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Auditor Report of Nava Bharat Ventures Ltd.

Mar 31, 2016

We have audited the accompanying Standalone Financial Statements of NAVA BHARAT VENTURES LIMITED, ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, 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 STANDALONE 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 Standalone 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 of 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.

AUDITORS'' RESPONSIBILITY

Our responsibility is to express an opinion on these Standalone 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 Standalone Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone 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 Standalone Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 Standalone Financial Statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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, 2016, and its Profit and its 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, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 Standalone 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 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

(g) 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 - Refer Note 40 to the financial statements

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

The Annexure referred to in Para 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, to the members of NAVA BHARAT VENTURES LIMITED, HYDERABAD, for the year ended March 31,2016.

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

b. As explained to us, the management has physically verified the fixed assets during the year and there is a regular programme of physical verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of the assets. No discrepancies were noticed on such verification.

c. According to the information and explanations furnished by the Management and based on the records examined by us, regarding the title deeds of the immovable property other than self constructed buildings and including investment property, we report that:

i. In respect of immovable properties of lands that have been taken on lease and disclosed as fixed assets in the financial statements, the lease agreements are in the name of the company, where the Company is the lessee in the agreements.

ii. The title in respect of the land costing Rs.15.71 lakhs admeasuring 14.06 acres and 23 guntas is yet to be transferred in the name of the Company.

iii. The title in respect of land costing Rs.26.06 lakhs admeasuring 5.05 acres allotted by APIIC Limited is yet to be transferred in the name of the Company.

iv. The long term lease period relating to the land situated at Samalkot, East Godavari District on which the Buildings of Sugar Manufacturing facility were constructed was expired on 12.8.1996.

v. In respect of all other immovable properties, we are given to understand that the title deeds are with Security trustee and are held in the name of the Company.

2. The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. No material discrepancies were noticed on such verification between the physical stocks and book records.

3. a. During the year, the Company has granted unsecured loans to a Company covered in the register maintained under Section 189 of the Companies Act, 2013.

b. In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loan are not, prima facie, prejudicial to the interest of the Company

c. The schedule of repayment of principal and payment of interest has been stipulated and the repayments are as per the said stipulations.

d. There were no overdue amounts in respect of the said loans.

4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.

5. The Company has not accepted any deposits from the public. Hence the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under, do not apply to this Company.

6. The maintenance of cost records has been specified by the Central Government under section 148(1) of the C ompanies Act, 201 3 for the Products of C ompany. We have broadly reviewed the cost records maintained by the Company pursuant to sub-section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prime facie the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or Complete.

7. a. According to the records, the company is generally regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and all other material statutory dues with the appropriate authorities. However, the extent of the arrears of outstanding statutory dues as at March 31, 2016 for a period of more than six months from the date they became payable are as follows.

UNDISPUTED STATUTORY DUES

Nature of the Amount Period to which the Due Date Date of Name of the Statute dues Rs. amount relates payment

AP AL (CFNAP) Act, 2006 Land Conversion 6,466,061 2010 -11 - Not yet paid Tax

Orissa Electricity Duty Act, 1961 Electricity Duty 1,091,227 2008-09 30.04.2009 Not yet paid

325,551 2009-10 30.04.2010

90,239 2012-13 30.04.2013

Customs Act,1962 Customs Duty 1,761,860 1985-87 - Not yet paid

304,945 2008-09 30.04.2009

156,781 2009-10 30.04.2010

Go AP 156,867 2010-11 30.04.2011

Water Charges 260,127 2011-12 30.04.2012 Not yet paid

(I & CAD Dept.) 131,924 2012-13 30.04.2013

152,700 2013-14 30.04.2014

135,219 2014-15 30.04.2015

52,560 2008-09 30.04.2009

OSPCB Water Cess 60,994 2009-10 30.04.2010 Not yet paid

11,518 2011-12 30.04.2012

12,484 2008-09 31.03.2009 Not yet paid

Go AP, APPCB Water Cess 15,976 2013-14 31.03.2014

13,999 2014-15 31.03.2015

The A.P. Electricity Duty Act, 2003-04 to Not yet paid 2003 (as amended) * Electricity Duty 7,260,282 2007-08 15.04.2008

