Natural Vanaspati Ltd. இன் முடிவுகள்

Mar 31, 2014

1. We have audited the attached Balance Sheet of Natural Vanaspati Limited as at SI" March, 2014 signed by us under reference to this report, the relative Profit and Loss Account of the company and the Cash Flow Statement for the year ended on that date annexed thereto. 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.

2. We have 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(s). An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003, issued by the Central Government of India in terms of Sub-section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and5 of the said order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph (1) 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 purpose of our audit.

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

(c) The Balance Sheet, the Profit and Loss Account and Cash Flow Statement referred to in our report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred in Section 211 (3C)of the Companies Act, 1956, to the extent they are applicable.

(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31" 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.

(f) In our opinion and to the best of our knowledge and according to the information and 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 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, 2014.

ii In the case of Profit and Loss Account, of the profit 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 AUDITORS REPORT

Referred to in our Report of even date.

1. (a) The company is maintaining proper records, showing full particulars including quantitative details and situation ofthe Fixed Assets.

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management at reasonable intervals, having regard to the size of the company and the nature of its assets. No material discrepancies between book records and the physical verification were noticed.

(c) In our opinion, the company has not disposed off substantial part of fixed assets and the going concern status is not affected.

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

(b) According to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and book records were not material in relation to the operations ofthe company.

3. No Loans were taken or given from/to Companies, Firms and other parties covered in the register maintained under section 301 of the companies Act, 1956.

4. 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 for the purchase of inventory, fixed assets and also for the sale of goods. During the course of our audit, we have not observed any major weakness in the internal control.

5. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into the register in pursuance of Section 301 of Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions aggregating to Rs. 5.00 Lacs or more in respect of each party during the financial year have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

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

7. The company did not have a separate internal audit during the year. However, in our opinion, the existing internal control procedures are sufficient, considering the size and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the Company in respect of products pursuant to the order made by the Central Government for maintenance of cost records prescribed under Sec. 209 (1)(d) of the Companies Act,1956. We are of the opinion that, prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. (According to the information and explanations given to us and as per records produced and examined by us, in our opinion, the undisputed statutory dues in respect of provident fund employees state insurance, income-tax, sales tax, customs duty, excise duty and other material statutory dues, as applicable have been regularly deposited by the Company during the year with the appropriate authorities. However, we have been informed that there are no dues which have remained outstanding as at the end of the financial year, for a period of more than six months from the date they became payable. As further informed, the Company does not have dues in respect of wealth tax and cess.

(b) As at 31st March, 2014, according to the records of the Company and the information and explanations given to us, the following are particulars of dispute dues (provided/considered contingent liability, as appropriate) on account of sales tax, income-tax and customs duty, that have not been deposited on account of dispute.

Nature of Nature of Amount Period Forum Where the Statute the Dues (Rs. in dispute Lakhs) is pending.

Central 2000-01 to S.T.A.T sales Sales tax 337.04 2007-08 Tax

10. The Company has accumulated losses as at 31st March, 2014 exceeds 100% of its net worth.

11. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution/ bank during the year.

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual fund/society. Therefore clause 4 (xii) of the Companies (Auditor''s Report) Order, 2003 as regards compliance with provisions of special statute and other disclosures is not applicable to the company.

14. Based on our examination of documents and records, we are of the opinion that proper records have been maintained of transactions and contracts in shares. Further, we are of the opinion that timely entries have been made in the said records and the shares are held by the company in its own name.

15. 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.

16. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds were raised on short term basis have been used for long term purposes.

18. According to the information and explanations given to us, the company has not made any preferential issue of allotment of shares to parities covered in the register maintained under section 301 of the Companies Act, 1956.

19. The company has not issued debentures, Accordingly, the provisions of clause 4 (xix) of the Companies (Auditor''s) Report Order, 2003 with regard to creation of security is not applicable to the company.

20. During the period covered by our audit report, the company has not raised any money through public issue.

21. According to the information and explanations given to us by the management, we report that no fraud on or by fee company has been noticed or reported during fee year.

For M. RAHUL JAIN & CO. Chartered Accountants Firm Regn. No.013173S Sd/- (M. Rahul Kumar Jain) Proprietor (M.No. 225934) Place: Hyderabad Dated : 4th August 2014

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Mar 31, 2012

1. We have audited the attached Balance Sheet of Natural Vanaspati Limited as at 31st March, 2012 signed by us under reference to this report, the relative Profit and Loss Account of the company and the Cash Flow Statement for the year ended on that date annexed thereto. 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.

