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Auditor Report of Swarnajyothi Agrotech & Power Ltd.

Mar 31, 2015

Report on the Financial Statements We have audited the accompanying financial statements of SWARNAJYOTHI AGROTECH & POWER LIMITED ("the company"),which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

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 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 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 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 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.

Basis for Qualified Opinion

With reference to the Note No.12 of the financial statements wherein the management of the company has considered Trade receivables amounting to Rs.9,54,85,831 as good and fully recoverable. In the absence of external confirmations from the customers from whom these amounts are due or other alternate audit evidence to corroborate management's assessment of recoverability of these balances and with regard to the age of these balances, we are unable to comment the extent to which these balances are recoverable.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effect of the matters described in the basis for qualified opinion paragraph, 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 Cash Flow statement, of the cash flows for the year ended on that date.

Emphasis of Matter Paragraph

Note No.25 K to the Financial Statements, with regarding to transferring or settling dues of the Bank through ARC subsequent to the reporting period is undergoing.

However our opinion is not modified in respect of this matter.

Report on other Legal and Regulatory Requirements

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 given in the Annexure a statement on the matters specified in the paragraph 3 and 4 of the order, to the extent applicable.

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.

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

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

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

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT (This is the Annexure referred to in our Report of even date)

i.

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

b. All fixed assets have been physically verified by the Management during the year, in our opinion, is reasonable having regard to the size of the Company and the nature of it's Assets. No material discrepancies were noticed on such verification.

ii.

a. The Management has conducted physical verification of inventory at reasonable intervals during the year.

b. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii.

a. 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.

iv. In our opinion, there are adequate internal control procedures commensurate with the size of the company and the nature of it's business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit no major weaknesses have been noticed in internal controls in these areas.

v. The Company has not accepted any deposits from the public.

vi. In our opinion, and according to the information and explanations given to us, the company is not required to maintain cost records and accounts as provided under sub section (1) of section 148 of the Companies Act, 2013.

vii.

a. According to the records provided to us, the Company is regular except for certain cases in depositing undisputed statutory dues including Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues applicable to it with appropriate authorities and according to the information and explanations given to us, except for below mentioned, no undisputed amounts payable in respect of Income- tax, Sales-tax, Wealth-tax, Service Tax, Customs Duty, Excise Duty and Cess were in arrears as at 31st March, 2015 for a period of more than six months from the date they became payable.

Particulars Rs. in Lakhs

Tax Deducted at Source 12.43

Providend Fund 3.55

Income Tax (A.Y.2014-15) 9.20

b. According to the records of the Company and on the basis of the information and explanations given to us, there are no dues in respect of VAT, Service Tax, Duty of Excise, Income Tax, customs duty, wealth tax that have not been deposited with the appropriate authorities on account of any dispute. However following dues are not deposited on account of dispute by the company;

Particulars Period to which Forum Where the Amount the amount dispute is (Rs in Lakhs) relates pending

Income Tax F.Y.2005-06 Mumbai Tribunal 26.00

Income Tax F.Y.2007-08 Mumbai Tribunal 9.11

Income Tax F.Y.2011-12 CIT (Appeals) 36.14

c. The Company is not required to transfer any amount to investor education and protection fund during the year in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under.

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

ix. Based on our audit procedures and on the information and explanation given by the management, the company has defaulted in repayment of dues to the following financial institutions, banks as at the end of the balance sheet date. Further as stated in Note no.25 K of the financial statements, the matter in this respect is pending before the Corporate Debt Restructuring cell. The company has not issued any debentures during the year and not having any outstanding dues to debenture holders, hence clause shall not applicable to the company in this respect.

The details of the defaults of repayment are as follows;

Rupees in Lakhs Particulars (Principle Interest)

1 State Bank of India 1468.40

2 IDBI 375.70

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

xi. In our opinion, Term Loans were applied for the purpose for which the said loans were obtained.

xii. As per the checks carried out by us, no fraud on or by the company has been noticed or reported during the year under report.

