Auditor Report of Anjani Foods Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of Raasi Enterprises Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information. Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub section (3C) of section 211 of Companies Act, 1956. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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 but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal controls. 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 overall 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, 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:

a. in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b. in the case of the Statement of Profit and Loss, of the loss for the year ended on that date; and

c. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Emphasis of Matter

We draw attention to the following note to the financial statements:

Note No 18. Regarding the sale of fixed assets, the future plans of the company based on which the accounts have been drawn on going concern basis.

Our opinion is not qualified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. In our opinion 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 are in agreement with the books of account;

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub- section (1) of section 274 of the Companies Act, 1956.

RE: RAASI ENTERPRISES LIMITED

Referred to in paragraph 3 of our report of even date

i. (a) The company has compiled the fixed assets register showing full particulars including quantitative details, location and situation of the fixed assets.

(b) No physical verification of fixed assets was carried out by the management during the year; hence we are unable to comment on the discrepancies, if any.

(c) According to the information and explanations given to us, the company has disposed off substantial part of fixed assets comprising of Buildings situated at Bimavaram, W.G. District and hence, fundamental assumption of going concern will not be effected - refer no. 19 notes on account.

ii. According to the information and explanations given to us, there are no inventories. Therefore the provisions of Clause 4 (ii) (a), (b) and (c) of Companies (Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

iii. (a) According to the information and explanations given to us, the Company has not granted unsecured loans to the parties covered in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 397.25 lakhs and year-end balance of such loans was Rs. 142.25 lakhs. However the maximum amount outstanding in respect of loans were granted earlier years.

(b) According to the information given to us, the terms and conditions of such loan is prima facie not prejudicial to the interest of the Company. Since the loans granted are repayable on demand, question of overdue amounts does not arise. Therefore commenting under Clause 4 (iii) (c) and (d) of Companies (Auditor''s Report) Order, 2003 as amended does not arise.

(e) According to the information and explanations given to us, the Company has not taken unsecured loan from the parties covered in Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 499.41 lakhs and year end balance was Rs. 17.91lakhs. However the maximum amount outstanding in respect of loans were granted earlier years.

(f) Since the loans taken are repayable on demand, question of overdue amounts does not arise. Therefore commenting under Clause 4 (iii) (g) of Companies (Auditor''s Report) Order, 2003 as amended does not arise.

iv. In our opinion and according to the information and explanations given to us there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets, sale of goods and services. In our opinion and according to the information given to us, there is no continuing failure to correct major weaknesses in the Internal Control System of the Company.

v. (a) In our opinion and according to the information and explanations given to us, and based on the representations by the management, there are no transactions that need to be entered into the register in pursuance of Section 301 of the Companies Act, 1956. Accordingly clause (v) (b) of this order is not applicable to the Company for the current year.

vi. The company has not accepted any deposits from the public.

vii. The Company has no internal audit system in vogue.

viii. In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 for the activities of the Company. Therefore, the provisions of clause 4(viii) of Companies (Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

ix. (a) According to the information and explanations given to us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other applicable statutory dues with the appropriate authorities. According to information and explanation given to us, there are no arrears of statutory dues as at 31st March, 2014 which are outstanding for a period of more than six months from the date they became payable except an amount of Rs. 0.62 lakhs (Previous Year Rs. 0.62 lakhs) towards Investor Education and Protection Fund and an amount Rs. 0.67 lakhs towards Tax Deducted at source.

(b) According to the information and explanations given to us, there are no dues of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess which have not been deposited on account of any dispute except as stated below:

Name of the Nature of dues Amount Forum where statute (Rs. in lakhs) dispute is pending

Income Tax Disputed of tax demand 6.80 Commissioner for the AY - 1998-99 Income Tax (Appeals), Hyderabad.

Disputed tax demand 1.78 Commissioner towards lease income Income Tax from buildings for the (Appeals), AY - 2004-05 Hyderabad.

x. The company has no accumulated losses as on 31st March 2014. The company has not incurred any cash losses in the financial year under report and in the immediately preceding financial year.

xi. According to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions and banks.

xii. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

xiii. The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(xiv) of Companies (Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

xiv. The company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of Companies (Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us during the course of the audit, the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi. In our opinion and according to the information and explanations given to us, term loans were applied for the purpose for which the loans were obtained.

xvii. On the basis of an overall examination of the balance sheet of the company in our opinion and according to information and explanation given to us, there are no funds raised on short term basis which have been used for long term investment.

xviii. During the year under report the company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

xix. The company has not issued any debentures.

xx. The Company has not raised any money by public issue during the year.

xxi. In accordance with the information and explanations given to us and our examination of books and records, no fraud on or by the company has been noticed or reported during the year.

