Auditor Report of Virat Crane Industries Ltd.

Mar 31, 2018

Report on the Financial Statements

We have audited the accompanying financial statements of VIRAT CRANE INDUSTRIES LIMITED (‘the Company’), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended and a summary of the significant accounting policies and other explanatory information.

Managements’ 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 of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.

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.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.

In conducting 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 and the Order issued under Section 143(11) oftheAct.

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

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the s 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. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence obtained by us 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, of the state of affairs of the Company as at March 31, 2018, and its profit, total comprehensive income, the changes in equity and its cash flows for the year ended on that date.

Other Matter

The audited financial statements for the year ended 31^st March 2017 was carried out and reported by M/s Nagaraju &Co., vide their unmodified audit report dated 21^th May 2017, whose report has been furnished to us b the management and which has been relied upon by us for the purpose of our audit of the financial statements. Our audit report is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit, we report that:

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

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

c. the Balance Sheet, the Statement of Profit and Loss including other comprehensive income, Statement of Changes in Equity and the Statement of Cash Flows dealt with by this Report are in agreement with the books of account.

d. in our opinion, the aforesaid financial statements comply with the Indian Accounting Standards prescribed under Section 133 oftheAct.

e. on the basis of the written representations received from the directors of the Company as on March 31,2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2018 from being appointed as a director in terms of Section 164(2) of the Act.

f. with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in ‘Annexure B’. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

g. with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:

1. The Company has disclosed the impact of pending litigations on its financial position in its financial statements.

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

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

2. As required by the Companies (Auditor’s Report) Order, 2016 (‘the Order’) issued by the Central Government in terms of Section 143(11) of the Act, we give in ‘Annexure A’ a statement on the matters specified in paragraphs 3 and 4 of the Order

Annexure A to the Independent Auditors’ Report

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the members of Infosys Limited of even date)

i. In respect of the Company’s fixed assets:

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

b. The Company has a program of verification to cover all the items of fixed assets in a phased manner which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the program, certain fixed assets were physically verified by the Management during the year. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

c. According to the information and explanations given to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the Balance Sheet date. In respect of immovable properties of land and building that have been taken on lease and disclosed as fixed assets in the financial statements, the lease agreements are in the name of the Company.

ii. In respect of the Company’s Inventory:

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

b. No material discrepancies were noticed on physical verification of inventories by the management as compared to the books.

iii. According to the information and explanations given to us, the Company has granted unsecured loans to three bodies corporate, covered in the register maintained under Section 189 of the Companies Act, 2013, in respect of which:

a. The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company’s interest.

b. The terms of repayment does not stipulate any repayment schedule and the loans are repayable on demand. The loans bear no interest. The loans to Virat Crane Bottling Limited and Virat Crane Agri Tech Limited are outstanding for a long time and no provision has been considered by the management in the accounts.

Nature of Transaction	Party & Relation	Max. Amount involved (Rs. In Lakhs)	Closing Balance as on 31.03.2018 (Rs. In Lakhs)
Advance	Virat Crane Agri Tech Limited	631.57	631.57
Advance	Crane Infrastructure Limited	136.51	136.51
Advance	Crane Global Solutions Ltd	200.00	200.00
Advance	Virat Crane Bottling Limited	3.50	3.50

The above transactions are related by virtue of GVSL Kantha Rao being director in their respective boards,

c. There are no overdue amounts in respect of the above loans granted to the bodies corporate as there is no repayment schedule and bear no interest.

iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Act in respect of grant of loans, making investments and providing guarantees and securities, as applicable.

v. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31, 2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.

vi. The Company has not accepted deposits during the year and does not have any unclaimed deposits as at March 31,2018 and therefore, the provisions of the clause 3 (v) of the Order are not applicable to the Company.

vii. According to the information and explanations given to us, in respect of statutory dues:

a. The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

b. There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income Tax, Sales Tax, Service Tax, Value Added Tax, Goods and Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31,2018 for a period of more than six months from the date they became payable.