For RRK & Associates Chartered Accountants

R.Radha Krishna Partner M.No.210777 FRN.09785S

Date:02.12.2015 Place: Hyderabad


Mar 31, 2014

We have audited the accompanying financial statements of Swarnajyothi Agrotech& Power Limited formerly Octant Industries Limited ("the Company"), which comprise the Balance Sheet as at March 31,2014, 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, 2014;

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

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

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, 2014, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

Annexure to the Auditor's Report

The annexure referred to in our report to the members of Swarnajyothi Agrotech & power Limited formerly Octant Industries Limited ('the Company') for the year ended 31 March, 2014. We Report that:

i) (a) According to the information and explanations given to us the Company has maintained Proper records showing full particulars including quantitative details and situation of fixed assets.

(b) According to the information and explanations given to us the company has physically verified during the year its fixed assets. We have been informed that no material discrepancies were noticed on such physical verification.

(c) According to the information and explanations given to us that there was no substantial disposal of fixed assets during year.

ii) (a) The Inventory has been physically verified by the Management during the year at reasonable intervals.

(b) In our opinion the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The Company is maintaining proper record of inventory. In our opinion the discrepancies noticed on physical verification of stocks as compared to book records were not material. However they have been properly dealt with in the books of account.

iii) (a) According to the information and explanations given to us the Company has not granted interest free unsecured loans to the parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion the terms and conditions of loans so granted to the party are prima facie not prejudicial to the interest of the company.

(c) According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

(d) According to the information and explanations given to us the Company has taken interest free unsecured loans aggregating as at the Balance Sheet date, Rs.250.49 Lakhs from two parties (Sri Manmohan Sahu and Smt. Indira Sahu) covered in the register maintained under section 301 of the Companies Act, 1956.

(e) In our opinion the terms and conditions on which the loans have been taken by the company from two parties covered in the register maintained under section 301 of the Companies Act, 195 are prima-facie not prejudicial to the interest of the company.

(g) According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

iv) In our opinion there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. In our opinion according the information and explanations given to us there is no continuing failure to correct major weaknesses in internal control during the year.

v) a) In our opinion and according to the information and explanations given to us the contracts or arrangements that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956 have been properly so entered.

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

vi) In our opinion and according to the information and explanations given to us, during the year under review the company has not accepted any deposits from the public within the purview of Section 58A of the Companies Act, 1956 and Rules made there under.

vii) In our opinion and the information furnished to us, the company has and internal audit system carried out by the external auditor and also has the inbuilt internal audit system. In our opinion the scope and coverage of the internal audit is commensurate with the size of the company and nature of its business.

viii) In our opinion and according to the information and explanations given to us the Central Government has prescribed the maintenance of cost records by the company as specified in sub section (1) of section 209 of the companies Act, 1956.

ix) a) According to the information and explanations given to us and according to the books and records examined by us in respect of statutory dues, the Company has been regular except for certain cases in depositing undisputed statutory dues with appropriate authorities including Provident Fund, Investor Education and Protection Fund, Employee's State Insurance, Income Tax, Sales Tax, Excise Duty, Service Tax, Cess and Other material statutory dues applicable to it.

b) With reference to the dues of Taxes which has not been deposited as at March 31, 2014 on account of disputes (which is belongs to the period before the appointed date of the Scheme of Arrangement and pertains to the Old Management), the amounts involved and forum where dispute is pending reported below:

Particulars Period to which Forum Where the Amount the amount relates dispute is pending (Rs in Lakhs)

Income Tax Assessment Year Mumbai Tribunal 26.00 2006-07

Income Tax Assessment Year Mumbai Tribunal 9.11 2008-09

Income Tax Assessment Year CIT (Appeals) 36.14 2012-13

x) In our opinion and according to the information and explanations given to us and according to the books of account examined by us the there are no accumulated losses at the end of the financial year.

xi) Based on our audit procedures and on the information and explanation given by the management, the company has defaulted in repayment of dues to the following financial institutions, banks as at the end of the balance sheet date.