For M. Bhaskara Rao & Co., Chartered Accountants Firm Registration No.00459S

V. Raghunandan Place: Hyderabad Partner Date : 29.05.2014 Membership No.26255

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Mar 31, 2013

Report on Financial Statements

We have audited the accompanying financial statements of Raasi Enterprises Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub section (3C) of section 211 of Companies Act, 1956. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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 but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal controls. 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 overall 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, 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:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the 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, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion 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 are in agreement with the books of account;

d. in our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure

Re: Raasi Enterprises Limited

Referred to in paragraph 3 of our report of even date

i. (a) The company has compiled the fixed assets register showing full particulars including quantitative details, location and situation of the fixed assets.

(b) No physical verification of fixed assets was carried out by the management during the year; hence we are unable to comment on the discrepancies, if any.

(c) According to the information and explanations given to us, the company has not disposed off substantial part of fixed assets and hence, reporting on the going concern status in this regard does not arise.

ii. According to the information and explanations given to us, there are no inventories.

Therefore the provisions of Clause 4 (ii) (a), (b) and (c) of Companies(Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

iii. (a) According to the information and explanations given to us, the Company has granted unsecured loans to two parties covered in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.447.20 lakhs and year end balance of such loans was Rs.342.37 lakhs.

(b) According to the information given to us, the terms and conditions of such loan is prima facie not prejudicial to the interest of the Company. Since the loans granted are repayable on demand, question of overdue amounts does not arise. Therefore commenting under Clause 4 (iii) (c) and (d) of Companies (Auditor''s Report) Order, 2003 as amended does not arise.

(e) According to the information and explanations given to us, the Company has taken unsecured loan from two parties covered in Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 123.02lakhs and year end balance was Rs. 119.52lakhs.

(f) Since the loans taken are repayable on demand, question of overdue amounts does not arise. Therefore commenting under Clause 4 (iii) (g) of Companies (Auditor''s Report) Order, 2003 as amended does not arise.

iv. In our opinion and according to the information and explanations given to us there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets, sale of goods and services. In our opinion and according to the information given to us, there is no continuing failure to correct major weaknesses in the Internal Control System of the Company.

v. (a) In our opinion and according to the information and explanations given to us, and based on the representations by the management, there are no transactions that needs to be entered into the register in pursuance of Section 301 of the Companies Act, 1956. Accordingly clause (v) (b) of this order is not applicable to the Company for the current year.

vi. The company has not accepted any deposits from the public.

vii. The Company has no internal audit system in vogue.

viii. (d) In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of Cost Records under Section 209 (1) of the Companies Act, 1956 for the activities of the Company. Therefore, the provisions of clause 4(viii) of Companies (Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

ix. (a) According to the information and explanations given to us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other applicable statutory dues with the appropriate authorities. According to information and explanation given to us, there are no arrears of statutory dues as at 31st March, 2013 which are outstanding for a period of more than six months from the date they became payable except an amount of Rs. 0.62 lakhs (Previous Year Rs. 0.62 lakhs) towards Investor Education and Protection Fund and an amount Rs.2.27 lakhs towards Tax Deducted at source.

(b) According to the information and explanations given to us, there are no dues of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess which have not been deposited on account of any dispute except as stated below:

Name of the Nature of dues Amount Forum where dispute is statute (Rs. in lakhs) pending

Disputed of tax demand for the AY - 6.80 Commissioner Income Tax 1998-99 (Appeals), Hyderabad.

Income Tax

Disputed tax demand towards lease 1.78 Commissioner Income Tax income from buildings for the AY - (Appeals), Hyderabad. 2004-05

x. The company has no accumulated losses as on 31st March 2013. The company has not incurred any cash losses in the financial year under report and in the immediately preceding financial year.

xi. According to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions and banks.

xii. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

xiii. The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(xiv) of Companies (Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

xiv. The company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of Companies (Auditor''s Report) Order, 2003 as amended are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us during the course of the audit, the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi. In our opinion and according to the information and explanations given to us, term loans were applied for the purpose for which the loans were obtained.

xvii. On the basis of an overall examination of the balance sheet of the company in our opinion and according to information and explanation given to us, there are no funds raised on short term basis which have been used for long term investment.

xviii. During the year under report the company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

xix. The company has not issued any debentures.

xx. The Company has not raised any money by public issues during the year.

xxi. In accordance with the information and explanations given to us and our examination of books and records, no fraud on or by the company has been noticed or reported during the year.