2. We have 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(s). An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms of Sub-section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and5 of the said order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph (1) 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 purpose of our audit.

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

(c) The Balance Sheet, the Profit and Loss Account and Cash Flow Statement referred to in our report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956, to the extent they are applicable.

(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2012 from being appointed as a Director in terms of Clause (g) of Sub- section (1) of Section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our knowledge and according to the information and 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 accounting principles generally accepted in India.

i In the case of Balance Sheet, of the stateof affairs of the company as at 31 * 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 AUDITORS REPORT

Referred to in our Report of even date.

1. (a) The company is maintaining proper records,

showing full particulars including quantitative details and situation of the Fixed Assets.

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management at reasonable intervals, having regard to the size of the company and the nature of its assets. No material discrepancies between book records and the physical verification were noticed.

(c) In our opinion, the company has not disposed

off substantial part of fixed assets and the going concern status is not affected.

2. (a) The inventory of the company has been

physically verified by the management during the year. In our opinion, the frequency of verification is reasonable.

(b) According to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and book records were not material in relation to the operations of the company.

3. No Loans were taken from or given to Companies, Fimrs and others parties covered in the register maintained under section 301.

4. 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 for the purchase of inventory,' fixed assets and also for the sale of goods. During the course of our audit, we have not observed any major weakness in the internal control.

5. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be' entered into the register in pursuance of Section 301 of Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions aggregating to Rs. 5.00 Lacs or more in respect of each party during the financial year have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

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

7. The company did not have a separate internal audit

during the year. However, in our opinion, the existing internal control procedures are sufficient, considering the size and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the Company in respect of products pursuant to the order made by the Central Government for maintenance of cost records prescribed under Sec. 209 (l)(d) of the Companies Act, 1956. We are of the opinion that, prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. (a) According to the information and explanations

given to us and as per records produced and examined by us, in our opinion, the undisputed statutory dues in respect of provident fund employees state insurance, income-tax, sales tax, customs duty, excise duty and other material statutory dues, as applicable have been regularly deposited by the Company during the year with the appropriate authorities. However, we have been informed that there are no dues which have remained outstanding as at the end of the financial year, for a period of more than six months from the date they became payable. As further informed, the Company does not have dues in respect of wealth tax and cess.

(b) As at 31" March, 2012, according to the records of the Company and the information and explanations given to us, the following are particulars of dispute dues (provided/considered contingent liability, as appropriate) on account of sales tax, income-tax and customs duty, that have not been deposited on account of dispute.

Nature of Nature of Amount Period Forum Where the Statute the Dues
Central 1997-98 S.T.A.T. sales Sales tax 539.37 2000-01 D.C Tax to (Appeals) 2008-09

10. The Company has accumulated losses as at 31st March, 2012 exceeds 100% of its net worth. It has incurred cash losses during current year not in the case of preceeding year.

11. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution/bank during the year.

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual fund/society. Therefore clause 4 (xii) of the Companies (Auditor's Report) Order, 2003 as regards compliance with provisions of special statute and other disclosures is not applicable to the company.

14. Based on our examination of documents and records, we are of the opinion that proper records have been maintained of transactions and contracts in shares. Further, we are of the opinion that timely entries have been made in the said records and the shares are held by the company in its own name.

15. 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.

16. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds were raised on short term basis have been used for long term purposes.

18. According to the information and explanations given to us, the company has not made any preferential issue of allotment of shares to parities covered in the register maintained under section301 of the Companies Act,1956.

19. The company has not issued debentures, Accordingly, the provisions of clause 4 (xix) of the Companies (Auditor's) Report Order, 2003 with regard to creation of security is not applicable to the company.

20. During the period covered by our audit report, the company has not raised any money through public issue.

21. According to the information and explanations given to us by the management, we report that no fraud on or by the company has been noticed or reported during the year.

ForAVIS ASSOCIATES

CharteredAccountants

Firm Regn. No. 00696IS

Sd/-

R.K. AGARWAL

PARTNER

M.No. 26008

Place : Hyderabad

Dated : 09th July, 2012.

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Mar 31, 2011

1. We have audited the attached Balance Sheet of Natural Vanaspati Limited as at 31st March, 2011 signed by us under reference to this report, the relative Profit and Loss Account of the company and the Cash Flow Statement for the year ended on that date annexed thereto. 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.

