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Auditor Report of Proseed India Ltd.

Mar 31, 2015

Report on the Financial Statements

We have audited the accompanying financial statements of M/s Green Fire Agri Commodities Limited (the 'Company'), which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation 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 the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting 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 control, 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 there under.

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 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 accounting policies used and the reasonableness of the accounting estimates made by 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;

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2015;

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

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

Emphasis of Matter

Attention is drawn to Note No.2.20(b) of the Notes to the Accounts with respect to balances under Sundry Debtors/Loans and Advances/Sundry Creditors/Other Liabilities which have not been confirmed by certain parties.

Our opinion is not modified in this regard.

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 the 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 appears from our examination of those books;

(c) the balance sheet, the statement of profit and loss, and cash flow statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;

(e) on the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 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

ii. the Company did have dues on account of Investor Education and Protection Fund which have not been transferred during the year under review, amounting to Rs. 3,12,324.

Annexure to the Auditors' Report

The Annexure referred to in our Independent Auditors' Report to the members of M/s Green Fire Agri Commodities Limited ("the Company') on the financial statements for the year ended on 31st March 2015, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. (b) The Company has a regular program of physical verification of its fixed assets by which all fixed assets are verified every year. In accordance with this program, fixed assets were verified during the year and no material discrepancies were noted on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets

(ii) As per the information and explanations given to us, the Company does not hold any inventories at any time during the year under review. However, the Company is trading in agricultural commodities by way of purchase and sale, wherein the physical goods are directly moved from purchaser to the Company's customer. As there is no physical movement of goods to/from the Company, we offer no comments under paragraph 3(ii) of the said Order.

(iii) The Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii)(b) and (c) of the said Order are not applicable.

(iv) In our opinion and according to the information and explanations given to us there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and with regard to the sale of goods. We have not observed any cases of continuing failure to correct major weakness in the internal control system during the course of the audit.

(v) The Company has not accepted any deposits from the public. Therefore, the provisions of Clause (v) of paragraph 3 of the said Order are not applicable to the Company.

(vi) The Central Government of India has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the activities carried on by the Company.

(vii) (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, Value added tax, Employees' State Insurance and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities, except for certain cases of Tax deducted at source. As explained to us, the Company did not have any dues on account of Wealth Tax, 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, value added tax and other material statutory dues were in arrears as at 31st March 2015 for a period of more than six months from the date they become payable, except for statutory dues amounting to Rs. 75,750.

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

Sl. Period to No Name of the Amount which the Forum where Nature of dues Statute Rs. amount dispute is relates pending

1 Sales Tax, Mumbai VAT-Mumbai 12,45,280 2012-13 Sales Tax, Maharashtra

2 Sales Tax, AP VAT 8,925 2012-13 Sales Tax, AP

3 Income Tax Self assessment tax 97,73,793 2011-12 DCIT

4 Income Tax Tax demand 64,16,141 2006-07 ITAT

5 Income Tax Tax demand 1,56,07,170 2010-11 ITAT

(c) According to the records of the Company, there are amounts of Rs. 3,12,324 that are due to be transferred to the Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under. (viii) The accumulated losses of the Company are more than fifty percent of its net worth as at 31st March 2015. Further, the company had incurred cash losses in the financial year and also in the immediately preceding financial year.

(ix) According to the information and explanations given to us and based on the documents and records produced to us, the company has defaulted in repayment of dues to M/s Dhanalakshmi Bank, amounting outstanding being Rs.13,97,35,615 as per the books of account at the year end. However, no direct confirmation from Bank is on record and the account has become NPA.

(x) In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions.

(xi) The Company had not obtained any term loans during the year under review.

