CIN r L271 09TG1989P1C01 0654

ISPAT
LIMITED
SATHAVAHANA
i505.
H.O.
Block 1, Divyashaklr Complex Ameerpel, Hyderabad-500 016
Phones : 237308'12.3.4 Fax : +91-40-23730566 E-mail rsathavahana@eth.nel
web : www.sathavahana cofi

REI: SIL/SEC/l 6l

0/201 6

Dated: 30th May, 2016

To
BSE Limited
Corporate Relationship DePartment
New Trading Ring, P J Towers
Rotunda Building, Dalal Street

MUMB AI - 400 001

Ph. No. 022-227 23 t2U2O37 /39.

COMPANY CODE NO. 526093.

Dear Sir,

SUB: I) SUBMISSION OF AUDITED FINANCIAL RESULTS

FNDFD ] IST MARCH. 20I6.

FOR THE YEAR

2) SUBMISSION OF INDEPENDENT AUDITORS' REPORT

ofSEBI (Listing Obligations and Disclosure Requirements) Regulations

for the
ilois,, *" *uriit f,*"with a statement ofinnuaiAudit"d Finuncial Results ofthe Company
on
laken
and
,.,.
.]I., March. 2016 as revieued b) the Audit Committee and approred
Mav' 2016 and also a
;;;; BoJ;ibi,..ioo or rn" co,ianv at its meetins held on.301h
i;;; "nded
Auditors
*pV oiit" "fna"p"nOent Auditors' Repon dated lOn May, 2016 issued by the Statutorv2016 duly
oi','rr" cornpuny'on the Audited Financial Results for the year ended il't.March'
ff,. co.puny declares that Auditor's Report ofeven date is of unmodified opinion
Pursuant to Regulation 33

"".tii"a.

members ofthe
This may please be noted and taken on record and relay the same to the esteemed
stock exchange.

Thanking you,
Yours
For SA

u llv

AHANA ISPAT LIMITIID

(K.V. KRISHNA RAO)

COMPANY SECRETARY

Encl: As above

Nole

R.gd. Orlice
Works

..

Ploase address ali the correspondonco to had oflice

: 3'14, Sri Rama Krishna Towers, Nagariuna Nagar, Hyderabad - 500 073.

(1) Haresamudram Village, Eommanahal Mafldal, Ananlapur Dist. (2) Kudith niVillag, Xuruoodu Road, Bellary Disl. Karnataka Slate

Bellety Oflice Phones :242355, 242455, 242655 Fax 08392 - 242955

SATHAVAHANA ISPAT LIMITED

Reld

ofie

3r4 snRamatushnaT0@6 Naqalune

Cit
Em.il

Nagar, 8yder3b6d . 500 073

:L27109TG1gAgPLCO1O65a

-lh.vah...@.th n.t

FINANCIAL RESUITS FOR IHE YEAR ENDEO 31ST MARCH 2016

s&. / r@t ttu oF..t d (..i .. .*t .

OtroF..ri.c rm
Totl llgE rrs ffitiE li.o
(.) lr.r

duty)

(h)

31032016

31 12 2A15

31032015

31032016

3420513

g02h 57

2077613

11792506

1129

.l Cd .. Lr.'- du,i.d
b) Pudr- d d.t in.!*b
c) orrE6 h imrdi. ol ftd.ll.d c..d.. Etn-n e6 .rn
aod.
.) t!.cctri$ rn l8I!.tin o9.rE (R.ll N.r. 5 !.5r)
D fdiqt.dEt. nErrdor (d! 0D dE d.r* - fr,l.@ c..t)
ti6 oe.rirB

226X

007

10515

013

20116 20

118030 81

9796112

12a9108

t2{t9

73

1653440

5617006

6318946

6814 o0

1@7

5a

31 91

35250 04

114{6 A7

8a29 a6

(336 90)

129125)

9rr3 99

3a08.29

a)

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PEfrr /

llo)

P6fil /

@rcrcy

116 cdiDry

102151

540 75

{@5 02

2m192

112425)

1575 73

577 99

a598 08

21il t9

148 76

2126I

(3.3 98)

2245 01

1527 07

229176

2258.16

19305 33

219914

147082

2901a

19136

30109

908 62

1232 95

2390 50

2351 87

2424 62

3327661

h.ioo Oth..