The details of the defaults of repayment is as follows;

Rupees in Lakhs Particulars (Principal Interest)

1 State Bank of India 1468.40

2 IDBI 313.31

xii) According to the information and explanations given to us by the management and according to the records of the company examined by us 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 furnished to us the company is not a chit, nidhi or mutual benefit fund/society.

xiv) According to the information and explanations furnished to us the company is not dealing in shares, securities debentures and other investments.

xv) In our opinion and according to the information and explanation given to us, the company has not given any guarantee for the loans taken by others from banks or financial institutions.

xvi) In our opinion and according to the information and explanations furnished to us the term loans have been applied for the purpose for which they were raised.

xvi) On the basis of an overall examination of the Balance sheet of the company, and according to the information and explanations given to us, we are of the opinion that there are no funds raised on short term basis, which have been used for long term investments.

xvi) According to the information and explanations furnished to us, during the period covered by our audit, the company has not made any preferential allotment of equity shares to parties covered in the register maintained under section 301 of the companies Act, 1956 and thus the opinion on the price at which shares have been issued are not prejudicial to the interest of the company do not arise.

xix) According to the information and explanations given to us the company has not issued any debentures during the year and hence commenting under this clause does not arise.

xx) According to the information and explanations furnished to us by the Management, the company has not raised money by way of further public issue (preferential issue) during the year and as verified by us the end use of money raised by public issues has been spend for the purpose the same has been raised.

xxi) Based upon the audit procedures performed and 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 RRK & ASSOCIATES Chartered Accountants FRN No. 009785 S Sd/- R.Radha Krishna Partner M.No.210777

Date: Place: Hyderabad


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying financial statements of Swarnajyothi Agrotech & Power Limited formerly Octant Industries Limited (''the Company"), which comprise the Balance Sheet as at March 31, 2013, 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 Profit and Loss Account, of the profit for the year ended on that date; and

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

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 are 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.

Annexure to the Auditor''s Report

The annexure referred to in our report to the members of Swarnajyothi Agrotech & power Limited formerly Octant Industries Limited (‘the Company'') for the year ended 31 March, 2013. We Report that:

i) (a) According to the information and explanations given to us the Company has maintained Proper records showing full particulars including quantitative details and situation of fixed assets.

(b) According to the information and explanations given to us the company has physically verified during the year its fixed assets. We have been informed that no material discrepancies were noticed on such physical verification.

(c) According to the information and explanations given to us that there was no substantial disposal of fixed assets during year.

ii) (a) The Inventory has been physically verified by the Management during the year at reasonable intervals.

(b) In our opinion the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the company and the nature of its business.

(c) The Company is maintaining proper record of inventory. In our opinion the discrepancies noticed on physical verification of stocks as compared to book records were not material. However they have been properly dealt with in the books of account.

iii) (a) According to the information and explanations given to us the Company has not granted interest free unsecured loans to the parties covered in the register maintained under section 301 of the Companies Act, 1956.

(b) In our opinion the terms and conditions of loans so granted to the party are prima facie not prejudicial to the interest of the company.

(c) According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

(d) According to the information and explanations given to us the Company has taken interest free unsecured loans aggregating as at the Balance Sheet date, Rs.257.16 Lakhs from two parties (Sri Manmohan Sahu and Smt. Indira Sahu) covered in the register maintained under section 301 of the Companies Act, 1956.

(e) In our opinion the terms and conditions on which the loans have been taken by the company from two parties covered in the register maintained under section 301 of the Companies Act, 195 are prima-facie not prejudicial to the interest of the company.

(g) According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

iv) In our opinion there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. In our opinion according the information and explanations given to us there is no continuing failure to correct major weaknesses in internal control during the year.

v) a) In our opinion and according to the information and explanations given to us the contracts or arrangements that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956 have been properly so entered.

