Auditor Report of Baron Infotech Ltd.

Jun 30, 2014

We have audited the accompanying financial statements of Baron Infotech Limited ("the Company") which comprises the balance sheet as at 30th June 2014, the statement of profit and loss and Cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

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 flow 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") read with the General Circular 15/2013 dated 13 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.

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 30th June 2014;

(b) in the case of the statement of profit and loss, of the loss for the year ended on that date; and

(c) in the case of cash flow statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. The Companies (Auditors'' Report) Order, 2003, as amended by the Companies (Auditor''s Report) (Amendment) order, 2004 (together the "order"), issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, is enclosed in annexure;

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, the 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, the statement of profit and loss and Cash flow statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable; and

(e) on the basis of written representations received from the directors as on 30th June 2014, and taken on record by the Board of Directors, none of the director is disqualified as on 30th June 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 Auditor''s Report

i.

a. The Company is in the process of updating details in fixed asset register and the records to show full particulars including quantitative details and situation of fixed assets.

b. As per the information and explanations given to us, there is a phased programme of physical verification of fixed assets adopted by the Company and material discrepancies if any will be accounted based on the updation of fixed asset register. In our opinion, the frequency of verification is reasonable, having regard to the size of the company and nature of its business.

c. In our opinion, a substantial part of the fixed assets have not been disposed of by the company during the year.

ii. During the period the company has not dealt with inventory consequently clause (a), (b) and (c) of paragraph 2 are not applicable to the company.

iii. The company has neither advanced nor accepted any loans to / from the companies, firms or other parties listed in the register maintained under section 301 of the companies act, 1956. Hence the clause 3.a to 3.f of the order are not applicable to the company

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 nature of its business for the purchase of computer hardware and software, consumables, plant and machinery, equipment and other assets and sale of services. Further on the basis of our examination of the books and records of the company, and according to the information explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the internal control system.

v. Based on the audit procedure applied by us and according to the information and explanations provided by the management, we are of the opinion that during the year,

a) There are no transactions that need to be entered into a register maintained under section 301 of the Companies Act, 1956.

b) The company has not made any transactions with the parties listed in the register maintained under section 301 of the companies act, 1956. Hence (v) (b) of paragraph 4 of the order is not applicable.

vi. In our opinion and according to the information and explanation given to us the Company has not accepted any deposits from the Public under section 58A and 58AA of the Companies Act, 1956 and rules there under are not applicable to the company.

vii. The company''s internal audit system needs to be strengthened commensurate with its size and nature of its business.

viii. The Central Government has not prescribed the maintenance of cost records by the Company under section 209(1)(d) of the Companies Act, 1956.

ix.

a. According to the information and explanations given to us, during the year, there are no undisputed statutory dues including provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues except for the following

a) Professional tax Rs. 20,004

b) TDS-Salaries Rs. 62,800

c) TDS-Others Rs. 3,18,210

b. According to the information and explanations given to us, there are no dues of provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues which have not been deposited on account of any dispute.

x. The company has accumulated losses at the end of the year. The accumulated losses are more than fifty percent of the net worth of the company. The company hasn''t incurred cash loss during the current financial year and immediately preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given by management we are of opinion that the company has not borrowed any amounts from banks or financial institutions.

xii. According to the information and explanations given to us the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. In our opinion the company is not a chit fund or a nidhi / mutual benefit fund/ society. Therefore the provisions of clause 4(xiii) of the companies (Auditors Report) order 2003 are not applicable to the company.

xiv. In our opinion the company is not dealing in or trading in shares securities, debentures and other investments, accordingly the provisions of clause 4(xiv) of the companies (Auditors Report) order 2003 are not applicable to the company.

xv. According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions.

xvi. During the year no term loans were raised by the company hence this clause is not applicable.

xvii. According to information & explanations given to us and an overall examination of the books we report that no short term funds have been used during the year for long term purposes.

xviii. During the year the company has not made any preferential allotment. Consequently clause xviii is not applicable to the company.

xix. According to the information and explanations given to us and the records examined by us no debentures were issued by the company and therefore the provisions of clause 4(xix) of the companies (Auditors Report) order 2003 are not applicable to the company.

xx. During the year the company has not raised by any money through public issue and hence the question of disclosure and verification of end use of such money doesn''t arise.

xxi. According to the information and explanations given to us and the records examined by us no fraud on or by the company was noticed or reported during the year.

For VENKATA PAVAN KUMAR & CO., Chartered Accountants Firm Registration No. 011599S

Sd/-

Place : Hyderabad A.V. PAVAN KUMAR

Date : 29.08.2014 Partner Membership No. 215902

---

Jun 30, 2013

Report on the Financial Statements

We have audited the accompanying fnancial statements of Baron Infotech Limited ("the Company") which comprises the balance sheet as at 30TH JUNE 2013, the statement of proft and loss and Cash fow statement for the year then ended and a summary of signifcant accounting policies and other explanatory information.

