Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of
Southern Online Bio Technologies Ltd. ("the Company"), which comprise
Balance Sheet as at March 31, 2015, 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 Consolidated Financial Statements
The Company's Board of Directors is responsible lor the matters stated
in Section (134(5) of the Companies Act, 2013 (the act') with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance
preparation 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 Companies (Accounts) Rules, 2014. This responsibility
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; design,
implementation and maintenance of adequate internal financial controls,
that are operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under. We conducted our
audit in accordance with the Standards on Auditing specified under
Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements, that give 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
controls 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 the Company's Directors, as well as
evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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 group as at
31st March 2015, its loss and its cash flows for the year ended on that
date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters Specified in paragraphs 3 and 4 of the Order.
2. As required by section 143(3) of the Act, we further 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
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 the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid standalone financial statements comply
with the appicable 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 are disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) 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, 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 as at
31st March, 2015 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 were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
Annexure referred to in paragraph 1 of Our Report of even date to the
members of Southern Online Bio Technologies Ltd on the accounts of the
company for the year ended 31s1 March, 2015 Under "Report on other
Legal & Regulatory Requirements".
On the basis of such checks as we considered appropriate and according
to the information and explanations given to us during the course of
our audit, we report that;
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at regular intervals; as informed to us no material
discrepancies were noticed on such verification.
(c)The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a) The inventory including stocks with certain third parties, has
been physically verified by the management during the year. In respect
of inventory lying with third parties, these have subsequently been
confirmed by them. In our opinion the frequency of verification is
reasonable.
(b) In our opinion, the procedures of the physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company Is maintaining proper records of Inventory and as
explained to us, no material discrepancies were noticed on physical
verification of stocks as compared to book records.
III. The Company has not grantecany loans, secured or unsecured to
Companies, Firms or other parlies covered in the register maintained
under section 189 of the Companies Act, 2013.
IV. In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the company and the nature of its business, for the
purchase of fixed assets and for sale of services. Further on the basis
of our examination of the books and records of the Company and
according to the information and explanations given to us, no major
weakness has been noticed or reported.
V. The Company has not accepted any deposits from the public covered
under Section 73 to 76 of the companies Act,2013.
VI. We have broadly reviewed the books of accounts maintained by the
Company in respect of products where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
specified under sub section (1) of section 148 of the Act, and are of
the opinion that prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determine whether they are
accurate or complete.
VII. a) According to the information and explanations given to us and
based on the records of the company examined by us, the company is
regular in depositing the undisputed statutory dues, including
Provident Fund, Employees' State Insurance, Income-Tax, Service Tax,
Custom Duty, Excise Duty and other material statutory dues, as
applicable, with the appropriate authorities in India;
b) There were no undisputed amounts payable in respect of Provident
Fund, Employees' State Insurance, Income-Tax, Service Tax, Custom Duty,
Excise Duly and other material statutory dues in arrears as at 31st
March 2015 for a period of more than 6 months from the date they became
payable.
c) According to the information and explanations given to us and based
on the records of the Company examined by us, there are no dues of
Income Tax, Wealth Tax, Service Tax, Sales Tax, Customs Duty and excise
Duty which have not been deposited on account of any disputes.
d) There are no amounts that are due to be transferred to the Investors
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 [1 of 1956] and rules made there
under.
VIII. The Company has been registered for a period of more than 5
years. The accumulated losses of the Company as on March 31, 2015 are
more than 50% its net worth and the company has incurred cash losses in
this financial year and in the immediately preceding financial year.
IX. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to
financial institutions/banks. The Company has not issued any
debentures.
X. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loan taken by
others from bank or financial institutions.
XI. In our opinion and according to the information and explanations
given to us, Term Loans obtained by the Company were applied for the
purpose for which such loans were obtained.