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

vi) In our opinion and according to the information and explanations given to us, during the year under review the company has not accepted any deposits from the public within the purview of Section 58A of the Companies Act, 1956 and Rules made there under.

vii) In our opinion and the information furnished to us, the company has and internal audit system carried out by the external auditor and also has the inbuilt internal audit system. In our opinion the scope and coverage of the internal audit is commensurate with the size of the company and nature of its business.

viii) In our opinion and according to the information and explanations given to us the Central Government has prescribed the maintenance of cost records by the company as specified in sub section (1) of section 209 of the companies Act, 1956.

ix) According to the information and explanations given to us and according to the books and records examined by us in respect of statutory dues, the Company has been regular except for certain cases in depositing undisputed statutory dues with appropriate authorities including Provident Fund, Investor Education and Protection Fund, Employee''s State Insurance, Income Tax, Sales Tax, Excise Duty, Service Tax, Cess and Other material statutory dues applicable to it

x) In our opinion and according to the information and explanations given to us and according to the books of account examined by us the there are no accumulated losses at the end of the financial year.

xi) Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of dues to the financial institutions, banks.

xii) According to the information and explanations given to us by the management and according to the records of the company examined by us 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 furnished to us the company is not a chit, nidhi or mutual benefit fund/society

xiv) According to the information and explanations furnished to us the company is not dealing in shares, securities debentures and other investments.

xv) In our opinion and according to the information and explanation given to us, the company has not given any guarantee for the loans taken by others from banks or financial institutions.

xvi) In our opinion and according to the information and explanations furnished to us the term loans have been applied for the purpose for which they were raised

xvii) On the basis of an overall examination of the Balance sheet of the company, and according to the information and explanations given to us, we are of the opinion that there are no funds raised on short term basis, which have been used for long term investments.

xviii) According to the information and explanations furnished to us, during the period covered by our audit, the company has not made any preferential allotment of equity shares to parties covered in the register maintained under section 301 of the companies Act, 1956 and thus the opinion on the price at which shares have been issued are not prejudicial to the interest of the company do not arise.

xix) According to the information and explanations given to us the company has not issued any with shares have been issued or not prejudicial to the interest of the company do not arise.

xx) According to the information and explanations furnished to us by the Management, the company has not raised money by way of further public issue (preferential issue) during the year and as verified by us the end use of money raised by public issues has been spend for the purpose the same has been raised.

xxi) Based upon the audit procedures performed and 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 N SIVAPRASAD ASSOCITES

Chartered Accountants

Firm''s Registration No.003885 S

Sd/-

Place: Secunderabad G Venkatachalam

Date : 29th July 2013 Partner

Membership No.200616


Mar 31, 2012

We have audited the attached Balance Sheet of Octant Industries Limited (Formerly Octant Interactive Technologies Limited) as at 31 st March 2012 and also the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

1. 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.

2. As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. Further to our comments in the annexure referred to in paragraph 3 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 for as appears from our examination of such books.

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

d. In our opinion and to the best of our information and according to the explanations given to us, the profit and loss account and balance sheet are prepared in accordance with accounting standards referred in sub section (3c) of section 211 of the Companies Act, 1956 to the extent applicable and except as specifically mentioned in the notes on account.

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 are disqualified as on March 31, 2012 from being appointed as Director in terms of clause (g) of subsection (1) of Section 274 of the Companies Act, 1956.

4. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with notes thereon give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view.

a. In the case of Balance sheet, of the state of affairs of the company as at 31 st March 2012 and:

b. In the case of Profit and Loss Account, of the Profit for the year ended on that date.

c. in the case of the Cash-How Statement, of the Cash flows of the Company for the year ended on that date.