For M.Bhaskara Rao & Co.,

Chartered Accountants

Firm Registration No.00459S

V.Raghunandan

Place: Hyderabad Partner

Date: 28th May 2013 Membership No.26255

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Mar 31, 2012

1. We have audited the attached Balance Sheet of Raasi Enterprises Limited (formerly Raasi Finance & Investment Limited) as at 31st March 2012, the Profit and Loss Account and also Cash Flow Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based * on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards , require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to in paragraph 3 above, we report that:

a) We have 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 opinion, proper books of accounts as required by law, have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

e) On the basis of written representations received from the directors as on 31st March, 2012 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) to Section 274 of Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and other notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of the Balance Sheet, of the state of affairs of the company as at 31st March 2012;

ii. in the case of the Profit and Loss Account, of the profit of the company for the year ended on that date; and

iii. in the case of the Cash Flow Statement of the cash flow for the year ended on that date.

RE: RAASI ENTERPRISES LIMITED

Statement referred to in Paragraph (3) of our report of even date

i. (a) The company has compiled the fixed assets register showing full particulars including quantitative

details, location and situation of the fixed assets.

(b) No physical verification of fixed assets was carried out by the management during the year; hence we are unable to comment on the discrepancies, if any.

(c) According to the information and explanations given to us, the company has not disposed off substantial part of fixed assets and hence, reporting on the going concern status in this regard does not arise. ,

ii. According to the information and explanations given to us, there are no inventories. Therefore the provisions of Clause 4 (ii) (a), (b) and (c) of Companies (Auditor's Report) Order, 2003 as amended are not applicable to the Company.

iii. (a) According to the information and explanations given to us, the Company has granted interest free unsecured loans to four parties covered in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.91.70 lakhs and year end balance of such loans was Rs.91.70akhs.

(b) According to the information given to us, the terms and conditions of such loan is prima facie not prejudicial to the interest of the Company. Since the loans granted are repayable on demand, question of overdue amounts does not arise. Therefore commenting under Clause 4 (iii) (c) and (d) of Companies (Auditor's Report) Order, 2003 as amended does not arise.

(e) According to the information and explanations given to us, the Company has taken interest free unsecured loan from three parties covered in Register maintained under Section 301 ofthe Companies Act, 1956. The maximum amount involved during the year was Rs.116.52lakhs and year end balance was Rs.113.02lakhs.

(f) Since the loans taken are repayable on demand, question of overdue amounts does notarise. Therefore commenting under Clause 4 (iii) (g) of Companies (Auditor's Report) Order, 2003 as amended does not arise.

iv. In our opinion and according to the information and explanations given to us there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets, sale of goods and services. In our opinion and according to the information given to us, there is no continuing failure to correct major weaknesses in the Internal Control System of the Company.

v. (a) In our opinion and according to the information and explanations given to us, the particulars of contracts and arrangements referred to in Section 301 of the Companies Art, 1956 that need to be entered in the register maintained under the said section have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements to be entered in the register maintained under Section 301 of the Companies Art, 1956 and exceeding the value of five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi. The company has not accepted any deposits from the public.

vii. The Company has no internal audit system in vogue.

viii. In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of Cost Records under Section 209 (1) (d) ofthe Companies Act, 1956 for the activities of the Company. Therefore, the provisions of clause 4(viii) of Companies (Auditor's Report)

Order, 2003 as amended are not applicable to the Company.

ix. (a) According to the information and explanations given to us, the Company is regular in depositing

undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other applicable statutory dues with the appropriate authorities. According to information and explanation given to us, there are no arrears of statutory dues as at 31st March, 2012 which are outstanding for a period of more than six months from the date they became payable except an amount of Rs.0.62 lakhs (Previous Year Rs.0.62 lakhs) towards Investor Education and Protection Fund.

(b) According to the information and explanations given to us, there are no dues of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess which have not been deposited on account of any dispute except as stated below:

Name of the Nature of dues Amount Forum where statute (Rsin lakhs) dispute is pending

Income Tax Disputed of tax demand for the 6.80 Commissioner Income Tax AY - 1998-99 (Appeals), Hyderabad.

