1. We have audited the attached Balance sheet of Celestial Biolabs
Limited as on 31st March 2010 and the Profit anc Loss Account attached
thereto for the period ended on that date and the Cash Flow Statement
for the year ended or that date, both 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 conducted our auditin accordance with auditing standards
generally accepted in India. Those Standards require that weplan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining on the 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 (Auditors Report) Order, 2003, issued
by the Central Government in terms of Sub Section (4A) of Section 227
of the Companies Act, 1956, we enclose in the annexure a statement on
the matter specified therein.
4. Further to our comments in the Annexure referred to above, we
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 it appears from our examination of
iii. The balance sheet profit arid loss account and Cash Flow
Statement dealt with by this report are in agreemem with the books of
iv. In our opinion, the balance sheet profit and loss account and Cash
Flow Statement dealt with by this repot comply with the accounting
standards referred to in sub-section (3C) of section 211 of the
Companies Act 1956;
v. 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 st March 2010 from being
appointed as director in terms of clause(g) of sub-section(1) of
section 274 of the Companies Act 1956;
vi. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India;
a. In the case of the balance sheet, of the state of affairs of the
Company as at 31 st March 2010.
b. In the case of the profit and loss account of the profit for the
period ended on that date;
c. In the case of Cash Flow statement, of the Cash Flow for the said
year ended on that date.
ANNEXURE TO THE AUDITORS REPORT AS REFERRED TO IN PARA 3 OFTHESAID
REPORT OF EVEN DATE
(1) In respect of its fixed assets
a) The Company has maintained proper records showing full particulars
including quantitative details and situation.of fixed assets.
b) The fixed assets have been physically verified by the management at
reasonable intervals. No material discrepancies have been noticed on
c) Fixed Assets disposed of during the year are not material enough to
affect the going concern of the company. The assets have been
regrouped wherever felt necessary.
(2) In respect of its inventories
a) As explained to us, the inventories were physically verified during
the year by the management at reasonable intervals.
b) In ouropinion and according to the information and explanations
given to us, he procedures followed by the Management for the physical
verification of stocks are reasonable and adequate in relation to the
size of the Company and the nature of its business.
c) In our opinion and according to the information and explanations
given to us, no material discrepancies were noticed on physical
verification of stores as compared to book balances in so far as
appears from my examination of the books.
3) The Company has not taken any loans, secured or unsecured from
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956 during the year.
The Company has not granted any loans, secured or unsecured to the
Companies, firms or other.parties listed in the Register maintained
under section 301 of the Companies Act, 1956 during the year.
4) There are adequate internal control procedures commensurate with the
size of company and nature of its business for the purchase of store,
raw materials includiag components, plant and Machinery, equipment and
other assets and for the sale of goods.
5) According to the records of Company; there were no transaction of
purchase of goods, services and sale of goods, services, made in
pursuance of contracts or arrangements entered in the register
maintained under Section 301 of the Companies Act, 1956.
6. In our opinion and according to information and explanations give
to us the company has not accepted any deposit as such the question of
compliances of section 58,58AA and other relevant provision of
Companies act do not arise. Scrap or by-products are not generated by
7. As explained to us, the Central Government has not prescribed the
maintenance of cost records under section 209(1)(d) of the Companies
8. In our opinion and according to the information and explanations
given to us, the provisions of Provident Fund& Family Pension Act,
Employees State Insurance Act are applicable to the company. The
company is generally regular in depositing PF and ESI dues with the
9. According to the information and explanations given to us and the
books and records examined by us, there are no undisputed amounts,
payable in respect of Income Tax, Sales Tax, Customs Duty and Excise
Duty outstanding six months from the date they become payable.
10. The company has no accumulated loss as on 31st March 2010 neither
it has sustained any cash loss in current year nor in the previous
11. According to the information and explanations given to us and the
records examined by us and so far as we could ascertain, no personal
expenses have been charged to revenue account.
12. The Company has not granted any loans and advances on the basis of
security by way of pledge of shares, debentures or other securities.
13. The Company is not dealing or trading in shares, securities,
debentures and other investments.
14. The Company has not furnished any guarantee during the year, for
loans taken by the other firms, banks or financial institutions, terms
and conditions whereof are prima-facie, prejudicial to the interest of
15. In view of the nature Of the activities carried out and services
rendered the company does not consider it necessary to allocate man
hours utilized to the related jobs.
16. The Company has not made any preferential allotments of shares to
any party covered in the register maintained under section 301 of the
Companies Act 1956, during the year.
17. The Company has not issued any debentures.
18. 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
19. Other clauses of the order are not applicable to the company for
Place: Hyderabad G.V.RAO&CO
Date: 12.08.2010 Chartered Accountants
Membership No. 216153