&

.rrtiml

ct
hn

21452

176 50

.dtiii.

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t?+31

(130142)

(136 31)

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4sr338
35 09

599 21

(s93060)

2807 ss

000

F301.2)

{135.31)

599.21

(5940 60)

93 49

t2545 7A\

000

000

000
s090 00

224 42

258313

504 72

(1rr3.92)
5090 00

70053

1013 23

000

509000

R.s.. ..

.ftd

42

000

000

(343]t.90)

258313

509000

5090 00

11760 95

1519535

..cn)

Emi.3 / (16) Pq Sh.G b.LG

E.mrnCc /

1ga

000

123612

6295 08
90924 2A

oo0

1236 42

Nt tofit r {16.) lo. irr r,iod/

Pad-up equq sh.E dp br

1r23a 19

000

12537 34)

t.i

97960 99

3005120

d) End.!6 td'.ltB

Pldl / (t@)

3103 2015

p..

b.LM .h6r

.xfsdrnry i.m.

.nedh.ry i.m.

or

or

R.

R.

oi

10/-

1o/-

..ch

.&h

243
243

rh. tii a nclar ..suri3

(0 28)
(0 23)

098
093

{675)

507

(028)
(023)

098
093

(6 75)
(6 75)

507

(6 7s)

507

SEG[/1ENT REPORTING:

31032016

el

(b) Mel. lurg

Less nl& /

Coke

wih

PMr

Co enerar on

nrra S.am6nt Rerenue

Net Sares / Incom lrom O@ntion3

Seoment Resu[s (Prciit / (Loss) brore

(b)

lrbllullietcok
(ii) Orher

Totlr P6flr

wi$' co

2251879

10673 32

1141322

5550290

1562381
3S14260
392313

2179415
3541201

1475635
2616957

81848 06
137350 96

5120 87
30051 20

5393 37
20176 20

1932015

34219 42

s.neElio. Po*r

170619

2126.04

\724 7A)
629 94

90.71
1796 90

101057

313665

192362

193310

773 21

Un-.nMue Exend tuc (n0

{k..)

(se9m6nt.sds

b.tore

r.r

31 12 2415 31032015 31 032016

011
(130142)

11303031

3330 79
11552 49)

59921

22267 73
(1497 45)

13290 34

43
7U1A 2A
4256.4

119042 63
21081.51
97961 12

316949
5693 00

4362!9
21 15

(136 31)

31 03 2015

(593060)

3302 36
2152 5A
2AA7 55

segment labild6c)

1676063
(b) Metllurg@lCoke wlth

Cc!6ne6ron

PMr

(358 29)
16350 95

33210
1315238

418313

1676063
(358 29)

354 03

2243155

18290 34

418313
354 03

16350 95

2243155

31032016

31032015

5090 00
11760.95
16350 95

1519585
24285 35

36340 55

36103 33

STATEMENT OF ASSETS ANO I]ABILITIES

EOUITY AIID LIAB]LITIES

(.) shr spit

(b) R6efres and surPus

SuEtor.r SharehordeB runds

(.) L6nebm bominss

t r ri.birities (nd)
(c)Loist m povisons

(b) ocrercd

5090 00

000
214 20
37058 75

38828.6

(a) shodreh bo.Binog

(b) IEd p.y.bles

2122714

26346 63

(c) orher

1321145

2303912

303 20
79513 72
133423.42

257.59
79654 87
13A769.13

83716 51
62 41
1097 11
332 s6
35203 65

85971 53

sub rtut , Non-@.Enr riabriies

rcnl lla bitit s

(d) shod-lm povsirns
cu

SuElobt Curcnl abililes

TOTA! . EQUITY AIID LIAEILITIES

(a) Fix.d As.t

(b) Non-ornt inwshenls
(c) Lons rem bans .nd .dvane
(d) orher nd{ure as*c

SuEror. Nokumnl ass.rs

(a) rnv.nlories
(b) TEd6 eivabbs
(.) cash and b.ik balane3
(d) shon-tem b.ns .nd advanes
(6) otlEr tuftnr assls

