Mar 31, 2015
We have audited the accompanying financial statements of M/s. Trans
Medicare Ltd, which comprise the Balance Sheet as at March 31, 2015,
the Statement of Profit and Loss and Cash Flow Statement for the year
ended on that date and a summary of significant accounting policies and
other explanatory information.
Management's Responsibility for the Financial Statement
The management and Board of Directors of the company are responsible
for the matters stated in section 134(5) of the Companies Act, 2013
("the Act") with respect to the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
includes maintenance of adequate accounting records in accordance with
the provision of the Act for safeguarding of the assets of the Company
and for preventing and detecting the frauds and other irregularities;
selection and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial control,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder. We conducted our
audit in accordance with the Standards on Auditing specified under
section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation of the financial statements, that give true and fair view in
order to design audit procedures that are appropriate in the
circumstances, 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 Company's management and Board of 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.
Basis for Qualified Opinion
(1) Reference is invited to Note 5 of the financial statements, The
Company has not provided the interest on secured loans taken from the
Maharashtra State Financial Corporation for the year ended 31st March
2015 and for the previous financial years, since the company is
pursuing the matter for one time settlement.
"Under accounting principles generally accepted in India, the company
should have made a provision for interest expense. We are unable to
quantify the provision for interest as we are not provided with the
rate of interest and the period for which interest provision is not
made. Had the company made a provision for the same, the current year
profit would have been lower by the provision interest amount".
(2) Reference is invited to Note 8 of the financial statements, the
Company has the trade investment in one of its associated company
'Trans Gel Industries Limited'. The investee company is continuously
making losses since the last few years. Net book value of investments
is negative as per the last audited balance sheet as on 31.03.2014.
"We are unable to ascertain the amount of impairment for this asset due
to lack of sufficient information in relation to realisable value of
this investment. Had the Company made a provision for the same, the
profit for the period would have been lower by the provision for
impairment amount."
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the possible effects of the
matters described in the Basis for Qualified Opinion paragraph, the
financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India.
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 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:
1. As required by the Companies (Auditor's Report) Order, 2015 (as
amended) ("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 of the
Order to the extent applicable.
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
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 and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the aforesaid financial statements comply with the
applicable accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014;
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164(2) of the Act;
f) In our opinion and to the best of our information and according to
the explanations given to us, we report as under with respect to other
matters to be included in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014:
(i) The Company does not have pending litigations which would impact
its financial position.
(ii) The Company did not have any long-term contracts including
derivative contracts; as such the question of commenting on any
material foreseeable losses thereon does not arise.
(iii) There have been no occasions in case of the company during the
year under report to transfer any sums to the Investor Education and
Protection Fund.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph (1) under the heading "Report on other Legal
and Regulatory Requirements" of our report of even date on the
financial statements for the year ended March 31st 2015 of TRANS
MEDICARE LIMITED
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
asset;
(b) The company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material discrepancies
were noticed on such verification. In our opinion, this periodicity of
physical verification is reasonable having regards to the size of the
company and the nature of its assets;
(ii) (a) In the absence of inventory, it is not required to report as
per paragraph 3 Clause (ii) of the said order.
(iii) As informed, the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act.
(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 the 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) In our opinion and according to the information and explanation
given to us, the company has not accepted any deposits from the public
covered under section 73 to 76 of the Companies Act, 2013.
(vi) The company is not required to maintain the cost records as
specified by the Central Government under sub-section (1) of section
148 of the Companies Act, 2013.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the records of the company, amounts
deducted/accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Income Tax, Sales Tax, Wealth
Tax, Service Tax, Duty of Customs, Value added tax, cess and other
material statutory dues have not been regularly deposited during the
year by the company with the appropriate authorities.
According to the information and explanations given to us, the
following are the undisputed amounts payable in respect of Provident
Fund, Income T ax, Wealth T ax, Service T ax, Sales
Tax, Duty of Customs, Excise Duty, Value added tax and Other material
statutory dues were in arrears as at March 31, 2015 for a period of
more than six months from the date they became payable.
Sl.No. Nature of the dues Amount (Rs)
17 TDS 54,539/-
(b) According to the information and explanations given to us, the
following are no disputed dues relating to Wealth tax, Duty of Customs
and Cess which have not been deposited with the appropriate authorities
on account of any dispute.
(c) According to the information and explanations given to us there are
no amounts which were required to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 2013and rules there under.
(viii) The Company has accumulated losses at the end of the financial
year exceeding 50% of its net worth and has incurred cash losses in the
financial year and has incurred cash losses in the immediately
preceding financial year.
(ix) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of its dues to the
financial institution including interest and principal as on 31st March
2015.
SI. Name of the bank/institution Amount (Rs.) Due since
No.
