Auditor Report of Hindustan Bio Sciences Ltd.

Mar 31, 2015

1. We have audited the accompanying financial statements of Hindustan Bio Sciences Limited ("The Company") which comprise the Balance Sheet as at March 31, 2015 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information, which we have signed un- der reference to this report.

Management's Responsibility for the Financial Statements

2. 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 these financial statements that give a true and fair view of the financial position, financial perfor- mance and the cash flows of the Company in accordance with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility includes maintenance of adequate accounting records in accor- dance 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 appro- priate accounting policies; making judgments and estimates that are reasonable and pru- dent; 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 to the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

3. 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 specified under Sec- tion 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.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risk of material misstatement of the financial state- ments, whether due to fraud and error. In making those risk assessments, the auditors con- siders 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 circum- stances, 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 the Management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor's Report) Order, 2015 (the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure a statement on the matters specified in the paragraphs 3 and 4 of the Order, to the extent applicable.

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

(a) We have obtained all the information and explanations which, to the best of our knowl- edge and belief, were necessary for the purpose of our audit.

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

(c) The Balance Sheet, Statement of Profit & 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 & Loss, and Cash Flow Statement dealt with by this report 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 31st March, 2015 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;

Annexure to the Independent Auditors' Report:

The Annexure referred to in our Independent Auditors Report of even date to the members of Hindustan Bio-Sciences Limited on the accounts of the company for the year ended 31st March, 2015, we report that:

1. (a) The company has maintained proper records showing full particulars including quantita- tive 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.

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

(b) In our opinion and according to the information and explanations given to us, the proce- dures 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 gener- ally 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) According to the information and explanations given to us and on the basis of our exami- nation of the books of account, the Company has not granted unsecured interest free loans to a company and a proprietorship covered in the register maintained under Section 189 of the Act.

4. In our opinion and according to the information and explanations given to us, there is gener- ally 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 payment for expenses & for 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.

5. The company has not accepted any deposits from the public.

6. The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act.

7. (a) According to the records of the company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income-tax, Sales-tax, Service Tax, Cus- tom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have gen- erally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no amounts payable in respect of income tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

8. The Company has been registered for a period of more than five years. Hence, the clause is not applicable.

9. Based on our audit procedures and on the information and explanations given by the man- agement, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

10. The company has not given any term loans during the year.

11. 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 VASG AND ASSOCIATES Chartered Accountants FRN 006070S Place : Hyderabad Date : 29.05.2015 (A.Viswanatha Rao) Partner Member Ship No. 029597

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Mar 31, 2014

1. We have audited the accompanying financial statements of Hindustan Bio Sciences Limited which comprise the Balance Sheet as at March 31,2014 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, which we have signed under reference to this report.

Management''s Responsibility for the Financial Statements

2. The Company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and the cash flows of the Company in accordance with the Accounting Standards notified under the Companies Act,1956 of India ("the Act") read with the General Circular 15/2013 dated September 13,2013 and 08/2014 dated April4,2014 respectively issued by the Ministry of Corporate Affairs with regard to Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation to the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

3. 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 and other applicable authoritative pronouncements issued by 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.

4. An audit involves performing procedures to obtain audit evidence, about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud and error. In making those risk assessments, the auditors 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 the Management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

6. In our opinion, and to the best of our information and according to the explanations given to us, the accompanying financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

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

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

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

Report on Other Legal and Regulatory Requirements

7. As required by ''the Companies (Auditor''s Report) Order, 2003'',as amended by ''the Companies (Auditor''s Report) (Amendment) Order,2004'', issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act (hereinafter referred to as the "Order"), and on the basis of such checks of the books of accounts and records of the Company as we considered appropriate and according to the information and explanations gives to us, we give in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the Order.

8. 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 accounts 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 & 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 & Loss, and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956, read with the General Circular 15/2013 dated September 13, 2013 and 08/2014 dated April4, 2014 respectively issued by the Ministry of Corporate Affairs with regard to Section 133 of the Companies Act, 2013.

(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 March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956;

The Annexure referred to in paragraph 7 of the Our Report of even date to the members of Hindustan Bio-Sciences Limited. on the accounts of the company for the year ended 31st March, 2014.