- do - - do - 407,520 2008-09 30.04.2009 Not yet paid

437,520 May 2010 30.06.2010

251,868 Jun 2010 31.07.2010

- do - - do - 535,680 July 2010 31.08.2010 Not yet paid

514,944 Aug 2010 30.09.2010

5,324,777 Sept 2010 31.10.2010

- do - - do - 5,239,126 30.04.2012 Not yet paid

48,979 April 2011 31.05.2011

- do - - do - 645,905 May 2011 30.06.2011 Not yet paid 495,380 March 2012 30.04.2012

712,759 2012-13 30.05.2013

- do - - do - 559,577 2013-14 30.05.2014 Not yet paid 644,816 2014-15 30.05.2015

137,854 2011-12 31.03.2012

160,268 2012-13 31.03.2013

AP Municipa lities Act,1965 Property Tax 204,510 2013-14 31.03.2014 Not yet paid

207,359 2014-15 31.03.2015

O S Govt. Ground Rent 7,592 2009-10 31.03.2010 Not yet paid

5,955 2011-12 31.03.2012

East Coast Railways Water way line 180,932 2002-03 to 31.03.2010 Not yet paid Charges 2009-10

Commissioner, Municipality, Samalkot Welfare Cess 9,969 2014-15 - Not yet paid

The Finance Act, 1994 Service tax 514,022 2014-15 30.06.2015 Not yet paid

A.P. Excise Act, 1968 Establishment 1,245,672 - - Not yet paid Charges

b. According to the records of the Company and the information and explanations given to us, there were no dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute except the following.

DISPUTED STATUTORY DUES

Nature of Amount Period to which the Forum where dispute is Name of the Statute Dues Rs. amount relates pending

AP (Ag. Produce & Agricultural The Secretary, Agricultural Live Stock) Marketing 2,815,396 1980-81 to 1989-90 Marketing Committee, Act, 1966 Market Cess Visakhapatnam

AP Municipa lities Property Tax 149,952 1995-96 to 2000-01 Hon''ble High Court of AP

-do- -do- 200,798 1995-96 to 2000-01 Hon''ble High Court of AP

Asst. Commissioner of Sales Central 220,130 2004-05 Tax, Range-II, Cuttack Sales Tax

Various Sales Tax Acts 6,487,532 2000-01 STAT, Hyderabad

APGST 7,935,607 2003-04 Asst.Commissioner of Commercial Taxes, Warangal

18,670,865 2004-05 to 2009-10 CESTAT, Bangalore

73.700.285 2012-13 CESTAT, Bangalore

5,529,064 1997-98 CESTAT, New Delhi

Excise Duty

13.690.286 2000-01 to 2001-02 Hon''ble High Court of AP

Commissioner of Central

1,190,633 2000-01 to 2005-06 Excise(Appeals), Visakhapatnam

Central Excise Act, Commissioner of Central 1944 5,373,098 Oct 2007 - Mar 2016 Excise(Appeals), Visakhapatnam

11,169,906 2009-14 Appeal yet to be filed

Service Tax 1,107,337 April 2012 - March 2014 Deputy Commissioner Central Excise, Kakinada

Assistant Commissioner of 1,252,798 April 2011 - March 2016 Central Excise, Kakinada

48,296,986 2011-12 Appeal yet to be filed.

The A.P. Electricity Electricity 50,079,654 2008-09 to 2015-16 Appeal yet to be filed. Duty Act, 2003. Duty

The AP Non- Agricul tural Land NALA TAX 1,225,116 1993-94 to 1998-99 Hon''ble High Court of AP Assessment Act, 1963

8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institutions and Banks.

9. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised and the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year.

10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.

11. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Companies (Auditor''s Report) Order 2016 is not applicable

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.

14. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Companies (Auditor''s Report) Order 2016 is not applicable.