IT MAHARASHTRA STATE FINANCIAL 13,27,01,361/ Since 1992
CORPORATION -
(x) According to the information and explanations given to us, the
company has given the following guarantees for loans taken by others
from banks, and financial institutions
SI. Name of the Date of Name of the Amount Status
No. Associated guarantee lender of loan
company
(borrower)
Nandini Industries 24-12-2013 SBI 89.50crore
1 India Pvt Ltd s NPA
Techtrans 38.52crore
Construction 18-06-2013 SBI s NPA
2 India Pvt Ltd
refer note no.15 of notes to accounts.
(xi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xii) According to the information and explanations given to us, no
material fraud on or by the company has been noticed or reported during
the course of our audit.
For B. Srinivasa Rao & Co.,
Chartered Accountants
Firm Reg. No:008763S
sd/-
CA B. SRINIVASA RAO)
PARTNER
M.No:205449
Place : Hyderabad
Date : 30/05/2015
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of M/S. Trans
Medicare Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, and the Statement of Profit and Loss for the year
then ended, and a summary of significant accounting policies and other
explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
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, and on the basis of such
checks, as we considered appropriate, we are of the opinion that the
clauses specified in the said order are applicable to this Company for
the time being.
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, dealt with by this
Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss,
comply with the Accounting Standards referred to in subsection (3C) of
section 211 of the Companies Act, 1956;
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO THE AUDITORS'' REPORT Referred to in paragraph 3 of our
report of even date
(i) (a) The Company has maintained proper records showing full
particulars including Quantitative details and situation of fixed
assets.
(b) As informed to us, the fixed assets have been physically verified
by the management during the year and in our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets and no material discrepancies were noticed on
such verification.
(c) During the year, the Company has not disposed off any part of its
fixed assets.
(ii) As per the information and explanation provided to us, The Company
has no inventory in the books of account.
(iii) As per the information and explanation provided to us, the
company has not granted an loans but has taken interest free unsecured
loans to an extent of Rs.16.85lakhs from companies/ directors in the
register under section 189 of the companies Act, 2013. No Specific
schedule of repayment is fixed and balance outstanding as on 31.03.2014
is Rs.817.33Lakhs.
(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.
In our opinion, and according to the information given to us, there is
no continuing failure to correct major weaknesses in internal controls.
(v) According to the information and explanations given to us, there
are no transactions that need to be entered into a register in
pursuance of Section 189 of the Companies Act, 1956.
Accordingly clause 4(v) (b) of the Companies (Auditor''s Report) Order,
2003 is not applicable.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposit during the year from public within
the meaning of the provisions of Section 58A and 58AA of the Companies
Act, 1956 and the rules framed there under. Hence, clause 4 (vi) of the
Companies (Auditor''s Report) Order, 2003 is not applicable.
(vii) In our opinion and according to the information given to us, the
Company has no internal audit system.
(viii) As per the information and explanations submitted to us no cost
records are maintained under section 209(1) (d) of the Companies Act,
1956 as there are no manufacturing operations since several years.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, there are no
employees in the company and hence there are no amounts recovered or
payable in respects of provident fund and ESI. The Company has been
generally regular in depositing with appropriate authorities undisputed
statutory dues of income tax, sales tax, custom duty, excise duty, cess
and other material statutory dues as per the demands made on the
company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 3lst
March, 2014 for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, custom duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
(x) The Accumulated Losses of the company are more than 50 % of its net
worth as on 31.03.2014. The Company has incurred cash losses during the
year under review amounting to Rs.16.76lakhs and Rs. 40.66lakhs cash
loss in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to
financial institutions & banks to an extent of Rs.1329.01 lakhs for a
period of more than 3 months. In absence to confirmation of balances
from the bank or the company we are unable to comment on this
transaction
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor''s Report) Order, 2003 are not applicable to the company.
(xiv) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, 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 given guarantee for loans taken by others from banks.
S. Name of the Party Name of the Bank or Amount for which
No Financial Institution guarantee given
01 M/s. TSS Projects & State Bank of India Rs. 89.50 Crores
Industries Pvt. Ltd
02 M/s. Techtrans State Bank of India Rs. 32.00 Crores
Constructions India
Pvt.Ltd
Total Rs. 150.50 Crores
(xvi) According to the information and explanations given to us, during
the year no term loan were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that there are no funds raised on short-term basis have been used for
long-term investment. No long term funds have been used to finance
short- term assets.
(xviii) The Company has not made any preferential allotment of shares
during the year.
(xix) During the year the Company has not issued any debentures and
therefore the question of creating security in respect thereof does not
arise.