2. We have 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 rriisstatement(s). An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) Order, 2003, issued by the Central Government of India in terms of Sub-section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and 5 of the said order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph (1) 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 purpose of our audit.

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

(c) The Balance Sheet, the Profit and Loss Account and Cash Flow Statement referred to in our report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Profit and Loss Account and Cash Flow Statement comply with the Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956, to the extent they are applicable.

(e) On the basis of written representations received from the Directors 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 as a Director in terms of Clause (g) of Sub- section (1) of Section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our knowledge and according to the information and 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 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, 2011.

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 AUDITORS REPORT Referred to in our Report of even date.

1. (a) The company is maintaining proper records, showing full particulars including quantitative details and situation of the Fixed Assets.

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management at reasonable intervals, having regard to the size of the company and the nature of its assets. No material discrepancies between book records and the physical verification were noticed.

(c) In our opinion, the company has not disposed off substantial part of fixed assets and the going concern status is not affected.

2. (a) The inventory of the company has been physically verified by the management during the year. In our opinion, the frequency of verificationis reasonable.

(b) According to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and book records were not material in relation to the operations of the company.

3. No Loans were taken from or given to Companies, Fimrs and others parties covered in the register maintained under section 301.

4. 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 for the purchase of inventory, fixed assets and also for the sale of goods. During the course of our audit, we have not observed any major weakness in the internal control.

5. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be' entered into the register in pursuance of Section 301 of Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions aggregating to Rs. 5.00 Lacs or more in respect of each party during the financial year have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

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

7. The company" did not have a separate internal audit during the year. However, in our opinion, the existing internal control procedures are sufficient, considering the size and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the Company in respect of products pursuant to the order made by the Central Government for maintenance of cost records prescribed under Sec. 209 (l)(d) of the Companies Act, 1956. We are of the opinion that, prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. (a) According to the information and explanations given to us and as per records produced and examined by us, in our opinion, the undisputed statutory dues in respect of provident fund employees state insurance, income-tax, sales tax, customs duty, excise duty and other material statutory dues, as applicable have been regularly deposited by the Company during the year with the appropriate authorities. However, we have been informed that there are no dues which have remained outstanding as at the end of the financial year, for a period of more than six months from the date they became payable. As further informed, the Company does not have dues in respect of wealth tax and cess.

(b) As at 31st March, 2011, according to the records of the Company and the information and explanations given to us, the following are particulars of dispute dues (provided/considered contingent liability, as appropriate) on account of sales tax, income-tax and customs duty, that have not been deposited on account of dispute.

Nature of Nature of Amount Period Forum Where the Statute the Dues (Rs. in disPute Lakhs) is pending

Central Sales tax 539.37 1997-98 S.T.A.T. sales 2000-01 D.C Tax t0 (Appeals) 2007-08

10. The Company has accumulated losses as at 31st March, 2011 exceeds 100% of its net worth. It has not incurred cash losses during current and preceding financial years.

11. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution/bank during the year.

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual fund/society. Therefore clause 4 (xii) of the Companies (Auditor's Report) Order, 2003 as regards compliance with provisions of special statute and other disclosures is not applicable to the company.

14. Based on our examination of documents and records, we are of the opinion that proper records have been maintained of transactions and contracts in shares. Further, we are of the opinion that timely entries have been made in the said records and the shares are held by the company in its own name.

15. 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.

16. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds were raised on short term basis have been used for long term purposes.

18. According to the information and explanations given to us, the company has not made any preferential issue of allotment of shares to parities covered in the register maintained under section 301 of the Companies Act, 1956.

19. The company has not issued debentures, Accordingly, the provisions of clause 4 (xix) of the Companies (Auditor's) Report Order, 2003 with regard to creation of security is not applicable to the company.

20. During the period covered by our audit report, the company has not raised any money through public issue.

21. According to the information and explanations given to us by the management, we report that no fraud on or by the company has been noticed or reported during the year.

For AVIS ASSOCIATES CharteredAccountants Firm Regn. No. 00696 IS Sd/- (R.K.AGARWAL) PARTNER (M.No. 26008)

Place : Hyderabad Dated : 13th August, 2011.

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Mar 31, 2010

1. We have audited the attached Balance Sheet of Natural Vanaspati Limited as at 31s March, 2010 signed by us under reference to this report, the relative Profit and Loss Account of the company and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have 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(s). An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order, 2003, issued by the Central Government of India in terms of Sub-section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in the paragraphs 4 and5 of the said order to the extent applicable.