(xii) 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 Sarath & Associates

Chartered Accountants Firm Regn No.005120S

Date : 29/05/2015 S Srinivas

Place : Hyderabad Partner

M.No.202471


Mar 31, 2014

We have audited the accompanying financial statements of M/s. GREEN FIRE AGRI COMMODITIES LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2014, the Statement of Profit and Loss and 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 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 notified under the Companies Act, 1956 ("the Act"). (Which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs) This responsibility includes the design, implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with the 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 controls relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company''s internal control. An audit also includes evaluating the appropriateness of the 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 audit opinion.

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:

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

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

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

Emphasis of Matter

(a) Attention is drawn to Note No.2.21(a) of the Notes to the Accounts of the Company, relating to extensive damage due to the major fire accident which completely destroyed the physical vouchers upto 10.2.2014 and also affected computers, Furniture and Fixtures, Office Equipments, servers and the steps taken by the Company for recovering the data from the Backup systems. We have conducted limited review of the accounts for the nine months period ending 31.12.2013. We have also conducted Audit for the year ending March 2014, based on data retrieved from the systems including scanned/ soft copies and physical records available.

(b) Attention is also drawn to Note No.2.21 (b) of the Notes to the Accounts with respect to balances under Sundry Debtors/ Claims Recoverable/Loans & Advances/ Sundry Creditors/ Other Liabilities which have not been confirmed by the certain parties.

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 in terms of Section 227(4A) 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 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 Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards notified under the Act. (Which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs).

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

(f) Since the Central Government has not issued any notification as 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 referred to in paragraph 1 under the heading

"Report on other legal and regulatory requirements" of our report of even date

1.1 According to the information and explanations furnished to us, the Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

1.2 As informed to us, the Company had carried out the physical verification of Fixed Assets during the year under review and such verification did not reveal any material discrepancies.

1.3 During the year, there had been an instance of major fire accident which completely destroyed Office Equipment, Computers, Servers, Furniture and Fixtures. However, the Company could retrieve the lost data from the Back up Systems and after the year end and before the date of Audit Report, had replenished the physical systems and accordingly, we are of the opinion that the impairment during the financial year will not affect the Going Concern status of the Company due to the steps taken by the Company.

2.1 As per the information and explanations given to us, as the Company does not hold any inventories viz. Finished Goods, Stores, Spare Parts, Goods in Process and Raw Materials at any time during the year, the provisions of clause 4(ii)(a), 4(ii)(b) and 4(ii)(c) of the Order are not applicable to the Company for the current year.

3.1 As per the information and explanations given to us, the company has not granted any loans, secured or unsecured to Companies, Firms or other parties covered in the register maintained under Section 301 of the Act. Hence the provisions of Clause 4(iii)(a) to (d) are not applicable to the Company for the current year.

3.2 As per the information and explanations given to us, the company has taken loan from a company covered in the register under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs. 92 Lakhs and the year end balance of such loan was Rs. 92 Lakhs

3.3 In our opinion, the rate of interest and other terms and conditions for the above loan taken by the company listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

3.4 According to the information and explanations given to us, the tenure and repayment terms have not been specified for the above mentioned loans. Consequently, we are unable to comment on paragraph 4(iii)(g) of the Order.

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 fixed assets and sale of services. Further, during the course of our audit, we have not come across any instances of continuing failure to correct major weakness in internal control system.

5.1 According to the information and explanations given to us and as informed by the Management, the particulars of contracts or arrangements of the Company which needs to be entered into the register maintained under Section 301 of the Act, have been entered in the register maintained Under Section 301 of the Act.

5.2 In our opinion and according to the information and explanations given to us, the transactions made in pursuance of an arrangement referred to in (5.1) above and exceeding the value of Rs. 5 lakhs during the year have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

6 In our opinion and according to the information and explanations given to us, as the company has not accepted any deposits from public covered by directives issued by the Reserve Bank of India and the provisions of Section 58A and 58AA or any other relevant provisions of the Act and the rules made there under, the provisions of clause 4(vi) of the Order are not applicable to the company for the current year.

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

8 According to the information and explanations given to us, maintenance of cost records has not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956, for any of the activities of the Company, and hence, the provisions of clause 4(viii) are not applicable to the Company for the current year.