Management''s Responsibility for the Financial Statements

Management is responsible for the preparation of these fnancial statements that give a true and fair view of the fnancial position, fnancial performance and cash fow 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 fnancial 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 fnancial 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 fnancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fnancial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the fnancial 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 fnancial 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 fnancial statements.

We believe that the audit evidence we have obtained is suffcient 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 fnancial 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 30TH JUNE 2013;

(b) in the case of the statement of proft and loss, of the loss for the year ended on that date; and

(c) in the case of cash fow statement, of the cash fows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. The Companies (Auditors'' Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, is enclosed in annexure;

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, the statement of proft and loss and Cash fow statement dealt with by this report are in agreement with the books of account;

(d) in our opinion, the balance sheet, the statement of proft and loss and Cash fow statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable; and

(e) on the basis of written representations received from the directors as on 30TH JUNE 2013, and taken on record by the Board of Directors, none of the director is disqualifed as on 30TH JUNE 2013, from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956

a. The Company is in the process of updating details in fxed asset register and the records to show full particulars including quantitative details and situation of fxed assets.

b. As per the information and explanations given to us, there is a phased programme of physical verifcation of fxed assets adopted by the Company and material discrepancies if any will be accounted based on the updation of fxed asset register. In our opinion, the frequency of verifcation is reasonable, having regard to the size of the company and nature of its business.

c. In our opinion, a substantial part of the fxed assets have not been disposed of by the company during the year.

ii. During the period the company has not dealt with inventory consequently clause (a), (b) and (c) of paragraph 2 are not applicable to the company.

iii. The company has neither advanced nor accepted any loans to / from the companies, frms or other parties listed in the register maintained under section 301 of the companies act, 1956. Hence the clause 3.a to 3.f of the order are not applicable to the company

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 nature of its business for the purchase of computer hardware and software, consumables, plant and machinery, equipment and other assets and sale of services. Further on the basis of our examination of the books and records of the company, and according to the information explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the internal control system.

v. Based on the audit procedure applied by us and according to the information and explanations provided by the management, we are of the opinion that during the year,

a) There are no transactions that need to be entered into a register maintained under section 301 of the Companies Act, 1956.

b) The company has not made any transactions with the parties listed in the register maintained under section 301 of the companies act, 1956. Hence (v) (b) of paragraph 4 of the order is not applicable.

vi. In our opinion and according to the information and explanation given to us the Company has not accepted any deposits from the Public under section 58A and 58AA of the Companies Act, 1956 and rules there under are not applicable to the company.

vii. The company''s internal audit system needs to be strengthened commensurate with its size and nature of its business.

viii. The Central Government has not prescribed the maintenance of cost records by the Company under section 209(1)(d) of the Companies Act, 1956.

a. According to the information and explanations given to us, during the year, there are no undisputed statutory dues including provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues except for the following

a) Professional tax Rs. 20,004

b) TDS-Salaries Rs. 62,800

c) TDS-Others Rs. 3,18,210

b. According to the information and explanations given to us, there are no dues of provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues which have not been deposited on account of any dispute.

x. The company has accumulated losses at the end of the year. The accumulated losses are more than ffty percent of the net worth of the company. The company hasn''t incurred cash loss during the current fnancial year and immediately preceding fnancial year.

xi. Based on our audit procedures and on the basis of information and explanations given by management we are of opinion that the company has not borrowed any amounts from banks or fnancial institutions.

xii. According to the information and explanations given to us the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. In our opinion the company is not a chit fund or a nidhi / mutual beneft fund/ society. Therefore the provisions of clause 4(xiii) of the companies (Auditors Report) order 2003 are not applicable to the company.

xiv In our opinion the company is not dealing in or trading in shares securities, debentures and other investments, accordingly the provisions of clause 4(xiv) of the companies (Auditors Report) order 2003 are not applicable to the company.

xv According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks and fnancial institutions.

Baron

xvi. During the year no term loans were raised by the company hence this clause is not applicable.

xvii. According to information & explanations given to us and an overall examination of the books we report that no short term funds have been used during the year for long term purposes.

xviii. During the year the company has not made any preferential allotment. Consequently clause xviii is not applicable to the company.

xix. According to the information and explanations given to us and the records examined by us no debentures were issued by the company and therefore the provisions of clause 4(xix) of the companies (Auditors Report) order 2003 are not applicable to the company.

xx. During the year the company has not raised by any money through public issue and hence the question of disclosure and verifcation of end use of such money doesn''t arise.

xxi. According to the information and explanations given to us and the records examined by us no fraud on or by the company was noticed or reported during the year.