16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

for Brahmayya & Co.,

Chartered Accountants

Firm''s Registration Number: 000513S



P. Chandramouli

Place : Hyderabad Partner

Date : 30th May, 2016 Membership Number: 025211


Mar 31, 2015

We have audited the accompanying Standalone Financial Statements of NAVA BHARAT VENTURES 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 STANDALONE 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 Standalone 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 of 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 Standalone 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 Standalone Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone 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 Standalone Financial Statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. 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 Standalone Financial Statements.

OPINION

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Standalone 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 and its 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, 2015 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

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 Standalone 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 31st 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.

(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 - Refer Note 34 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

Annexure to the Auditor''s Report

The Annexure referred to in Para 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, to the members of NAVA BHARAT VENTURES LIMITED, HYDERABAD, for the year ended March 31, 2015.

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

b. As explained to us, the management has physically verified the fixed assets during the year and 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 the assets. No discrepancies were noticed on such verification.

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

3. a. During the year, the Company has granted unsecured loan to a Company covered in the register maintained under Section 189 of the Companies Act, 2013. The maximum amount involved during year was USD 6.00 Million (equivalent to RS.3,749.70 Lakhs) and the year end balance of such loan was USD 6.00 Million (equivalent to RS. 3,749.70 Lakhs).

b. In our opinion and according to the information and explanations given to us, receipt of the principal amount and interest are as per the terms of such unsecured loan.

4. We are informed that the prices charged to Subsidiary Companies cannot be compared with alternative quotations as most of the items/transactions are of special in nature. Read with the above, 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 purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. The Company has not accepted any deposits from the public. Hence the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act, 2013, and the rules framed there under, do not apply to this Company.

6. We have broadly reviewed the cost records maintained by the Company pursuant to sub-section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prime facie the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

7. a. According to the records of the Company, the company regular in depositing 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 any other statutory dues with the appropriate authorities.

b. According to the records of the Company, no un disputed 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 any other statutory dues were in arrears as at March 31, 2015 for a period of more than six months from the date they became payable except the following:

Name of the Statute Nature of the dues Amount RS.

AP AL(CFNAP) Act , 2006 Land Conversion Tax 64,66,061

Orissa Electricity Electricity Duty 10,91,227 Duty Act 1961 3,25,551

90,239

Customs Act,1962 Customs Duty 17,61,860

GoAP ( I & CAD Dept) Water Charges 3,04,945

1,56,781

1.56.867

2,60,127

1,31,924

1,52,700

OSPCB Water Cess 52,560

60,994

11,518

GoAP, APPCB Water Cess 12,484

15,976

The A.P. Electricity Electricity Duty 72,60,282 Duty Act, (as amended)

- do - - do - 4,07,520

- do - - do - 4,37,520

2,51.868

5,35,680

5,14,944

53,24,777

- do - - do - 52,39,126

The A.P. Electricity Electricity Duty 48,979 Duty Act,(as amended) 4,95,380

The A.P. Electricity Electricity Duty 7,12,759

Duty Act 2003 (as amended) 5,59,577

AP Municipalities Property Tax 1,52,854

Act,1965 1,81,234

2,52,451

O S Govt. Ground Rent 7,592

5,955

East Coast Railways Water way line Charges 1,80,932

Commissioner, Municipality, Welfare Cess 6,044 Samalkot

Name of the Statute Period to which Due Date Date of the amount payment relates

AP AL(CFNAP) Act , 2006 2010 - 11 Not yet paid

Orissa Electricity 2008 - 09 30.04.2009 Not yet Duty Act 1961 2009 - 10 30.04.2010 paid

2012 - 13 30.04.2013

Customs Act,1962 1985 - 87 Not yet paid

GoAP ( I & CAD Dept) 2008 - 09 30.04.2009 Not yet

2009 - 10 30.04.2010 paid

2010 - 11 30.04.2011

2011 - 12 30.04.2012

2012 - 13 30.04.2013

2013 - 14 30.04.2014

OSPCB 2008 - 09 30.04.2009 Not yet

2009 - 10 30.04.2010 paid

2011 - 12 30.04.2012

GoAP, APPCB 2008 - 09 31.03.2009 Not yet

2013 - 14 31.03.2014 paid

The A.P. Electricity 2003 - 04 15.04.2008 Not yet Duty Act, (as amended) to 2007-08 paid

