21ST ANNUAL REPORT 2012 -2013 - Citi Port Financial Services

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21ST ANNUAL REPORT 2012 -2013 CITI PORT FINANCIAL SERVICES LIMITED

Transcript of 21ST ANNUAL REPORT 2012 -2013 - Citi Port Financial Services

Page 1: 21ST ANNUAL REPORT 2012 -2013 - Citi Port Financial Services

21STANNUAL REPORT

2012 -2013

CITI PORT FINANCIAL SERVICES LIMITED

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Index Page

1. Notice 03

2. Directors Reports 05

3. Management & Discuss Analysis 07

3. ComplianceCertificate 09

4. Corporate Governance 13

6. Auditors Reports 26

7. Balance Sheets 30

8. Profit&LossAccount 31

9. CashFlowStatements 32

10. Notes 33

11. Attendance Slip/Proxy Slip 57

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BOARD OF DIRECTORS

Smt Madhavi Musnuru -- Executive DirectorSri Ratan Kishan Musurnur -- DirectorSri Miriyalad Doraisamy Ethirajan -- Director Sri Parthasarathi Prattipati -- Director Sri Anil Kumar Talasila -- Director

STATUTORY AUDITORS

M/s. G.V. & Co., LISTED AT:CharteredAccountants BSELimited#2,159,StreetNo-3, MadrasStockExchangeLimited VaniNagar,Malkajigiri,Hyderabad-47 TheDelhiStockExchangeAssociationLimited SECRETARIAL CONSULTANTS M/s P S RAO & ASSOCIATESCompany SecretariesFlatNo.10,4thFloor,IswaryaNilayam,DwarakapuriColony AUDIT COMMITTEEPunjagutta,Hyderabad-500082 Sri Parthasarathi PrattipatiREGISTERED OFFICE Sri Anil Kumar Talasila Smt. Madhavi MusnuruHouseNo.8-3-678/42/5, 1stFloor,SantoshManor, REMUNERATION COMMITTEENavodaya Colony, Yellareddyguda, Sri Parthasarathi PrattipatiHyderabad-500073. SriAnilKumarTalasila Sri Miriyalad EthirajanSHARE TRANSFER AGENTS M/s. Bigshare Services Private Limited SHAREHOLDER GRIEVANCE COMMITTEEFlatNo.:306,Rightwing,3rdFloor,AmruthaVilleApts., SriParthasarathiPrattipatiOpp:YashodhaHospital, SriAnilKumarTalasilaSomajiguda,RajbhavanRoad, SriMiriyaladEthirajanHyderabad-500082

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NOTICE

Notice is hereby given that the 21stAnnualGeneral Meeting of the members of theCompanywillbeheldattheRegisteredOfficeoftheCompanyatHouseNo.8-3-678/42/5,1stFloor, SantoshManor, Navodaya Colony,Yellareddyguda, Hyderabad -500073.onMONDAY 30th SEPTEMBER, 2013 at 2.00 P.M totransactthefollowingbusiness:

ORDINARY BUSINESS:

1. To receive, consider, approve and adopt the Audited Balance Sheet of the Company as at31stMarch,2013andtheProfitandLossaccount for the year ended on that date and the Report of Directors’ and the Auditors thereon.

2. To appoint a Director in place of Sri. RatanKishanMusurnurwho retires byrotation,beingeligibleoffershimselfforre-appointment.

3. To appoint a Director in place of Sri Anil KumarTalasilawhoretiresbyrotation,beingeligibleoffershimselfforre-appointment.

4. To appoint Statutory Auditors of the Company toholdofficefromconclusionofthisAnnualGeneral Meeting till the conclusion of the next Annual General Meeting on such remuneration asmay be decided by theBoard.

By order of the Board ForCITIPORTFINANCIALSERVICESLIMITED

sd/- Madhavi Musnuru DirectorPlace:HyderabadDate:14.08.2013

NOTES:

1. Amemberentitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote at the meeting instead of himself / herself and the proxy neednotbeamemberoftheCompany.ProxiesinordertobeeffectivemustbereceivedattheRegisteredOfficeoftheCompanynot less than48hrsbeforethe commencement of the meeting.

2. TheRegister ofmembers and sharetransfer books of Company shallremain closed from THURSDAY, 26th SEPTEMBER, 2013 TO MONDAY, 30th SEPTEMBER, 2013 (bothdaysinclusive).

