Auditor Report of Jay Mahesh Infraventures Ltd.

Mar 31, 2015

1) We have audited the accompanying financial statements of Jay Mahesh Infra ventures Limited, which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed under reference to this report

Managements Responsibility for the Financial Statements

2) The Companys Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these Rs,facial statements that give a true and fair view of the facial position, financial performance and cash lows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards species under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating selectively for ensuring the accuracy and completeness of the accounting records, 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.

Auditors Responsibility

3) Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

4) We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. 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.

5) An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Rs,nancial 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 auditor considers internal financial control relevant to the Companys preparation of the financial statements that give true and fair view 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 Companys Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is suRs, cient and appropriate to provide a basis for our audit opinion on the Rs,nancial statements.

Opinion

6) In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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 aRs, airs of the Company as at March 31, 2015

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 lows for the year ended on that date.

Report on other Legal and Regulatory Requirements

7) As required by the companies (Auditors Report) Order,2003,as amended by 'the Companies (Auditors 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 books of accounts and the record of the company as we considered appropriate and according to the information and explanation given to us, we give in Annexure a statement of the matters specified in the paragraphs 4 and 5 of the Order.

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

a) We have sought and 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 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, the 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 aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disquieted as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act.

The Annexure referred to in paragraph 7 of the Our Report of even data to the members of Jay Mahesh Infra ventures Limited on the accounts of the company for the year ended 31st March 2015.

Having regard to the nature of Companys Business/activates/results during the year. Clause (V), (VI), (VIII), (XII), (XIV), (XV), (XVI), (XVII), (XVII), (XVIII), (XIX) and (XX) of paragraph 4 of the Order are not applicable to the company

1 (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed assets have been disposed during the year and therefore do not affect the going concern assumption.

2 (a) As explained to us inventories have been physically verified during the year by the management at reasonable intervals

(b) In our opinion and according to the information and explanation given to us the procedure of physical verification of inventories followed by the managements are reasonable and adequate in relation to the size of the company and nature of its business

(c) In our opinion and on the basis of our examination of the records, the company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stock by the managements as compared to book records.

3 In our opinion and according to the information and explanations given to us there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business for purchase of inventories & fixed assets and payment for expenses & for sale of goods during the course of our audit no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed

4 As per information & explanations given by management, the company has an internal audit system commensurate with the size and the nature of its business.

5 (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund , Employees State Insurance, Income –tax, Sales –tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the Information and explanations given to us there were no outstanding statutory dues as on 31st of March 2015,for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us there is no amounts payable in respect of income tax, wealth tax, Service tax, Sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

6 The Company have accumulated Profit and has generated profit during the financial year covered by our audit and in the immediately preceding financial year.

7 Based on our audit Procedures and on the information and explanations given by the management, we are of the opinion that the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

8 Based on the audit Procedures performed and the information and explanations given to us, we report that no fraud on or by the company has been noticed or reported during the year, nor have we been informed of such case by the management.

For VASG & Associates

Chartered Accountants

FRN: 006070S

(A.Viswanatha Rao)

Place: Hyderabad Partner

Date: 29-05-2015 M.No.029597

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Mar 31, 2014

1. We have audited the accompanying financial statements of Jay Mahesh Infraventures Limited which comprise the Balance Sheet as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and 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 the cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act, 1956 of India ("the Act") read with the General Circular 15/2013 dated September 13,2013 and 08/2014 dated April4,2014 respectively issued by the Ministry of Corporate Affairs with regard to Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation to the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' 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 and other applicable authoritative pronouncements issued by 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 risk of material misstatement of the financial statements, whether due to fraud and error. In making those risk assessments, the auditors 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 entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the 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.

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 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.

Report on Other Legal and Regulatory Requirements

7. As required by ''the Companies (Auditor''s Report) Order, 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 of accounts and records of the Company as we considered appropriate and according to the information and explanations gives to us, we give in the Annexure a statement on the matters specified in the 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 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, Statement of Profit & 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 & Loss, and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, read with the General Circular 15/2013 dated September 13, 2013 and 08/2014 dated April4, 2014 respectively issued by the Ministry of Corporate Affairs with regard to Section 133 of the Companies Act, 2013.

(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;

The Annexure referred to in paragraph 7 of the Our Report of even date to the members of Jay Mahesh Infraventures Limited on the accounts of the company for the year ended 31st March, 2014.

