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Auditor Report of Virat Crane Industries Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of VIRAT CRANE INDUSTRIES LIMITED ("the Company " ), Which comprise the Balance Sheet as at 31st March, 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 Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of the financial statements that give a true and fair view of the financial position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies: making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

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

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial control system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 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 31st March, 2015;

b) In the case of the Statement of 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 (Auditors' 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, to the extent applicable.

2. As required by section 143(3) of the Act, we report that:

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

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

c) The Balance Sheet, 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 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 March 31, 2015 and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of section 164(2) of the Act; and

f) With respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 201 4, in our opinion and to the best of the our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note: 1 (Notes to accounts) to the financial statements.

ii. the Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses. - Refer Note: 7(Notes to accounts) to the financial statements.

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

Annexure to the Independent Auditor's Report

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

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

b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

ii. a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

b) 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.

c) In our opinion and on the basis of our examination of the records, the company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

iii. a) The Company has granted loans to two bodies listed in the register maintained under section 189 of the Companies Act, 2013 ("the Act").

b) The terms of arrangement does not stipulate any repayment schedule and the loans are repayable on demand.

c) There are no overdue amounts of more than one lakh in respect of loans granted to the bodies corporate listed in the register maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories, fixed assets and with regards to sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

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

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

vii. a) According to information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Cess to the extent applicable and any other material statutory dues have generally been regularly deposited with the appropriate authorities.

b) According to the information and explanations given to us and on the basis of the documents the disputed statutory dues which have not been deposited with the appropriate authorities are as under:

Nature of the Statute Nature of Amount Period to which the Dues (Rs.) the amount relates

Agricultural Market cess 10,55,689 1994-95 to Committee Cess 2000

Income Tax Act, 1961 Income Tax 7,30,591 2002-03

AP VAT commercial 73,27,091 2006-07 to Taxes 2011-12 Department

Nature of the Statute Forum where dispute is pending

Agricultural Market Supreme Court of Committee Cess India

Commissioner of Appeals, Income Income Tax Act, 1961 Tax (Hyderabad)

AP VAT commercial Tax offcier, Nandigama Circle

ii) The demand made by Sales Tax Authority towards APGST for the year 1999-2000 is Rs.1.95 Lakhs against which appeal is preferred with Tribunal. The demand against Luxury Tax made by Commercial Tax Officer for Rs.3,47,484/- for the year 2005-06 in April 2008 is contested by appeal before Hon'ble High Court Of Andhra Pradesh by remitting Rs.1,73,742/- (which is 50% of demand).

c) According to the information and explanation given to us, there were no amounts which were required to be transferred to Investor Education and Protection Fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules there under.

viii) The Company does not have any accumulated losses as at 31st March, 2014 and has not incurred cash losses in the current and immediate preceding financial year.

ix) Based on our audit procedure and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to financial institutions, banks or debenture holders.

x) According to the information and explanations given to us, the Company has given Corporate Guarantees to IDBI for the term loan of Rs. 10 Crores taken by Virat Crane Bottling Limited and Virat Agritech for the term loan of Rs. 13.24 Crores and the same is not prejudicial in the interest of the company.

xi) In our opinion and according to the information and explanations to given to us, the term loan raised was utilized for the purpose for which it was obtained.

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

for Nagaraju & Co., Chartered Accountants FRN:02271S

K.Nagaraju Proprietor M.No: 020474

Place: Guntur Date: 30.05.2015






Mar 31, 2014

We have audited the accompanying financial statements of VIRAT CRANE INDUSTRIES LIMITED ("the Company"), Which comprise the Balance Sheet as at 31st March, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT RESPONSIBILTY 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. 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 misstatements, 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the 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 31st March, 2014;

b) In the case of the Statement of 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 (Auditors'' 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 is disqualified as on 31st March, 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 AUDIT REPORT:

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

1) In respect of Fixed Assets:

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

b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

c) In our opinion and according to the information and explanations given to us, substantial part of fixed assets has not been disposed off during the year.

