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Auditor Report of Radix Industries (India) Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of RADIX INDUSTRIES (INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2015, 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:

The Management is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility:

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

We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and 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 true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 on the financial statements.

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, 2015;

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

c. in the case of the Cash Flow Statement, of the cash 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 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, the Statement of Profit and Loss, and the Cash Flow Statement comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e. On the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2015, from being appointed as a director in terms of Section 164(2) of the Companies Act, 2013.

f. With respect to the other matters included in the Auditor's Report and to our best of our information and according to the explanations given to us :

i. The Company does not have any pending litigations which would impact its financial position as on reporting date.

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

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

Annexure to the Auditor's Report:

(i) (a) According to the information and explanations furnished to us, the company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

(b) According to the information and explanations furnished to us, the company has physically verified its fixed assets during the period and no material discrepancies were noticed on such verification carried out during the period.

(ii) (a) According to the information and explanations furnished to us, the company has physically verified its inventories during the period under report. In our opinion, the frequency and extent of such 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) According to the information furnished to us, the company is maintaining proper records of its inventory. The discrepancies if any noticed on verification of inventories between the physical stocks and the book records were not material, and have been properly dealt with in the books of account.

(iii) According to the information and explanations furnished to us, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in register maintained under Section 189 of the Companies Act 2013. Consequently, the provisions of clauses iii (a) and iii (b) of the order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. Further, during the course of our audit, we have not come across any instances of major weaknesses in internal control systems.

(v) According to the information and explanations given to us, the company has not accepted any deposits covered under the provisions of section 73 to 76 or any other relevant provisions of the Act. Further, according to the information furnished to us, no order has been passed on the company by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliance with the provisions of Sections 73 to 76 of the Companies Act, 2013.

(vi) According to the information and explanations given to us, the requirement of Sec.148 (1) of the Companies Act, 2013 with regard to the maintenance of cost records do not apply to this company.

(vii) (a) According to the information and explanations furnished to us and according to the books and records produced for our examination, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues including Provident Fund, Employees' State insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise duty, Value added tax and other material statutory dues wherever applicable to it and further there are no undisputed statutory dues that were outstanding, as at the date of the Balance Sheet, for a period of more than six months from the date they became payable.

(b) According to the information and explanations furnished to us and according to the records of the company, the company has no disputed dues on account of Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty, Value added tax or Cess pending remittance as at March 31, 2015.

(c) According to the information and explanations furnished to us and according to the records of the company, the company has not requires to transfer any amount to Investor education and protection fund in accordance with the relevant provisions of the Companies Act, and rules made there under during the year and hence reporting requirement of clauses vii (c) of the order are not applicable to the Company.

(viii) The company had no accumulated losses at the end of the year under report and it did not incur cash losses during the financial year or in the immediately preceding financial year.

(ix) According to the information and explanations given to us, there were no defaults in repayment of dues to financial institutions, banks or debenture holders at the date of balance sheet.

(x) According to the information and explanations furnished to us, the company has not given any guarantee for loans taken by others from any banks or financial institutions during the period and also there are no such outstanding guarantees as on date of balance sheet.

(xi) The company has not obtained any term loans from Banks and Financial Institutions. Hence reporting requirement in terms of Clauses (xi) does not arise during the period under report.

(xii) According to the information and explanations furnished to us, and based on the audit procedures generally adopted by us, we report that, during the period, no fraud on or by the company has been noticed or reported that is either significant or could have caused a material misstatement in the financial statements.

For CHEVUTURI ASSOCIATES Chartered Accountants Firm Reg. No.000632S

Place: Tanuku Date: 6th May, 2015

(CA. Srinivasa Rao Cherukuri) Partner M. No.209237




Mar 31, 2013

Report on the Financial Statements:

We have audited the accompanying financial statements of RADIX INDUSTRIES (INDIA) LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements:

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor''s Responsibility:

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 31,2013;

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 subsection (3C) of section 211 of the Companies Act, 1956;

e. On the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

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 Auditor''s Report

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 its fixed assets.

1.2 According to the information and explanations furnished to us, the company has physically verified its fixed assets during the period and no material discrepancies were noticed on such verification carried out during the period.