- do - 2008 - 09 30.04.2009 Not yet paid

- do - May 2010 30.06.2010 Not yet

Jun 2010 31.07.2010 paid

July 2010 31.08.2010

Aug 2010 30.09.2010

Sept 2010 31.10.2010

- do - 2003 - 04 30.04.2012 Not yet

2010 - 11 paid

The A.P. Electricity April 2011 31.05.2011 Not yet Duty Act,(as amended) May 2011 30.06.2011 paid

March 2012 30.04.2012

The A.P. Electricity 2012 - 13 30.05.2013 Not yet

Duty Act 2003 (as amended) 2013 - 14 30.05.2014 paid



AP Municipalities 2011 - 12 31.03.2012 Not yet

Act,1965 2012 - 13 31.03.2013 paid

2013 - 14 31.03.2014

O S Govt. 2009 - 10 31.03.2010 Not yet

2011 - 12 31.03.2012 paid

East Coast Railways 2002 - 03 to 31.03.2010 Not yet

2009 - 10 paid

Commissioner, Not yet Municipality, 2014 - 15 - Paid Samalkot

c. According to the records of the Company and the information and explanations given to us, the dues of income tax or sales tax or wealth tax or service tax or duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute are as follows.

Name of the Statute Nature of the dues Amount RS.

AP (Ag.Produce & Agricultural Market Cess 28,15,396 Live Stock) Marketing Act, 1966

AP Municipalities Property Tax 1,49,952 Act 1965 2,00,798

Central Sales Tax 2,20,130

various sales Tax 64,87,532

APGST 79,35,607

1,75,08,459

7,37,00,285

55,29,064 Excise Duty Central Excise Act, 13,690,286

1944 11,55,618

Service Tax 36,90,416

44,15,367

1,40,42,859

20,54,018

Central Excise Act, Service Tax 1,05,44,620 1944 6,75,349

9,13,025

The A.P Electricity Electricity Duty 260,70,764

Duty Act, 2003. 43,085,412

The AP Non- NALA TAX 12,25,116 Agricultural Land Assessment Act, 1963

Period to which the Forum where dispute is pending amount relates

1980-81 to 1989-90 The Secretary, Agricultural Marketing Committee, Visakhapatnam

1995-96 to 2000-01 Hon''ble High Court of A.P.

1995-96 to 2000-01

2004-05 Asst. Commissioner of Sales Tax, Range-II, Cuttack

2000-01 STAT, Hyderabad

2003-04 Asst. Commissioner of Commercial Taxes, Warangal

2004-05 to 2009-10 CESTAT, Bangalore

2012-13 CESTAT, Bangalore

1997-98 CESTAT, New Delhi

2000-01 to 2001-02 Hon''ble High Court of A.P.

2000-01 to 2005-06 Commissioner of Central Excise (Appeals), Visakhapatnam

Oct 2007 - March Commissioner of Central Excise 2013 (Appeals), Visakhapatnam

2000- 01 to 2010 -11 Hon''ble High Court of A.P

1996-97 to 2010-11 Hon''ble High Court of A.P

2009-12 Appeal yet to be filed

2009-14 Appeal yet to be filed

April 2012 - Deputy Commissioner of September 2013 Central Excise, Kakinada

April 2011 - August Assistant Commissioner of 2013 Central Excise, Kakinada

2003-04 to 2012-13 Hon''ble High Court of A.P

2008-09 to 2014-15 Appeal yet to be filed

1993-94 to 1998-99 Hon''ble High Court of A.P

d. According to the records of the Company and the information and explanations given to us, the amount required to be transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time.

8. The Company has no accumulated losses as at the end of the financial year. The Company has not incurred cash losses during the year covered by our audit and also in the immediately preceding financial year.

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

10. In our opinion, the terms and conditions on which the Company has given guarantees for the loans taken by Others from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

11. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised.