Having regard to the nature of Company''s Business/activities/results during the year, Clause (v),(vi),(viii),(xii),(xiii),(xiv),(xv),(xvi),(xvii),(xviii),(xix) and (xx) of paragraph 4 of the Order are not applicable to the company.

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) In our opinion and on the basis of our examination of the records, the Company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

4. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

5. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

6. The Company have accumulated loss and has incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

7. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

8. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For VASG & ASSOCIATES Chartered Accountants Firm Reg.No.006070S

Sd/- (A.Viswanatha Rao) Place: Hyderabad Partner Date: 01.09.2014 M. No.029597

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Mar 31, 2013

Report on Financial Statements

We have audited the accompanying financial statements of Jaya Mahesh Infraventures Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and 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 the Companies Act, 1956 ("the Act"). 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.

Auditors 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 andperform 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 ofmaterial 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. 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.

Opininon

In our opinion and to the best of our information and according to the explanations given to us, the 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 Profit and Loss Account, 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.

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.

Report on Other Legal and Regulatory Requirements

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 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 ofaccount.

d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and 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.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of Jay Mahesh Infraventures Limited on the accounts of the company for the year ended 31st March, 2013.

Having regard to the nature of Company''s Business/activities/results during the year, Clause (ii),(v),(vi),(viii),(xii),(xiii),(xiv),(xv),(xvi),(xvii),(xviii),(xix) and (xx) of paragraph 4 of the Order are not applicable to the company.

1. (a) The company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. (a) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses (f) & (g) are not applicable to the company.

3. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

4. As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

5. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2013 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

6. The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

7. Based on our audit procedures and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

8. Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For VASG & Associates

Chartered Accountants

FRN : 006070S

Sd/-

(CA. A. Vishwanatha Rao)

Membership No. : 29597

Place: Hyderabad

Date: 30.07.2013

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Mar 31, 2012

We have audited the attached Balance Sheet of JAY MAHESH INFRAVENTURES LIMITED as on 31st March, 2012and also the Profit & Loss Account for the year ended on that date annexed thereon. 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.

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 a reasonable basis for our opinion.

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.

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 purpose 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 those books.

(iii) The Balance Sheet and Profit and Loss Account dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet and Profit and Loss Account 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 31 st 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) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said account 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:

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 the Profit and Loss account, of the Profit for the year ended on that date.

c. In case of Cash flow statement, of the cash flow for the year ended on that date.

For RAO & SRIDHAR

Chartered Accountants

Sd/-

Place: Hyderabad (CA. A. Vishwanatha Rao)

Date: 14-05-2012 Membership No. : 29597

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Mar 31, 2011

We have audited the attached Balance Sheet of NARVEN FINANCE AND INVESTMENTS LIMITED as on 31st March, 2011, Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereon. 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.

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 a reasonable basis for our opinion.

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.

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 purpose 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 those books.

(iii) The Balance Sheet, Profit and Loss Account and the Cash Flow Statement 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 the Cash Flow Statement 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 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanations given to us, the said account 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:

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 the Profit and Loss account, of the Profit for the year ended on that date.

c. in the case of the cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

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 Companies Act, 1956, we report that.

i) a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed Assets.

b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) None of the fixed assets have been sold during the year under review.

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

b) In our opinion the procedures of physical verification of stocks followed by the 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 book records, which are not significant, have been properly dealt with the books of account.

iii) The Company has neither granted nor has it taken any loans, secured or unsecured from Companies, firms or other parties listed in the registers maintained under section 301 of the Companies Act, 1956.

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 purchases of the equipment and other assets and with regard to the sale of goods.

v) In our opinion and according to the information and explanations given to us, there were no transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the registers maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs.50,000/- or more in respect of each party.

vi) The Company has not accepted any deposits from the public governed by section 58A and 58AA of the Companies Act, 1956, and the Companies(Acceptance of Deposits) Rules, 1975 do not apply to this Company.

vii) The Company does not have a formal internal audit department but we are of the opinion that the Company''s internal control procedures together with the internal checks conducted by the management during the year can be considered as an adequate internal audit system commensurate with the size and nature of its business.