surlobt currcntas*ls
TOTAL . ASSEIS

3001093

62 63

1119 30
310 25

2133364
1890961
3244 03
233 62
44214 77
133423,42

16120l9
5064 52
333 77

5130547
13876313

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PVR.K. Nageswara Rao & Co.,

Chartered Accountants
Independent Auditor's RePort

To
The Members ofSATHAVAHANA ISPAT LIMITED
Report oD the Fi[aDcirt Strtemeirts

audited the accompanying financial statements of SATIIAV. AHANA ISPAT

lUUfffO 1"tt Companl'), whiih comprise the Balance Sheet as at 3l'r.March' 2016' the
" una iois and the cash Flow statement for the year then ended' and a
stu,"r"nt oi p-nt
summary ofsignificant accounting policies and other explanatory information'

we have

Matrlgement's Responsibility for the Finttrcial Ststemeuts

134(5) of the
The Company's Board of Directors is responsible for the mafters stated in Section
-o.puniir ,L"t, 2013 ('1he Act") with r;spect to the preparation of these financial statements

t.r" -a r"li vie* ofihe financial position, fi'ancial perform.ance and cash flows of
in lndia'
"
ii"-'Co.p-y in accordance with the accounting principles generally accepted Rule
7 of
with
i""frairg',h" a"-r",ing Standards specified under Section 133 ofthe Act read
iii" C",fp-1". (Accouis) Rules, iota ml, responsibility also includcs m^aintenance of
the
adeqrote accounting.ecords in accordance wilh the provisions ofthe Act for safeguarding
selection
irregula'ities;
c"-pi'v and for preventing and detelting frauds and other
*t"-ri
judgments and- estimates that are
"i,f"
unJ application oi uip.opriut" u."ounting policies; making
,"*orijUf" -a p-dent;'und design, imllimentation and mainlenance o[ adequate intemal
tf," *ere operati-ng effectively for ensuring the accuracy and completeness of
ii"*"i"]
""rii"fi,
records, relevant to the preparation and presentation of the financial statements
the accounting
iii"t glr" t -a f"ir view and are free from material misslatemenl, whether due to ftaud or
" "

r"lu"

Auditor's Responsibility
on our audit'
Our responsibility is to express an opinion on these financial statements based
standards and
We have take[ into account the provisions ofthe Act, the accounting and auditing
under the provisions of the Act and
;"tt.e-rs;;;;-r"qrtied to be'included in the audit
the Rules made thereunde..

'epon

weconductedourauditinaccordancewiththestandardsonAuditingspecifiedunderSection
l"t. ff,ose Standards require that we comply with ethicakequirements and plan
iaiffoJ
"fif,"
the financial statements are
and ieiform the auait to obtain reasonable assurance about whether
fiee from material misstatement.

BA!

Residency 6-3-1247, Rajbhavan Boad I Khar.atabad, Hyderatad ' 5oo oa2 | lndia.
@ Ofl. : +91-40-23.31 1609, +91'40'23312269 (Dir) I Far : +91-40-23319591 I E-mail : pvrk@pvrk.com
109, Melro

PV.R.K. Nageswara Rao &

Co.,

Continuation Sheet

Chartered Accountanrs

An audit involves performing procedures to obtain audit evidenc about the amounts and the
disclosures in the financial statements. The procedures selected depend on the auditor's
judgrnent, including the assessment of the risks of material misstatement of the financial
statemelts, whether due to ftaud ol eror. ln making those risk assessments, the auditor
considers intemal financial contlol relevant to the Company's preparation of the financial
statements that give a true and fair view in order to design audit procedures that are appropriate
in the circumslances. An audit also includes evaluating the appropriateness of the accounting
policies used and the reasonableness of the accounting estimates made by the Company's
Directors, as well as evaluating the overall presentation ofthe financial statements.
We blieve that the audit evidence we have obtained is sumcient and apptopriate to provide a
basis for our audit opinion on the financial slatements

Opitrior
In our opinion and to the best ofour informalion and according to the explanations given to us,
the aforesaid 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 lndia, of the state of affairs of the Company as at 3lst March, 2016, and its profit
and its cash flows for the year ended on that date.

Repo

l.

on Other Legrl and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2016 ('1he Otdei'), issued by
the Central Govemment of India in terms of Sub-section (l l) ofsection 143 ofthe Act, we
give in the "Annexure A" a statement on the matters specified in paragnphs 3 and 4 ofthe
Order, to the extent applicable.