XII. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
For P Murali & Co.,
Chartered Accountants
Firm Registration No: 07257S
Sd/-
Place: Hyderabad A Krishna Rao
Date : 27.05.2015 Partner
Membership no. 020065
Mar 31, 2014
We have audited the accompanying financial statements of SOUTHERN
ONLINE BIO TECHNOLOGIES LIMITED ("the Company") which comprise the
Balance Sheet as at 31st March, 2014 and the Statement of Profit & Loss
Account 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 Consolidated 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 of the Company in accordance with the Accounting
Standards notified under the Companies Act, 1956 ("the Act") read with
the General Circular 15/2013 dated 13th September 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013. This responsibility includes the design, implementation and
maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility:
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financials statements. The
procedures selected depend on the auditor'' judgment, including the
assessment of the risks of material misstatements 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 over all 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 & Loss, 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:
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
Statement on the matters specified in paragraph 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 and Statement of Profit and Loss
and Cash Flow Statement comply with the Accounting Standards notified
under the Companies Act, 1956 ("the Act") read with General Circular
15/ 2013 dated 13 th September 2013 of the Ministry of Corporate
Affairs in respect of section 133 of the companies Act, 2013
e) On the basis of written representations received from the directors
as on 31st March 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.
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation
of Fixed Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical presence have been noticed on
such verification.
(c) The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a) The Inventory has been physically verified during the year by
the Management and in our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of the physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and as
explained to us, no material discrepancies were noticed on physical
verification of stocks as compared to book records.
III. (a) The Company has not granted loans secured or unsecured to
Companies, Firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) As the Company has not granted loans, the clause of whether the
rate of interest & other terms and conditions on which loans have been
granted to parties listed in the register maintained under Section 301
is prejudicial to the interest of the company, is not applicable.
(c) As no loans are granted by company, the clause of receipt of
interest & principal amount from parties is not applicable.
(d) No loans have been granted to Companies, Firms and other parties
listed in the register U/S 301 of the Companies Act, 1956. Hence the
clause is not applicable.
(e) The Company has not taken any loans, secured or unsecured from
Companies, Firms or other Parties covered in the register maintained
U/s301 of the Companies Act, 1956.
(f) As the Company has not taken any loans, the clause of whether the
rate of interest and other terms and conditions on which the loans have
been taken from parties listed in the register maintained under section
301 is prejudicial to the interest of the company, is not applicable.
(g) As no loans are taken by the company, the clause of repayment of
interest and principal amount to parties is not applicable to the
company.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
sale of products and services and other operating revenues. There is
no continuing failure by the company to correct any major weaknesses in
internal control.
V. (a) In our opinion and according to the information and explanation
given to us, since no contracts or arrangements referred to in section
301 of the Companies Act, 1956 have been made by the company in
respect of any party in the financial year, the entry in the register
U/s.301 of the Companies Act, 1956 does not arise.
(b) According to the information and explanations given to us, as no
such contracts or arrangements are made by the company, the
applicability of the clause of charging the reasonable price having
regard to the prevailing market prices at the relevant time does not
arise.
VI. The Company has not accepted any deposits from the public and hence
the applicability of the clause of directives issued by the Reserve
Bank of India and provisions of section 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under does not arise.
As per information and explanations given to us no order from the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal has been received by the
Company.
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII. We have broadly verified the books of accounts and records
maintained by the Company pursuant to the Order made by the Central
Government for the maintenance of the cost records under Section 209(1)
(d) of the Companies Act, 1956, and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained.
IX. (a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Service Tax, Custom duty, Excise duty, Cess, and other applicable statutory dues with the appropriate authorities and at the end of last financial year there were no amounts outstanding which were due for
more than 6 months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of PF, ESI, Income Tax Sales Tax, Cess or any other
statutory dues which have not been deposited on account of any dispute.
X. The Company has been registered for a period of more than 5 years,
and the company has got accumulated losses at the end of the financial
year and the company has incurred cash losses in this financial year
and in the immediately preceeding financial year.
XI. According to information and explanations given to us, the company
has not defaulted in repayment of dues to financial Institutions or
Banks.
XII. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi / Mutual Benefit Fund/Societies.
XIV. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, Debentures and
other investments and hence the provisions of clause 4(xiv) of the
Companies (Auditor''s Report) Order 2003, are not applicable to the
Company.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company does not arise.
XVI. According to the information and explanations given to us, the
Term Loans obtained by the company were applied for the purpose for
which such loans were obtained by the company.