9.1 According to records of the Company and as per the information and explanations given to us, there are few delays in depositing with the appropriate authorities, the undisputed statutory dues pertaining to Income Tax, Sales Tax, Service Tax, Customs Duty and Other material statutory dues applicable to it, and there were undisputed statutory dues in arrears, as at the date of balance sheet under report, for a period of more than six months from the date they become payable, which are mentioned below:

9.2 As per the records of the Company there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty or Cess which have not been deposited on account of any dispute as on 31.03.2014, except as mentioned below.

Sl. No. Name of Asst. Year Amount Rs. Forum Where Statute dispute is pending

1 Income Tax 2006-07 5,61,74,100 CIT appeals & ITAT

2 Income Tax 2007-08 87,57,770 ITAT

10 As per the information and explanations given to us and on overall examination of the financial statements of the Company, for the current and immediately preceding financial year, we report that accumulated losses at the end of the current financial year, exceeds fifty percent of its net worth and the company had incurred cash losses in the current financial year. However, the Company had not incurred cash losses in the immediately preceding financial year.

11 According to the information and explanations given to us and based on the documents and records produced to us, the company has defaulted in repayment of dues to Banks as stated below.

12 According to the information furnished to us, as the Company has not granted any loans or advances on the basis of security by way of pledge of shares, debentures and other securities to anybody during the year, the provisions of Clause 4(xii) of the Order are not applicable to the company for the current year.

13 In our opinion, as the company is not a chit fund, nidhi or a mutual benefit fund/society, the provisions of Clause 4(xiii) of the Order are not applicable to the company for the current year.

14 As the Company is not dealing or trading in shares, securities, debentures and other investments, the provisions of clause 4(xiv) the Order are not applicable to the company for the current year

15 As per the information and explanations given to us, the company has not given any guarantees for loans taken by others from banks or financial institutions, the provisions of Clause 4(xv) of the Order are not applicable to the company for the current year.

16 As the Company had not availed any term loans, the provisions of Clause 4(xvi) of the Order are not applicable to the company for the current year.

17 According to records and on an overall examination of the balance sheet of the company, the funds raised on short term basis have not been used for long term investment.

18 As per the information and explanations given to us, as the company has not made any separate preferential allotment of shares to parties and companies covered in the Register maintained under the section 301 of the Act during the year, the provisions of Clause 4(xviii) of the Order are not applicable to the company for the current year. However, the Company had allotted shares to one entity where principal shareholders/ management personnel have control or significant influence over this enterprise, pursuant to the scheme of arrangement and amalgamation.

19 As the Company has not issued any debentures during the year, which requires creation of security or charge, the provisions of Clause 4(xix) of the Order are not applicable to the Company for the current year.

20 As the Company has not made any public issue during the year, the provisions of clause 4 (xx) of the Order are not applicable to the company for the current year.

21 During the course of examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and as per the representation given by the Company and relied on by us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such cases by the management.

For Sarath & Associates Chartered Accountants Firm Regn. No. 0005120S

S. Srinivas Place: Hyderabad Partner Date: 30.05.2014 Membership No. 202471


Mar 31, 2011

1. We have audited the attached balance sheet of Northgate Technologies Limited ("the Company") as at 31 March 2011 and the profit and loss account and the cash flow statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditor's Report) Order, 2003 ('the Order'), as amended, issued by the Ministry of Corporate Affairs in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specifed in paragraphs 4 and 5 of the said Order.

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

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, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account;

iv) in our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956;

v) on the basis of written representations received from the directors, as on 31 March 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualifed as on 31 March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

vi) in our opinion and to the best of our information and according to the explanations given to us, the said accounts 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 31 March 2011;

b. in the case of the profit and loss account, of the loss for the year ended on that date; and

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

Annexure to Auditors' Report

the annexure referred to in paragraph 3 of our report of even date to the members of Northgate technologies Limited ("the Company") for the year ended 31 March 2011. We report that:

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

(b) The Company has a regular programme of physical verifcation of its fixed assets by which all fixed assets are verifed every year. In our opinion, this periodicity of physical verifcation is reasonable having regard to size of the company and nature of its assets. In accordance with this program, fixed assets were verifed during the year and no material discrepancies were noted on such verifcation.