2) In respect of Inventories:

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

b) 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.

c) In our opinion and on the basis of our examination of the records, the company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3) a) i) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has granted interest free unsecured loan to Virat Crane Agri Tech Ltd and Crane Infrastructure Ltd as per Register maintained under Section 301 of the Companies Act, 1956. The maximum amounts outstanding during the year are Rs.631.44 lakhs and Rs.213.53 lakhs and year end balances amounts to Rs. 631.44 lakhs and Rs. 208.71 lakhs respectively.

ii) The other terms and conditions of such loans are not prejudicial to the interests of the Company.

iii) The amount is repayable on demand.

b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses iii (f) & iii (g) are not applicable to the company.

4) In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories, fixed assets and with regards to sale of goods and services. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that there were no contracts or arrangements that need to be entered in the register maintained under section 301 of the Companies Act 1956. Thus clauses v (a) and v (b) are not applicable to the Company.

6) The Company has not accepted deposits from the public within the meaning of Sections 58A and Section 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

7) As per information & explanations given by the management, the Company has an internal audit system commensurate with its size and the nature of its business.

8) As per the section 209(1) (d) of the Companies Act, 1956 maintenance of the cost records is not compulsory.

9) In respect of Statutory Dues:

a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities.

b) According to the information and explanations given to us there were disputed outstanding statutory dues as on 31st of March, 2014 as given in 9(c) below for a period of more than six months from the date they became payable

c) According to the information and explanations given to us and on the basis of the documents the disputed statutory dues which have not been deposited with the appropriate authorities are as under:

b) The demand made by Sales Tax Authority towards APGST for the year 1999-2000 is Rs.1.95 Lakhs against which appeal is preferred with Tribunal. The demand against Luxury Tax made by Commercial Tax Officer for Rs.3,47,484/- for the year 2005-06 in April 2008 is contested by appeal before Hon''ble High Court Of Andhra Pradesh by remitting Rs.1,73,742/- (which is 50% of demand).

10) The Company does not have any accumulated losses as at 31st March, 2014 and has not incurred cash losses in the current and immediate preceding financial year.

11) Based on our audit procedure and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to financial institutions and banks.

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

13) The Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provision of this clause of the Companies (Auditors'' Report) Order, 2003 (as amended) is not applicable to the Company.

14) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.

15) According to the information and explanations given to us, the Company has given Corporate Guarantees to IDBI for the term loan of Rs. 10 Crores taken by Virat Crane Bottling Limited and Virat Agritech for the term loan of Rs. 13.24 Crores and the same is not prejudicial in the interest of the company.

16) In our opinion, the company has not raised any term loans during the year under audit.

17) Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18) Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19) The Company has not issued any debenture and hence no securities have been created.

20) The Company has not raised any money by public issue during the year.

21) Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

As per our report of even date for NAGARAJU & Co., Chartered accountants for and on behalf of the board Firm Registration No: 02271S for VIRAT CRANE INDUSTRIES LIMITED

Sd/- K. NAGARAJU Sd/- Sd/- Proprietor P.BHASKARA RAO G.V.S.L KANTHA RAO M.NO: 020474 DIRECTOR MANAGING DIRECTOR

Date: 30.05.2014 Place: Guntur


Mar 31, 2013

We have audited the accompanying financial statements of VIRAT CRANE INDUSTRIES LIMITED, Which comprise the Balance Sheet as at 31st March, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT RESPONSIBILTY 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. 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 misstatements, 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 judgement, 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 31st March, 2013;

b) In the case of the Statement of 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 (Auditors'' 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 arein 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 31st March, 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 AUDIT REPORT:

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

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

b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

c) In our opinion and according to the information and explanations given to us, substantial part of fixed assets has not been disposed off during the year and therefore does not affect the going concern assumption.

2) a) As explained to us, inventories have been physically verified during the year by the management at reasonable intervals.

b) 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.

c) In our opinion and on the basis of our examination of the records, the company is generally maintaining proper records of its inventories. No material discrepancy was noticed on physical verification of stocks by '' the management as compared to book records.

3) a) i) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has granted interest free unsecured loan to V1RAT CRANE AGR1TECH LTD and CRANE INFRASTRUCTURE LTD register maintained under Section 301 of the Companies Act. 1956. The maximum amounts involved during the year are Rs. 510.86 lakhs and Rs. 138.62 lakhs and year end balances amounts to Rs. 510.86 lakhs and Rs. 138.62 lakhs respectively.

ii) The other terms and conditions of such loans are not prejudicial to the interests of the Company.

iii) The amount is repayable on demand.

b) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not taken loans from companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956. Thus sub clauses iii(f) & iii(g) are not applicable to the company.