4. Further to our comments in the Annexure referred to in paragraph (1) 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 purpose of our audit.

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

(c) The Balance Sheet, the Profit and Loss Account and Cash Flow Statement referred to in our report are in agreement with the books of account.

(d) In our opinion, the Balance Sheet, the Profit - and Loss Account and Cash Flow Statement comply with the Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956, to the extent they are applicable.

(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March, 2010 from being appointed as a Director in terms of Clause (g) of Sub- section (1) of Section 274 of the Companies Act, 1956.

(f) In our opinion and to the best of our knowledge and according to the information and 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 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, 2010. ii In the case of Profit and Loss Account, of the profit 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 AUDITORS REPORT

Referred to in our Report of even date.

1. (a) The company is maintaining proper records, showing full particulars including quantitative details and situation of the Fixed Assets.

(b) According to the information and explanations given to us, the fixed assets have been physically verified by the management at reasonable intervals, having regard to the size of the company and the nature of its assets. No material discrepancies between book records and the physical verification were noticed.

(c) In our opinion, the company has not disposed of substantial part of fixed assets and the going concern status is not affected.

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

(b) According to the information and explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.

(c) On the basis of our examination of records of inventory, in our opinion, the company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and book records were not material in relation to the operations of the company.

3. Loans taken from or given to Companies, friends and others parties covered in the register maintained undersection 301

4. 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 for the purchase of inventory, fixed assets and also for the sale of goods. During the course of our audit, we have not observed any major weakness in the internal control.

5. (a) In our opinion and according to the information land explanations given to us, the transactions that need to be entered into the register in pursuance of Section 301 of Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions aggregating to Rs. 5.00 Lacs or more in respect of each party during the financial year have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

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

7. The company did not have a separate internal audit during the year. However, in our opinion, the existing internal control procedures are sufficient, considering the size and nature of its business.

8. We have broadly reviewed the books of accounts maintained by the Company in respect of products pursuant to the order made by the Central Government for maintenance of cost records prescribed under Sec. 209 (1 )(d) of the Companies Act,1956. We are of the opinion that, prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate and complete.

9. (a) According to the information and explanations given to us and as per records produced and examined by us, in our opinion, the undisputed statutory dues in respect of provident fund employees state insurance, income-tax, sales tax, customs duty, excise duty and other material statutory dues, as applicable have been regularly deposited by the Company during the year with the appropriate authorities. However, we have been informed that there are no dues which have remained outstanding as at the end of the financial year, for a period of more than six months from the date they became payable. As further informed, the Company does not have dues in respect of wealth tax and cess.

(b) As at 31" March, 2010, according to the records of the Company and the information and explanations given to us, the following are particulars of dispute dues (provided/considered contingent liability, as appropriate) on account of sales tax, income-tax and customs duty, that have not been deposited on account of dispute.

Nature of Nature of Amount Period forum Where the Statute the Dues (Rs. in dispute Lakhs) is pending.

Central 1997-98 S.T.A.T. sales Sales tax 540.48 2000-01 D.C Tax Appeals) to 2007-08



10. The Company has accumulated losses as at 31st March, 2010 exceeds 100% of its net worth and has incurred cash profit during current and preceding financial years.

11. According to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institution/bank during the year.

12. In our opinion and according to the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutual fund/society. Therefore clause 4 (xii) of the Companies (Auditors Report) Order, 2003 as regards compliance with provisions of special statute and other disclosures is not applicable to the company.

14. Based on our examination of documents and records, we are of the opinion that proper records have been maintained of transactions and contracts in shares. Further, we are of the opinion that timely entries have been made in the said records and the shares are held by the company in its own name.

15. 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.

16. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we are of the opinion that no funds were raised on short term basis have been used for long term purposes.

18. According to the information and explanations given to us, the company has not made any preferential issue of allotment of shares to parities covered in the register maintained under section 301 of the CompaniesAct,1956.

19. The company has not issued debentures, Accordingly, the provisions of clause 4 (xix) of the Companies (Auditors) Report Order, 2003 with regard to creation of security is not applicable to the company.

20. During the period covered by our audit report, the company has not raised any money through public issue.

21. According to the information and explanations given to us by the management, we report that no fraud on or by the company has been noticed or reported during the year.



For AVIS ASSOCIATES

Chartered Accountants

Place: Hyderabad ( R.K. AGARWAL)

PARTNER

Dated: 27th September, 2010. M.No. 26008)