For VENKATA PAVAN KUMAR & CO., Chartered Accountants

Firm Registration No. 011599S

Sd/-

Place : Hyderabad A.V. PAVAN KUMAR

Date : Partner

Membership No. 215902

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Jun 30, 2011

1) We have audited the attached Balance Sheet of Baron InfoTech Limited as at 30TH JUNE 2011 and also the Profit and Loss Account 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 conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the 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 (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 in paragraph 3 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 law have been kept by the company so far as appears from our examination of such books.

c. The Balance Sheet and Profit and loss Account dealt with by this report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, Profit & Loss A/c and Cash Flow Statement dealt with by this report comply with the applicable accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

e. On the basis of written representations received from the directors as on JUNE 30, 2011 and taken on record by the Board of Directors, We report that none of the directors is disqualified as on JUNE 30, 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 information and according to the explanations given to us, the said accounts read in conjunction with the schedules annexed therewith give the information required by the Act, and also give a true and fair view, and in conformity with the accounting principles generally accepted in India.

In the case of the Balance Sheet, of the state of affairs of the Companies as at 30TH JUNE, 2011; and

In the case of the Profit and Loss Account, of the PROFIT for the Year ended on that date.

Annexure to the Auditor's Report

Annexure referred to in paragraph 3 of the report of even date:-

i. a. The Company is in the process of updating details in fixed asset register and the records to show full particulars including quantitative details and situation of fixed assets.

b. As per the information and explanations given to us, there is a phased programme of physical verification of fixed assets adopted by the Company and material discrepancies if any will be accounted based on the updation of fixed asset register. In our opinion, the frequency of verifcation is reasonable, having regard to the size of the company and nature of its business.

c. In our opinion, a substantial part of the fixed assets have not been disposed of by the company during the year.

ii. During the period the company has not dealt with inventory consequently clause (a), (b) and (c) of paragraph 2 are not applicable to the company.

iii. The company has neither advanced nor accepted any loans to / from the companies, farms or other parties listed in the register maintained under section 301 of the companies act, 1956. Hence the clause 3.a to 3.f of the order are not applicable to the company

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 nature of its business for the purchase of computer hardware and software, consumables, plant and machinery, equipment and other assets and sale of services. Further on the basis of our examination of the books and records of the company, and according to the information explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the internal control system.

v. Based on the audit procedure applied by us and according to the information and explanations provided by the management, we are of the opinion that during the year,

a) There are no transactions that need to be entered into a register maintained under section 301 of the Companies Act, 1956.

b) The company has not made any transactions with the parties listed in the register maintained under section 301 of the companies act, 1956. Hence (v) (b) of paragraph 4 of the order is not applicable.

vi. In our opinion and according to the information and explanation given to us the Company has not accepted any deposits from the Public under section 58A and 58AA of the Companies Act, 1956 and rules there under are not applicable to the company.

vii. The company's internal audit system needs to be strengthened commensurate with its size and nature of its business.

viii. The Central Government has not prescribed the maintenance of cost records by the Company under section 209(1)(d) of the Companies Act, 1956.

ix. a. According to the information and explanations given to us, during the year, there are no undisputed statutory dues including provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues except for the following

a) Professional tax Rs. 20,004

b) TDS-Salarie s Rs. 62,800

c) TDS-Others Rs. 3,18,210

b. According to the information and explanations given to us, there are no dues of provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues which have not been deposited on account of any dispute.

x. The company has accumulated losses at the end of the year. The accumulated losses are more than fifty percent of the net worth of the company. The company hasn't incurred cash loss during the current financial year and immediately preceding financial year.

xi. Based on our audit procedures and on the basis of information and explanations given by management we are of opinion that the company has not borrowed any amounts from banks or financial institutions.

xii. According to the information and explanations given to us the company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii. In our opinion the company is not a chit fund or a nidhi / mutual benefit fund/ society. Therefore the provisions of clause 4(xiii) of the companies (Auditors Report) order 2003 are not applicable to the company.

xiv In our opinion the company is not dealing in or trading in shares securities, debentures and other investments, accordingly the provisions of clause 4(xiv) of the companies (Auditors Report) order 2003 are not applicable to the company.

xv. According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions.

xvi. During the year no term loans were raised by the company hence this clause is not applicable.

xvii. According to information & explanations given to us and an overall examination of the books we report that no short term funds have been used during the year for long term purposes.

xviii. During the year the company has not made any preferential allotment. Consequently clause xviii is not applicable to the company.

xix. According to the information and explanations given to us and the records examined by us no debentures were issued by the company and therefore the provisions of clause 4(xix) of the companies (Auditors Report) order 2003 are not applicable to the company.

xx. During the year the company has not raised by any money through public issue and hence the question of disclosure and verification of end use of such money doesn't arise.

xxi. According to the information and explanations given to us and the records examined by us no fraud on or by the company was noticed or reported during the year.

