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Auditor Report of Jeevan Scientific Technology Ltd.

Mar 31, 2015

Report on Financial Statements

We have audited the accompanying financial statements of Jeevan Scientific Technology Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting 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 adequate internal financial controls, that were operating effectively 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.

Auditor's Responsibility

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 thereunder.

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.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, 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 on the financial statements.

Opinion

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, of the state of affairs of the Company as at 31st March, 2015, and its profit/ loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the company's auditor's report order, 2015("the Order") issued by the Central Government of India in terms of sub section (11) of section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in Paragraph 3 and 4 of the order, to the extent applicable.

2. As required by Section 143 (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 it appears from our examination of those books.

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

d) In our opinion, the 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 the written representations received from the directors as on 31 st March, 2015 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act and

f) with respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - the Company does not have any pending litigations which would impact its financial position.

ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - the Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

The Annexure referred to in our Independent Auditor's Report to the members of the company on the financial statements for the year ended 31st March 2015, we report that:

i) In respect of fixed assets :

a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;

b. The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner. In accordance with this programme, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of physical verification is reasonable having regard to the size of the Company and the nature of its assets;

ii) In respect of Inventories :

a. As explained to us by the management and as observed by us, the inventory of raw material, finished goods stores and spares etc. has been physically verified during the year and specifically at the year-end by the management. In our opinion, the frequency of physical verification is reasonable having regard to the size and nature of business of the company.

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

c. In our opinion and according to the information and explanation given to us, the company has maintained proper records of its inventories and the discrepancies noticed on such physical verification between physical stock and the book records have been properly dealt with in the books of account

iii) In respect of loans granted by the company:

Based on our scrutiny and as per the information and explanations provided to us by the management, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189of the Act.

iv) In respect of internal control system:

a. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and with regard to rendering of services/sale of goods. We have not observed any major weakness in the internal control system during the course of the audit.

v) In respect of deposits from the public:

The company has not accepted any deposits from the public.

vi) In respect of cost records:

a. We have been informed by the management that the maintenance of cost records has not been prescribed by the Central Government under section (1) of section 148 of the Companies Act, 2013.

vii) In respect of Statutory Dues:

a. According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees state insurance, Income tax, Sales tax, Wealth tax, Service tax, duty of customs, duty of excise, Value added tax, Cess and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Sales tax, Wealth tax, Employees State Insurance, Investor Education and Protection Fund, Customs duty and Excise duty. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income tax, Service tax and other material statutory dues were in arrears as at 31 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 are no material dues of Income tax, Service tax and Cess etc which have not been deposited with the appropriate authorities on account of any dispute.

c. Based on scrutiny of records and as per the explanation given by the management, the company is not required to transfer any amounts to investor education and protection fund in accordance with the relevant provisions of the Companies act 1956 and rules made there under.

viii) In respect of Accumulated Losses:

The accumulated losses of the company does not exceed fifty percent of its net worth as at 31st March, 2015. The company has not incurred any cash losses for the financial year covered by our audit and in the immediately preceding financial year.

ix) In respect of dues to financial institutions, banks and debenture holders:

In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution and Banks.

x) In respect to Guarantees given by the company :

As per the information and explanations given to us, the company has not given any guarantee for loans taken by others from any bank or financial institutions.

xi) In respect of term loans availed by the company:

According to information and explanation given to us, the company has not availed any term loans. Accordingly the provisions of clause 3(xi) of the order is not applicable.

xii) In respect of Frauds on or by the company:

As presented to us by the management and based on our examination in the normal course of audit, no frauds on or by the Company has been noticed or reported during the year.

For L N P & Co,

Chartered Accountants

Firm Reg. No.008918S

Sd/-

Purna Chandra Sekhar P Partner

Membership No.214746

Place: Hyderabad

Date: May 29, 2015


Mar 31, 2014

We have audited the attached Balance Sheet of JEEVAN SCIENTIFIC TECHNOLOGY LIMITED as at 31st March 2014, the Statement of Profit and Loss and the cash flow statement for the year ended on that date.

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, and financial performance 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.

Auditor''s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. 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 qualified audit opinion.

