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Auditor Report of Genera Agri Corp Ltd.

Mar 31, 2014

1. We have audited the accompanying financial statements of GENERA AGRI CORP LIMITED (the "Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss for the year ended, and Cash Flow Statement for the year ended on that date a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report.

Management''s Responsibility for the Financial Statements

2. The Company''s 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 ''the Companies Act, 1956'' of India (the "Act") read with the General Circular 15/2013 Dated 13.09.2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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 Fairview and are free from material misstatements, whether due to fraud or error.

Auditor''s Responsibility

3. 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.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' 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 auditors consider 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. 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.

5. We believe that the audit evidence, we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying 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 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

7. As required by ''the Companies (Auditor''s Report) 0rder, 2003'', as amended by ''the Companies (auditor''s Report) (Amendment) Order, 2004'', issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the maters specified in paragraphs 4 and 5 of the Order.

8. 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 appears from our examination of those books;

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

d. In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with general circular 15/2013 Dated 13.09.2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act.

e. On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.

Annexure referred to in paragraph 3 of our report of even date:

1. a. The Company has maintained proper records showing full particulars including quantitative details and situations of Fixed Assets.

b. The fixed Assets have been physically verified by the management. There is annual verification of fixed assets, which in our opinion is reasonable having regard to the size of the company and the nature of its asset. No material discrepancies have been noticed on such verification.

c. During the year, the Company has not disposed of any part of the plant or machinery.

2. a. The inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable.

b. The procedures of physical verification of inventories followed by management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The company is maintaining proper records of inventory. The discrepancies noticed on such verification between the physical stocks and the book records were not material.

3. a. As informed the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 310 of the Companies Act, 1956.

b. As informed, the Company has taken loans from other companies covered in the registers maintained under section 301 of the Companies Act, 1956.

No of parties: 2 amount involved Rs 680 lakhs.

The company has taken interest free loans from the above parties. Hence the rate of interest and other terms conditions in respect of loans taken by the company does not arise.

4. 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 inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

5. According to the information and explanations given to us, there were no transactions of purchase and sale of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies act 1956, and aggregating value during the year Rs. 5,00,000/- or more in respect of each party.

6. In our opinion the company has an internal audit system commensurate with the size and nature its business.

7. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits during the year.

8. According to the information and explanation given to us, maintenance of cost records is not required under section 209(1)(D) in respect of business activities carried out by the company.

9. The company has no accumulated losses as on 31st March, 2014 and it has not incurred any cash losses in financial year ended on the date or in the immediately preceding financial year

10. a. The company is regular in depositing with appropriate authorities Insurance, Sales Tax, and other material statutory dues applicable to it except PF and ESI and income tax. The arrears of income tax is Rs. 2.66 lakhs for a period more than six months from the date they became payable.

b. According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to Financial Institution, Bank or Debenture Holders.

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

13. In our opinion, the company is not a chit fund or nidhi/mutual fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

15. In our opinion and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

16. In our opinion and explanations given to us, the company has not taken any Term loans during the period under audit.

17. According to the information and explanation given to us and on an overall examination of the balance sheet of the company, and cash flow statement, we report that the no funds raised on short-term basis have been used for the long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

18. According to the information and explanation given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 310 of the Companies Act 1956.

19. According to the information and explanation given to us, the company has not created any security in respect of debentures.

20. The company has not raised any money by public issues.

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

FOR HARI VARA PRASADA & ASSOCIATES Chartered Accountants Firm Registration No. 004887s

(Y. HARI VARA PRASADA RAO) Place: Hyderabad Proprietor Date: 30/05/2014 Membership No. 029740


Mar 31, 2013

1. We have audited the attached Balance Sheet of M/s. Genera Agri Corp Limited, as at 31st March 2013 and the "statement of Profit and Loss account for the period ended on that date and Cash Flow statement for the period ended on that date both annexure 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 principle used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a 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 above, we report that:

I. 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;

II. 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 such books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us.

III. The Balance sheet, Profit and Loss account and Cash Flow statements dealt with by this report are in agreement with the books of account.

IV. In our opinion, the Balance sheet, Profit and Loss account and Cash flow statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

V. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Accounting policies and notes thereon give the information required by the Companies Act 1956, in the manner so required and give a true 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 31st March 2013; and

b) In the case of Profit and Loss account, of the profit for the year ended on that date.

c) In the case of Cash Flow statements, of the Cash flows for the year ended on that date.

Annexure referred to in paragraph 3 of our report of even date: 1.

a. The Company has maintained proper records showing full particulars including quantitative details and situations of Fixed Assets.

b. The fixed Assets have been physically verified by the management. There is annual verification of fixed assets, which in our opinion is reasonable having regard to the size of the company and the nature of its asset. No material discrepancies have been noticed on such verification.

c. During the year, the Company has not disposed of any part of the plant or machinery.