XVII. According to the information given to us and on an overall
examination of the Balance Sheet of the Company, we report that funds
raised on short-term basis have not been used for long term investment
during the audit period.
XVIII. According to the information and explanations given to us, the
Company has made any preferential allotment of Shares to parties and
Companies covered in the Register maintained under section 301 of the
Companies Act, 1956. In our opinion, the prices at which shares have
been issued are not prejudicial to the interest of the company.
XIX. According to the information and explanations given to us, the
company has not issued debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
XX. According to information and explanations given to us, the company
has not raised money by way of public issues during the year, hence the
clause regarding the disclosure by the management on the end use of
money raised by public issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P.Murali & Co.,
Chartered Accountants
FRN: 007257S
Sd/-
Place : Hyderabad P.Murali Mohana Rao
Date : 30.05.2014 (Partner)
Membership No. 023412
Mar 31, 2013
We have audited the accompanying Standalone financial statements of
SOUTHERN ONLINE BIO TECHNOLOGIES LIMITED ("the Company")
and its subsidiaries, which comprises of the standalone Balance Sheet
as at 31st March, 2013 and the Standalone Statement of Profit & Loss
Account and Standalone Cash Flow Statement for the year then ended, and
a summary of significant accounting policies and other explanatory
information.
Management''s Responsibility for the Standalone 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
Accounting Standards referred to in sub- section (3C) of Section 211 of
the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance on internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement and are free from material misstatement, whether due to
fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financials
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 consolidated 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'' judgment, including the
assessment of the risks of material misstatements of the financial
statements, whether due to fraud or error.
In making those risk assessments, the auditors considers internal
controls 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 over all 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 as required and give a true and fair
view in conformity with the accounting principles generally accepted in
India ;
(a) In the case of the Standalone Balance Sheet, of the state of
affairs of the Company as at 31st March, 2013;
(b) In the case of the Standalone Profit & Loss Account, of the Loss
for the year ended on that date; And
(c) In the case of the Standalone Cash Flow, of the cash flows for the
year ended on that date;
Report on Other Legal and Regulatory Requirements:
3. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India
interms of sub- section (4A) of section 227of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of
the Order.
4. 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 purposes of our
Audit;
(b) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books ;
(c) The Balance Sheet, 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
Account and Cash Flow Statement comply with the Accounting standards
referred to in sub-section (3C) of Section 211 of Companies Act, 1956;
(e) On the basis of written representations received from the
Directors, as on 31st March, 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 Director in terms of clause(g) of sub-
section(1) of section 274 of the Companies Act, 1956;
(f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c) The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a) The Inventory has been physically verified during the year by
the Management and in our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of the physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and as
explained to us, no material discrepancies were noticed on physical
verification of stocks as compared to book records.
III. (a) The Company has not granted any loans, secured or unsecured
to Companies, Firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) As the Company has not granted any loans, the Clause of whether the
rate of interest & other terms and conditions on which loans have been
granted to parties listed in the register maintained under Section 301
prejudicial to the interest of company, is not applicable.
(c) As no loans are granted by company, the clause of receipt of
interest & principal amount from parties, is not applicable to the
company.
(d) No loans have been granted to Companies, Firms and other parties
listed in the register U/S 301 of the Companies Act, 1956. Hence,
overdue Amount of more than rupees one Lac does not arise and the
clause is not Applicable.
(e) The Company has not taken any loans, secured or unsecured from
Companies, Firms or other Parties covered in the register maintained
U/s.301 of the Companies Act, 1956.
(f) As the Company has not taken any loans, the clause of whether the
rate of interest and other terms and conditions on which loans have
been taken from parties listed in the register maintained under section
301 is prejudicial to the interest of company, is not applicable.
(g) As no loans are taken by the company, the clause of repayment of
interest & principal amount to parties is not applicable to the
company.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
sale of goods and services. There is no continuing failure by the
company to correct any major weaknesses in internal control.
V. (a) In our opinion and according to the information and explanation
given to us, since no contracts or arrangements referred to in section
301 of the Companies Act, 1956 have been made by the company in respect
of any party in the financial year, the entry in the register U/s.301
of the Companies Act, 1956 does not arise.
