Now tried to install Sierra - 10.12.5. Install was all fine but even now I am stuck with no audio device -  
  
But I think there is some progress because kextcache now successfully updates with AppleHDA_IDT  
  
rebuilding //System/Library/PrelinkedKernels/prelinkedkernel 
kext-dev-mode allowing invalid signature -67062 0xFFFFFFFFFFFEFA0A for kext IOAHCISerialATAPI_Injector.kext 
kext file:///Library/Extensions/DisableTurboBoostBattery.kext/ is in hash exception list, allowing to load 
kext-dev-mode allowing invalid signature -67030 0xFFFFFFFFFFFEFA2A for kext AppleHDA_IDT.kext 
kext-dev-mode allowing invalid signature -67062 0xFFFFFFFFFFFEFA0A for kext AppleBacklightInjector.kext 
KernelCache ID: CE486D7D43B3D83CC69AA42AC8F2E658 
kextcache updated critical boot files, requesting launchd reboot 
 
No idea why this is not working still.