Having regard to the nature of Company''s Business/activities/results during the year, Clause (v),(vi),(viii),(xii),(xiii),(xiv),(xv),(xvi),(xvii),(xviii),(xix) and (xx) of paragraph 4 of the Order are not applicable to the company.

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, no fixed asset has been disposed 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) 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 unsecured interest free loans to a company and a proprietorship covered in the register maintained under Section 301 of the Act. In our opinion the loans given by the company are prima facie not prejudicial to the interest of the company. Consequently, the provisions of clauses iii (b), iii(c) and iii (d) of the order are not applicable to the Company.

(e) According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has taken a loan from one company covered in the register maintained under Section 301 of the Act. In our opinion the loan taken by the company is prima facie not prejudicial to the interest of the company. Thus sub clauses (f) & (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 payment for expenses & for 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.

5 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.

6 (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. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty which have not been deposited on account of any disputes.

7 The Company have accumulated loss and has incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

8 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 to a financial institution, bank or debenture holders.

9 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 VASG & ASSOCIATES Chartered Accountants FRN: 006070S

(A.Viswanatha Rao) Place: Hyderabad Partner Date: 29.05.2014 M.No:029597

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Mar 31, 2012

We have audited the attached Balance Sheet of HINDUSTAN BIO SCIENCES LTD as on 31st March' 2012 and also the Profit & Loss Account for the year ended on that date annexed thereon. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these . financial statements based on our audit.

We conducted our audit in accordance with 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.

As required by the Companies (Auditor's 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 purpose 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 and Profit and Loss Account dealt with by this report are in agreement with the books of account.

(iv)ln our opinion' the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act' 1956.

(v) On the basis of written representations received from the directors' as on 31$t 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.

(vi)in our opinion and to the best of our information and according to the explanations given to us' the said account 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 2012; and

(b) in the case of the Profit and Loss account' of the Loss for the year ended on that data :

ANNEXURE TO THE AUDITORS REPORT

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 Companies Act' 1956' we report that.

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

b) These fixed assets have been physically verified by the management during the year and discrepancies noticed on such verification have been proper dealt with in the books of account. In our opinion' the frequency of verification is reasonable having regard to the size of the company and the nature of the assets'

c) None of the fixed assets have been revalued during the year under review.

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

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

c) The discrepancies noticed on verification between the physical stocks and the book records' which are not significant' have been properly dealt with the books of account.

iii) The Company has granted loans' secured or unsecured to Companies' firms or other parties listed in the registers maintained under section 301 or from companies under the same management within the meaning of section 370 (1 B) of the Companies Act' 1956.

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 the stores raw materials including components' plant and machinery' equipment and other assets and with regard to the sale of goods.

v) In our opinion and according to the information and explanations given to us' there were no transactions of purchase of goods and materials and sale of goods' materials and services' made inpursuance of contracts or arrangements entered in the registers maintained under section 301 of the Companies Act' 1956 and aggregating during the year to Rs.50'000/- or more in respect of each party.

vi) The Company has not accepted any deposits from the public governed by section 58A and 58AA of the Companies Act' 1956' and the Companies(Acceptance of Deposits) Rules' 1975 do not apply to this Company.

vii) The Company does not have a formal internal audit department but we are of the opinion that the Company's internal control procedures together with the internal checks conducted by the management during the year can be considered as an adequate internal audit system commensurate with the size and nature of its business.

viii) The Central Government has not prescribed the maintenance of Cost records under section 209(1) (d) of the Companies Act' 1956.

ix) a) The company is regular in depositing undisputed statutory dues with the appropriate authorities including Income Tax' Sales Tax' Wealth Tax and other Statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amounts payable by the Company in respect of income tax' Wealth tax' Sales tax' Customs duty and Excise duty' outstanding as at 31st March' 2012 for the period of more than six months from the date they became payable.

x) The Company had an accumilated losses of Rs. 1228697/- as at the end of the financial year under reference. The company has not incurred any cash losses in the financial year under reference.

xi) The company has not defaulted in repayment of its dues to financial institutions or banks.

xii) 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 nidhi/mutual benefit fund/ I society. Therefore' the provision 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.

xv) The company has not given any guarantee for loans taken by other from banks or financial institutions.

xvi) In our opinion' the company has not taken any term loans during the year under review.

xvii) In our opinion' and according to explanations and information give to us' funds raised on short-term basis have not been used for long term investment and vice versa.

xviii)The company has not made any preferential allotment of shares during the year under reference.

xix) The company has not issued any debentures.

xx) The company' during the year' has not raised money by public issues.

xxi) In our opinion and according to explanations and information given to us' no fraud on or by the company has been noticed or reported during the year.