Disputed tax demand towards 1.78 Commissioner Income Tax lease income from buildings (Appeals), Hyderabad. for the AY - 2004-05

x. The company has no accumulated losses as on 31st March 2012. The company has not incurred any cash losses in the financial year under report and in the immediately preceding financial year.

XT. According to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions and banks.

xii. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

xiii. The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(xiv) of Companies (Auditor's Report) Order, 2003 as amended are not applicable to the Company.

xiv. The company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of Companies (Auditor's Report) Order, 2003 as amended are not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us during the course of the audit, the company has not given any guarantee for loans taken by others from bank or financial institutions.

xvi. In our opinion and according to the information and explanations given to us, term loans were applied for the purpose for which the loans were obtained.

xvii. On the basis of an overall examination of the balance sheet of the company in our opinion and according to information and explanation given to us, there are no funds raised on short term basis which have been used for long term investment.

xviii. During the year under report the company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

xix. The company has not issued any debentures.

xx.- The Company has not raised any money by public issues during the year.

xxi. In accordance with the information and explanations given to us and our examination of books and records, no fraud on or by the company has been noticed or reported during the year.



for M. Bhaskara Rao & Co.,

Chartered Accountants

Firm Reg No: 000459S

V.Raghunandan

Place: Hyderabad (Partner)

Date : 14.08.2012 Membership No. 26255

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Mar 31, 2011

1. We have audited the attached Balance Sheet of Raasi Enterprises Limited (formerly Raasi Finance & Investment Limited) as at 31st March 201 1, the Profit and Loss Account and also Cash Flow Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms of Sub-section (4A) of Section 227 of the Companies Act, 1 956, we enclose in the annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to in paragraph 3 above, we report that:

a) We have 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 opinion, proper books of accounts as required by law, have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agree ment with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in sub-section (3C) of Section 21 1 of the Companies Act, 1 956.

e) On the basis of written representations received from the directors as on 31st March, 201 1 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31 st March 201 1 from being appointed as a director in terms of clause (g) of sub-section (1) to Section 274 of Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and other notes thereon give the information required by the Companies Act, 1 956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March 201 1;

ii) in the case of the Profit and Loss Account, of the profit of the company for the year ended on that date; and

iii) in the case of the Cash Flow Statement of the cash flow for the year ended on that date.

Statement referred to in Paragraph (3) of our report of even date

01. (a) The company has compiled the fixed assets register showing full particulars including quantitative details, location and situation of the fixed assets.

(b) No physical verification of fixed assets was carried out by the management during the year; hence we are unable to comment on the discrepancies, if any.

(c) According to the information and explanations given to us, the company has not disposed off substantial part of fixed assets and hence, reporting on the going concern status in this regard does not arise.

02. According to the information and explanations given to us, there are no inventories. Therefore the provisions of Clause 4 (ii) (a), (b) and (c) of Companies (Auditor's Report) Order, 2003 as amended are not applicable to the Company.

03. (a)According to the information and explanations given to us, the Company has granted unsecured loan to one party covered in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 93.70 lakhs and year end balance of such loan was Rs. 16.34 lakhs.

(b)According to the information given to us, the terms and conditions of such loan is prima facie not prejudicial to the interest of the Company.

03. (a)According to the information and explanations given to us, the Company has granted unsecured loan to one party covered in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 93.70 lakhs and year end balance of such loan was Rs. 16.34 lakhs.

(b)According to the information given to us, the terms and conditions of such loan is prima facie not prejudicial to the interest of the Company.

(c)The party is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest.

(d)There is no overdue amount of loan granted to the Company listed in the register maintained under Section 301 of the Companies Act, 1 956.

(e)According to the information and explanations given to us, the Company has taken interest free unsecured loan from one party covered in Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1 1.84 lakhs and year end balance was Rs. NIL.

(f) Since the loans taken are repayable on demand, question of overdue amounts does not arise. Therefore com- menting under Clause 4 (iii) (g) of Companies (Auditor's Report) Order, 2003 as amended does not arise.

04. In our opinion and according to the information and explanations given to us there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets, sale of goods and services. In our opinion and according to the information given to us, there is no continuing failure to correct major weaknesses in the Internal Control System of the Company.

05. (a)In our opinion and according to the information and explanations given to us, the particulars of contracts and arrangements referred to in Section 301 of the Companies Act, 1956 that need to be entered in the register maintained under the said section have been so entered.