Basis for qualified opinion:

The company has provided for the Gratuity liability on an estimated basis in accordance with the provisions of the Payment of Gratuity Act, 1972. It has not adopted and complied with the requirements of AS-15 "Employee Benefits" in respect of the Gratuity liability, which constitute a departure from the Accounting Standards referred to in section 211(3C) of the Act. In view of this, the extent of the variance between the actuarial liability in accordance with AS-15 and the liability provided for in the books of the company in this regard could not be ascertained. Consequently, we are unable to comment about the impact of the same on the profit for the year, income tax and shareholder''s funds.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the basis for qualified opinion paragraph, 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, 2014;

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

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

Report on other Legal and Regulatory Requirements

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

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

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

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books

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

d) Except for the matter described under the basis for qualified opinion paragraph, in our opinion, the Balance Sheet and 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, 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.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

The Annexure referred to in paragraph 1 of the Our Report of even date to the members of JEEVAN SCIENTIFIC TECHNOLOGY LIMITED.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

(i) In respect of fixed assets:

a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets;

b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner. In accordance with this programme, fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of physical verification is reasonable having regard to the size of the Company and the nature of its assets;

c) During the year, there was no sale of substantial part of fixed assets and hence the going concern assumption of the company is not affected.

(ii) In respect of inventories:

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

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

(c) In our opinion and according to the information and explanation given to us, the company has maintained proper records of its inventories and the discrepancies noticed on such physical verification between physical stock and the book records have been properly dealt with in the books of account.

(iii) In respect of loans granted and taken by company:

(a) The Company has not grantedany loans, secured or unsecured from companies, firms or other parties covered in the register maintained under Section 301 of the Act. Accordingly, paragraphs 4 (iii) (a) to 4 (iii) (d) of the Order are not applicable;

(b) The company has taken unsecured loans from three parties covered in the register maintained u/s 301 of the Act. The opening balance is Rs.242.88 lakhs and during the year Rs.176.43 has been taken and Rs.205.35 has been repaid and the closing balance of loans taken from such parties was Rs. 213.96 Lakhs.

(iv) In respect of internal control systems:

In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with size of the Company and the nature of its business with regard to purchases of fixed assets and with regard to rendering of services/ sale of goods. We have not observed any major weakness in the internal control system during the course of the audit.

(v) In respect of transactions with related parties as per Register of Contract u/s 301:

a) In our opinion and according to the information and explanations given to us, the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register required to be maintained under that section;

b) In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts and arrangements referred to in (v) (a) above with any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

(vi) In respect of deposits from the public:

The Company has not accepted any deposits from the public. Accordingly, paragraph 4(vi) of the Order is not applicable.

(vii) In respect of internal audit system:

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

(viii) In respect of cost records:

The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act, 1956 for the products / items dealt with by the company.

(ix) In respect of statutory dues:

a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted / accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income tax, Service tax and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Sales tax, Wealth tax, Employees State Insurance, Investor Education and Protection Fund, Customs duty and Excise duty. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Income tax, Service tax and other material statutory dues were in arrears as at 31 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 are no material dues of Income tax, Service tax and Cess which have not been deposited with the appropriate authorities on account of any dispute.

(x) In respect of cash losses:

The accumulated losses of the Company have exceed fifty percent of its net worth as at 31st March 2014. The company has posted a profit of Rs.22.73 lakhs in the financial year covered by our Auditand has incurred cash losses in the immediately preceding financial year.

(xi) In respect of dues to financial institutions, banks and debenture holders:

In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution and Banks.

(xii) In respect of secured loans and advances granted:

The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, paragraph 4 (xii) of the Order is not applicable.

(xiii) In respect of chit fund, nidhi or mutual benefit company: In our opinion and according to the information and explanations given to us, the Company is not a chit fund / nidhi / mutual benefit fund / society. Accordingly, paragraph 4 (xiii) of the Order is not applicable.

(xiv)In respect of investment company:

According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly paragraph 4 (xiv) of the Order is not applicable.

(xv) In respect of guarantees given by company:

According to the information and explanations given to us, the Company has not given guarantee for loans taken by others from banks or financial institutions.

(xvi) In respect of term loans:

The Company has not obtained term loans during the year and hence the provisions of clause (xvi) of the said order is not applicable.

(xvii) In respect of funds raised on short-term basis:

According to the information and explanations given to us, the Company has not used short term funds for long term investments.

(xviii) In respect of preferential issue made to parties covered in the register u/s 301: The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, paragraph 4 (xviii) of the Order is not applicable.

(xix) In respect of debentures issued:

The Company did not issue any debentures during the year. Accordingly, paragraph 4 (xix) of the Order is not applicable.

(xx) In respect of end use of public issue funds:

The Company has not raised any money by public issues during the year. Accordingly, paragraph 4 (xx) of the Order is not applicable.

(xxi) In respect of frauds:

As presented to us by the management and based on our examination in the normal course of audit, no material frauds on or by the Company have been noticed or reported during the year.