Annexure to the Auditors' Report

(Referred to in Paragraph 3 of our Report of even date)

In terms of the information and explanations given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under:

i. a. According to the information and explanations given to us the Company has maintained Proper records showing full particulars including quantitative details and situation of fixed assets.

b. According to the information and explanations given to us the company has physically verified during the year its fixed assets. We have been informed that no material discrepancies were noticed on such physical verification.

c. According to the information and explanations given to us that there was no substantial disposal of fixed assets during year.

ii. a. The Inventory has been physically verified by the Management during the year at reasonable intervals.

b. In our opinion the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The Company is maintaining proper record of inventory. In our opinion the discrepancies noticed on physical verification of stocks as compared to book records were not material. However they have been properly dealt with in the books of account.

iii. a. According to the information and explanations given to us the Company has granted interest free unsecured loans aggregating as at Balance Sheet date, of Rs.6.835Lakhs to the parties covered in the register maintained under section 301 of the Companies Act, 1956.

b. In our opinion the terms and conditions of loans so granted to the party are prima facie not prejudicial to the interest of the company.

c. According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

d. According to the information and explanations given to us the Company has taken interest free unsecured loans aggregating as at the Balance Sheet date, to Rs.575.04 Lakhs from two parties (Sri Manmohan Sahu and Smt. Indira Sahu) covered in the register maintained under section 301 of the Companies Act, 1956.

e. In our opinion the terms and conditions on which the loans have been taken by the company from two parties covered in the register maintained under section 301 of the Companies Act, 1956 are prima-facie not prejudicial to the interest of the company.

g. According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

iv. In our opinion there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sae of goods and services. In our opinion according the information and explanations given to us there is no continuing failure to correct major weaknesses in internal control during the year.

v. a. In our opinion and according to the information and explanations given to us the contracts or arrangements that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956 have been properly so entered.

b. In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Companies Act. 1956 have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi. In our opinion and according to the information and explanations given to us, during the year under review the company has not accepted any deposits from the public within the purview of Section 58A of the Companies Act, 1956 and Rules made there under.

vii. In our opinion and the information furnished to us, the company has and internal audit system carried out by the external auditor and aso has the inbuilt internal audit system. In our opinion the scope and coverage of the internal audit is commensurate with the size of the company and nature of its business.

viii. In our opinion and according to the information and explanations given to us the Central Government has not prescribed the maintenance of cost records by the company as specified in sub section (1) of section 209 of the companies Act, 1956.

ix. a. According to the information and explanations given to us and according to the books and records examined by us in respect of statutory dues, the company has not been regular in depositing undisputed statutory dues with appropriate authorities including Provident Fund, Investor Education and Protection Fund, Employee's State Insurance, Income Tax, Sales Tax, Excise Duty, Service Tax, Cess and Other material statutory dues applicable to it and accordingly the Undisputed amounts payable in respect of Provident Fund of Rs. 4,69,867, Employees' State Insurance of Rs.21,232, Professional Tax of U5.430, Income Tax of Rs.30,84,571, Service Tax of Rs. 1,50,695.

b. With reference to the dues of Taxes which has not been deposited as at March 31, 2012 on account of disputes (which is belongs to the period before the appointed date of the Scheme of Arrangement and pertains to the Old Management), the amounts involved and forum where dispute is pending reported below:

Particulars Period to Forum Amount which the where the (Rs. in amount dispute Lakhs) relates is pending

Income Tax Assessment Mumbai 26.00 Year Tribunal 2006-07

Income Tax Assessment Mumbai 9.11 Year Tribunal 2008-09

Income Tax Assessment Mumbai 1813.69 Year Tribunal 2009-10

x. In our opinion and according to the information and explanations given to us and according to the books of account examined by us the there are no accumulated losses at the end of the financial year.

xi. Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of dues to the financial institutions, banks.

xii. According to the information and explanations given to us by the management and according to the records of the company examined by us 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 furnished to us the company is not a chit, nidhi or mutual benefit fund/society.

xiv. According to the information and explanations furnished to us the company is not dealing in shares, securities debentures and other investments.

