1. We have audited the attached Balance Sheet of RAVI LEELA DAIRY
PRODUCTS LIMITED, as at March 31, 2013 and also the related 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditor''s Report) Order, 2003 as
amended (''the Order'') issued by the Central Government of India in
terms of sub-section (4A) of section 227 of the Companies Act, 1956
(''the Act''), 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:
(i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
(ii) In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
(iii) The Balance Sheet, Profit and Loss Account a dealt with by this
report are in agreement with the books of account;
(iv) In our opinion, the Balance Sheet, Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Act.
(v) On the basis of written representations received from the
directors, as on March 31, 2013 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2013 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Act.
(vi) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts together with the notes
thereon 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, 2013 AND
(b) In the case of the Profit and Loss Account, of the Loss for the
year ended on that date;
Annexure to the Auditors'' Report (referred to in paragraph 3 of our
Report of even date to the Members of RAVILEELA DAIRY PRODUCTS LIMITED
for the year ended March 31, 2013)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
(b) Fixed Assets have been physically verified by the management and,
in our opinion, the verification is reasonable having regard to the
size of the company and the nature of its assets. No discrepancies were
noticed on such verification.
(c) No substantial part of fixed assets has been disposed off during
2. In respect of its inventories:
a) The Inventory of the Company has been physically verified during the
year by the management. In our opinion, the frequency of verification
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper record of inventories. As
explained to us, there were no material discrepancies notices on
physical verification of inventories as compared to the book records
3. As informed the Company has taken loans, secured unsecured from
companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act, 1956. Details are given below
No Name of the party Closing Transactions During
Balance the year
1 P.Srinivasa Reddy 1,00,00,000 Nil
2 Taruni Dairy Products
Pvt Ltd 1,98,81,879 Nil
3 V. Satyanaryan Reddy 4,08,75,868 Nil
4. On the basis of checks carried out during the course of audit and
as per explanations given to us, we are of the opinion that there are
adequate internal control procedures commensurate with the size of the
company and the nature of its business; for the purchases of inventory
and fixed assets and for the sale of goods. During the course of our
audit, no major weakness has been noticed in the internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
entered into the register maintained under Section 301 of the Companies
Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of Rupees five Lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
6. In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits with in the
meaning of Sections 58A and 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975 with regard to the
deposits accepted from the public.
7. In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
8. To the best our knowledge and as explained, the Central Government
has not prescribed maintenance of cost records under Section 209 (i)
(d) of the of the Companies Act, 1956 in respect of the Company''s
nature of business.
9. (a) According to the records of the company, the company is regular
in depositing undisputed statutory dues including provident fund,
employees'' state insurance, Income Tax, Wealth Tax, Customs Duty,
Excise duty, cess and other material statutory dues applicable at the
end of the year for a period of more than six months from the date they
(b) According to the information and explanations given to us, there
are no income tax, wealth tax, sales tax, customs duty and excise duty,
which have not been deposited on account of any dispute. There were no
dues on account of cess under 441A of the Companies Act 1956, since the
date from which the aforesaid section comes into force has not yet been
notified by the Central Government.
10. The company has the accumulated losses of Rs.14,13,12,501 as at
the end of the financial year and it has incurred any cash losses of
Rs. 24,78,640 during the current financial year covered by our audit
and the immediately preceding financial year.
11. Based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company did not have any outstanding dues to financial Institutions,
Banks or Debenture holders.
12. According to the information and expiations 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.
13. In our opinion, the Company is not a chit or a nidhi / mutual
benefit fund / society. Therefore, the provisions of clause 4(xiii) of
the Order are not applicable to the Company.
14. The company is not in the business of dealing or trading in
shares, securities, debenture and other instruments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable to the
15. The company has not given any guarantee for loans taken by others
from banks or financial institutions.
16. The company has not taken term loans from banks.
17. Based on our examination of the Balance Sheet of the company as at
31.03.2013, since there is no loans availed by the company, the
utilization of funds does not arise.
18. The company has not made any preferential allotment of shares to
parties and companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. During the year covered by our audit report, the Company does not
have any outstanding debentures during the year.
20. During the year the company has not raised money through the
Public Issue, the utilization of funds does not arise.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
For M M REDDY & CO.,
Firm Reg. No.010371S
Place: Hyderabad (M. Madhusudhana Reddy)
Date 30.05.2013 Partner