(xx) The Company has not raised any money by way of public issue during
the year
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B. Srinivas Rao & Co.,
Chartered Accountants
ICAI Firm Registration No. 008763S
Sd/-
CH Anand
Partner
Membership No.: 222732
Place: Hyderabad
Date: 05th September, 2014
Mar 31, 2012
1. We have audited the attached balance sheet of MIS. Trans Medicare
Limited as at 31 st March, 2012 and the Profit and Loss Account and
Cash Flow Statement for the year ended annexed thereto. These financial
statements are the responsibility of the management of the company. Our
responsibility is to express an opinion on the financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management as well as evaluating the overall presentation of
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) Order 2003 issued by
the Central Government of India in terms of sub-section (4A) of Section
227 of the Companies Act, 1956, we enclose in the Annexure a statement
on the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above we report
that:
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 the law
have been kept by the company so for as appears from our examination of
these books.
c. The Balance Sheet and the Profit & Loss Account and Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
d. In our opinion, the balance sheet, profit and loss account 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
e. Based on the representation made by all the directors of the
company as on 31st March 2012 and taken on record by the Board of
Directors of the Company and in accordance with the information and
explanations as made available, the directors of the company do not,
prima facie have any disqualification as referred to in clause (g) of
sub section (1) to section 274 of the Act.
f. 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:
i. In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
ii. In the case of Profit and Loss account of the Loss for the year
ended on that date, and
iii. In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO THE AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date,
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As informed to us, the fixed assets have been physically verified
by the management during the year and in our opinion, the frequency of
verification is reasonable having regard to the size of the Company and
the nature of its assets and no material discrepancies were noticed on
such verification.
(c) During the year, the Company has not disposed off any part of its
fixed assets.
(ii) As per the information and explanation provided to us, The Company
has no inventory in the books of account.
(iii) As per the information and explanation provided to us , the
company has not granted any loans but has taken interest free unsecured
loans to an extent of Rs.8.19 lakhs from companies/ directors in the
register under section 301 of the companies Act, 1956. No Specific
schedule of repayment is fixed and balance outstanding as on 31.03.2012
is Rs.799.32 Lakhs.
(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. In our opinion, and according to the information given to us,
there is no continuing failure to correct major weaknesses in internal
controls.
(v) According to the information and explanations given to us, there
are no transactions that need to be entered into a register in
pursuance of Section 301 of the Companies Act, 1956. Accordingly clause
4(v) (b) of the Companies (Auditor's Report) Order, 2003 is not
applicable.
(vi) According to the information and explanations given to us, the
Company has not accepted any deposit during the year from public within
the meaning of the provisions of Section 58 A and 58 AA of the
Companies Act, 1956 and the rules framed there under. Hence, clause 4
(vi) of the Companies (Auditor's Report) Order, 2003 is not applicable.
(vii) In our opinion and according to the information given to us, the
Company has no internal audit system.
(viii) As per the information and explanations submitted to us no cost
records are maintained under section 209(1) (d) of the Companies Act,
1956 as there are no manufacturing operations since several years.
(ix) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, there are no
employees in the company and hence there are no amounts recovered or
payable in respects of provident fund and ESI. The Company has been
generally regular in depositing with appropriate authorities undisputed
statutory dues of income tax, sales tax, custom duty, excise duty, cess
and other material statu tor}' dues as per the demands made on the
company.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, as at 31st
March, 2012 for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, custom duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute.
(x) The Accumulated Losses of the company are more than 50 % of its net
worth as on 31.03.2012. The Company has incurred cash losses during the
year under review amounting to Rs.8.35 lakhs and Rs. 4.71 lakhs cash
loss in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has defaulted in repayment of dues to
financial institutions & banks to an extent of Rs. 1329.01 Lakhs for a
period of more than 3 months. The Company has adjusted loan outstanding
balance from Union Bank of India to reserves in the current year with
reference to point no 5 of notes to an accounts. In the absence of
confirmation of balances from the bank or the company we are unable to
comment on this transaction.
(xii) Based on our examination of the records and the information and
explanations given to us, the Company has not granted loans and
advances on the basis of security by way of pledge of shares,
debentures and other securities.
(xiii) The Company is not a chit fund or a nidhi / mutual benefit fund
/society. Therefore, the provisions of clause 4(xiii) of the Companies
(Auditor's Report) Order, 2003 are not applicable to the company.
(xiv) According to the information and explanations given to us, the
Company is not dealing in or trading in shares, securities, debentures
and other investments. Accordingly, 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 given guarantee for loans taken by others from banks.
S.
no Name of the Party Name of the Bank or Amount for which
Financial Institution guarantee given
01 M/s. TSS Projects &
Industries Pvt Ltd State Bank of India Rs. 68.40 Crores
02 M/s. Techtrans
Constructions India Pvt State Bank of India Rs. 38.46 Crores
Ltd
Total Rs.106.86 Crores
(xvi) According to the information and explanations given to us, during
the year no term loans were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that there are no funds raised on short-term basis have been used for
long-term investment. No long term funds have been used to finance
short- term assets.
(xviii) The Company has not made any preferential allotment of shares
during the year.
(xix) During the year the Company has not issued any debentures and
therefore the question of creating security in respect thereof does not
arise.
(xx) The Company has not raised any money by way of public issue during
the year
(xxi) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For B Srinivasa Rao & Co.,
Chartered Accountants
Ch Anand
Partner
M. No: 222732
FRN No: 008763S
Place: Hyderabad
Date:13.08.2012