(b) According to the information and explanations given to us, as no
such contracts or arrangements made by the company, the applicability
of the clause of charging the reasonable price having regard to the
prevailing market prices at the relevant time does not arise.
VI. The Company has not accepted any deposits from the public and
hence the applicability of the clause of directives issued by the
Reserve Bank of India and provisions of section 58A, 58AA or any other
relevant provisions of the Act and the rules framed there under does
not arise. As per information and explanations given to us the order
from the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal has not been received
by the Company.
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII. We have broadly verified the books of accounts and records
maintained by the Company pursuant to the Order made by the Central
Government for the maintenance of the cost records under Section 209(1)
(d) of the Companies Act, 1956, and are of the opinion that prima facie
the prescribed accounts and records have beenmade and maintained.
IX.(a) The Company is regular in depositing undisputed statutory dues
including Provident Fund, Employees State Insurance, Income Tax, Sales
Tax, Service Tax, Customs duty, Excise duty and Cess, and other
applicable statutory dues with the appropriate authorities during the
year.According to information and explanations given to us there are no
arrears of statutory dues as at 31st March 2013 which were outstanding
for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, no
undisputed amounts are payable in respect of PF, ESI, Income Tax, Cess
and any other statutory dues as at the end of the period, for a period
more than six months from the date they became payable.
X. The Company has been registered for a period of not less than 5
years, and the company has got accumulated losses at the end of the
financial year and the company has incurred cash losses in this
financial year and in the immediately preceding financial year.
XI. According to information and explanations given to us, the company
has not defaulted in repayment of dues to financial Institutions or
Banks.
XII.According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi / Mutual Benefit Fund/ Societies.
XIV. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, Debentures and
other investments and hence the provisions of clause 4(xiv) of the
Companies (Auditor''s Report) Order 2003, are not applicable to
the Company.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions, and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company .
XVI. According to the information and explanations given to us, the
Term Loans obtained by the company were applied for the purpose for
which such loans were obtained by the company.
XVII. According to the information and explanations given to us short
term loans obtained by the Company were not applied for Long term
purposes.
XVIII. According to the information and explanations given to us, the
Company has not made any preferential allotment of Shares to parties
and Companies covered in the Register maintained under section 301 of
the Companies Act, 1956 and hence the applicability of the clause
regarding the price at which shares have been issued and whether the
same is prejudicial to the interest of the Company does not arise.
XIX.According to the information and explanations given to us, the
company does not have any debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
XX.According to information and explanations given to us, the company
has not raised money by way of public issues during the year, hence the
clause regarding the disclosure by the management on the end use of
money raised by public issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P. Murali & Co.,,
Chartered Accountants
FRN: 007257S
Sd/-
P. Murali Mohana Rao
Place : Hyderabad Partner
Date : 27.05.2013 Membership No.023412
Mar 31, 2012
We have audited the attached Balance Sheet of SOUTHERN ONLINE
BIOTECHNOLOGIES LIMITED as at 31st March, 2012 and also the Profit &
Loss Account for the period ended on the date annexed thereto and the
cash flow statement for the period ended on that date. 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 statement
presentation. We believe that our audit provides a reasonable basis of
our opinion.
As required by the Companies (Auditor's Report) order 2003 and as
amended by the Companies (Auditor's Report) (Amendment) Order 2004,
issued by the Central Government of India in terms of the 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:
(v) 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;
(vi) 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 ;
(vii) The Balance Sheet & Profit & Loss Account dealt with by this
report are in agreement with the books of account;
(viii) In our opinion, the Balance Sheet & Profit & Loss Account dealt
with by this report comply with the Accounting standards referred to in
sub-section (3C) of Section 211 of Companies Act, 1956 ;
(v) On the basis of written representations received 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 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 ;
(c) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012;
(d) In the case of the Profit & Loss Account, of the Loss for the
period ended on that date; And
(c) In the case of the Cash Flow, of the cash flows for the period
ended on that date;
ANNEXURE TO THE AUDITORS' REPORT
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c) The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a) The Inventory has been physically verified during the year by
the Management and in our opinion, the frequency of verification is
reasonable.