2.

a. The inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable.

b. The procedures of physical verification of inventories followed by management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The company is maintaining proper records of inventory. The discrepancies noticed on such verification between the physical stocks and the book records were not material.

3.

a. As informed the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 310 of the Companies Act, 1956.

b. As informed, the Company has taken loans from other companies covered in the registers maintained under section 301 of the Companies Act, 1956.

No of parties :2 amount involved Rs 680lakhs.

The company has taken interest free loans from the above parties. Hence the rate of interest and other terms conditions in respect of loans taken by the company does not arise.

4. 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 inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

5. According to the information and explanations given to us, there were no transactions of purchase and sale of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies act 1956, and aggregating value during the year Rs 5,00,000/- or more in respect of each party

6. In our opinion the company has an internal audit system commensurate with the size and nature its business

7. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits during the year.

8. We have broadly reviewed the books of account Maintained by the company in respect products where .pursuant to the rules made by the central government of India ,the maintenance of cost records has been prescribed under clause (d)of subsectionf 1) of section 209 of the Act and are of the opinion that .prima facie ,the prescribed accounts and records have been made and maintained .We have not .however .made a detailed examination of the records with a view to determine whether they are accurate or complete..

9. The company has no accumulated losses as on 31 st March 2013 and it has not incurred any cash losses in financial year ended on the date or in the immediately preceding financial year

10.

a. The company is regular in depositing with appropriate authorities Insurance, Sales Tax, and other material statutory dues applicable to it except PF and ESI .and income tax.. The arrears of income tax is Rs4.63lakhs for a period more than six months from the date the y became payable.

b. According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited on account of any dispute.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to Financial Institution, Bank or Debenture Holders.

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

13. In our opinion, the company is not a chit fund or nidhi / mutual fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

15. In our opinion and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

16. In our opinion and explanations given to us, the company has not taken any Term loans during the period under audit.

17. According to the information and explanation given to us and on an overall examination of the balance sheet of the company, and cash flow statement, we report that the no funds raised on short-term basis have been used for the long-term investment. No long- term funds have been used to finance short-term assets except permanent working capital.

18. According to the information and explanation given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 310 of the Companies Act 1956.

1

19. According to the information and explanation given to us, the company has not created any security in respect of debentures.

20. The company has not raised any money by public issues.

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

FOR HARI VARA PRASADA & ASSOCIATES

Chartered Accountants

Firm Registration No.004887s

(Y. HARI VARA PRASADA RAO)

Proprietor

Membership No.029740

Place : Hyderabad

Date: 30/05/2013


Mar 31, 2012

1. We have audited the attached Balance Sheet of M/s. Genera Agri Corp Limited, as at 31st March 2012 and the statement of Profit and Loss account for the period ended on that date and Cash Flow statement for the period ended on that date both annexure 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 principle used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a 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 above, we report that:

I. 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;

II. 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 such books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us.

III. The Balance sheet, Profit and Loss account and Cash Flow statements dealt with by this report are in agreement with the books of account.

IV. In our opinion, the Balance sheet, Profit and Loss account and Cash flow statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

V. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Accounting policies and notes thereon give the information required by the Companies Act 1956, in the manner so required and give a true 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 31st March 2012; and

b) In the case of Profit and Loss account, of the profit for the year ended on that date.

c) In the case of Cash Flow statements, of the Cash flows for the year ended on that date.

Annexure referred to in paragraph 3 of our report of even date:

1.

a. The Company has maintained proper records showing full particulars including quantitative details and situations of Fixed Assets.

b. The fixed Assets have been physically verified by the management. There is annual verification of fixed assets, which in our opinion is reasonable having regard to the size of the company and the nature of its asset. No material discrepancies have been noticed on such verification

c. During the year, the Company has not disposed of any part of the plant or machinery.

2.

a. The inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable.

b. The procedures of physical verification of inventories followed by management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the books and the book records were not material.

3.

a. As informed the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 310 of the Companies Act, 1956.

b. As informed, the Company has not taken loans from other companies covered in the registers maintained under section 301 of the Companies Act, 1956.

4. 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 inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

5. According to the information and explanations given to us, there were no transactions of purchase and sale of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies act 1956, and aggregating during the year Rs 5,00,000/- or more in respect of each party

6. In our opinion the company has an internal audit system commensurate with the size and nature its business

7. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits during the year.

8. The Central Government has not prescribed for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956.

9. The company has no accumulated losses as on 31st .march 2012 and it has not incurred any cash losses in financial year ended on the date or in the immediately preceding financial year

10.

a. The company is regular in depositing with appropriate authorities Insurance, Income Tax, Sales Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it except PF and ESI.

b. According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited in account of any dispute.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to Financial Institution, Bank or Debenture Holders.