3. Members are requested to notifyany change in their addresses to the Company immediately.

4. Members desirous of obtaining anyinformation on the Annual Accounts of theCompanyarerequestedtowritetotheCompanyatleast7workingdaysbeforethedateofthemeetingtoenablethe Company for compilation of the requiredinformation.

5. Members are requested to notifyimmediately any change of address to their Depository Participants (DPs) in respect of their holdings in electronic form and also in respect of their physical share folios, if any to M/s. Bigshare Services Private Limited,FlatNo. 306,RightWing, 3rdFloor,Amrutha VilleApt.,Opp:YashodhaHospital, Somajiguda, RajbhavanRoad,Hyderabad-500082

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ADDITIONAL INFORMATION ON THE DIRECTORS SEEKING RE-APPOINTMENT ON RETIRING BY ROTATION AT THE ENSUING ANNUAL GENEAL MEETING:

SRI. RATAN KISHAN MUSURNUR:

SriRatanKishanMusurnurS/oSh.GPrakashRao,aged33yearsisaQualifiedMCA(MasterofComputerApplication)andhasanexperienceofmorethan7yearsinsoftwarefield.HeisneitherthechairmannormemberofanyCommitteeoftheCompanyoranyotherCompany.

SRI ANIL KUMAR TALASILA:

SriAnilKumarTalasilaisDirectoroftheCompanysince10thJanuary,2009.HeisanMBA.Hehasmorethan10yearsofrichexperienceinthefieldoffinanceandhasbeenanentrepreneurwithsuccessfulundertakings inGarmentsdesigningandproductionsector.He is thememberofAuditCommittee,RemunerationCommitteeandInvestorGrievanceCommitteeandholds250equitysharesoftheCompany

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DIRECTOR’S REPORTToTheMembers,

Your Directors have pleasure in presenting the 21stAnnualReporttogetherwiththeAuditedAccounts of the Company for the year ended 31st March 2013.

FINANCIAL RESULTS:(RsInLakhs)

NetSales/incomefromoperation 16.92 16.88TOTAL INCOME 16.92 16.88TOTAL EXPENDITURE 26.45 12.01Profit/(Loss)beforedepreciation&FinancialCharges (9.53) 4.87Depreciation 0.04 0.04FinancialCharges 0.47 0.64Profit Before Tax (10.04) 4.19Prior period items -- --Provision for tax 1.36 1.47Deferred Tax -- --NET PROFIT / (LOSS) (11.40) 2.72SurplusBroughtforwardfrompreviousyears -- --Transfer to Special Reserve @ 20% -- --Amount available for appropriation -- --

OPERATIONS:

During thefinancialyearunder review,yourCompany has achieved total income of Rs. 16.92lakhsasagainstthepreviousyearincomeofRs.16.88lakhsandrecordednetlossofRs.11.40 lakhs for financial year 2012-13whencomparedtoanetprofitofRs.2.72lakhsduringthe previous year.

Duringthefinancialyearunderreviewduetothe ongoing severe recession that the economy iswitnessing in almost all the industries thecompanyisabletoachieveaveragerevenuesbuthasincurredlossoninvestmentduetowhichthe Company has recorded nominal loss in the currentfinancialyear

The Company is hopeful that this fiscal the economywillwitnessupwardtrendandgoodbusinessandwillexperienceasignificantgrowthand profitability this year.However thingsare restoring to normalcy and the industry is recovering from the depression and your companywoulddobetterintheyearstocome.

DIVIDEND:

Your Directors do not recommend any Dividend forthefinancialyear2012-2013asthecompanyhasincurredlossinthebusinessoperations.

FIXED DEPOSITS

TheCompanyhasneitheracceptednorrenewedanydeposits fallingwithin theprovisions ofSection58AoftheCompaniesAct,1956readwiththe Companies (Acceptance of Deposits) Rules, 1975fromthepublicduringtheFinancialYear.

DIRECTORS

Sri Ratan Kishan Musurnur and Sri Anil Kumar Talasila, Directors of your Company retires by rotation at the ensuingAnnual GeneralMeeting andbeing eligible, offers themselvesfor reappointment.