(c) Fixed assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.

(ii) The Company is a service company, primarily rendering Information Technology services. Accordingly, it does not hold any physical inventories. Thus, paragraph 4(ii) of the Order is not applicable.

(iii) The Company has neither granted nor taken any loans, secured or unsecured, to or from companies, frms or other parties covered in the register maintained under Section 301 of the Companies act, 1956.

(iv) In our opinion and according to the information and explanations given to us, and having regard to the explanation that purchases of certain items of fixed assets are for the Company's specialized requirements and similarly certain services sold are for the specialized requirements of the buyers and suitable alternative sources are not available to obtain comparable quotations, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and with regard to the sale of services. the activities of the Company do not involve purchase of inventory and sale of goods. We have not observed any major weakness in the internal control system during the course of the audit.

(v) (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 act 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 transaction made in pursuance of an arrangement referred to in (a) above and exceeding the value of Rs 5 lakhs during the year 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.

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

(viii) The Central Government of India has not prescribed the maintenance of cost records under Section 209(1)(d) of the Companies act, 1956 for any of the services rendered by the Company. the activities of the Company do not involve sale of goods.

(ix) (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, Wealth tax and other material statutory dues have generally been regularly deposited during the year by the Company with the appropriate authorities though there have been a slight delay in a few cases. Further as explained to us, the Company did not have any dues on account of Sales tax, Service tax, Customs duty, excise duty and Investor education and protection Fund.

Further, there were no dues on account of Cess under Section 441a of the Companies act, 1956 since the date from which the aforesaid Section comes into force has not yet been notifed by the Central Government of India.

according to the information and explanations given to us, no undisputed amounts payable in respect of provident Fund, employees' state insurance, Income-tax, Wealth tax and other material statutory dues were in arrears as at 31 March 2011 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 dues of Sales tax, We tax, Customs duty, excise duty and Cess which have not been deposited with the appropria account of any dispute. however, the Company disputes the following Income tax dues:

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

Income-tax act, 1961 tax/ Interest 1,580,037 2003 -2004 Income tax appellate

(1,580,037)* tribunal, hyderabad.

Income-tax act, 1961 tax/ Interest 101,918,628 2006 -2007 Commissioner of Income

(500,000)* Tax (Appeals), Hyderabad.

* the amounts in parenthesis represent the payment made under protest.

(x) The accumulated losses of the Company are more than ffity percent of its net worth as at 31 March 2011. However, the Company has not incurred cash losses in the financial year and in the immediately preceding financial year.

(xi) In our opinion and according to the information and explanations given to us, the Company did not have any outstanding dues to any financial institution, banks or debenture holders during the year.

(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) In our opinion, and according to the information and explanations given to us, the Company is not a chit fund or a nidhi / mutual benefit fund / society.

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

(xv) In our opinion and according to the information and explanations given to us, the terms and conditions on which the Company has given guarantees for loans taken by others from banks are not prejudicial to the interest of the Company.

(xvi) The Company did not have any term loans outstanding during the year.

(xvii) according to information and explanations given to us, and on an overall examination of the balance sheet of the Company, we are of the opinion that the funds raised on short-term basis have not been used for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to companies/ frms/ parties covered in the register maintained under Section 301 of the Companies act, 1956.

(xix) the Company did not have any outstanding debentures during the year.

(xx) The Company has not raised any money by public issues.

(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 B S R and Company

Chartered accountants

Firm registration No:128900W

Zubin Shekary

partner

Membership No: 48814

place : hyderabad

Date : May 19, 2011

 
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