xv. In our opinion and according to the information and explanation given to us, the company has not given any guarantee for the loans taken by others from banks or financial institutions.

xvi. In our opinion and according to the information and explanations furnished to us the term loans have been applied for the purpose for which they were raised.

xvii. On the basis of an overall examination of the Balance sheet of the company, and according to the information and explanations given to us, we are of the opinion that there are no funds raised on short term basis, which have been used for long term investments.

xviii. According to the information and explanations furnished to us, during the period covered by our audit, the company has made preferential allotment of equity shares of 56,52,174 of shares at Rs.23 each, of which 11,71,789 Shares at Rs.23 have been made to parties covered in the register maintained under section 301 of the companies Act, 1956 and the price at which shares have been issued are not prejudicial to the interest of the company.

xix. According to the information and explanations given to us the company has not issued any debentures during the year and hence commenting under this clause does not arise.

xx. According to the information and explanations furnished to us by the Management, the company has raised money by way of further public issue (preferential issue) during the year and as verified by us the end use of money raised by public issues has been spend for the purpose the same has been raised.

xxi. Based upon the audit procedures performed and 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 M/s. N. Sivaprasad Associates

Firm Registration No. 003885S

Chartered Accountants

G. Venkatachalam

Partner

Membership No. 200616

Hyderabad

September 4, 2012


Mar 31, 2011

1. We have audited the attached Balance Sheet of Octant Industries Limited (Formerly Octant Interactive Technologies Limited) as at 31st March 2011 and also the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with 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 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the annex hereto a statement on the matters specified in paragraph 4 and 5 of the said Order.

4. Further to our comments in the annexure referred to in paragraph 3 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 for as appears from our examination of such books.

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

d. In our opinion and to the best of our information and according to the explanations given to us, the profit and loss account and balance sheet are prepared in accordance with accounting standards referred in sub section (3c) of section 211 of the companies act, 1956 to the extent applicable and except as specifically mentioned in the notes on account.

e. On the basis of written representations received from the Directors as on March 31, 2011 and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on March 31, 2011 from being appointed as Director in terms of clause (g) of subsection (1) of Section 274 of the Companies Act, 1956.

5. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read with notes thereon give the information required by the companies Act, 1956 in the manner so required and give a true and fair view.

a. In the case of Balance sheet, of the state of affairs of the company as at 31st March 2011 and:

b. In the case of Profit and Loss Account, of the Profit for the year ended on that date.

c. in the case of the Cash-flow Statement, of the Cash flows of the Company for the year ended on that date.

Annexure to the Auditors' Report (Referred to in Paragraph 3 of our Report of even date)

In terms of the information and explanations given to us and the books and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state as under:

i. a. According to the information and explanations given to us the Company has maintained Proper records showing full particulars including quantitative details and situation of fixed assets.

b. According to the information and explanations given to us the company has physically verified during the year its fixed assets. We have been informed that no material discrepancies were noticed on such physical verification.

c. According to the information and explanations given to us that the Company demerged its Finance Business during the financial year.

ii. a. The Inventory has been physically verified by the Management during the year at reasonable intervals.

b. In our opinion the procedures of physical verification of inventory followed by the Management are reasonable and adequate in relation to the size of the company and the nature of its business.

c. The Company is maintaining proper record of inventory. In our opinion the discrepancies noticed on physical verification of stocks as compared to book records were not material. However they have been properly dealt with in the books of account.

iii. a. According to the information and explanations given to us the Company has not granted interest free unsecured loans to the parties covered in the register maintained under section 301 of the Companies Act, 1956.

b. In our opinion the rate of interest and other terms and conditions of loans so granted to the party are prima facie not prejudicial to the interest of the company.

c. According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

d. According to the information and explanations given to us the Company has taken interest free unsecured loans aggregating as at the Balance Sheet date, to Rs.112.16 Lakhs from two parties (Sri Manmohan Sahu and Smt. Indira Sahu) covered in the register maintained under section 301 of the Companies Act, 1956.