For VENKATA PAVAN KUMAR & CO., Chartered Accountants

Firm Registration No. 011599S

Sd/- Place : Hyderabad A.V. PAVAN KUMAR

Date : 10-11-2011 Partner

Membership No. 215902

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Jun 30, 2010

We have examined the compliance of conditions of Corporate Governance by Baron Infotech Limited, for the year ended on June 30, 2010, as stipulated in Clause 49 of the Listing Agreement of the said Company with Stock Exchanges.

The compliance of conditions of Corporate Governance is the responsibility of the management. Our ex- amination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

We state that no investor grievance is pending for a period exceeding one month against the Company as per the records maintained by the Shareholders / Investors Grievance Committee.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Annexure to the Auditor's Report Annexure referred to in paragraph 3 of the report of the report of even date:-

i.

a. The Company is in the process of updating details in fixed asset register and the records to show full particulars including quantitative details and situation of fixed assets.

b. As per the information and explanations given to us, there is a phased programme of physical verification of fixed assets adopted by the Company and material discrepancies if any will be accounted based on the updation of fixed asset register. In our opinion, the frequency of verification is reasonable, having regard to the size of the company and nature of its business.

c. In our opinion, a substantial part of the fixed assets have not been disposed of by the company during the year.

ii. During the period the company has not dealt with inventory consequently clause (a), (b) and (c) of paragraph 2 are not applicable to the company.

iii. The company has neither advanced nor accepted any loans to / from the companies, firms or other parties listed in the register maintained under section 301 of the companies act, 1956. Hence the clause 3.a to 3.f of the order are not applicable to the company

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 nature of its business for the purchase of computer hardware and software, consumables, plant and machinery, equipment and other assets and sale of services. Further on the basis of our examination of the books and records of the company, and according to the information explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weakness in the internal control system.

v. Based on the audit procedure applied by us and according to the information and explanations provided by the management, we are of the opinion that during the year,

a) There are no transactions that need to be entered into a register maintained under section 301 of the Companies Act, 1956.

b) The company has not made any transactions with the parties listed in the register maintained under section 301 of the companies act, 1956. Hence (v) (b) of paragraph 4 of the order is not applicable.

vi. In our opinion and according to the information and explanation given to us the Company has not accepted any deposits from the Public under section 58A and 58AA of the Companies Act, 1956 and rules there under are not applicable to the company.

vii. The company's internal audit system needs to be strengthened commensurate with its size and nature of its business.

viii. The Central Government has not prescribed the maintenance of cost records by the Company under section 209(1)(d) of the Companies Act, 1956.

ix.

a. According to the information and explanations given to us, during the year, there are no undisputed statutory dues including provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues except for the following

a) Professional tax Rs. 20,004

b) TDS-Salaries Rs. 62,800

c) TDS-Others Rs. 3,18,210

a. According to the information and explanations given to us, there are no dues of provident fund, investor education and protection fund, Employee state insurance, income tax, wealth tax, customs duty, excise duty, cess and other statutory dues which have not been deposited on account of any dispute.

ii. The company has accumulated losses at the end of the year. The accumulated losses are more than fifty percent of the net worth of the company. The company hasn't incurred cash loss during the current financial year and immediately preceding financial year.

iii. Based on our audit procedures and on the basis of information and explanations given by management we are of opinion that the company has not borrowed any amounts from banks or financial institutions.

iv. According to the information and explanations given to us the company has not granted any loans and ad- vances on the basis of security by way of pledge of shares, debentures and other securities.

v. In our opinion the company is not a chit fund or a nidhi / mutual benefit fund/ society. Therefore the provi- sions of clause 4(xiii) of the companies (Auditors Report) order 2003 are not applicable to the company.

vi. In our opinion 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 (Auditors Report) order 2003 are not applicable to the company.

vii. According to the information and explanation given to us, the company has not given any guarantee for loans taken by others from banks and financial institutions.

viii. During the year no term loans were raised by the company hence this clause is not applicable.

ix. According to information & explanations given to us and an overall examination of the books we report that no short term funds have been used during the year for long term purposes.

x. During the year the company has not made any preferential allotment. Consequently clause xviii is not ap- plicable to the company.

xi. According to the information and explanations given to us and the records examined by us no debentures were issued by the company and therefore the provisions of clause 4(xix) of the companies (Auditors Report) order 2003 are not applicable to the company.

xii. During the year the company has not raised by any money through public issue and hence the question of disclosure and verification of end use of such money doesn't arise.

xiii. According to the information and explanations given to us and the records examined by us no fraud on or by the company was noticed or reported during the year.

Venkata Pavan Kumar & Co., Chartered Accountants

Sd/- V. Pavan Date :29-11-2010 Place : Hyderabad.