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

ix) a) The company is regular in depositing with appropriate authorities undisputed statutory dues including income tax and other material statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amounts payable by the Company in respect of income tax, Wealth tax, Sales tax, Customs duty and Exercise duty, outstanding as at 31st March, 2011 for the period of more than six months from the date they became payable.

x) The Company does not have any accumulated losses as at the end of the financial year under reference. The company has not incurred any cash loss in the financial year under reference.

xi) The company has not taken any loans from financial institutions or banks.

xii) We are of the opinion that the company has maintained adequate records where the company has granted loans in the nature of loans, the terms of which are not detrimental to the interests of the Company.

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

xiv) In our opinion, and as per our verification of the records, in respect of dealing in shares and other investments, proper records have been maintained regarding the transactions and contracts and timely entries have been made thereon. All the investments are held in its own name.

xv) The company has not given any guarantee for loans taken by other from banks or financial institutions.

xvi) In our opinion, the company has not taken any term loans during the year under review.

xvii) In our opinion, and according to explanations and information give to us, funds raised on short-term basis have not been used for long term investment and vice versa.

xviii) The company has not made any preferential allotment of shares during the year under reference.

xix) The company has not issued any debentures.

xx) The company, during the year, has not raised money by public issues.

xxi) In our opinion and according to explanations and information given to us, no fraud on or by the company has been noticed or reported during the year.

For RAO & SRIDHAR

Chartered Accountants

FRN6070S

Place: Hyderabad (CA. A. Vishwanatha Rao)

Date : 03.09.2011 Partner

Membership No: 29597

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Mar 31, 2010

We have audited the attached Balance Sheet of NARVEN FINANCE AND INVESTMENTS LIMITED as on 31st March, 2010, Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereon. 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.

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 a reasonable basis for our opinion.

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.

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 purpose 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 those books.

(iii) The Balance Sheet, Profit and Loss Account and the Cash Flow Statement 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 the Cash Flow Statement 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, 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) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said account 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:

a. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; and

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

c. in the case of the cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

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 Companies Act, 1956, we report that.

i) a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed Assets.

b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) None of the fixed assets have been sold during the year under review.

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

b) In our opinion the procedures of physical verification of stocks followed by the 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 book records, which are not significant, have been properly dealt with the books of account.

iii) The Company has neither granted nor has it taken any loans, secured or unsecured from Companies, firms or other parties listed in the registers maintained under section 301 of the Companies Act, 1956.

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 purchases of the equipment and other assets and with regard to the sale of goods.

v) In our opinion and according to the information and explanations given to us, there were no transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the registers maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50,000/- or more in respect of each party.

vi) The Company has not accepted any deposits from the public governed by section 58A and 58AA of the Companies Act, 1956, and the Companies(Acceptance of Deposits) Rules, 1975 do not apply to this Company.

vii) The Company does not have a formal internal audit department but we are of the opinion that the Company''s internal control procedures together with the internal checks conducted by the management during the year can be considered as an adequate internal audit system commensurate with the size and nature of its business.

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

ix) a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty and other material statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amounts payable by the Company in respect of income tax, Wealth tax, Sales tax, Customs duty and Exercise duty, outstanding as at 31st March, 2010 for the period of more than six months from the date they became payable.

x) The Company has accumulated losses as at the end of the financial year under reference. The company has not incurred any cash losses in the financial year under reference.

xi) The company has not taken any loans from financial institutions or banks.

xii) We are of the opinion that the company has maintained adequate records where the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

xiv) In our opinion, and as per our verification of the records, in respect of dealing in shares and other investments, proper records have been maintained regarding the transactions and contracts and timely entries have been made thereon. All the investments are held in its own name.

xv) The company has not given any guarantee for loans taken by other from banks or financial institutions.

xvi) In our opinion, the company has not taken any term loans during the year under review.

xvii) In our opinion, and according to explanations and information give to us, funds raised on short-term basis have not been used for long term investment and vice versa.

xviii) The company has not made any preferential allotment of shares during the year under reference.

xix) The company has not issued any debentures.

xx) The company, during the year, has not raised money by public issues.

xxi) In our opinion and according to explanations and information given to us, no fraud on or by the company has been noticed or reported during the year.

For RAO & SRIDHAR

Chartered Accountants

Place: Hyderabad (CA. A. Vishwanatha Rao)

Date : 02.09.2010 Partner

Membership No: 29597

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Mar 31, 2009

We have audited the attached Balance Sheet of NARVEN FINANCE AND INVESTMENTS LIMITED as on 31 st March, 2009, Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereon. 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.

