian and Fortune 500 companies. Built to exacting specifications and standards, these campuses have been widely acclaimed and have established BLK as the preferred contractor for discerning companies.

COMMERCIAL BLK has to its credit the construction of corporate offices of major Indian and foreign MNCs. With a clear agenda of excellence in every detail, these offices have become landmarks in every city of their location, fusing design with execution and cost with

quality. HOTELS
The most respected names in the hospitality industry turn to BLK when they need construction par excellence. From luxury seaside resorts to super luxury urban hotels, BLK has delivered to exacting briefs, transforming design into hotels that are the pride of their owners

SCHOOLS & COLLEGES BLK has the unique distinction of having built infrastructure for many of North India's leading institutions. We understand the unique needs and systems of educational institutions and leverage our expertise of working with industry to create world class spaces. RETAIL/MALLS/MULTIPLEXES The country's thirst for leisure spaces has increased manifold in the recent past. The demand for worldclass shopping and entertainment spaces is on the rise in both metros and Tier II cities. BLK is currently in the process of executing some of the biggest malls in North India. HOSPITALS The healthcare industry sets very stringent criteria when it comes to construction. With function as the top priority, followed by ergonomics and aesthetics, we know what it takes to build world class healthcare facilities, having successfully constructed some of the country's most reputed super-specialty hospitals and healthcare centers MELANIE PART PROVIDENT FUND SCAM One of India's fastest-growing construction firms has been charged with carrying out the country's biggest provident fund (PF) evasion. BL Kashyap and Sons Ltd whose clients include Microsoft, IBM, Taj Hotels and Delhi's international airport has been asked to fork out Rs 593 crore in PF dues and penalties.

The Employees' Provident Fund Organisation (EPFO) has warned that if the company fails to pay up by August 15, recovery proceedings will be initiated against it for evasion of workers' PF payments from April 2005 to December 2010. Shares of BL Kashyap & Sons were down 20 per cent to hit a lower trading limit after ET's report. However, the company denied any wrongdoing, saying the EPFO order was "totally erroneous, misconceived and perverse on various grounds." At 9.29 a.m., shares of the company were down 20 per cent to Rs 15.20. The country's retirement fund regulator has also filed a police complaint against top officials of the company for forging employee muster rolls and submitting fake records, after a forensic analysis revealed the same thumb impression had been put against the records of several employees. BL Kashyap and Sons, however, denies any wrongdoing and says the EPFO order is "totally erroneous, misconceived and perverse on various grounds". "No employee has complained against us. Moreover, no beneficiary(ies), for whom the recovery is being made, have been identified," said a company statement. "It can be verified that we are making more EPF contributions than many other construction companies though their turnover is more than us. We are examining the order and shall take appropriate legal recourse available to us at the earliest," the company said. The provident fund rules stipulate that 12% of the basic salary of all employees earning up to Rs 6,500 a month must be compulsorily deposited in their PF accounts. The employer makes a matching contribution. Last month, the Central Bureau of Investigation (CBI) had booked nine senior EPFO officials and top officials of the company for criminal conspiracy and forgery, estimating wrongful gains ofRs 169 crore for the firm. But the PF department has alleged the actual evasion could be nearly four times the CBI's estimate. Between 2006-07 and 2010-11, BL Kashyap and Sons excluded nearly 71,000 workers from PF benefits, according to the EPFO order. The regulator received several complaints between 2005 and 2009 about the company denying retirement benefits to workers across its construction sites. The EPFO found huge variations in the wage payments booked by the firm in its audited balance sheets and the records submitted to the PF office, leading to suspicion that it