2. As required by Section 143 (3) ofthe Act, we repo.t that:

(a) We have sought and obtained all the info.mation and exPlanations which to the best ofour
knowledge and beliefwere necessary for the purposes ofour audit.
(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 exemination ofthose books.
(c) The Balarce Shee! the Statement of Profit and Loss, and the Cash Flow Statement dealt
with by this Repon are in agreement with the books ofaccount.

(d) In our opinion, the aforesaid financial statemeots comply with the Accounting stardards
specified under Section 133 of the Act, read with Rule 7 ofthe Companies (Accounts)
Rules, 2014.

PV.R.K. Nageswara Rao &

Co.,

Continuation Sheer

Chartered Accountants
(e) on the basis of the wfiften representations received fiom the directors as on 3l!t March,
2016 taken on record by the Board of Directors, none ofthe directoE is disqualified as on
3l'1March, 2016 fiom being appointed as a director in terms of Section 164 (2) ofthe Act
respect to the adequacy ofthe intemal financial controls over financial reporting ofthe
Company and the operating effectiveness of such controls, refer to our sepaEte report in
"Affrexure 8".

(0 with

(g) with respect to the other matterc to be included in the Auditor's Repon in accordance with
Rule I I ofthe Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best
ofour information and according to the explanations given to us:

i.

The Compa.ny has disclosed the impact of pending litigations on its financial
position in its financial statements - Refer Note No.27 (U) (3) to the financial
stalements:

ii.

The Company did not have any long-term contracts with material foreseeable
losses and did not have any long'term derivative contracts as at

iii.

3 I

rt

March' 20 I 6;

in fansfening arnounts, required to be transferred, to the

There has ben no delay
-Protection
FunJ by the Company during the year ended 3 I'r
lnvestor Education arld

March,2016.

For P.V.R.K. NAGESWARA RAO & CO.,

Chrrtered Accountants
EJS
tirm's Rcgislr:rtion \

fl
HYDERABAD
30.05.2016

N. ANKA
Partner
Mmbership Number:

HYDERABID

PV.R.K. Nageswara Rao & Co.,

Continuation Sheet

Chartered Accountants

An erurc A h l lepe det /luditt,r's Reporl

h" hpodino of'ReDort on Other L"aol ofld
Re[e ed lo in

RPoulatoh-

Reouiremenls' ofour reoorl ofeven dole

(a)

The company has maintained proper records showing full padiculals including
quarfitative details and situation ofFixed Assets.

2.

(b)

The fixed assets have been physically verified by the management according to the
phased progamme designed to cover all the fixed assets on rctation basis. [n respect of
fixed assets verified according to this programrne, which is considered reasonable, no
material discrepancies were noticed on such verification.

(c)

According to the information and explanations given to us and on the basis of our
examination ofthe records of the Company, the title deeds of immovable properties are
held in the name ofthe Company.

The inventories of the company have been physically verified at the year end by the
Management except stocks lying with others which have been verified with reference to
confirmations, certificates and other relevant documents where available. The discrepancies
noticed on physical verification 6f stocks as compared to book records, which in our opinion
were not material, have been properly dealt with in the books ofaccount.

3.

The Company has not granted any loans, secured or unsecured, to compaDies, firms, limited
liability partnerships or other panies covered in the registe. maintained under Section 189 of
the Companies Act, 2013 ('1he Act"). Therefore, the provisions ofClause 3(iii), (iiiXa), (iiiXb)
and (iii)(c) ofthe Order are not applicable to the Company.

4.

The Company has not granted any loans ot made any investments, or provided any guarantees

or security to the parties covered under Section 185 and 186 of the Act. Therefore,
provisions ofClause 3(iv) ofthe Order are not aPPlicable to the Company.

the

5.

The Company has not accepted any deposits from the public within the meaning of Seclions
73,74,75 and76 of the Act and the rules framed there under to the extent notified.

6.

we have broadly reviewed the book of account maintained by the company in respect of
products where, pursuaot to the Rules made by the Cenral Govemment of lndi4 the
maintenance of cost records has ben prescribed under Sub-section (1) of Sectio[I48 of the
Act and are of the opinion that prima facie, the prescribed accounts and records have been
maintained and are being made up. We have no! however, made a detailed examination ofthe
records with a view to determine whether they are accuate or complete

1. (a\

According to the records ofthe Company and as per the information and explanations
given to us, the Company is generally regular in depositing undisputed statutory dues
including provident fund, employees state insurance, income tax, sales tax, service tax,
duty of customs, duty of excise, value added tax, cess and any other statutory dues
applicable to it with appropriate authorities though there have been delays in few cases
and in respect ofthese statutory dues, there are no outstanding dues as on 31 03 2016
which are outstanding for a period ofmore than six months from the date they became
payable.