(b) In our opinion, the procedures of the physical verification of
inventory followed by the Management are reasonable and adequate in
relation to the size of the Company and the nature of its business.
The Company is maintaining proper records of inventory and as explained
to us, no material discrepancies were noticed on physical verification
of stocks as compared to book records.
III. (a) The Company has not granted any loans, secured or unsecured
to Companies, Firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
(b) As the Company has not granted any loans, the Clause of whether the
rate of interest & other terms and conditions on which loans have been
granted to parties listed in the register maintained under Section 301
prejudicial to the interest of company, is not applicable.
(c) As no loans are granted by company, the clause of receipt of
interest & principal amount from parties, is not applicable to the
company.
(d) No loans have been granted to Companies, Firms and other parties
listed in the register U/S 301 of the Companies Act, 1956. Hence,
overdue Amount of more than rupees one Lac does not arise and the
clause is not Applicable.
(e) The Company has not taken any loans, secured or unsecured from
Companies, Firms or other Parties covered in the register maintained U/
s.301 of the Companies Act, 1956.
(f) As the Company has not taken any loans, the clause of whether the
rate of interest and other terms and conditions on which loans have
been taken from parties listed in the register maintained under section
301 is prejudicial to the interest of company, is not applicable.
(g) As no loans are taken by the company, the clause of repayment of
interest & principal amount to parties is not applicable to the
company.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and fixed assets and for
sale of goods and services. There is no continuing failure by the
company to correct any major weaknesses in internal control.
V. (a) In our opinion and according to the information and explanation
given to us, since no contracts or arrangements referred to in section
301 of the Companies Act, 1956 have been made by the company in respect
of any party in the financial year, the entry in the register U/s.301
of the Companies Act, 1956 does not arise. (b) According to the
information and explanations given to us, as no such contracts or
arrangements made by the company, the applicability of the clause of
charging the reasonable price having regard to the prevailing market
prices at the relevant time does not arise.
VI. The Company has not accepted any deposits from the public and
hence the applicability of the clause of directives issued by the
Reserve Bank of India and provisions of section 58A, 58AA or any other
relevant provisions of the Act and the rules framed there under does
not arise. As per information and explanations given to us the order
from the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal has not been received
by the Company.
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII.We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules, 2011
prescribed by the Central Government under Section 209(1) (d) of the
Companies Act, 1956, as per notification dated 3rd June 2011 and we are
of the opinion that prima facie the prescribed cost records have been
made and maintained.
IX. (a) The Company is regular in depositing statutory dues including
PF, ESI, Income Tax, Cess, and any other statutory dues with the
appropriate authorities and at the end of last financial year there
were no amounts outstanding which were due for more than 6 months from
the date they became payable.
(b) According to the information and explanations given to us, no
undisputed amounts are payable in respect of PF, ESI, Income Tax, Cess
and any other statutory dues as at the end of the period, for a period
more than six months from the date they became payable.
X. The Company has been registered for a period of not less than 5
years, and the company has got accumulated losses at the end of the
financial year and the company has incurred cash losses in this
financial year and in the immediately preceding financial year.
XI. According to information and explanations given to us, the company
has not defaulted in repayment of dues to financial Institutions or
Banks.
XII. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII.This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi / Mutual Benefit Fund/Societies.
XIV.According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, Debentures and
other investments and hence the provisions of clause 4(xiv) of the
Companies (Auditor's Report) Order 2003, are not applicable to the
Company.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions, and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company .
XVI.According to the information and explanations given to us, the Term
Loans obtained by the company were applied for the purpose for which
such loans were obtained by the company.
XVII. According to the information and explanations given to us no
funds are raised by the Company on short-term basis. Hence the Clause
of Short term funds being used for Long term investment does not arise.
XVIII. According to the information and explanations given to us, the
Company has not made any preferential allotment of Shares to parties
and Companies covered in the Register maintained under section 301 of
the Companies Act, 1956 and hence the applicability of the clause
regarding the price at which shares have been issued and whether the
same is prejudicial to the interest of the Company does not arise.