For L N P & Co. Chartered Accountants FRN : 008918S

Sd/- Purna Chandra Sekhar P Date : 29-05-2014 Partner Place : Hyderabad M.No : 214746


Mar 31, 2013

We have audited the accompanying Financial Statements of JEEVAN SCIENTIFIC TECHNOLOGY LIMITED, HYDERABAD (A.P) ("The Company") which comprise the Balance Sheet as at 31st March, 2013 and the Statement of Profit and Loss and cash flow statement for the year then ended, and 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 in the 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these financial statements based on our Audit. We conducted

our Audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain the 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 judgement, including the assessment of the risks of material misstatements 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 the 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 qualified audit opinion.

Basis for qualified opinion:

The Company has provided for the Gratuity liability on an estimated basis in accordance with the provisions of The Payment of Gratuity Act, 1972. It has not adopted and complied with the requirements of AS-15 ''Employee Benefits'' in respect of the Gratuity liability, which constitute a departure from the Accounting standards referred in section 211(3C) of the Act. In view of this, the extent of the variance between the actuarial liability in accordance with AS-15 and the liability provided for in the books of the company in this regard could not be ascertained. Consequently, we are unable to comment about the impact of the same on the loss for the year, income tax and shareholder''s funds.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion Paragraph, 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 Statement of Profit and Loss, of the loss for the year ended on the date; and

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

Other matters

(a) The Company''s Balance Sheet as at March 31, 2013 indicates that the Company''s current liabilities exceeded its total assets by Rs. 1.26 crores and the accumulated losses have exceeded fifty percent of the net worth of the Company. These conditions indicate the existence of a material uncertainty that may cast significant doubt about the Company''s ability to continue as a going concern.

(b) The Company could not obtain confirmation of balances in respect of trade receivables amounting to Rs. 3,65,40,840. Consequently, we are unable to determine, if any adjustments are required to the amounts reflecting in the Balance Sheet as at March 31, 2013 and the impact of the same on the loss for the year, income tax and shareholder''s funds.

Report on other Legal and Regulatory requirements

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

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

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

(b) in our opinion, proper books of account as required by law have been kept by the Company so far as 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) except for the matter described under the basis for qualified opinion paragraph, 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 Act;

(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 Act;

(f) Since the Central Government has not issued any notification as to the rate at which cess is to be paid under section 441A of the Companies Act 1956 nor has it issued any rules under the said section prescribing the manner in which such cess is to be paid, no cess is due and payable by the company.

ANNEXURE REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE Statement on the Companies (Auditor''s Report) Order, 2003 Re: JEEVAN SCIENTIFIC TECHNOLOGY LIMITED i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year. No material discrepancies have been noticed during verification.

(c) During the year, the company had disposed certain fixed assets. However, this does not affect the going concern status.

ii) (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 the management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The company has maintained proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records have been properly dealt with in the books of account.

iii) (a) The company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s.301 of the Act.

(b) The Company has taken unsecured loans from two parties covered in the register maintained u/s.301 of the Act. The amount involved is Rs.160.29 Lakhs. The maximum amount involved during the year was Rs. 229.24 Lakhs and the closing balance of loans taken from such parties was Rs. 242.88 Lakhs.

(c) In our opinion, the terms and conditions on which loans have been taken from companies, and parties listed in the register maintained under section 301 of the Companies Act, 1956 are not prima facie, prejudicial to the interest of the company.

(a) According to explanations given to us, the lenders have not fixed any repayment schedule. Hence, we are unable to comment upon as to, whether the Company is regular in the payment of principal amount.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the provision of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems.

v) (a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section; and

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 have been made at prices which are reasonable, having regard to the prevailing market prices at the relevant time.

vi) The company has not accepted any deposits from the public within the meaning of Section 58Aand 58AA of the Companies Act, 1956 and the Rules framed there under.

vii) The company has internal audit system commensurate to the nature and size of its business. viii) The Central Government has not prescribed maintenance of cost records under clause (d) of sub- section (1) of Section 209 (1)(d) of the Companies Act, 1956 for the products/ items dealt with by the company. ix) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including investor education protection fund, employee''s state insurance, sales tax, service tax etc. (b) According to the information and explanations given to us, there are no dues of sales tax, income tax, customs duty, wealth tax, excise duty, service tax and cess which have not been deposited on account of any dispute.

x) The accumulated losses of the company have exceeded fifty percent of its net worth as at 31 March 2013. The company incurred cash losses during the financial year covered by our audit and not incurred cash losses in the immediately preceding financial year.

xi) The Company has not defaulted in repayment of any dues to a bank/ financial institution.

xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The company is neither a chit fund nor a nidhi mutual benefit fund/ society. Therefore, the provisions of clause 4(xiii) of the above referred Order are not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the above referred Order are not applicable to the company.

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

xvi) During the year the company has not availed any term loans and hence the provisions of Clause

(xvi) of the said Order are not applicable.

xvii) According to the information and explanations given to us and on overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

xviii)The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

xix) The company has not issued any debentures. Accordingly, the provisions of clause 4(xix) of the above referred Order are not applicable to the company.

xx) During the year the company has not raised money by public issue. Accordingly, the provisions of clause 4(xx) of the above referred Order are not applicable to the company.