1.3 According to the information and explanations furnished to us, the company has not disposed of a substantial part of its fixed assets during the period under report.

2.1 According to the information and explanations furnished to us, the company has physically verified its inventories during the period under report. In our opinion, the frequency and extent of such verification is reasonable.

2.2 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.

2.3 According to the information furnished to us, the company is maintaining proper records of its inventory. The discrepancies if any noticed on verification of inventories between the physical stocks and the book records were not material, and have been properly dealt with in the books of account.

3.1 According to the information and explanations furnished to us, the company has not granted any loans to companies, firms or other parties covered by the register maintained under Section 301 of the Companies Act 1956, at the beginning of the period under report or during the period under report, and consequently reporting under sub-clauses b, c and d of clause 4 (iii) of the Order does not arise during the period under report.

3.2 According to the information and explanations furnished to us, the company has not taken any loans from directors or from the parties who is covered by the register maintained under section 301 of the Companies Act, 1956. Hence the reporting requirement in terms of clause e,f,g of 4 (iii) of the said order does not arise.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. Further, during the course of our audit, we have not come across any instances of major weaknesses in internal control system that in our opinion require correction but have so continued without correction

5. In our opinion and according to the information and explanations given to us, the transactions which have been entered into, pursuant to contracts that have been entered in register maintained under section 301 of the companies Act, 1956, during the year under report, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the company has not accepted any deposits covered under the provisions of section 58A, 58AA or any other relevant provisions of the Act. Further, according to the information furnished to us, no order has been passed on the company by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliance with the provisions of Sections 58A and 58AA of the Companies Act, 1956.

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

8. We have broadly reviewed the books of account and 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, wherever prescribed, and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we are not required to and have not carried out a detailed audit of the same.

9.1 According to the information and explanations furnished to us and according to the books and records produced for our examination, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues including Provident Fund, Employees'' State insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and other material statutory dues wherever applicable to it and further there are no undisputed statutory dues that were outstanding, as at the date of the Balance Sheet, for a period of more than six months from the date they became payable.

9.2 According to the information and explanations furnished to us and according to the records of the company, the company has no disputed dues on account of Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty or Cess pending remittance as at March 31, 2013.

10 The company has accumulated losses of Rs. 55,66,483 at the end of the financial year, and it did not incur cash losses during the financial year covered by our audit and in the immediate preceding financial year.

11. According to the information and explanations given to us, there were no defaults in repayment of dues to financial institutions, banks or debenture holders at the date of balance sheet.

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

13. In our opinion and according to the information and explanations furnished to us, the company is not a chit fund or a nidhi / mutual benefit fund / society and hence, the requirements of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company during the period under report.

14. In our opinion and according to the information and explanations furnished to us, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the requirements of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company during the period under report under report.

15. According to the information and explanations furnished to us, the company has not given any guarantee for loans taken by others from any banks or financial institutions during the period and also there are no such outstanding guarantees as on date of balance sheet.

16. The company has not obtained any term loans from Banks and Financial Institutions. Hence reporting requirement in terms of Clauses (xvi) does not arise during the period under report.

17. In our opinion and according to the information and explanations furnished to us, and on an overall examination of Balance Sheet of the company, we are of the opinion that considering the internal accruals of the company during the period under report, funds raised by the company on short term basis have prima facie not been used for long term applications, except for permanent working capital.

18.1 According to the information and explanations furnished to us, pursuant to section 81(1 A) and other applicable provisions, if any, under the Companies Act 1956 the company has made preferential allotment of shares of Rs. 7,00,00,000 divided into 70,00,000 equity shares of Rs. 10/- each at their board meeting held on 3rd September, 2012 in pursuance of the resolution passed by the share holders through postal ballot on 28-08-2012, of which 52,20,000 equity shares allotted to two related parties covered by the register maintained under section 301 of the Companies Act, 1956 and 17,80,000 equity shares allotted to other parties.

18.2 Further according to the information and explanations furnished to us, the price of Rs. 10/- per share at which preferential allotment of shares has been made is not prejudicial to the interest of the company.

19. According to the information and explanations given to us, the company has not issued any debentures during the period under report.

20. The company has not raised any monies through public issue of its securities during the period under report, and the question of end use of such monies did not arise during the period under report.