XIX. According to the information and explanations given to us, the
company does not have any debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
XX. According to information and explanations given to us, the company
has not raised money by way of public issues during the year, hence the
clause regarding the disclosure by the management on the end use of
money raised by public issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P.Murali & Co.,
Chartered Accountants
FRN: 007257S
Place : Hyderabad M.V. Joshi
Date : 29.05.2012 Partner
Membership no. 024784
Mar 31, 2011
We have audited the attached Balance Sheet of SOUTHERN ONLINE
BIO TECHNOLOGIES LTD as at 31st March, 2011 and also the Profit & Loss
Account for the year ended on the date annexed thereto and the cash
flow statement for the year ended on that date. 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 statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall statement
presentation. We believe that our audit provides a reasonable basis of
our opinion.
As required by the Companies (Auditors Report) Order 2003 and as
amended by the
Companies (Auditor's Report)(Ainendment) Order 2004, issued by the
Central Government of India in terms of the 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 account as required by law have
been kept by the company so far as appears from our examination of
those books;
(iii) TheBa lance Sheet & Profit & LossAccount dealt with by this
report are in agreement with the books of account
(iv) In our opinion, the Balance Sheet, Profit & Loss Account dealt
with by this report comply with the Accounting standards referred to in
sub-section (3C) of Section 211 of Companies Act, 1956 ,
(v) On the basis of written representations received from the
Directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the Directors is disqualified as on
31st March , 2011 from being appointed Director in terms of clause(g)
of sub- section(l) 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, 2011;
(b) In the case of the Profit & Loss Account, of the Profit for the
vear ended on that date;
And
(c) In the case of the Cash Flow, of the cash flows for the year ended
on that date;
ANNEXURE TO THE AUDITORS REPORT
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c ) The Inventory has not disposed off substantial part of the Fixed
Assets during the year.
(a) The Company has been physically verified during the year and in our
opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physically verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) The Company is maintaining proper records of inventory and as
explained to us, no material discrepancies were noticed on physical
verification of stocks as compared to book records.
III, (a) The Company has not granted any loans, secured or unsecured to
Companies, Firms or other Parties covered in the register maintained
LT/ s.301 of the Companies Act, 1956.
(b) As the Company has not granted any loans, the clause of whether the
rate of interest & other terms and conditions on which loans have been
granted to parties listed in the register maintained under section 301
is prejudicial to the interest of company is not applicable.
(c) As no loans are granted by company the clause of receipt of
interest & principal amount from parties is not applicable to the
company.
(d) Mo loans have been granted to Companies, Firms & other parties
listed in the register U/s.3Dl of the Companies Act, 1956, hence
overdue amount of more than rupees one lac does not arise and the
clause is not applicable.
(e) The Company has not taken loans, secured or unsecured from
Companies, and other Parties covered in the register maintained U/s.301
of the Companies Act, 1956.
(f) As the company has not taken any loans, the clause of whether the
rate of interest &. other terms and conditions on which loan have been
taken from parties listed in the register maintained under section 3D1
is prejudicial to the interest of company, is not applicable.
(g) As no loans are taken by the company, the clause of repayment of
interest & principle amount to parties, is not applicable to the
company.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of Inventory & fixed assets and for
sale of goods and services. There is no continuing failure by the
company to correct any major weaknesses in internal control.
V. a) In our opinion according to the information and explanations
given to us, since no contracts or arrangements referred to in section
301 of the companies Act, 1956 have been made by the company in respect
of any party in the financial year, the entry in the register u/s 301
of the companies act 1956 does not arise.
b) According to the information and explanations given to us, as no
such contracts or agreements made by the company, the applicability of
the clause of charging the reasonable price having regard to the
prevailing market prices at fJie reverent time does not arise.
VI. The Company has not accepted any deposits from the public and hence
the applicability of the clause of directives issued by the Reserve
Bank of India and provisions of section 58A, 58AA or any other relevant
provisions of the Act and the rules framed there under does not arise.
As per information and explanations given to us the order from the
Company Law Board or National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal has not been received by the
Company
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII. In respect of the Company, the Central Government has not
prescribed maintenance of cost records under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956.