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

For K.S.RAO & CO., Chartered Accountants Firm''s Regn.No.003109S

Sd/- Place: Hyderabad (P.GOVARDHANA REDDY) Date: 29.05.2013 Partner Membership No.029193


Mar 31, 2012

1. We have audited the attached Balance Sheet of JEEVAN SCIENTIFIC TECHNOLOGY LIMITED, HYDERABAD (A.P) as at 31st March, 2012 and also the Statement of Profit and Loss for the year ended on that date annexed there to and the Cash Flow Statement for the year 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 from any 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:

3. As required by the Companies (Auditors'' Report) Order, 2003, issued by the Central Government of India in terms of Section 227(4A) 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 account as required by law have been kept by the Company so far as appears from our examination of such books.

iii) 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.

iv) In our opinion, the Balance Sheet, Statement of Profit and 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, excepting AS-15 "Employee Benefits".

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

vi) a) THE COMPANY HAS PROVIDED GRATUITY LIABILITY ON ESTIMATED BASIS IN ACCORDANCE WITH PAYMENT FOR GRATUITY ACT. IT HAS NOT ADOPTED "AS 15 EMPLOYEE BENEFITS" IN MAKING PROVISION OF GRATUITY LIABILITY. IN VIEW OF THIS, VARIANCE BETWEEN THE ACTUARIAL LIABILITY AND THE LIABILITY PROVIDED ON ESTIMATED BASIS COULD NOT BE ASCERTAINED. HENCE WE ARE UNABLE TO COMMENT ABOUT THE IMPACT ON THE PROFIT FOR THE YEAR.

b) THERE ARE NO CONFORMATION OF BALANCES FOR TRADE RECEIVABLES AND LOANS & ADVANCES.

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts, subject to our comments in para 4(vi)above, give the information as required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India :

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012;

ii) In the case of the Statement of Profit and Loss, of the Profit of the Company for the year ended on that date; and

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

Annexure

Statement on the Companies (Auditor''s Report) Order 2003 Re: JEEVAN SCIENTIFIC TECHNOLOGY LIMITED,

i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

b) All the assets have been physically verified by the management during the year. No material discrepancies have been noticed during verification.

ii) 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 the management are reasonable and adequate in relation to the size of the company and the nature of its business.

c) The company maintains proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records have been properly dealt with in the books of account.

iii) a) The company has not granted loans, secured or unsecured to companies, firms or other parties covered in the register maintained u/s.301 of the Act.

b) The Company has taken unsecured loans from two parties covered in the register maintained u/s.301 of the Act. The amount involved is Rs.172.55 Lakhs.

c) In our opinion, terms and conditions of loans taken by the company are prima facie not prejudicial to the interest of the company.

d) As per the information available with the company the lenders have not fixed repayment schedule for the principal amount, we are unable to comment whether the company is regular in payment of the principal amount.

iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the provisions of services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control systems.

v)a) According to the information and explanations given to us, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section and

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

vi) The company has not accepted the deposits from the public within the meaning of Section 58Aand 58AA of the Companies Act, 1956 and the Rules framed there under.

vii) The company has internal audit system.

viii) Central Government has not prescribed maintenance of cost records under clause (d) of sub- section (1) of Section 209(1)(d) of the Companies Act, 1956 for the products/items dealt with by the company.

ix)a) The company is regular in depositing with appropriate authorities undisputed statutory dues including investor education protection fund, employee''s state insurance, sales tax.

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

x) In our opinion, the accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash losses during the financial year covered by our audit and as well as in the immediately preceding financial year.

xi) The Company has not defaulted in repayment of dues to a bank.

xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The company is neither a chit fund nor a nidhi mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the above referred Order are not applicable to the company.

xiv) The company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the above referred Order are not applicable to the company.

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

xvi) During the year the company has availed term loan from a bank and the same was applied for the purpose for which the loan was obtained.

xvii) According to the information and explanations given to us and on overall examination of the balance sheet of the company, we report that the no funds raised on short-term basis have been used for long-term investment.

xviii) The company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

xix) The company has not issued any debentures. Accordingly, the provisions of clause 4(xix) of the above referred Order are not applicable to the company.

xx) During the year the company has not raised money by public issue. Accordingly, the provisions of clause 4(xx) of the above referred Order are not applicable to the company.

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

For K.S.RAO & CO., Chartered Accountants Firm''s Regn.No.003109S

Sd/- Place: Hyderabad (P.GOVARDHANA REDDY) Date: 13.08.2012 Partner Membership No.29193

 
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