employed more workers than it claimed. Regional PF Commissioner Gautam Dixit, who is in charge of the Delhi (South) PF office, passed the order against the company on July 29 after nearly six months of investigations and 20-odd hearings with the company. The Rs 593crore notice served by the EPFO includes about Rs 437 crore that the firm should have paid into workers' retirement accounts, and penal interest of Rs 156 crore, as per the assessment order in ET's possession. Shares of BL Kashyap closed at Rs 19.15 on Wednesday. The firm's employee costs amounted to Rs 544 crore in 2010-11, when it made a profit of Rs 48.8 crore on revenues of Rs 1,586 crore. The company's board is expected to meet on August 12 to approve its first quarter results. According to the EPFO order, the company deprived workers of their PF benefits by claiming that all 'excluded' employees earned more than Rs 6,500 per month. However, wage payment records revealed that thousands of such workers got much less than Rs 6,500 per month. This, the company argued, was because workers were proceeding on 'leave without pay', though it failed to back the claim with leave registers. "This argument can be true for some workers at some sites in some months, but not for thousands of cases every month across all sites... This implies that in almost every month work would come to a standstill or suffer heavily, since large numbers of workers were on leave without pay," the EPFO order noted. Bogus records for employees excluded from PF benefits were nailed when they were sent to two forensic labs for verification, including the Central Finger Print Bureau under the home ministry. The analysis revealed that the wage rolls of several workers bore the same thumb impression. In July, the CBI had booked an additional central PF commissioner and eight other officers for entering into a criminal conspiracy with BL Kashyap's top officials. The CBI found that PF officials actively helped the company create false records in respect of certain employees and manipulated the firm's provident fund dues by 'inflating' the number of workers not eligible for PF SHAHBAZ PART Stock Report B. L. Kashyap and Sons Clarifies on PF Fraud News

B. L. Kashyap and Sons Ltd has clarified with reference to news item appearing on leading financial daily tilted "In a Season of Scams, the Biggest PF Fraud Surfaces". The company has said that all along it has been complying with the statutory requirements under the various Acts applicable to us including the Provident Funds Act. The company have always been complying with all the legitimate and legal directives and/or demands being raised by the department from time to time. The order passed by the RPFC is totally erroneous, misconceived and perverse on various grounds, including that those 'employees' who are construed to be 'excluded employees' under the EPF Act, have also been included. This is contrary to the fact and records. No employee has complained against the company. Moreover, no benefiary(ies) for whom the alleged recovery is being made, have been identified. It can be verified that we are making more EPF contributions than any of the other construction companies though their turn over is more than us. The company said that, PF authorities have mechanically and without application of mind just picked up the Head 'Wages and benefits' appearing in the yearly balance sheets and imposed PF on the same. In fact this head includes payments to skilled workers, payments to un skilled workers, payments to subcontractors with materials, payments to sub-contractor without material, welfare benefits and expenses and PF contribution on un-skilled labour wages and other miscellaneous expenditures. The Sub Confractors are complying with their PF obligations and have their independent code numbers. Most of the Skilled workers are drawing salary above Rs. 6500/- and are hence excluded employees and not covered under the EPF Act. Even the PF contributions deposited with respect to the unskilled workmen amounting to crores of Rupees are included under this head. There cannot be any question of imposing PF on PF contributions itself. These categories constitute substantial of the head 'wages and benefits' which could not have been taken into account at all, Further, they did not summon the contractors who have independent code numbers and were duly complying with the provisions under the Act with respect to the

employees, Further; the order has been passed in haste and without any proper opportunities the matter and present our case. PF Authorities have not passed the order on the basis of any evidence or material regarding non compliance or any grievance of any beneficiary but on the basis of mere conjectures, assumptions and surmises. It may be pertinent to note that due to the aforesaid erroneous assumptions the demand raised is in fact more than the net profit that the Company has earned since its inception until now. The Order is not based on facts. Merely because they have found some alleged discrepancies they have assumed that the entire work force for several years whether covered under the Act or not, whether the compliance is being made by the sub contractors or not is liable and covered under the PP scheme, which is erroneous and not as per law. We are in the process of examining the order and shall take appropriate legal recourse/remedies available to us at the earliest. The stock was trading at Rs.15.25, down by Rs.3.80 or 19.95%. The stock hit an intraday high of Rs.18 and low of Rs.15.25. The total traded quantity was 6.96 lakhs compared to 2 week average of 0.19 lakhs DANISH PART CBI case against nine EPFO officials CBI registers case against 12 officials The Central Bureau of Investigation (CBI) on Wednesday registered a case against nine officials of the Employees Provident Fund Organisation (EPFO) and a leading construction firm in New Delhi for allegedly causing a loss of Rs 169 crore to the exchequer between 2005 and 2009. According to the CBI, four employees of the private firm, B L Kashyap and Sons (BLKS), have been named in its FIR and searches were carried out at 23 locations in Delhi, NCR and other parts of the country. The EPFO officials against whom the case has been registered included S K Khanna, the then Additional Central Provident Fund Commissioner (North Zone), currently posted in the same capacity in Chandigarh; M S Kalia, the then