IX. a) The Company is regular in depositing statutory dues including
PF, Income Tax, Sales Tax, Excise Duty, Cess and any other statutory
dues with the appropriate authorities and at the last of the financial
year there were no amounts outstanding which were due for more than 6
months from the date they became payable.
b) According to the information and explanations given to us, no
undisputed amounts are payable in respect of PF, Income Tax, Sales Tax
, Excise Duty , Cess and any other statutory dues as at the end of the
period, for a period more than six months from the date they became
payable.
X. The Company has been registered for a period of not less than 5
years, and the company has no accumulated losses at the end of the
financial year and the company has not incurred cash losses in this
financial year and in the immediately preceding financial year.
XI. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to financial Institutions or
banks.
XII. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII, This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi/Mutual Benefit Fund/Societies.
XIV. According to the information and explanations given to us, tiie
company is not dealing or trading in shares, securities, Debentures and
other investments and hence the provisions of clause 4(xiv) of the
Companies (Auditor's Report) Order 2003, are not applicable to the
Company,
XV According to the information and explanations given to us, the
Company has not given any guarantee for loans taken hy others trom
Banks or Financial Institutions and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company does not arise.
XVI. According to the information and explanations given to us, the
Term Loans were applied by the company for the purpose for which the
loans were obtained.
XVII, According to the information and explanations given to us, no
funds are raised by the Company on short-term basis, f lence the clause
of short term funds being used for long-term investment does not arise.
XVIII. According to the information and explanations given to us, the
Company has not made any preferential allotment of Shares to parties
and Companies covered in the Register maintained under section 301 of
the Companies Act, 1956 and the price at which shares have been issued
is not prejudicial to the interest of the Company.
XIX. According to the information and explanations given to us, the
company does not have any debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
XX. According to information and explanations given to us, the company
has not raised money by way of public issues during the year; hence the
clause regarding the disclosure by the management on the end use of
money raised by Public Issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P. MURALI & CO.,
CHARTERED ACCOUNTANTS
FRN: 007257S
Place : Hyderabad P. Murali Mohana Rao
Date : 30.05.2011 Partner
Mar 31, 2010
We have audited the attached Balance Sheet of SOUTHERN ONLINE
BIO-TECHNOLOGIES LTD as at 31st March, 2010 and also the Profit & Loss
Account for the year ended on the date annexed thereto and the cash
flow statement for the year ended on that date. 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 statement. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall statement
presentation. We believe that our audit provides a reasonable basis of
our opinion.
As required by the Companies (Auditors Report) Order 2003 and as
amended by the Companies (Auditors Report)(Amendment) Order 2004,
issued by the Central Government of India in terms of the
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;
(n) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
those books ;
(iii) The Balance Sheet & Profit & Loss Account dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Profit & Loss Account dealt
with by this report comply with the Accounting standards referred to in
sub-section (3C) of Section 211 of Companies Act, 1956 ;
(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 Director in terms of clause(g)
of sub- section^) 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, 2010;
(b) In the case of the Profit & Loss Account, of the Profit for the
year ended on that date;
And
(c) In the case of the Cash Flow, of the cash flows for the year ended
on that date;
ANNEXURE TO THE AUDITORS REPORT
I. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of Fixed
Assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals and no material discrepancies
between the book records and the physical inventory have been noticed
on such verification.
(c) The Company has not disposed off substantial part of the Fixed
Assets during the year.
II. (a) The inventory has been physically verified during the year and
in our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physically verification of
inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
The Company is maintaining proper records of inventory and as explained
to us , no material discrepancies were noticed on physical verification
of stocks as compared to book records.
III. (a) The Company has not granted any loans, secured or unsecured
to Companies, Firms or other Parties covered in the register maintained
U/ s.301 of the Companies Act, 1956.
(b) As the Company has not granted any loans, the clause of whether the
rate of interest & other terms and conditions on which loans have been
granted to parties listed in the register maintained
under section 301 is prejudicial to the interest of company, is not
applicable.
(c) As no loans are granted by company, the clause of receipt of
interest & principal amount from parties is not applicable to the
company.
(d) No loans have been granted to Companies, Firms & other parties
listed in the register U/s.301 of the Companies Act, 1956, hence
overdue amount of more than rupees one lac does not arise and the
clause is not applicable.