12. Based upon the audit procedures performed and according to 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.

for Brahmayya & Co., Chartered Accountants Firm''s Registration Number: 000513S

P. Chandramouli Partner Place : Hyderabad Membership Number: 025211

Date : May 29, 2015


Mar 31, 2014

Report on the Financial Statements:

We have audited the accompanying financial statements of NAVA BHARAT VENTURES LIMITED ("the Company"), 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

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"), read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error

Auditor''s Responsibility:

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s nternal control. 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 overal presentation of the financial statements.

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

Opinion:

In our opinion and to the best of our information and according to the explanations given to us, 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, of the Profit for the year ended on that date; and

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

Report on Other Legal and Regulatory Requirements:

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

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

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

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

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

d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in Sub-Section (3C) of Section 211 of the Companies Act, 1956; read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of 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

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.

Annexure to the Auditors'' Report

The Annexure referred to in Para 1 under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date, to the members of NAVA BHARAT VENTURES LIMITED, HYDERABAD, for the year ended March 31, 2014.

1. a. The Company has maintained proper records

showing full particulars, including quantitative details and situation of fixed assets.

b. As explained to us, the management has physically verified the fixed assets during the year and 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 the assets. No discrepancies were noticed on such verification

c. The plant and machinery disposed off during the year by the Company is not substantial and hence, it has not affected the going concern status of the Company.

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

3. a. During the year, the Company has neither granted nor taken any loans, secured or unsecured to/ from Companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956

b. In view of our comment in paragraph (a) above, (III) (b), (c), (d), (e), (f) and (g) of paragraph 4 of the aforesaid order are not applicable to the Company.

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

5. a. In our opinion and according to the information and explanations given to us by the Management, we are of the opinion that the particulars of contracts or arrangements referred to in Section 301 of the Companies Act, 1956 have been entered in the register to be maintained under that section

b. In respect of the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs entered into during the financial year, in the absence of any comparable quotes, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public. Hence the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975, do not apply to this Company.

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

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 in respect of sugar, distillery, power and ferro alloys and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete The Central Government has not prescribed the maintenance of cost records under Section 209 (1) (d) of the Companies Act, 1956 for any other products of the Company.

9. a. According to the records of the Company, the Company is regular (but for what is stated in Para (b) below) in depositing with appropriate authorities 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 and other material statutory dues applicable to it.

10. The Company has no accumulated losses as at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financia nstitutions and Banks

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

13. The Company is not a chit fund or a nidhi/mutua benefit fund/society Therefore, the provisions of clause 4 (xiii) of the Companies (Auditor''s Report) Order 2003 are not applicable to the Company.

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

15. In our opinion, the terms and conditions on which the Company has given guarantees for the loans taken by Others from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

16. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised

17. In our opinion and according to the information and explanations given to us, the funds raised on short-term basis have not been used for long-term investment.

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

19. The Company has not issued any debentures during the year, therefore the question of creating security or charge in respect thereof does not arise.

20. During the year, the Company has not made any public issue, therefore the question of disclosing the end use of money raised by public issue does not arise.

21. Based upon the audit procedures performed and according to 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.

for Brahmayya & Co.

Chartered Accountants Firm''s Registration Number: 000513S

(P. Chandramouli)

Place : Hyderabad Partner

Date : May 30, 2014 Membership Number: 025211


Mar 31, 2012

1. We have audited the attached Balance Sheet of NAVA BHARAT VENTURES LIMITED, HYDERABAD (A.P) as at 31st March, 2012, the Statement of Profit and Loss and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the 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.

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

4. Further to our comments in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

ii) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

iii) 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.

iv) In our opinion, the Balance Sheet, the 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.

v) On the basis of written representations received from the Directors, as on 31st March, 2012 and taken on record by the Board of Directors, we report that, none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) 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 accounts read in conjunction with the Notes thereon give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the balance sheet, of the state of affairs of the Company as at 31st March, 2012;

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

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

Annexure to the Auditors' Report: referred to in paragraph 3 of our report of even date, Re: NAVA BHARAT VENTURES LIMITED, HYDERABAD.