For RAO & SRIDHAR

Chartered Accountants

(A.Viswanatha Rao)

FCA Place : Hyderabad Member Ship No. 029597

Date : 24-05-2012 Firm Reg. No. 0060705

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Mar 31, 2010

We have audited the attached Balance Sheet of Hindustan Bio Sciences Limited as on 31st March, 2010 and also the Profit and Loss Account for the year ended on that date annexed thereon. 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.

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

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 :

1. 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.

2. 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.

3. The Balance Sheet and Profit and Loss account dealt with by this report are in agreement with the books of account.

4. In our opinion, the Balance Sheet and Profit and Loss Account dealt with by this report comply with the accounting standards referred to in Sub-Section (3 C) of section 211 of the Companies Act, 1956.

5. 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 are 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.

6. In our opinion and to the best of our information and according to the explanations given to us, the said account give the information required by the Companies Act, 1 956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010 and

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

ANNEXURE TO THE AUDITORS REPORT

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 Companies Act, 1956, we report that.

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

b) These fixed assets have been physically verified by the management during the year and discrepancies noticed on such verification have been proper dealt with in the books of account. In our opinion, the frequency of verification is reasonable having regard to the size of the company and the nature of the assets.

c) None of the fixed assets have been revalued during the year under review.

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

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

c) The discrepancies noticed on verification between the physical stocks and the book records, which are not significant, have been properly dealt with the books of account.

iii) The company has neither granted nor has it taken any loans, secured or unsecured from Companies, firms or other parties listed in the registers maintained under section 301 or from companies under the same management within the meaning or Section 370(1 B) of the Companies Act, 1956.

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 purchase of stores raw materials including components, plant and machinery, equipment and other assets and with regard to the sale of goods.

v) in our opinion and according to the information and explanations given to us, there were no transactions of purchase of goods and materials and sale of goods, materials and services, made in pursuance of contracts or arrangements entered in the registers maintained under section 301 of the Companies Act, 1956 and aggregating during the year to Rs. 50,000/- or more in respect of each party.

vi). The company has not accepted any deposits from the public governed by section 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 do not apply to this company.

vii) The company does not have a formal internal audit department but we are of the opinion that the Companys internal control procedures together with the internal checks conducted by the management during the year can be considered as an adequate internal audit system commensurate with the size and nature of its business.

viii) The Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1 956.

ix) a) The company is regular in depositing undisputed statutory dues with the appropriate authorities including Income Tax, Sales Tax, Wealth Tax and other statutory dues applicable to it.

b) According to the information and explanations given to us no undisputed amounts payable by the company in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty outstanding as at 31st March 2010 for the period of more than six months from the date they became payable.

x) The company does not have any accumulated losses at the end of the financial year under reference. The company has not incurred any cash losses in the financial year under reference.

xi) The company has not defaulted in repayment of its dues to financial institutions or banks.

xii) The company has not granted loans and advances on the basis of the security by way of pledge of shares, debentures, and other securities.

xiii) In our opinion, the company is not a Chit Fund or Nidhi/ Mutual Benefit Fund/Society. Therefore, the provision 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.

xv) The company has not given any guarantee for loans taken by other from banks or financial institutions.

xvi) In our opinion, the company has not taken any term loans during the year under review.

vii) In our opinion, and according to explanations and information give to us, funds raised on short - term basis have not been used for long - term investment and vice versa.

xviii) The company has not made any preferential allotment of shares during the year under reference.

xix) The company had not issued any debentures.

xx) The company, during the year, has not raised money by public issues.

xxi) In our opinion and according to explanations and information given to us, no fraud on or by the company has been noticed or reported during the year.



For RAO & SRIDHAR

Chartered Accountants

FRN 006070S

Place : Hyderabad A.Viswanatha Rao

Date : 31-05-2010 Partner

Member Ship No. 29597