PVR.K. Nageswara Rao & Co.,

Continuation Sheet

Chartered Accountants

(b)

According to the records ofthe Company and as per the information and explanations
given to us, there are no dues of service tax, value added tax and cess which have not
been deposited on account ofany dispute as on 31.03.2016 except income tax, sales
ta.\, duty ofcustoms and duty ofexcise the details ofwhich are as given below:

S.No.

Name

of

Nature

the Statute
I

of

the dues

Central

Excise d(ny February,2007

Excise Act,

and penalty

to

AmountRs.

Forum where dispute

is pending

19,07,2t6

The Customs, Excise

and Service Tax
Appellate Tribunal,

October,

2009

1944

Period to
which it relates

Bangalore

Sales Ta-\ Appellate

Tribunal, Hyderabad.

Sales ta-\

2005-06

20t2-t3

10,47,95,907

Act,1962

Custom duty
and penalty

Income Tax

lnterest

2009-10

13,79,100

Act

Dividend
Distribution

Central
Sales Tax

Act,
3

1956

Customs

1961

on

The Customs. Excise

and Service Tax
Appellate Tribunal,
Hyderabad.

Rectification of
mistake filed with
Deputy

Ta-x

Commissioner of
lncome Tax, Circle

Excise duty September,20l I

The

3(l),

8.

Central
Excise Act,
1944

and penalty

to May, 2015

66,80,087

Hyderabad.

Commissioner

(Vizag Appeal-ll),
Cuntur.

on our audit procedures and as per the information and explanations given by the
management, the Company has delayed in repayment of principal and interest to Canara Bank
Rs.5i40,32,171-, state Bank of Hyderabad Pis.44,42,39,4071- and Andhra Bank
Based

Rs.38,24,95,628/- during the year aggregating to Rs. 135,07,6?,812/- and no such dues were in
ar.earc as on the Balance Sheet date. There was no amount raised by the Company through the
issue ofDebenfures.

1.
ABAD

PVR.K. Nageswara Rao & Co.,

Continuation Sheet

Chartered Accountants

9.

The Company has not Eised any moneys by way of initial public offer and further public offer
(including debt instruments). ln our opinion, and according to the information and explanations
given to us, the term loans have been applied for the puposes for which they were obtained.
ng the course of our examination of the books and records of the Company, canied out in
accordance with the generally accepted auditing practices in India, and according to the
information and explanations given to us, we have neither come across any instance ofmaterial
liaud by the Company or on the Company by its olficers or employees! noticed or reported
during the year, nor have we been informed of any such case by the Management.

10. Du

l.

The Company has paid/ prcvided for managerial remunemtion in accordance with the requisite
approvals mandated by the provisions of Section 197 read witlt Schedule V to the Act.

12.

As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the
prcvisions ofClause 3(xii) ofthe Order are not aPplicable to the Company.

13

The Company has entered into hansactions with related parties in compliance with the
provisions of Sections 177 and 188 ofthe Act. The details ofsuch related party hansactions
have been disclosed in the financial statements as requiled under Accounting Standard (AS) 18,
Related Party Disclosures specified under Section 133 of the Act, read with Rule 7 of the

14
15

Companies (Accounts) Rules, 2014.

The Company has not made any prefetential allotment or private placement ofshares or

fully or
provisions
of
the
Accordingly'
year
review.
the
under
partly convertible debentures during
Clause 3(xiv) ofthe Order are not applicable to the Company.
The Company has not entered into any non cash transactions with its directors or persons
connected with him. Accordingly, the provisions ofclause 3(xv) ofthe Order are not applicable
to the Company.

16

The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India
Act, 1934. Accordingly, the provisions ofClause 3(xvi) of the Order are not applicable to the
Company.