12. According to the information given to us, during the year the company has not granted loans and advances on the bases of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or nidhi / mutual fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

15. In our opinion and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

16. In our opinion and explanations given to us, the company has not taken any Term loans during the period under audit.

17. According to the information and explanation given to us and on an overall examination of the balance sheet of the company, and cash flow statement, we report that the no funds raised on short-term basis have been used for the long-term investment. No long-term funds have been used to finance short-term assets except permanent working capital.

18. According to the information and explanation given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 310 of the Companies Act 1956.

19. According to the information and explanation given to us, the company has not created any security in respect of debentures.

20. The company has not raised any money by public issues.

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

FOR HARI VARA PRASADA & ASSOCIATES

Chartered Accountants

Firm Registration No.004887s

(Y. HARI VARA PRASADA RAO)

PROPRIETOR

Membership No.029740

Place : Hyderabad

Date : 03/09/2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of Genera Agri Corp Limited, as at 31st March 2011 and Profit and Loss account for the period ended on that date annexed thereto and the Cash Flow statement for the period ended on that date. 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 principle used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a 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 above, we report that:

I. 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;

II. 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 such books and proper returns adequate for the purpose of our audit have been received from the branches not visited by us.

III. The Balance sheet, Profit and Loss account and Cash Flow statements dealt with by this report are in agreement with the books of account.

IV. In our opinion, the Balance sheet, Profit and Loss account and Cash flow statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

V. On the basis of written representations received from the Directors as on 31st March 2011, the following Directors are disqualified under section 274(1)(g) of the Companies Act, 1956, due to default of non-filing of Annual Accounts and the Annual Returns for the financial years 2006-07, 2007-08 and 2008-09 :-

i. GOTTAM HARI.

VI. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with Accounting policies and notes thereon give the information required by the Companies Act 1956, in the manner so required and give a true 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 31st March 2011; and

b) In the case of Profit and Loss account, of the profit for the year ended on that date.

c) In the case of Cash Flow statements, of the Cash flows for the year ended on that date.

Annexure referred to in paragraph 3 of our report of even date:

1. a. The Company has maintained proper records showing full particulars including quantitative details and situations of Fixed Assets.

b. The fixed Assets have been physically verified by the management. There is annual verification of fixed assets, which in our opinion is reasonable having regard to the size of the company and the nature of its asset. No material discrepancies have been noticed on such verification.

c. During the year, the Company has not disposed of any part of the plant or machinery.

2. a. The inventory has been physically verified during the year by the management. In our opinion the frequency of verification is reasonable.

b. The procedures of physical verification of inventories followed by management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the books and the book records were not material.

3. a. As informed the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 310 of the Companies Act, 1956.

b. As informed, the Company has not taken loans from other companies covered in the registers maintained under section 301 of the Companies Act, 1956.

4. 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 inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

5. According to the information and explanations given to us, there were no transactions of purchase and sale of goods and materials made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the companies act 1956, and aggregating during the year Rs 5,00,000/- or more in respect of each party

6. In our opinion the company has an internal audit system commensurate with the size and nature its business

7. In our opinion and according to the information and explanations given to us, the company has not accepted any deposits during the year.

8. The Central Government has not prescribed for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956.

9. The company has no accumulated losses as on 31st ,march 2011 and it has not incurred any cash losses in financial year ended on the date or in the immediately preceding financial year

10. a. The company is regular in depositing with appropriate authorities Insurance, Income Tax, Sales Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it except PF and ESI.

b. According to the information and explanation given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty and cess which have not been deposited in account of any dispute.

11. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to Financial Institution, Bank or Debenture Holders.

12. According to the information given to us, during the year the company has not granted loans and advances on the bases of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or nidhi / mutual fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

14. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company.

15. In our opinion and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions.

16. In our opinion and explanations given to us, the company has not taken any Term loans during the period under audit.

17. According to the information and explanation given to us and on an overall examination of the balance sheet of the company, and cash flow statement, we report that the no funds raised on short-term basis have been used for the long-term investment. No long- term funds have been used to finance short-term assets except permanent working capital.

18. According to the information and explanation given to us, the company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 310 of the Companies Act 1956.

19. According to the information and explanation given to us, the company has not created any security in respect of debentures.

20. The company has not raised any money by public issues.

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

FOR HARI VARA PRASADA & ASSOCIATES

Chartered Accountants

Firm Registration No.004887s

(Y. HARI VARA PRASADA RAO)

Place: Hyderabad PROPRIETOR

Dated: 01st August, 2011 Membership No.029740

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