21. According to the information and explanations furnished to us, and based on the audit procedures generally adopted by us, we report that, during the period, no fraud on or by the company has been noticed or reported that is either significant or could have caused a material misstatement in the financial statements.

For CHEVUTURI ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Reg.no.000632S

Sd/-

(CA. Srinivasa Rao Cherukuri)

Place : Tanuku Partner

Date .06.05.2013 M.No.209237


Mar 31, 2012

We have audited the attached Balance Sheet of RADIX INDUSTRIES (INDIA) LIMITED, as at 31st March 2012 and its Profit and Loss Statement and its cash-flow statement for the 9 months period 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.

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 that the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

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

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

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

b) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of such books;

c) The Balance Sheet and the Profit and Loss Statement 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 and Profit and Loss Statement 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;

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

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with the statement of Accounting Policies and Notes to financial statements 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;

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

ii. In the case of the Profit and Loss Statement, of the Loss for the 9 months period ended on that date

and

iii. In the case of the Cash-flow statement, of the cash-flows of the company for the 9 months period ended on that date.

Annexure referred to in paragraph 3 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 its fixed assets.

1.2 According to the information and explanations furnished to us, the company has physically verified its fixed assets during the period and no material discrepancies were noticed on such verification carried out during the period.

1.3 According to the information and explanations furnished to us, the company has not disposed of a substantial part of its fixed assets during the period under report.

2.1 According to the information and explanations furnished to us, the company has physically verified its inventories during the period under report. In our opinion, the frequency and extent of such verification is reasonable.

2.2 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.

2.3 According to the information furnished to us, the company is maintaining proper records of its inventory. The discrepancies if any noticed on verification of inventories between the physical stocks and the book records were not material, and have been properly dealt with in the books of account.

3.1 According to the information and explanations furnished to us, the company has not granted any loans to companies, firms or other parties covered by the register maintained under Section 301 of the Companies Act 1956, at the beginning of the period under report or during the period under report, and consequently reporting under sub-clauses b, c and d of clause 4 (iii) of the Order does not arise during the period under report.

3.2 According to the information and explanations furnished to us, the company has not taken any loans from directors or from the parties who is covered by the register maintained under section 301 of the Companies Act, 1956. Hence the reporting requirement in terms of clause e,f,g of 4 (iii) of the said order does not arise.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. Further, during the course of our audit, we have not come across any instances of major weaknesses in internal control system that in our opinion require correction but have so continued without correction

5. In our opinion and according to the information and explanations given to us, the transactions which have been entered into, pursuant to contracts that have been entered in register maintained under section 301 of the companies Act, 1956, during the year under report, have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the company has not accepted any deposits covered under the provisions of section 58A, 58AA or any other relevant provisions of the Act. Further, according to the information furnished to us, no order has been passed on the company by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliance with the provisions of Sections 58A and 58AA of the Companies Act, 1956.

7. In our opinion, the company did not have an internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the books of accounts and 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, wherever prescribed and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. However, we are not required to and have not carried out a detailed audit of the same.

9.1 According to the information and explanations furnished to us and according to the books and records produced for our examination, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues including Provident Fund, Employees'' State insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and other material statutory dues wherever applicable to it and further there are no undisputed statutory dues that were outstanding, as at the date of the Balance Sheet, for a period of more than six months from the date they became payable.

9.2 According to the information and explanations furnished to us and according to the records of the company, the company has no disputed dues on account of Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty or Cess pending remittance as at March 31, 2012

10 The company has accumulated losses of - 132.75 lacs at the end of the 9 months period ended 31st March, 2012 and it did not incur cash losses during the 9 months period ended covered under report and the company had made a cash losses in the immediately preceding previous 15 months period ended 30th June, 2011.

11. According to the information and explanations given to us, there were no defaults in repayment of dues to financial institutions, banks or debenture holders at the date of balance sheet.

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

13. In our opinion and according to the information and explanations furnished to us, the company is not a chit fund or a nidhi / mutual benefit fund / society and hence, the requirements of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company during the period under report.

14. In our opinion and according to the information and explanations furnished to us, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the requirements of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the company during the period under report under report.