DIRECTORS’ RESPONSIBILITY STATEMENT:

TheDirectorsofyourCompanyherebyreport:

(i) that in the preparation of Annual Accounts fortheFinancialYearended31stMarch,2013,theapplicableaccountingstandardshave been followed along with theproper explanation relating to material departures, if any, there from;

(ii) that the Directors have selected such accounting policies and applied them consistently and made judgments and estimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateof affairs of the Company at the end of the FinancialYearended31stMarch,2013andoftheprofitandlossoftheCompanyforthat period;

(iii) thattheDirectorshavetakenproperandsufficient care for the maintenance of

FortheYear ended 31.03.2012

For the Year ended31.03.2013

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adequateaccountingrecordsinaccordancewith the provisions of this Act forsafeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) that the Directors have prepared the annualaccountsonagoingconcernbasis.

PARTICULARS OF EMPLOYEES:

Pursuant to Section 217(2A) of the Companies Act, 1956 readwithCompanies (Particularsof Employees) Rules 2011, as amended, no employee of your Company is in receipt of remuneration exceeding Rs.5,00,000/- per month orRs.60,00,000/-perannumduringthefinancialyear.

AUDITORS:

M/s. G. V. & Co, Chartered Accountant, Statutory Auditor of the Company retire at the ensuing Annual General Meeting and the Company has receivedanotice inwriting fromMr.GrandhiVittal Chartered Accountant that in the event of appointment as Statutory Auditor at the ensuing Annual General Meeting, such appointment willbe inaccordancewith the limits specifiedinsection224(1B)oftheCompaniesAct,1956.

C O N S E R VA T I O N O F E N E R G Y , TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

The Company is under the business ofinvestmentandfinancingso theparticularsofthe Conservation of energy and Technology AbsorptionisNA

ForeignExchangeEarningsandOutgo:NIL

MANAGEMENT DISCUSSION & ANALYSIS

Pursuanttotheprovisionofclause49ofthelistingagreement a report on Management Discussion & Analysis is set out as an ANNEXURE-- A

COMPLIANCE CERTIFICATE

Your Company has obtained the necessaryComplianceCertificate as required in termsof Section 383A read with the Companies(Compliance Certificate) Rules 2001 of the CompaniesAct,1956forthefinancialyear2012-2013 from M/s P S Rao & Associates Practicing Company Secretaries and the same is given in ANNEXURE--B

CORPORATE GOVERNANCE:

TheCompanyhasbeenmakingeveryendeavorto bringmore transparency in the conduct ofbusiness.As per the requirements of ListingAgreement with the Stock Exchanges, acompliance report on corporate Governance fortheyear2012-2013andacertificatefromtheAuditors of the Company are furnished as a part of this Annual Report ANNEXURE—C

LISTING FEE:

Your Company’s shares are presently listed on the BSELimited,DelhiStockExchangeAssociationLimited andMadras StockExchangeLimited.The Company is regular in paying the listing fee totheStockExchanges.

ACKNOWLEDGEMENTS:

Your Directors place on record their appreciation and gratitude for the continuous support and assistance extended by all the StatutoryAuthorities. The Board also extends its heartfelt gratitude to the Creditors and Shareholders for theconfidencereposedbythemintheCompany.Your Directors also place on record their sincere appreciation for the continued contributionsmadebytheemployeesatalllevels.

Date: 14-08-2013Place: Hyderabad

By order of the Board For CITIPORT FINANCIAL SERVICES LIMITED

Sd/- Sd/- MADHAVI MUSNURU PARTHASARATHI PRATTIPATI Director Director

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MANAGEMENT DISCUSSION & ANALYSISANNEXURE- A

NBFC & GROWTH

Financing requirements are increasing day byday with the expansion and diversificationtaking place in the industrial arena. This hasled to the establishment of more number ofNBFC’sduring the last fewyears.NBFCshavebeenplayingacomplementaryroletotheotherfinancialinstitutionsincludingbanksinmeetingthe funding needs of the economy

NBFCsover theyearshaveplayedaveryvitalrole in the economy. NBFCs in India continueto growprofitably bymeeting the credit needsprimarily of self employed borrowers whilemaintaining reasonable asset quality andprudentlevelofleveraging.NBFCs’dependenceonbanks alongwithmutual funds for fundingremains high (estimated 81% at FY12) and isunlikely to changematerially in2013, althoughdependenceonbankscouldincrease,duetothenew 30% sectoral caps on mutual funds’ debtinvestments.