4) In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories, fixed assets and with regards to sale of goods and services. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5) Based on the audit procedures applied by us and according to the information and explanations provided by the management we are of the opinion that there were no contracts or arrangements that need to be entered in the register maintained under section 301 of the Companies Act 1956. Thus clauses v (a) and v (b) are not applicable to the Company.

6) The Company has not accepted deposits from the public within the meaning of Sections 58A and Section 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

7) As per information & explanations given by the management, the Company has an internal audit.system commensurate with its size and the nature of its business.

8) As per the section 209( 1 )(d) of the Companies Act, 1956 maintenance of the cost records is not compulsory.

9) a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax. Service Tax, Custom Duty, Excise Duty, Cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities.

b) According to the information and explanations given to usJhere were no disputed outstanding statutory dues as on 31st of March, 2013 for a period of more than six months from the date they became payable

10) The Company does not have any accumulated losses as at 31st March, 2013 and has not incurred cash losses in the current and immediate preceding financial year

11) Based on our audit procedure and on the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to financial institutions and banks.

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

13) The Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provision of this clause of the Companies (Auditors'' Report) Order, 2003 (as amended) is not applicable to the Company.

14) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments.

15) According to the information and explanations given to us, the Company has given Corporate Guarantees to IDBI for the term loan of Rs. 10 Crores taken by Virat Crane Bottling Limited and Virat Agritech for the term loan of Rs. 13.24 Crores and the same is not prejudicial in the interest of the company.

16) In our opinion, the company has not raised any term loans during the year under audit.

17) Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2013, we report that no funds raised on short-term basis have been used for long-term investment by the Company.

18) Based on the audit procedures performed and the information and explanations given to us by the management, we report that the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Act during the year.

19) The Company has not issued any debenture and hence no securities have been created.

20) The Company has not raised any money by public issue during the year.

21) Based on the audit procedures performed and the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For Nagaraju & Co

Chartered Accountants

Registration No: 00227,S

Sd/-

K. Nagaraju

Place: Guntur Membership No: 020474

Date: 30th May, 2013


Mar 31, 2012

- We have audited the attached Balance Sheet of M/s.Virat Crane Industries Limited as at 31sl March, 2012 the Profit and Loss account and the cash flow statement for the year ended on that date annexure there to. These finan- cial 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 about whether the financial state- ments are free of material misstatement. An audit includes examining, on a test basis, evi- dence supporting the amounts and disclosures in the financial statements. An audit also in- cludes assessing the accounting principles used and significant estimates made by man- agement, as well as evaluating the overall fi- nancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

- As required by the Companies (Auditor''s Re- port) Order, 2003 issued by the Central Gov- ernment 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. Subject to

- Further to our comments in the Annexure re- ferred to above, we report that:

- We have obtained all the information and ex- planations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

- 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 those books.

- The Balance Sheet, Profit and Loss Account and cash flow statement dealt with by this re- port is in agreement with the books of account.

- In our opinion, the Balance Sheet, Profit and Loss Account and cash flow statement dealt with by this report comply with the account- ing standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 except AS-15 retirement benefit to employees.

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

- In our opinion and to the best of our informa- tion 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 prin- ciples generally accepted in India.

- in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2012.

- in the case of the Profit and Loss account of the profit for the year ended on that date and

- in the case of the cash flow statement of the cash flows for the year ended on that date.

ANNEXURE TO AUDIT REPORT

Ref: Virat Crane Industries Ltd., Guntur Referred to in paragraph 3 of our report of even date,

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

- According to Information and explanations given to us, There is a regular program 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.

- During the year, the company has not disposed off any part of the fixed assets.

(ii) (a) The inventory has been physically verified during the year by the management. In Our opinion, the frequency of verification is reasonable.

(b)The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

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

(iii)

(a) The Company has granted interest free unsecured loans to Virat Crane Agri Tech Ltd. a parties covered under register maintained under section 301 of the companies act.