15. According to the information and explanations furnished to us, the company has not given any guarantee for loans taken by others from any banks or financial institutions during the period and also there are no such outstanding guarantees as on date of balance sheet.

16. The company has not obtained any term loans from Banks and Financial Institutions. Hence reporting requirement in terms of Clauses (xvi) does not arise during the period under report.

17. In our opinion and according to the information and explanations furnished to us, and on an overall examination of Balance Sheet of the company, we are of the opinion that considering the internal accruals of the company during the period under report, funds raised by the company on short term basis have prima facie not been used for long term applications, except for permanent working capital.

18.1 According to the information and explanations furnished to us, upon consequent to the sanction of the composite scheme of arrangement by the Hon''ble High Court of Andhra Pradesh vide its order dt. 12-12-11 the unsecured loans of the company aggregating amount of - 2,65,00,000 have been converted into 26,50,000 Equity shares of - 10/- each on preferential basis, of which 19,85,000 Equity shares allotted to two related parties covered by the register maintained under section 301 of the Companies Act, 1956 and 6,65,000 Equity shares allotted to six other parties

18.2 Further according to the information and explanation furnished to us, the price of - 10/- per share at which preferential allotment of shares has been made is not prejudicial to the interest of the company.

19. According to the information and explanations given to us, the company has not issued any debentures during the period under report.

20. The company has not raised any monies through public issue of its securities during the period under report, and the question of end use of such monies did not arise during the period under report.

21. According to the information and explanations furnished to us, and based on the audit procedures generally adopted by us, we report that, during the period, no fraud on or by the company has been noticed or reported that is either significant or could have caused a material misstatement in the financial statements.

For CHEVUTURI ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Reg.no.000632S

Sd/-

(CA.Ch.Srinivasa Rao)

Place : Tanuku Partner

Date : 07.05.2012 M.No.209237


Jun 30, 2011

We have audited the attached Balance Sheet of RADIX INDUSTRIES (INDIA) LIMITED as at 30th June, 2011, its Profit and Loss Account and its Cash-flow statement for the period 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.

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 that the financial statements are free from 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 signifcant 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.

1) As required by the Companies (Auditor's Report) Order, 2003 issued by the 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.

2) Further to our comments referred to in paragraph 1 above.

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 appears from our examination of such books;

c) The Balance Sheet, Profit and Loss Account and Cash-fow statement dealt with by this report are in agreement with the books of account;

d) 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;

e) On the basis of written representations received from the Directors, as on June 30, 2011, and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on June 30, 2011 from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) 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;

i. In the case of the Balance Sheet, of the state of affairs of the Company as at 30th June, 2011;

ii. In the case of the Profit and Loss account of the LOSS of the company for the 15 months ended on that date.

iii. In the case of Cash-fow statement of the cash fows of the company for the 15 months ended on that date.

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

1.1 According to the information and explanations furnished to us, the company has no fixed assets neither at the beginning of the year nor as on the date of balance sheet, hence the reporting under sub clause (i)(b)and (c) of para 4 of the order does not arise.

2.1 According to the information and explanations furnished to us, the company has

physically verified its inventories during the Financial Year. In our opinion, the frequency and extent of such verification is reasonable.

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

2.3 According to the information furnished to us, the company is maintaining proper records of its inventory. The discrepancies, if any, noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account.

3.1 According to the information and explanations furnished to us, the company has not granted any loans to companies, firms or other parties covered by the register maintained under Section 301 of the Companies Act 1956, at the beginning of the Financial Year or during the Financial Year, and consequently reporting under sub- causes b, c, and d of clause 4 (iii) of the Order does not arise during the Financial Year.

3.2 According to the information and explanations furnished to us, the company has taken loans aggregating to Rs. 1,98,50,000/- from two directors who are covered by the register maintained under section 301 of the Companies Act, 1956.

3.3 In our opinion, the rate of interest and other terms and conditions on which Loan has been taken by the company from the party covered by register maintained under section 301 of the Companies Act, 1956 is not prima facie prejudicial to the interest of the company.

4.1 In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. Further, during the course of our audit, we have not come across any instances of major weaknesses in internal control system that in our opinion, require correction but have so continued without correction.