ForP VRKNAGESWARA RAO & CO.,

Chaftered Accoutrtants
Firm's

83S

,l

HYDERABAD

rI1,I)ERABAI)
30.0s.20t6

N. ANKA RAO
Partner
Membrship Number:

6:

P.V.R.K. Nageswara Rao

& Co.,

Continuation Sheet

Chartered Accountants
Annerure B lo Independenl Auditor's Repofl
Referred to in Parasraph 2(fl under the heoding of'Reporl on Olher Lesdl and Resulalorll
Reouirerfle s' ofour reoort ofewn dale
Report on the lntrnal Financial Controls undr CIause (i) ofSub-section 3 ofSection l,l3
ofthe Compaoies Act,20l3 ("the Acl")
We have audited the intemal financial controls over financial reponing of SATHAVAEANA
ISPAT LII{ITED Cthe Company") as of313'March, 2016 in conjunction with our audit ofthe
standalone financial statements ofthe Company for the year ended on that date.

M{nrgemeot's Rspotrsibility for IItertral Fitratrcirl Cotrlrols

The Company's management is responsible for establishing and maintaining intemal financial
confols based on the intemal control over financial .eporting criteria established by the
Company considering the essential componenls of intemal control stated in the Guidance Note
on Audit of Intemal Financial Controls Over Financial Reporting issued by the Institute of

Chartered Accountants of lndia ('ICAI'). These responsibilities include the design,

implementation and maintenance of adequate intemal financial controls that were oprating
effectively for ensuring the orderly and eflicient conduct of its business, including adherence to
company's policies, the safeguarding of its assets, the prcvention and detection of frauds and
erors, the accumcy and completehess of the accounting records, and the timely prepalation of
reliable financial information, as required under the Companies Act, 2013.

Auditors' Responsibility
Our responsibility is to express an opinion on the Company's intemal financial controls ovea
financial reporting based on our audit. we conducted our audit in accordance with the Guidance
Note on Audit of Intemal Financial Controls over Financial Reporting (the "Cuidance Note")
and the Standards on Auditing, issued by lCAl and deemed to be prescribed under section
143(10) ofthe Companies Act,2013, to the extent applicable to an audit of intemal financial
controls, both applicable to an audit of Intemal Financial Controls and, both issued by the
Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether adequate intemal financial controls over financial reporting v"as
established and maintained and ilsuch controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the
intemal financial controls system over financial reponing and their operating effectiveness. Our
audit ofintemal financial controls over financial reporting included obtaining an understanding
ofintemal financial controls over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effbctiveness of internal control
based on the assessed risk. The procedures selected depend on the aud itor's judgment, including
the assessment ofthe risks ofmaterial misstatement ofthe financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion on the Company's intemal financial controls system over financial
repoding.

ni*rrt AD ol

PVR.K. Nageswara Rao & Co.,

Continuation Sheet

Chartered Accountants
Meanitrg oflnternal Financial Conlrols over Financial Reporting
A company's intemal flnancial control over financial rcporting is a process desigred to provide
rcasonable assumnce regarding the reliability of financial reporting and the preparation of
financial statements for extemal purposes in accordance with generally accepted accounting
principles. A company's intemal financial control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance ofrecords that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions ofthe assets ofthe company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures ofthe co.mpany are being made only in accordance with authorisations
of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition ofthe company's
assets that could have a material effect on the financial statements.

Inherent Limitations oflnternal Financial Controls Over Financial Reportitrg

Because of the inherent limitations of intemal financial controls over financial reporting,
including the possibility of collusion or improper management override of controls, material
misstatements due to error or ftaud may occur and not be detected. Also, projections of any
evaluation ofthe internal financial controls over financial reporting to future periods are subject
to the risk that the intemal financial control over financial reportjng may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

Opinion
In our opinion, the Company has, in all material respects, an adequate intemal financial controls
system over financial reporting and such intemal financial controls over financial reporting were
operating effectively as at 3l'i March, 2016, based on the intemal control over financial
reporting criteria established by the Company considering the essential components of intemal
control stated in the Guidance Note on Audit of Intemal Financial Controls Over Financial
Reporting issued by the [nstitute ofchartered Accountants oflndia.
For P.V.R.K. NAGESWARA RAO & CO.,
Chartered Accountants
Firm's Registration N

,r

4.4^
RAO---

ITYDERABAI)

N. ANKA

30.05.2016

Partner
Membership Number:

hYDERABAD