(b)In our opinion and according to the information and explanations given to us, and based on representations made by the management, there are no transactions (except clause 4 (iii) above) made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs. 5,00,000/- and above in respect of each party.

06. The company has not accepted any deposits from the public.

07. The Company has no internal audit system in vogue.

08. In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1956 for the activities of the Company. Therefore, the provisions of clause 4(viii) of Companies (Auditor's Report) Order, 2003 as amended are not applicable to the Company.

09. (a) According to the information and explanations given to us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and any other applicable statutory dues with the appropriate authorities. According to information and explanation given to us, there are no arrears of statutory dues as at 31st March, 201 1 which are outstanding for a period of more than six months from the date they became payable except an amount of Rs. 0.62 lakhs (Previous Year Rs. 0.62 lakhs) towards Investor Education and Protection Fund which was outstanding for a period of more than seven years.

(b)According to the information and explanations given to us, there are no dues of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess which have not been deposited on account of any dispute except as stated below.

Name of the Amount Forum where statute Nature of dues (in lakhs) dispute is pending

Commissioner Income Tax (Appeals),Hyderabad

Disputed of tax demand for the AY - 1998-99 6-80

Income Tax

Disputed tax demand towards lease income from building for 1.78 Commissioner Income Tax (Appeals),Hyderabad the AY - 2004-05

10. The company has no accumulated losses as on 31st March 201 1. The company has not incurred any cash losses in the financial year under report and in the immediately preceding financial year.

11. According to the information and explanation given to us, the company has not defaulted in repayment of dues to financial institutions and banks.

12. According to the information and explanations given to us, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. The company is not a Chit Fund/Nidhi/Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(xiv) of Companies (Auditor's Report) Order, 2003 as amended are not applicable to the Company.

14. The company is not dealing in or trading in shares, securities, debentures and other investments. Therefore, the provisions of clause 4(xiv) of Companies (Auditor's Report) Order, 2003 as amended are not applicable to the Company.

15. In our opinion and according to the information and explanations given to us during the course of the audit, the company has not given any guarantee for loans taken by others from bank or financial institutions.

1 6. In our opinion and according to the information and explanations given to us, term loans were applied for the purpose for which the loans were obtained.

17. On the basis of an overall examination of the balance sheet of the company in our opinion and according to information and explanation given to us, there are no funds raised on short term basis which have been used for long term investment.

18. During the year under report the company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. The company has not issued any debentures.

20. The Company has not raised any money by public issues during the year.

21. In accordance with the information and explanations given to us and our examination of books and records, no fraud on or by the company has been noticed or reported during the year.

For M.Bhaskara Rao & Co., Chartered Accountants Firm Reg No: 000459S

V.Raghunandan

Place Hyderabad partner

Date : 12.08.2011 Membership No.26255

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Mar 31, 2010

1. We have audited the attached Balance Sheet of Raasi Enterprises Limited (formerly Raasi Finance & Investment Limited) as at 31 st March 201 0, the Profit and Loss Account and Cash Flow Statement of the Company for the year ended on that date both annexedthereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of Sub- section (4A) of Section 227 of the Companies Act, 1956, we enclose in the annexure a statement on the matters specified in paragraphs 4.and 5 of the said Order.

4. Further to our comments in the annexure referred to in paragraph 3 above, we report that:

a) We have 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 opinion, proper books of accounts as required by law, have been kept by the Company so far as appears from our examination of those books.

c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.

d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the applicable Accounting Standards referred to in sub-section (3C) of Section 21 1 of the Companies Act, 1956.

e) Based on the written representations received from the directors as on 31st March, 2010 and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) to Section 274 of Companies Act, 1 956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with significant accounting policies and subject to note 5 regarding reconciliation and confirmation of Sundry Creditors, Unsecured Loans, Loans and Advances and other notes thereon give the information required by the Companies Act, 1 956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March 2010;

ii) in the case of the Profit and Loss Account, of the profit of the company for the year ended on that date; and

iii) in the case of the Cash Flow Statement of the cash flow for the year ended on that date.

Re: RAASI ENTERPRISES LIMITED Statement referred to in Paragraph (3) of our report of even date

01.(a) The company has compiled the fixed assets register showing full particulars including quantitative details, location and situation of the fixed assets.

(b) No physical verification of fixed assets was carried out by the management during the year; hence we are unable to comment on the discrepancies, if any.

(c) In our opinion, the Company has not disposed off substantial part of the fixed assets during the year and the going concern status of the company is not affected.