5.1 According to the information and explanations furnished to us, the company has not entered into any transactions with the parties covered in the register maintained under section 301 of the Act. Hence the reporting requirements in terms of clause (iv) (a) and (b) does not arise during the year under report.

6.1 According to the information and explanations given to us, the company has not accepted any deposits covered under the provisions of section 58A, 58AA or any other relevant provisions of the Act. Further, according to the information furnished to us, no order has been passed on the company by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal for non-compliance with the provisions of Sections 58A and 58AA of the Companies Act, 1956.

7.1 According to the information furnished to us, the company has no internal audit system during the financial year under report.

8.1 The requirement of maintenance of Cost Accounting records under Section 209(1) (d) of the Companies Act, 1956, does not apply to the company.

9.1 According to the information and explanations furnished to us and according to the books and records produced for our examination, in our opinion, the company is regular in depositing with the appropriate authorities, the undisputed statutory dues including Provident Fund, Employees' State insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, and other material statutory dues wherever applicable to it and further there are no undisputed statutory dues that were outstanding, as at the date of the Balance Sheet, for a period of more than six months from the date they became payable.

9.2 According to the information and explanations furnished to us and according to the records of the company, the company has no disputed dues on account of Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty or Cess pending remittance as at June 30, 2011.

10.1 The company has accumulated losses of Rs.5,55,48,251 at the end of the 15 months period ended 30th June, 2011 and it incurred cash loss of Rs.66,46,427 during 15 months period covered by our report and the company had also made cash losses immediately preceding previous year ended by 31st March, 2010.

11. According to the information and explanations given to us, there were no defaults in repayment of dues to financial institutions, banks or debenture holders at the date of balance sheet.

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

13. In our opinion and according to the information and explanations furnished to us, the company is not a chit fund or a nidhi / mutual benefit fund / society and hence, the requirements of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company during the Financial Year under report.

14. In our opinion and according to the information and explanations furnished to us, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the requirements of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the company during the Financial Year under report.

15. According to the information and explanations furnished to us, the company has not given any guarantee for loans taken by others from any banks or financial institutions during the year and also there are no such outstanding guarantees as on date of balance sheet.

16. According to the information and explanation furnished to us, the Company has not obtained any term loans during the period.

17. In our opinion and according to the information and explanations furnished to us, and on an overall examination of Balance Sheet of the company, we are of the opinion that the company during the period under report, funds raised by the company on short term basis have prima facie not been used for long term applications.

18. According to the information and explanations given to us, the company has not made any preferential allotment of shares during the period to the parties covered by the register maintained under section 301 of the Companies Act, 1956.

19. According to the information and explanations given to us, the company has not issued any debentures during the period under report.

20. The company has not raised any monies through public issue of its securities during the period , and the question of end use of such monies did not arise during the period.

21 According to the information and explanations furnished to us, and based on the audit procedures generally adopted by us, we report that, during the year, no fraud on or by the company has been noticed or reported that is either significant or could have caused a material misstatement in the financial statements.

For CHERUKURIASSOCIATESS

CHARTERED ACCOUNTANTS

Firm Reg.no.008823S

Sd/-

(CA.Ch.Srinivasa Rao)

Place : Tanuku Proprietor

Date : 29.11.2011 M.No.209237


Mar 31, 2010

1. We have audited the attached Balance Sheet of RAGSAN PETROCHEM LIMITED as at 31st March, 2010, and also Profit and Loss Account of the Company for the year ended on that date annexed thereto and the cash flow statement for the year ended on that date, which are signed by us under reference to this report. These financial statements are the responsibility of the Companys 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 signifcant 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.

Further to our comments in the annexure referred to above, we report that:

3. 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;

a) In our opinion, proper books of accounts, as required by law have been kept by the Company, so far as appears from our examination of these books;

b) The Balance sheet and the Profit and Loss account dealt with by this report are in agreement with the books of account.

c) In our opinion the Profit and Loss account and the Balance sheet comply with the accounting standards referred to in sub section (3C) of section 211 of the Companies Act, 1956;

d) On the basis of written representations received from the Directors as on March, 31st 2010, and taken on record by the Board of Directors, we report that none of the Directors is disqualifed as on March 31st, 2010 from being appointed as a Director in terms of clause (g) of sub section (1) section 274 of the Companies Act, 1956;

e) In our opinion and the best of information and according to the explanations given to us, and subject to the following:

f) i) The unit is not a sick industry. The accumulated losses have eroded the capital. The Company has not fled an application under BIFR. The company is not a sick company within the meaning of Clause (O) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. (Please refer to Note No.2 of Schedule 19);