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

b) As explained to us, the management has physically verified most of the fixed assets during the year and 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 the assets. As informed, no material discrepancies were noticed on such verification.

c) The plant and machinery disposed off during the year by the Company is not substantial and hence, it has not affected the going concern status of the Company.

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

3. a) The Company has granted unsecured loan to one of its subsidiary covered in the register maintained under section 301 of the companies Act, 1956. The maximum amount involved during the year was Rs.8,390 lakhs and the year- end balance of loan granted to such party was Rs. 8,390 lakhs.

b) In our opinion and according to the information and explanations given to us, the terms and conditions of such loans are not prima facie prejudicial to the interest of the Company.

c) As the terms of repayment have not been stipulated in respect of loans given as above, we are not in a position to make any specific comment regarding the repayment of principal and also interest.

d) In respect of the said loan and interest thereon, there are no overdue amounts.

e) As informed, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the companies Act, 1956. Accordingly, the provisions of clauses 4(iii)(f) and 4(iii)(g) of the companies (Auditors Report) Order, 2003 (as amended) are not applicable to the Company.

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

5. a) According to the information and explanations given to us by the Management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Companies Act, 1956 have been entered in the register to be maintained under that section

b) In respect of the transactions made in pursuance of such contracts or arrangements exceeding value of Rupees five lakhs entered into during the financial year, in the absence of any comparable quotes, we are unable to comment whether the transactions were made at prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the Company has not accepted any deposits from the public. Therefore, the provisions of Section 58A and 58AA or any other relevant provisions of the Companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975, do not apply to this Company.

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

8. We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 in respect of sugar, distillery, power and ferro chrome and are of the opinion that prime facie the prescribed accounts and records have been made and maintained. The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956 for any other products of the Company.

9. a) According to the records, the Company is generally regular (but for what is stated in Para ( b) below) in depositing with appropriate authorities 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 and other material statutory dues applicable to it.

b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears as at March 31, 2012 for a period of more than six months from the date they became payable except the following Amount Name of the Statute Nature of the dues (?)

The A.P. Electricity Electricity 72,60,282 Duty Act 1939 (as amended)

-do- -do- 4,07,520

4,37,520

2,51,868

-do- -do- 5,35,680

5,14,944 53,24,777

48,979 -do- -do- 6,45,905

28,460 GoAP APPCB Water Cess 12,363

3,04,945 GoAP Water Charges 1,56,781 I & CAD Dept 1,56,867

AP AL(CFNAP) ACT 2006 Land Conversion 64,66,061

Orissa Electricity Duty Act Electricity Duty 10,91,227

-do- Electricity Duty 3,25,551

52,560 OSPCB Water Cess 60,994

Customs Act,1962 Customs Duty 17,61,860

OSGovt. Land lease 7,592



Name of the Period to which the Due Date Date of amount relates payment

The A.P. Electricity Duty Act 1939 (as amended) 2003-04 to 15-04-2008 Not yet paid 2007-08

-do- 2008-09 30-04-2009 Not yet paid

May 2010 30-06-2010

Jun 2010 31-07-2010

-do- July 2010 31-08-2010 Not yet paid

Aug 2010 30-09-2010

Sept. 2010 31-10-2010

-do- April 2011 31-05-2011 Not yet paid May 2011 30-06-2011

GoAP APPCB 2008-09 Not yet paid 2011-12

2008-09 30-04-2009 GoAP (I & CAD Dept) 2009-10 30-04-2010 Not yet paid 2010-11 30-04-2011

AP AL(CFNAP) ACT 2006 2010-11 Not yet paid

Orissa Electricity Duty Act 1961 2008- 09 30-04-2009 Not yet paid

-do- 2009 -10 30-04-2009 Not yet paid

OSPCB 2008 - 09 30-04-2009 Not yet paid 2009 - 10 30-04-2010

Customs Act,1962 1985 - 87 Not yet paid

OSGovt. 2010-11 Not yet paid

c) According to the records of the Company and the information and explanations given to us, the dues of Sales Tax, Income Tax, Custom Duty, Wealth Tax, Service Tax, Excise Duty and Cess, which have not been deposited on account of any dispute are as follows:

Name of the Statute Nature of the Amount

2,20,130 Central Sales 14,30,850 Tax Various Sales Tax Acts 70,16,426

21,90,252 AP GST

79,35,607

75,60,960 Income Tax Act, 1961 Income Tax 331,62,882

230,88,330

AP (Agriculture Produce Agricultural & Live Stock Marketing 28,15,396 Market Cess Act, 1966

55,29,064

139,48,452

Excise Duty 11,31,853

8,64,428

Central Excise Act, 1944

135,81,386

36,26,003 Service Tax 106,26,427

3,06,394

AP State Excise & Establishment

Prohibition Act, 1972 charges under 35,51,781 State Excise



Name of the Period to which Forum where dispute Statue the amount realtes is pending

2004-05 Asst. Commissioner of Sales Tax, 2005-06 Range-II, Cuttack

Various Sales Tax Acts 2000-01 STAT, Hyderabad

2002-03 Asst.Commissioner of Commercial 2003-04 Taxes, Warangal

Asst. Year ITAT, Hyderabad 2005-06

Income Tax Act, 1961 Asst. Year ITAT, Hyderabad 2006-07

Asst. Year CIT (Appeals) - V 2008-09 Hyderabad

AP (Agriculture Produce & Live Stock) Marketing Act, 1966 1980-81 to The Secretary, Agricultural Marketing 1989-90 Committee, Visakhapatnam

Customs, Excise & Service Tax Appellate Tribunal, New Delhi

2004 05 Customs, Excise & Service Tax Appellate Tribunal, 2009-10 Bangalore

Customs, Excise & Service Tax 2001-02 Appellate Tribunal, Bangalore

2009-10 Deputy Commissioner of Central Excise & Customs-II 2011-12 Kakinada

Central Excise Act, 1944 2000-01 to Hon ble High Court of A.P. 2001-02

2000 - 01 Hon'ble High Court of A.P to 2010 -11

1996-97 Hon'ble High Court of A.P. to 2010-11

2006-07 Customs, Excise & Service Tax Appellate Tribunal, and 2010-11 Bangalore

AP State Excise & Prohibition Act, 1972 1968-69 Commissioner of State to 1987-88 Excise & Prohibition, Hyderabad

Name of the Statute Nature of the Amount

The AP Non-Agricultural Land Assessment Act, NALA TAX 18,82,000 1963

1,49,952 AP Municipalities Act, Property Tax 1965 2,00,798

The A.P. Electricity Duty

Electricity Duty 311,65,094 Act 1939. as amended



Name of the Period to which Forum where dispute Statue the amount realtes is pending

The AP Non-Agricultural Land Assessment Act, 1963 1993-94 Hon'ble High Court of AP to 1998-99

1995-96 Hon'ble High Court of AP to 2000-01

AP Municipalities Act, 1965 1995-96 Hon'ble High Court of AP to 2000-01

The A.P. Electricity Duty Act 1939. (as amended) 2003-04 Hon'ble High Court of AP to 2011-12

10. The Company has no accumulated losses as at the end of the financial year. The Company has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

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

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

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

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

15. In our opinion, the terms and conditions on which the Company has given guarantees for the loans taken by Others from banks and financial institutions are not prima facie prejudicial to the interest of the Company.

16. In our opinion and according to the information and explanations given to us the term loans were applied for the purpose for which the loans were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

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

19. During the year, the Company has not issued any debentures, therefore the question of creating security or charge in respect thereof does not arise

20. During the year, the Company has not made any public issue and therefore the question of disclosing the end use of money raised by public issue does not arise.

21. Based upon the audit procedures performed and according to 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.

per our report of even date

for Brahmayya & Co,

Chartered Accountants

Firms' Registration Number: 000513S

P. Chandramouli Place : Hyderabad Partner

Date : 30th May 2012 Membership Number: 025211

 
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