c. Details of dues of Income Tax, Sales Tax, Service Tax, Excise Duty and Value Added Tax which have not been deposited as at March 31, 2018 on account of dispute are given below for which liability is not created:

Nature of Statute	Nature of Dues	Forum where Dispute is pending	Period to which the amount relates	Amount (Rs)
Agriculture Market Committee Cess	Cess	Supreme Court	1994-95 to 2000-01	10,55,689
Agriculture Market Committee Cess	Cess	Secretary, AMC (Vijayawada)	2011-12 to 2015-16	1,06,29,410
Sales Tax & VAT Act	Sales Tax	AP High Court	2006-07 to 2011-12	73,27,091
Sales Tax Act	Sales Tax	Sales Tax Appellate Tribunal	1999-20	1,95,000
Luxury Tax	Luxury Tax	AP High Court	2005-06	3,47,484

viii. Based on our audit procedures 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 during the ear to financial institutions and banks.

ix. The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under Clause 3 (ix) of the Order is not applicable to the Company.

x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

xii. The Company is not a nidhi company and hence, reporting under Clause 3 (xii) of the Order is not applicable to the Company

xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements as required by the applicable accounting standards.

xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence, reporting under Clause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence provisions of Section 192 of the Companies Act, 2013 are not applicable to the Company.

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

Annexure B to the Independent Auditors’ Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the members of VIRAT CRANE INDUSTRIES LIMITED of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (‘the Act’)

We have audited the internal financial controls over financial reporting of VIRAT CRANE INDUSTRIES LIMITED (‘the Company’) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Managements’ Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the ‘Guidance Note’) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance

Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.

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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of the management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subj ect to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For ANATHA& ASSOCIATES

Chartered Accountants

FRN: 010642S

Guntur CA Srinivasulu Anantha

May 30,2018 Partner M. No: 214253

---

Mar 31, 2016

To the Members of Virat Crane Industries Limited

We have audited the accompanying financial statements of VIRAT CRANE INDUSTRIES LIMITED (“the Company “), Which comprise the Balance Sheet as at 31st March,

2016, 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 recoils 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 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 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 31 st March, 2016;

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 31,2016 and taken on record by the Board of Directors, none of the directors is disqualified as on 31 st March, 2016 from being appointed as a director in terms of section 164(2) of the Companies Act, 2013; 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, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note: 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: 8(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 statements for the year ended 31³¹ March, 2016). 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 corporate 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. The loans bear no interest. The loan to Virat Crane Agritech Ltd is outstanding for more than three years.

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.

Nature of the Statute	Nature of the Dues	Amount (Rs)	Period to which the amount relates	Review Status/Position
1. Agricultural Market Committee Cess	Cess	10,55,689	1994-95 to 2000	Stay given by the Supreme Court. Case is pending.
2. Agricultural Market Committee Cess	Cess	1,06,29,410	2011-12 to 2015-16	Contested with Secretary, AMC, Vijayawada. Case is pending.
3.AP VAT	Commercial Tax Department	73,27,091	2006-07 to 2011-12	Interim stay given by the AP, High Court order dated 10.09.2014. Case has not yet come for hearing.
4. APGST	Sales Tax Authority	1,95,000	1999-2000	The Sales Tax Appellate Tribunal has in their order dated 12.04.2013 has struck down the case, allowed the appeal and remanded the case.
5. Luxury Tax	Commercial Tax Department	3,47,484	2005 - 06	Pending with the AP, High Court. In their order dated 24.06.2008, asked to deposit 50% of demand, Rs.1,73,742/- which has been deposited by the Company with CTO, Guntur on 13.08.2008.

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:

Demands for which liability is not created

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, 2016 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 during the year to financial institutions, banks.

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 Crane Agritech Ltd 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 given to us, no term loan is raised during the year.

xii) According to the information and explanations given to us, no material fraud on or by the Company has been noticed or reported such a case by the management during the year.

for Nagaraju & Co.,

Chartered Accountants

FRN: 02271S

K. Nagaraju

Proprietor

M.No: 020474

Place: Guntur

Date: 26.05.2016

---

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.