OPPORTUNITIES AND THREATS:

The NBFC sector has great potential to growfurther and the Government of India is also focusing on their development and expansion in ruralareas.TherecentstepsbytheGovernmentofIndiatocreateInfrastructureforNBFCandtoprovidebankinglicenseforNBFCsisapositivesignalandtheemergenceofREMF(RealEstateMutualFunds)&REIT (RealEstate InvestmentTrust)hasbroughtnewscopeforfundinginRealEstate Sector.

Thesectorissubjecttomanyexternalthreatslikedown trends in the economy, rising inflation,

squeezeinmarketliquidityetc.Toovercometheupcomingchangestakingplaceinthefinancialpolicies and sector is the major challenge for the Company. The Development of industry has resulted in the emergence of various newentrants andhencemaking the industrymorecompetitive. Your Company is confident ofmeeting the competition and sustaining in the market.

RISKS AND CONCERNS:

YourCompany is subject toboth internal andexternalrisk.Externalriskduetofluctuationininterest rates,market volatility and decline inforeign exchange reserves etc. Internal factors includesinvestmentsinspecificprojects,NPA’sin portfolio, upcoming changes in rules and regulations governing the industry, contingent liabilitiesetc.

YourCompanyhasdirecteditseffortstowardsrisk management by employing the expertisepeople and technology to mitigate the risksaffecting the growth and profitability of theCompany. The Company is constantly engaged in innovating its methods and procedures of riskmanagement.

INDUSTRY OUTLOOK:

As per the annual report of MCA for the year 2012-13, 31.57% of total companies whichgot registered during the year 2012-13 (till December 31, 2012) were registered under‘Finance, Insurance, Real estate and Renting,Business Services’ head forming the largest chunkamongallothercategories.

NBFCs have registered impressive growth inthepastdecade.Theyprovidevaluableserviceto many productive sectors of the economy for

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asset creation and also in conversion of physical assets to financial assets (eg: gold loans). Alarge part of the growth can be attributed toprudential normsbrought inby the regulator.However,thelargenumberofNBFCscarryingon diverse businesses poses regulatorychallengegiventheirgrowingsize.Regulationshavetobesuitedtodiverseaspectsofvariousbusinesses and strengthened to increase thetrust and transparency in the sector.

COMPANY OUTLOOK

The Company has achieved good amount of profits during the financial year 2011-12.However, has incurred losses during thefinancial year under review due to the downtrend affecting the whole economy andadversely affecting banking and financialsector. The Board of Directors of your Company feel that the economy will improve in thecoming years providing the greater chance foryourCompany togrow further.Moreover,various programmes initiated byGovernmentof India to promote industrywill openmanyopportunities for the Company to excel and grow further in future. Your Company isactively engaged in introducing innovative and customized products for the customers.Themanagement of your company ismakingalleffortsinfindingnewareasandmarketsforexploring the Company’s products and services.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The control system of the Company consists of standard practices and procedures, appropriate audit program and risk monitoring system.TheCompanyhasvigilantstafftotakecareofany cash or assets misappropriation and also to report any misconduct immediately

TheBoardofDirectorshasbeenentrustedwiththe responsibility of reviewing the findingsand to investigate and take necessary actionswhereverrequired.

HUMAN RESOURCES/ INDUSTRIAL RELATIONS:

Human resources are the backbone of anyCompany without whom nothing canbe accomplished. Various training anddevelopment programmes conducted periodically for its employees will enablethem to carry out theirworkmore efficiently.The Company has further adopted various innovative HR policies to gear up to facefuture challenges and to create a performance driven innovative and flexible organization.TheCompanyhasanexcellent trackrecordofmaintaining cordial industrial relations right from its inception. This year too industrial relationsintheCompanywereexcellent.

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ANNEXURE-BFORM

(See Rule 3)

COMPLIANCE CERTIFICATE

Reg.No.oftheCompany:01-65867AuthorizedCapital :Rs.3,20,00,000/-Paid-upCapital :Rs.3,10,00,000/- ToTheMembers,M/s. CITIPORT FINANCIAL SERVICES LIMITEDHouseNo.8-3-678/42/5,1stFloor,Santosh Manor, Navodaya Colony, Yellareddyguda,Hyderabad-500073

Wehaveexaminedtheregisters,records,booksand papers of CITI PORT FINANCIAL SERVICES LIMITED (The Company) as requiredtobemaintainedundertheCompaniesAct, 1956, (theAct) and theRulesmade thereunder and also the provisions contained in the Memorandum and Articles of Association of theCompanyfortheFinancialYearended31stMarch,2013.Inouropinionandtothebestofourinformation and according to the examinations carriedoutbyusandexplanationsfurnishedtousby thecompany,and itsofficers,wecertifythat in respect of the aforesaid financial yearthat: 1. TheCompanyhaskept andmaintained

all registers as stated in Annexure A to thiscertificate,aspertheprovisionsoftheAct and the rules made there under and allentriesthereinhavebeenrecorded.