- As per the explanation given to us the loan the terms and conditions on which the loans has been granted to the body corporate listed in the register maintained under section 301 of the Companies Act 1956are not prima facie prejudicial to the interest of the company.

- In case of loans granted to the body corporate listed in the register maintained under section 301 of the Companies Act 1956, the borrower has been regular in the payment principal amount as and when demanded. The terms of the loan agreement does not stipulate any repayment schedule and is repayable on demand.

- There are no overdue amounts of more than one lakh rupees in respect of loans graned to a body corporate listed in the register maintained under section 301 of the Companies Act 1956.

Nature of Party & Max. Amount Closing Balance Transaction Relation involved as on 31.03.2012 Rs. In Lakhs Rs. In Lakhs

Advance Virat Came Agri Tech Ltd. 5.04 Crores 5.04 Crores

(The above company is related by virtue of common director Mr. .G V S L Kantha Rao)

- The Company has not obtained any loans dur- ing the year from companies and parties cov- ered in the register maintained u/s 301 of Com- panies Act 1956. Consequently the requirements of Para iii (f) & (g) are not applicable.

- On the basis of selective checks carried out during the course of audit. 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 re- gard 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.

- (a) According to the information and explana- tions given to us, we are of the opinion that the transactions that need to be entered into the reg- ister maintained under section 301 of the Com- panies Act, 1956 have been so entered.

(b) In our opinion and according to the infor- mation and explanations given to us, the trans- actions made in pursuance of contracts or ar- rangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year.

- In our opinion and according to the informa- tion and explanations given to us, the Company has not collected any deposits from the public as per the provisions of section 58A and 58AA of the Companies Act, 1956 and the Compa- nies (Acceptance of Deposits) Rules, 1975.

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

- As per the section 209( 1 )(d) of the Companies Act, 1956 maintenance of the cost records is not compulsory.

(ix) (a) The Company is generally regular in depositing monies except with P.F/ESI au- thorities .

- According to the information and explanations given to us, there are no undisputed statutory dues outstanding for a period of more than six months from the date they became due except in respect of P.F.- Rs.205242

(c) According to the information and explanation given to us, there are statutory dues which were deposited under dispute. They are

Ghee Division

Nature of Nature of Amount Forum where the Stature the Dues (Rs)Lacs dispute is pending

Agricultural Cess 10.55 Lacs Supreme Court of market India committee

Income Tax Income tax 07.30 Lacs Commissioner of Act, 1961 Appeals Income tax (Hyderabad)

(x) The accumulated losses of the company are not more than fifty percent of net worth. The company has not incurred any cash loss during the financial year under audit.

(xi) In our opinion and according to the informa- tion and explanations given to us, during the year the Company has not borrowed any loans from any financial institution, bank or deben- ture holders. Accordingly, the provisions of clause 4(xi) of the Companies (Auditor''s Re- port) Order, 2003 are not applicable to the company.

(xii) In our opinion and according to the informa- tion and explanations given to us, the Com- pany has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidlii / mutual benefit fund / society.

Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order. 2003 are not applicable to the company.

(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provi- sions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not appli- cable to the company.

(xv) In our opinion and according to the informa- tion and explanations given to us, company has given corporate guarantees to IDBI for the term loan of Rs. 10 Crore taken by Virat Crane Bottling Limited and Virat Agritech for the term loan of Rs 13.24 Crores and the same is not prejudicial in the interest of the company

(xvi) In our opinion, the company has not raised any term loans during the year under audit.

(xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we report that the funds raised on short-term basis not been used for long-term purpose.

(xviii) According to the information and explanations given to us, the Company has not made pref- erential allotment of shares to parties and Companies covered in the register maintained under section 301 of the Companies Act, 1956.

(xix) According to the information and explanations given to us, during the period covered by our audit report, the Company had not issued any debentures.

(xx) As per the information and explanation given to us the company have not raised any mon- ies through public issue.

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

For Jawahar & Associates Chartered Accountants

Firm Regn. No: 001281S

V.UMAPATHI

Place: Guntur Partner

Date: 30-8-2012 M.No. 21887


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s.Virat Crane Industries Limited as at 31st March, 2010 the Profit and Loss account and the cash flow statement for the year ended on that date annexure there to. 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 the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003 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.