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 a reasonable basis for our opinion.

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.

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 purpose 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 those books.

(iii) The Balance Sheet, Profit and Loss Account and the Cash Flow Statement 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 the Cash Flow Statement 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 31 st March, 2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

(vi) In our opinion and to the best of our information and according to the explanations given to us, the said account 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:

a. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2009; and

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

c. in the case of the cash flow statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

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 Companies Act, 1956, we report that.

i) a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed Assets.

b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) None of the fixed assets have been sold during the year under review.

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

b) In our opinion the procedures of physical verification of stocks followed by the 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 book records, which are not significant, have been properly dealt with the books of account.

iii) The Company has neither granted nor has it taken any loans, secured or unsecured from Companies, firms or other parties listed in the registers maintained under section 301 of the Companies Act, 1956.

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 purchases of the equipment and other assets and with regard to the sale of goods.

v) In our opinion and according to the information and explanations given to us, there were no transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the registers maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs.50,000/- or more in respect of each party.

vi) The Company has not accepted any deposits from the public governed by section 58A and 58AA of the Companies Act, 1956, and the Companies(Acceptance of Deposits) Rules, 1975 do not apply to this Company.

vii) The Company does not have a formal internal audit department but we are of the opinion that the Company''s internal control procedures together with the internal checks conducted by the management during the year can be considered as an adequate internal audit system commensurate with the size and nature of its business.

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

ix) a) The company is regular in depositing with appropriate authorities undisputed statutory dues including income tax and other material statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amounts payable by the Company in respect of income tax, Wealth tax, Sales tax, Customs duty and Exercise duty, outstanding as at 31st March, 2011 for the period of more than six months from the date they became payable.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 Companies Act, 1956, we report that.

i) a) The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed Assets.

b) All the assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

c) None of the fixed assets have been sold during the year under review.

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

b) In our opinion the procedures of physical verification of stocks followed by the 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 book records, which are not significant, have been properly dealt with the books of account.

iii) The Company has neither granted nor has it taken any loans, secured or unsecured from Companies, firms or other parties listed in the registers maintained under section 301 of the Companies Act, 1956.

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 purchases of the equipment and other assets and with regard to the sale of goods.

v) In our opinion and according to the information and explanations given to us, there were no transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the registers maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs.50,000/- or more in respect of each party.

vi) The Company has not accepted any deposits from the public governed by section 58A and 58AA of the Companies Act, 1956, and the Companies(Acceptance of Deposits) Rules, 1975 do not apply to this Company.

vii) The Company does not have a formal internal audit department but we are of the opinion that the Company''s internal control procedures together with the internal checks conducted by the management during the year can be considered as an adequate internal audit system commensurate with the size and nature of its business.

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

ix) a) The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees'' state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty and other material statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amounts payable by the Company in respect of income tax, Wealth tax, Sales tax, Customs duty and Exercise duty, outstanding as at 31st March, 2009 for the period of more than six months from the date they became payable.

x) The Company has accumulated losses as at the end of the financial year under reference. The company has not incurred any cash losses in the financial year under reference.

xi) The company has not taken any loans from financial institutions or banks.

xii) We are of the opinion that the company has maintained adequate records where the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

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

xiv) In our opinion, and as per our verification of the records, in respect of dealing in shares and other investments, proper records have been maintained regarding the transactions and contracts and timely entries have been made thereon. All the investments are held in its own name.

xv) The company has not given any guarantee for loans taken by other from banks or financial institutions.

xvi) In our opinion, the company has not taken any term loans during the year under review.

xvii) In our opinion, and according to explanations and information give to us, funds raised on short-term basis have not been used for long term investment and vice versa.

xviii)The company has not made any preferential allotment of shares during the year under reference.

xix) The company has not issued any debentures.

xx) The company, during the year, has not raised money by public issues.

xxi) In our opinion and according to explanations and information given to us, no fraud on or by the company has been noticed or reported during the year.

For RAO & SRIDHAR

Chartered Accountants

Place: Hyderabad (CA. A. Vishwanatha Rao)

Date : 02.09.2009 Partner

Membership No. : 29597