02.(a) The company has no inventories. Hence, the question of conducting physical verification by the management at reasonable intervals and the reasonableness of frequency of such verification does not arise.

(b) As there are no inventories, the question of reasonableness and adequacy of the procedures of physical verification followed by the management does not arise.

(c) As there are no inventories, the question of maintenance of proper records of inventory and discrepancies on physical verification does not arise.

03.(a) According to the information and explanations given to us, the Company has granted unsecured loan to M/s Anjani Portland Cement Limited covered in the Register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs.25,23,832/- and year end balance of the loans granted to such party is Rs.93,70,274/-.

(b) According to the information given to us, the terms and conditions of such loan is prima facie not prejudicial to the interest of the Company.

(c) The party is regular in repaying the principal amounts as stipulated and has been regular in the payment of interest.

(d) There is no overdue amount of loan granted to the Company listed in the register maintained under Section 301 of the Companies Act,l 956.

(e) According to the information and explanations given to us, the Company has not taken any loans, secured or unsecured from Companies, firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1 956. Accordingly, the provisions of clause (ii) (e), (f) and (g) of the Companies (Auditors Report) Order,2003 are not applicable to the Company.

04. In our opinion and according to the information and explanations given to us there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets, sale of goods and services. During the course of our audit, we have not observed any major weaknesses in the Internal Controls.

05. (a) In our opinion and according to the information and explanations given to us, the particulars of contracts and arrangements referred to in Section 301 of the Companies Act, 1 956 that need to be entered in the register maintained under the said section have been so entered.

(b) In our opinion and according to the information and explanations given to us, there are no transactions (excluding loans reported under Paragraph-03 above) made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 aggregating during the year to Rs 5,00,000/- and above in respect of each party.

06. The company has not accepted any deposits from the public during the year.

07. The Company has no internal audit system in vogue.

08. In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of Cost Records under Section 209 (1) (d) of the Companies Act, 1 956 for the activities of the Company.

09. (a) In our opinion and according to the information and explanations given to us, the Company is generally regular in depositing the Provident Fund dues with the appropriate authorities. According to the information and explanations given to us, the provisions of Employees State Insurance Act, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess are not applicable to the company at present. The total amount of unclaimed dividends outstanding for more than seven years and payable to Investor Education and Protection Fund account is Rs 61,780/ - (Previous Year Rs 7,90,875/-)

(b) According to the information and explanations given to us, there are no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty outstanding as at 31st March 201 0 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of Sales Tax, Customs duty, Wealth Tax, Service Tax, Excise duty & Cess, which have not been deposited on account of any dispute except Income Tax Demand amounting to Rs.6.80 lakhs for the Assessment year 1 998-99 as on 31st March 201 0 (Previous Year.Rs.6.80 lakhs) which has not been paid as the matter is under appeal with Commissioner of Income Tax (Appeals) and Rs.4.78lakhs/- (Previous Year Rs.4.78 lakhs/-) towards lease income from buildings in respect of which the company has filed an appeal with Commissioner Income Tax (Appeals).

10. The company has no accumulated losses as on 31st March 2010. Further, it has not incurred cash losses in the financial year under report and in the immediately preceding financial year.

11. Based on our audit procedures and according to the information and explanation given to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions and banks.

12. According to the information and explanations given to us during the course of the audit, the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures or other securities.

13. The provisions of any special Statute applicable to Chit Fund, Nidhi or Mutual Benefit Fund / Societies are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us during the course of the audit, the company does not deal or trade in shares, securities, debentures or other investments.

15. In our opinion and according to the information and explanations given to us during the course of the audit, the company has not given any guarantee for loans taken by others from bank or financial institutions.

16. To the best of our knowledge and belief and according to the information and explanations given to us, in our opinion, term loans availed by the Company were, prima facie, applied by the Company during the year for the purposes for which the loans were obtained. During the year the company has taken a term loan from a Nationalised Bank, which was utilized for the purpose for which it was availed.

17. During the year the company has not raised any funds on short-term basis, hence the question of its applicability for long-term investment does not arise.

18. The company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

19. According to the information and explanations given to us during the year, no debentures have been issued by the Company hence the question of creation of securities does not arise.

20. The Company has not raised any money by public issues during the year; hence the question of disclosure and verification of end-use of such money does not arise.

21. In our opinion and according to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For M.Bhaskara Rao & Co.,

Chartered Accountants

V.Raghunandan

Date: 14.08.2010 Partner

Membersh.p No.26255