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 accounts as required by law have been kept by the Company so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit and Loss Account and cash flow statement dealt with by this report is in agreement with the books of account.

(iv) In our opinion, the Balance Sheet and Profit and Loss Account, 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 except AS-15 retirement benefit to employees. .

(v) On the basis of written representations received from the directors, as on 31st 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.

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

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31sl March, 2010.

(b) in the case of the Profit and Loss account of the Loss for the year ended on that date.

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

ANNEXURE TO AUDIT REPORT

Ref: Virat Crane Industries Ltd., Guntur Referred to in paragraph 3 of 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) The management during the year has physically verified all the assets. There is a regular program 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 not disposed off any part of the fixed assets.

(ii) (a) The inventory has been physically verified during the year by the management. In Our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

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

(iii) (a)The Company has not granted any loans secured or unsecured to parties covered under register maintained under section 301 of the companies act. So the provisions of (b), (c), and (d) are not applicable.

(e) The Company has obtained Inter Corporate Deposits from the following and details as follows:

Name of the Maximum Year end Company amount due balance

Virat Crane 2 Lacs 2 Lacs (Cr.) Bottling Ltd.,

Virat Crane 98.85 Lacs 98.85 Lacs (Cr.) Agri-Tech Ltd.,

Apex 50.39 Lacs 33.12 Lacs (Cr.) Solutions Ltd.,

(f) As per the information and explanations given to us, the loans are payable on demand and there is ratewftipterest for the said loan. Hence, the question of whether the interest is prejudicial to the interests of the company or not does not arise.

(g) As per the information and explanation given to us, the loans are repayable on demand.

(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 and exceeding the value of rupees five lakhs in respect of any party during the year.

(vi) In our opinion and according to the information and explanations given to us, the Company has not collected any deposits

from the public as per the provisions of section 58A and 58AA of the Companies Act,. 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

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

(viii) As per the section 209(l)(d) of the Companies Act, 1956 maintenance of the cost records is not compulsory.

(ix) (a) The Company is generally regular in depositing monies except with P.F/ESI authorities.

(b) According to the information and explanations given to us, there are no undisputed statutory dues outstanding for a period of more than six months from the date they became due.

(c) According to the information and explanation given to us, there are statutory dues which were deposited under dispute. They are

Nature of Nature of Amount Forum where dispute is the Stature the Dues (Rs)Lacs pending

Sales Tax Dept APGST 1.95 Sales tax Tribunal (Hyderabad)

CST 0.33 C.T.O, Guntur, Andhra Pradesh

(x) The accumulated losses of the company are not more than fifty percent of net worth. The company has not incurred any cash loss during the financial year under audit.

(xi) In our opinion and according to the information and explanations given to us, during the year the Company has not borrowed any loans from any financial institution, bank or debenture holders. Accordingly, the provisions of clause 4(xi) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xi v) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xv) In our opinion and according to the information and explanations given to us, company has given corporate guarantees to IDBI for the term loan of Rs. 10 Crore taken by Virat Crane Bottling Limited.

(xvi) In our opinion, the company has not raised any term loans during the year under audit.

(xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we report that there are funds raised on short-term basis have been not used for long-term purpose.

(xviii)According to the information and explanations given to us, the Company has not made preferential allotment of shares to parties and Companies covered in the register maintained under section 301 of the CompaniesAct, 1956.

(xix) According to the information and explanations given to us, during the period covered by our audit report, the Company had not issued any debentures.

(xx) As per the information and explanation given to us the company have not raised any monies through public issue.

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

For Jawahar & Associates

Chartered Accountants

Sd/-

V.Umapathi

Partner

Membership Number: 21887

Place : Guntur,

Date : 02.12.2010


Mar 31, 2009

1. We have audited the attached Balance Sheet of M/s. Virat Crane Industries Limited as at 31st March, 2009 the Profit and Loss account and the cash flow statement for the year ended on that date annexure there to. These financial statements are the responsibility of the Companys management. Our responsi bility is to express an opinion on these financial statements based on our audit.

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

3. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of 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 accounts as required by law have been kept by the Company so far as appears from our examination of those books.