Regional Provident Fund Commissioner-1, Delhi (South), now posted as RPFC Ludhiana; and C S Gogna, the then Enforcement Officer, EPFO, Delhi (South), currently working in Jaipur. Apart from these enforcement officers, the CBI also named Bikas Roy, Anup Sharma, Promila Singh, Rajeev Mukherjee, Sudhir Batra and R S Tawar. The allegations against the EPFO officials is that they entered into a criminal conspiracy with four officials of BLKS. CBI spokesperson Dharini Mishra said, In pursuance to this criminal conspiracy the accused allegedly created false records in respect of certain employees engaged, inflated the number of excluded employees, manipulated the period of engagement of employees and thereby manipulated the amount of Provident Fund liability which was due and payable by the said firm. \

BL Kashyap - EPFO scam: This year also witnessed another scam with one of India's fastest-growing construction firms being charged with carrying out the country's biggest provident fund (PF) evasion. According to the EPFO order BL Kashyap and Sons excluded nearly 71,000 workers from PF benefits. The order also found huge variations in the wage payments booked by the firm in its audited balance sheets and the records submitted to the PF office, leading to suspicion that it employed more workers than it claimed. BL Kashyap and Sons Ltd whose clients include Taj Hotels, IBM ,Microsoft and Delhi's international airport were seen allegedly causing a loss of Rs 169 crore to the exchequer between 2005 and 2009 and were asked to fork out Rs 593 crore in PF dues and penalties. PF scam: CBI registers case against 12 officials Indraprasth aka New Delhi - The CBI on Wednesday registered a case against nine officials of the Employees Provident Fund Office and three officials of the construction firm BL Kashyap and Sons Ltd. for causing a loss of Rs 169 crore to the exchequer by manipulating the provident fund liability of the company through a criminal conspiracy. The agency conducted searches at 23 locations across the country. Those booked in the case include the then Additional Central Provident Fund Commissioner (North Zone, Delhi) SK Khanna and the then Regional Provident Fund Commissioner (Delhi South) M S Kalia.

Seven Enforcement Officers of the EPFO who were posted between the scam period of 2005 to 2009 have also been booked in the case. This besides, Managing Director of BL Kashyap, Vikram Kashyap, directors of the company Vinod Kashyap and Vineet Kashyap and General Manager (HR) Ashok Kumar and the company have also been booked in the case. The officials have been accused of criminal conspiracy, cheating of the Indian Penal Code and under relevant provisions of the Prevention of Corruption Act. The EPFO officials booked in the case allegedly entered into a criminal conspiracy with the officials of the BL Kashyap and Sons Ltd. In pursuance to this criminal conspiracy, the accused persons allegedly created false records in respect of certain employees engaged, inflated the number of excluded employees, manipulated the period of engagement of employees and thereby manipulated the amount of Provident Fund liability which was due and payable by the said private firm, CBI sources said. "The accused public servants abused their official position and unjustifiably facilitated the private firm to cause wrongful gain of Rs. 169 crore to themselves and corresponding wrongful loss to the public exchequer," CBI spokesperson Dharini Mishra said. "Searches conducted at 23 places in Delhi, Chandigarh, Ludhiana, Ghaziabad, Faridabad, Gurgaon, Jaipur and Noida, have yielded recovery of several incriminating documents relating to immovable and movable assets belonging to the accused persons and other documents. The documents are being scrutinized for further investigation," she said. The Enforcement Officers accused in the case include C S Gogna, Bikas Roy, Anup Sharma, Promila Singh, Rajeev Mukherjee, Sudhir Batra and R S Tawar. CONCLUSION ANY 1 CAN TAKE A new list of Officers of Doubtful Integrity who are not posted to sensitive or corruption prone areas seems to be delivering results for the Employees Provident Fund Organisation (EPFO). In the backdrop of a slew of cases of provident fund (PF) evasion or irregularities in PF assessment in previous years, 2011 marks the first scam-free year for the Fund in the last four years.

This is being attributed to strong measures taken to prevent irregularities, including a detailed circular on Combating Corruption that was issued to standardise operations in the field. Besides, monitoring of officers through the introduction of new revised forms to ensure that inspections are carried out comprehensively and are reflected in quantifiable terms and initiation of swift action against erring officials seems to have worked as a deterrent. Besides, any major case that comes to light is immediately referred to the CBI for investigation, an official involved in the exercise said.