We have audited the accompanying financial Statements of M/s. Milk
Partners India Limited (Formerly Known as Ravileela Dairy Products
Limited) which comprise the Balance Sheet as at 31st March 2014, The
statement of Profit & Loss Account and the cash flow Statement for the
year ended, and a summary of the significant accounting policies and
other explanatory information.
Managements Responsibility for the Financial Statements
The Companies management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position and financial performance of the company in accordance with
the accounting standards referred to in Sub-section (3C) of section 211
of the companies Act, 1956. 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 misstatements, whether
due to fraud or error.
We have audited the attached Balance Sheet of M/s. Milk Partners India
Limited (Formerly Known as Ravileela Dairy Products Limited), as at
31st March 2014, the Profit & Loss Account and also 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.
We conducted our audit in accordance with auditing standards generally
accepted in India. These standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes
examining on 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
We believe that our audit evidence, we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
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 in terms of Section 227(4A)
of the Act, we give in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
e) On the basis of the written representations received from the
directors as on March 31, 2014 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 Section 274(1)(g) of the
In our opinion and to the best of our information and according to the
explanations given to us the said accounts read with other notes to
accounts and accounting policies give the information required by the
Companies Act 1956, in the manner so required and give a true and fair
i) In the case of Balance Sheet of the state of the affairs of the
Company as at 31st March 2014 and
ii) In the case of Profit & Loss Account of the Profit of the Company
for the year ended on that date.
iii) In the Cash Flow statement of the Cash Flow for the year ended on
Annexure to the Auditors'' Report (referred to in paragraph 3 of our
Report of even date to the Members of MILK PARTNERS INDIA LIMITED
(Formerly Known as Ravileela Dairy Products Limited) for the year ended
March 31, 2014)
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
S. Name of the party Closing Transactions
No. Balance During the year
1. P. Srinivasa Reddy Nil 1,00,00,000
2. Taruni Dairy Products Pvt Ltd 1,98,81,879 1,98,81,879
3. V. Satyanaryana Reddy 2,08,75,868 4,08,75,868
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. 6,69,88,772/- as at
the end of the financial year and it has not incurred any cash losses
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
31.03.2014, since there is no loans availed by the company from the
banks, 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.
Place: Secunderabad Sd/-
Date: 13.08.2014 M. Madhusudhana Reddy
Membership No. 213077