e. In our opinion the rate of interest and terms and conditions on which the loans have been taken by the company from two parties covered in the register maintained under section 301 of the Companies Act, 195 are prima-facie not prejudicial to the interest of the company.

g. According to the information and explanations given to us the loans given to the parties covered in the register maintained under section 301 of the Companies Act 1956 are repayable on demand.

iv. In our opinion there are adequate internal control systems commensurate with the size of the company and the nature of its business with regard to purchase of inventory and fixed assets and for the sale of goods and services. In our opinion according to the information and explanations given to us there is no continuing failure to correct major weaknesses in internal control during the year.

v. a. In our opinion and according to the information and explanations given to us the contracts or arrangements that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956 have been properly so entered.

b. In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956 have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

vi. In our opinion and according the information and explanations given to us, during the year under review the company has not accepted any deposits from the public within the purview of Section 58A of the Companies Act, 1956 and Rules made there under.

vii. In our opinion and the information furnished to us, the company has no internal audit system carried out by the external auditor and has the inbuilt internal audit system. In our opinion the scope and coverage of the internal audit is commensurate with the size of the company and nature of its business.

viii In our opinion and according to the information and explanations given to us the Central Government has not prescribed the maintenance of cost records by the company as specified in sub section (1) of section 209 of the companies Act, 1956.

ix. a. According to the information and explanations given to us and according to the books and records examined by us, except in some cases, the company is regular in deducting and depositing with the appropriate authorities the undisputed statutory dues including provident fund, employee's state Insurance, income tax, sales tax, excise duty, service tax, cess and other material statutory dues applicable to it.

b. According to the information furnished to us and as per records of the company examined by us there were no dues, as at the Balance Sheet date, of sales tax/ income tax/custom tax/excise duty/ service tax/cess/that have not been deposited on account of any dispute.

x. In our opinion and according to the information and explanations given to us and according to the books of account examined by us the there are no accumulated losses at the end of the financial year.

xi. Based on our audit procedures and on the information and explanation given by the management, we are of the opinion that the company has not defaulted in repayment of dues to the financial institutions, banks.

xii. According to the information and explanations given to us by the management and according to the records of the company examined by us 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 furnished to us the company is not a chit, nidhi or mutual benefit fund/society

xiv. According to the information and explanations furnished to us the company is not dealing in shares, securities debentures and other investments.

xv. In our opinion and according to the information and explanation given to us, the company has not given any guarantee for the loans taken by others from banks or financial institutions.

xvi. In our opinion and according to the information and explanations furnished to us the term loans have been applied for the purpose for which they were raised.

xvii. On the basis of an overall examination of the Balance sheet of the company, and according to the information and explanations given to us, we are of the opinion that there are no funds raised on short term basis, which have been used for long term investments.

xviii.According to the information and explanations furnished to us, in line with the scheme of Merger, the company has made allotment of Equity shares of 14645010 Shares of Rs.10/- each other than cash to shareholders of merged companies and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year under review.

xix. According to the information and explanations given to us the company has not issued any debentures during the year and hence commenting under this clause does not arise.

xx. The company has not raised any money by public issues during the year and hence commenting under this clause does not arise.

xxi. Based upon the audit procedures performed and 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 M/s. N. Sivaprasad Associates

Firm Registration No. 003885S

Chartered Accountants

G. Venkatachalam

Partner

Membership No. 200616

Hyderabad August 10, 2011


Mar 31, 2010

1. We have audited the attached Balance Sheet of Octant Interactive Technologies Limited as at 31st March 2010, the Profit and Loss account and the Cash Flow Statement for the year ended on that date annexed thereto. 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 conduct our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) (Amendment) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

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

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

(iii) The balance sheet, profit and loss account dealt with by this report are in agreement with the books of account.

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

(v) On the basis of written representations received from the directors, as on 3 Is March 2010 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

5. In our opinion and to the best of our information and according to the explanation 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 31st March 2010.