(e) The Company has not taken loans, secured or unsecured from
Companies, and other Parties covered in the register maintained U/s.301
of the Companies Act, 1956.
(f) As the company has not taken any loans, the clause of whether the
rate of interest & other terms and conditions on which loan have been
taken from parties listed in the register maintained under section 301
is prejudicial to the interest of company, is not applicable.
(g) As no loans are taken by the company, the clause of repayment of
interest & principal amount to parties, is not applicable to the
company.
IV. In our opinion and according to the information and explanations
given to us, there are generally adequate internal control systems
commensurate with the size of the company and the nature of its
business with regard to purchase of Inventory & fixed assets and for
sale of good sand services. There is no continuing failure by the
company to correct any major weaknesses in internal control.
V. a) In our opinion according to the
information and explanations given to us, since no contracts or
arrangements referred to in section 301 of the companies Act, 1956 have
been made by the company in respect of any party in the financial year,
the entry in the register u/s 301 of the companies act 1956 does not
arise.
b) According to the information and explanations given to us, as no
such contracts or agreements made by the company, the applicability of
the clause of charging the reasonable price having regard to the
prevailing market prices at the reverent time does not arise.
VI. The Company has not accepted any deposits from the public and
hence the applicability of the clause of directives issued by the
Reserve Bank of India and provisions of section 58A, 58AA or any other
relevant provisions of the Act and the rules framed there under does
not arise. As per information and explanations given to us the order
from the Company Law Board or National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal has not been received
by the Company.
VII. In our opinion, the company is having internal audit system,
commensurate with its size and nature of its business.
VIII. In respect of the Company, the Central Government has not
prescribed maintenance of cost records under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956.
IX. a) The Company is regular in depositing statutory dues including
PF, Income Tax, Sales Tax , Excise Duty , Cess and any other statutory
dues with the
appropriate authorities and at the last of the financial year there
were no amounts outstanding which were due for more than 6 months from
the date they became payable.
b) According to the information and explanations given to us, no
undisputed amounts are payable in respect of PF, Income Tax, Sales Tax
Excise Duty , Cess and any other statutory dues as at the end of the
period, for a period more than six months from the date they became
payable.
X. The Company has been registered for a period of not less than 5
years, and the company has no accumulated losses at the end of the
financial year and the company has not incurred cash losses in this
financial year and in the immediately preceding financial year.
X. According to information and explanations given to us, the Company
has not defaulted in repayment of dues to financial Institutions or
banks.
XII. According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities and hence
the applicability of the clause regarding maintenance of adequate
documents in respect of loans does not arise.
XIII. This clause is not applicable to this Company as the Company is
not covered by the provisions of special statute applicable to Chit
Fund in respect of Nidhi/Mutual Benefit Fund/Societies.
XIV. According to the information and explanations given to us, the
company is not dealing or trading in shares, securities, Debentures and
other investments and hence the provisions of clause 4(xiv) of the
Companies (Auditors Report) Order 2003, are not applicable to the
Company.
XV. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
Banks or Financial Institutions, and hence the applicability of this
clause regarding terms and conditions which are prejudicial to the
interest of the company does not arise.
XVI. According to the information and explanations given to us, the
Term Loans were applied by the company for the purpose for which the
loans were obtained.
XVII. According to the information and explanations given to us, no
funds are raised by the Company on short-term basis. Hence the clause
of short term funds being used for long-term investment does not arise.
XVIII. According to the information and explanations given to us, the
Company has not made any preferential allotment of Shares to parties
and Companies covered in the Register maintained under section 301 of
the Companies Act, 1956 and the price at which shares have been issued
is not prejudicial to the interest of the Company.
XIX. According to the information and explanations given to us, the
company does not have any debentures and hence the applicability of the
clause regarding the creation of security or charge in respect of
debentures issued does not arise.
XX. According to information and explanations given to us, the company
has not raised money by way of public issues during the year; hence the
clause regarding the disclosure by the management on the end use of
money raised by Public Issue is not applicable.
XXI. According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the year
under audit.
For P. MURALI & CO.,
CHARTERED ACCOUNTANTS
FRN: 007257S
Place : Hyderabad P. Murali Mohana Rao
Date : 28.05.2010 Partner