(iii) The Balance Sheet, Profit and Loss Account and cash flow statement dealt with by this report is in agreement with the books of account.

iv) In our opinion, the Balance Sheet and Profit and Loss Account, cash flow statement dealt with by this report comply with the accounting standards referred to in sub- section (3C) of section211 of the Companies Act, I956except AS-15 retirement benefit to employees.

(v) On the basis of written representations received from the directors, as on 31" March, 2009 and taken on record by the Board of Directors, we report that none of the directors is disqualified -as on 31" March, 2009 from being appointed as a director in terms of clause (g) of subsection (1) of section 274 of the Companies Act, 1956.

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

(a) in the case of the Balance Sheet, of the.state of affairs of the Company as at 31st March, 2009.

(b) in the case of the Profit and Loss account of the Loss for the year ended on that date.

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

ANNEXURE TO AUDIT REPORT

Ref: Virat Crane Industries Ltd., Guntur Referred to in paragraph 3 of 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) The management during the year has physically verified all the assets. There is a regular program 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 not disposed off any part of the fixed assets.

(ii) (a) The inventory has been physically verified during the year by the management. In Our opinion, the frequency of verification is reasonable.

(b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.

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

(iii) (a)The Company has not granted any loans secured or unsecured to parties covered under register maintained under section 301 of the companies act. So the provisions of (b), (c), and (d) are not applicable.

(e) The Company has obtained Inter Corporate Deposits from the following and details as follows:.

Name of the Maximum Year end Company amount due balance

ViratCrane 2 Lacs 2 Lacs (Cr.) Bottling Ltd.,

ViratCrane 117,67 Lacss 117.04 Lacs Agri Tech Ltd., (Cr)

Apex 44.66 Lacs 33.34 Lacs Solutions Ltd., (Cr)

(f) As per the information and explanations given to us, the loans are payable on demand and there is rate of interest for the said loan. Hence, the question of whether the interest is prejudicial to the interests of the company or not does not arise.

(g) As per the information and explanation given to us, the loans are repayable on demand.

(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 Comapnies Act, 1956 and exceeding the value of rupees five lakhs in respect of any party during the year.

(vi) In our opinion and according to the information and explanations given to us, the Company has not collected any deposits section 58 A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

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

(viii) As per the section 209(1 )(d) of the - Companies Act, 1956,maintenance of the cost records is not compulsory.

(ix) (a) The Company is generally regular in depositing monies with P.F/ESI authorities,

(b) According to the information and explanations given to us, there are no undisputed statutory dues outstanding for a period of more than six months from the date they became due except in respect of P.F. Rs. 2,15,287.64.

(C) According to the information and explanation given to us, there are statutory dues which were deposited under dispute.

Nature of Nature of Nature of Forum where dispute is the Stature the Dues the Dues pending

Sales Tax Dept APGST 1.95 Sales tax Tribunal (Hyderabad)

CST 0.33 C.T.O.Guntur.Andhra Pradesh

(x) The accumulated losses of the company are not more than fifty percent of net worth. The company has not incurred any cash loss during the financial year under audit.

(xi) In our opinion and according to the information and explanations given to us, during the year the Company has not borrowed any loans from any financial institution, bank or debenture holders.

Accordingly, the provisions of clause 4 (xi) of the companies (Auditors Report) Order, 2003 are not applicable to the company.

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

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund/ society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xiv) In our opinion, the Comapny is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditors Report) Order, 2003 are not applicable to the company.

(xv) In our opinion and according to the information and explanations given to us, company has given corporate guarantees to IDBI for the term loan of Rs. 10 Crore taken by Virat Crane Bottling Limited.

(xvi) In our opinion, the company has not raised any term loans during the year under audit.

(xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the company, we report that there are fumis raised on short-term basis have been not used for long-term purpose.

(xviii) According to the information and explanations given to us, the Company has not made preferential allotment of shares to parties and Companies covered in the register maintaine a under section SOI of the Companies Act, 1956.

(xix) According to the information and explanations given to us, during the period covered by our audit report, the Company had not issued any debentures.

(xx) As per the information and explanation given to us the company have not raised any monies through public issue.

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

For Jawahar & Associates Chartered Accountants

Sd/-

V.Umapathi Partner Membership Number; 21887

Place: Guntur Date : 30.08.2009.

 
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