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

c) In case of the Cash Flow Statement of the Cash Flows of the Company for the year ended on that date.

ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS Referred to in paragraph 3 of our report of even date, we state that:

(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information available.

(b) We are informed that fixed assets have been physically verified by the management during the year. There is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) During the year the company has initiated de-merger process, where by the Finance Division of the Company to be separated and to that extent it said that major part of Fixed assets are to be disposed which has affected the going concern status of the company.

(ii) (a) The stock of shares held as stock in trade have been physically verified by the management at reasonable intervals during the year. In our opinion, frequency of the verification is reasonable.

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

(c) In our opinion and according to the information and explanation given to us the company is maintaining proper records of inventory. No material discrepancies were noticed on physical verification between physical stock and book records.

(iii) a) The Company has granted loans secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions for loans mentioned in para (iii) (a) above, are prima facie not prejudicial to the interest of the company.

c) Since the loans mentioned in para (iii) (a) above are without any fixed repayment schedule, the question of examining the regularity of repayment of the Principal amount and interest thereon, does not arise.

d) For the same reasons given in para (iii) (c) above, the question of examining the regularity of repayment of the Principal amount and interest thereon, does arise.

e) The Company has not taken any loans from party covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, clauses (iii) (f) and (iii) (g) of paragraph 4 (iii) 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 procedures commensurate with the size of the company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls.

(v) (a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.

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

(vi) The company has not accepted any deposits during the year & consequently the provision of section 58 A and 58AA of the companies Act 1956 and the rules framed there under are not applicable.

(via) According to the information provided to us, the Company does not have the separate Internal Audit system carried out by the Independent Internal Auditor. However has the inbuilt Internal Audit System, in our opinion, the same is commensurate with the size and nature of its business.

(viii) According to the information and explanation given to us the maintenance of Cost Record has not been prescribed by the central Government u/s 209(l)(d) of the Companies Act, 1956 for any of the activities of the company.

(ix) a) According to the information and explanations given to us, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues including income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other material statutory dues applicable to it.

b) According to the Information and explanation given to us, no undisputed amount payable in respect of sales tax, income tax, custom duty, wealth tax, service tax, excise duty and cess were in arrears, as at 31st March, 2010 for a period of more than six months from the date they become payable.

(x) The accumulated losses of the company are not more than fifty percent of its net worth. The company has not incurred cash losses during the current and immediatelypreceding financial year.

(xi) According to the information and explanations provided to us the company does not have any outstanding dues to financial institutions, banks or debenture holders.

(xii) In our opinion and according to the information and explanations provided to us the company has not granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

(xiii) In our opinion and according to the information and explanations provided to us the nature of activities of the company does not attract special statute applicable to Chit Fund and Niddhi / Mutual Benefit Fund/ Society.

(xiv) The company has maintained proper records for dealing in shares and debentures and timely entries have been made therein. All shares, debentures and other investments have been held by the company in its own name except to the extent of the exemption granted under section 49 of the Companies Act, 1956 and save for certain shares which are either lodged for transfer or held with transfer forms.

(xv) In our opinion and according to the information and explanations provided to us the company has not given any guaranteed for loans taken by others from banks or financial institutions.

(xvi) The company has not accepted any term loan during the year.

(xvii) In our opinion and according t o the information and explanations provided to us and cash flow statement and other records of the company examined by us, we report that the company ahs not raised short terms funds during the year.

(xviii) During the year the company has not made any preferential allotment of shares to parties or companies covered in the register maintained u/s 301 of the Companies Act 1956.

(xix) The company has not issued any debentures till date.

(xx) The company has not raised any money through public issue during the year.

(xxi) According to the information given to us. No fraud on or by the company has been noticed or reported during the course of the audit.

For N. Siva Prasad Associates. Chartered Accountants

Sd/-

G Venkatachalam

Partner.

Place : Hyderabad Dated: 01-12-2010

 
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