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:

i) in the case of the Balance sheet of the state of affairs of the Company as at 31st March, 2010;

ii) in the case of the Profit and Loss account, of the Profit of the Company for the year ended on that date, and

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

ANNEXURE TO OUR AUDIT REPORT

1.1 As required by the manufacturing and other Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227 (4-A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we further report that;

1.2 The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. The Company has no fixed assets.

2.1.1 All the fixed assets have been sold /written off and Company is a "Going Concern".

2.2 According to the information and explanations given to us, inventories have been physically verifed by the management at reasonable intervals during the year.

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

2.4 On the basis of our examination of the records of inventory, we are of the opinion that the company is maintaining proper records of inventory. The discrepancies noticed on verifcation between the physical stocks and the book records were not material.

3.1 The Company has not granted any loans secured or unsecured to companies, frms or other parties covered in the register maintained under section 301 of the Act.

3.2 In our opinion and according to the information and explanations given to us no loans have been taken from parties listed in the register maintained under section 301, are not prima facie prejudicial to the interest of the company.

4.1 In our opinion and according to the information and explanations given to us, the Company has internal controls commensurate with the size and nature of business for the purchase of inventory and fixed assets and for the sale of goods and services.

5.1 To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need be entered into the register maintained under section 301 of the Companies Act, 1956, have been so entered.

5.2 In our opinion and according to the explanations given to us, no transactions were made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956, exceeding the value of Rs.5 Lakhs.

6.1 According to the information and explanations given to us, the provisions of Section 58A and 58AA of the Companies Act, 1956 are not applicable to the Company as the Company has not accepted any deposits from the public.

7.1 The Company has an internal audit system which is commensurate with the size & operations of the company.

8.1 The maintenance of cost records has not been prescribed by the Central Government under Section 209(1) (d) of the Companies Act, 1956.

9.1 According to the information and explanations given to us, the Company is generally irregular in depositing undisputed statutory dues of Sales Tax and Income Tax (TDS) with the appropriate authorities.

9.2 According to the information and explanations given to us, the particulars of undisputed amounts payable in respect of Income Tax, Sales Tax, wealth tax, excise duty and other statutory dues, which were in arrears as on March, 31st 2010 were written off (TDS) and paid sales tax, during the year.

10.1 The Company has accumulated losses which are more than ffity percent of the net worth and the Company has made cash losses during the financial year under review and in the immediately preceding previous year.

10.2 Based on our examination and on the information and explanations given by the management, we are of the opinion that the company has no dues to any financial institution or bank.

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

12.1 As the Company is not a chit and or a nidhi company the matters to be reported under paragraph 4(xiii) are not applicable to the Company.

13.1 As the Company is not dealing or trading in shares, securities, debentures and other investments, maintenance of proper records thereof and timely entries therein does not apply.

14.1 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.

15.1 The Company has not taken any term loans during the year under review.

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

17.1 The Company has not made any preferential allotment of shares to parties and companies listed in the register maintained under section 301 of the Companies Act, 1956.

18.1 As the Company has not issued any debentures, the creation of security thereof does not arise.

19.1 The Company has not raised any money by way of public issue during the year under review.

20.1 The Company is not a Sick Industrial Company within the meaning of clause (O) of sub section 1 of section 3 of the Sick Industrial Companies (special provisions) act, 1985. The accumulated losses have eroded the Capital. The Company has not fled an application under BIFR. The company is not a sick company within the meaning of Clause (O) of sub-section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. (Please refer to Note No.2 of Schedule 19).

Based upon the audit procedures performed and as per information and explanations given by the management, we report that no fraud on or by the company has been noticed or reported during the year.

For DAYANAND KRISHNA & ASSOCIATES

CHARTERED ACCOUNTANTS

Sd/-

(K.DAYANAND) Proprietor

Place: Hyderabad Date: 30.05.2010

 
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