2. The Company has filed the forms andreturns as stated in Annexure B to this certificate, with the Registrar ofCompanies.

3. The company being a public limitedcompanycommentsarenotrequired.

4. TheBoardofDirectorsdulymetfivetimeson 30.05.2012, 09.08.2012, 08.11.2012,11.02.2013 and 14.03.2013 in respect of which proper notices were given andtheproceedingsweredulyrecordedandsigned in theMinutes Bookmaintainedfor the purpose.

5. The company has closed its Register of Members,duringthefinancialyearunderreview from Tuesday 25th September,2012 to Saturday 29th September, 2012(both day inclusive) for the purpose of20th Annual General Meeting.

6. The Annual General Meeting of the Company for the financial year ended31stMarch, 2012washeld on Saturday,29th September, 2012 after giving duenotice to the members of the companyand the resolutionspassed thereatwereduly recorded in the Minutes Bookmaintained for the purpose.

7. NoExtra-ordinaryGeneralMeetingwasheld during the financial year underreview.

8. The Company has not advanced loans to itsDirectorsand/orthepersonsorfirmsor companies referred to under Section 295oftheActduringyearunderreview.

9. The Company has not entered into anycontracts falling within the purview ofSection297oftheActduringthefinancialyearunderreview.

10. The Company has made necessary entries in the register maintained under Section 301 of the Act.

11. TherewerenoinstancesfallingwithinthepurviewofSection314oftheActduringthe financial year under review and as

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suchcompanywasnotrequiredtoobtainany approval from the Board of Directors, membersortheCentralGovernment.

12. The Company has not issued any duplicate sharecertificatesduringthefinancialyearunderreview.

13. The Company has

i) not made any allotment/transmission/transfer of Securities duringthefinancialyear.

ii) not deposited any amount in a separate Bank Account as nodividend was declared during thefinancialyearunderreview.

iii) Not posted any warrants to anymember of the Company as nodividend was declared during thefinancialyearunderreview.

iv) no amounts lyingwith it inunpaiddividend account or any application money due for refund, matured deposits, matured debentures andthe interest accrued thereon whichhave remained unclaimed or unpaid for a period of seven years or more.

v) complied with requirements ofSection217oftheActforthefinancialyearunderreview.

14. The Board of Directors is duly constituted duringthefinancialyearunderreviewandthefollowingchangestookplace:

o Sri Prattipati Parthasarathi and Smt.

Madhavi Musnuru, the retiring directors were reappointed asdirectorsbythemembersinthe20thAnnual General Meeting

There were no other instances ofappointment of directors, additional directors, alternate directors and directors to fill casual vacancies duringthefinancialyear.

15. The Company has not appointed/ re-

appointed any Managing Director/ Whole–TimeDirector/Managerduringthefinancialyear.

16. The Company has not appointed any sole-selling agents during the financialyearunderreview.

17. There were no instances requiring theCompany to obtain approval from theCentral Government, Company LawBoard, Regional Director, Registrar or such other authorities as may beprescribedunderthevariousprovisionsoftheActduringthefinancialyearunderreview.

18. The Directors have disclosed their interest in other firms/Companies to the Boardof Directors pursuant to the provisions of the Act and the rules made there under duringthefinancialyear.

19. The Company has not allotted anyshares/debentures/other securities duringthefinancialyearunderreview.

20. TheCompanyhasnot boughtback anysharesduringthefinancialyear.

21. Therewas no redemption of PreferenceShares/Debenturesduringthefinancialyear under review as the company hasnot issued any preference shares or debentures.

22. Therewerenotransactionsnecessitatingthe Company to keep in abeyance the

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rights to dividend, rights shares and bonus shares pending registration oftransfer of shares.

23. The Company has not invited any deposits falling within the purview ofSection 58A during the financial yearunderreview.

24. The company has not borrowed anyamounts from its Directors, members,public, financial institutions, banks andothers during the financial year underreview.

25. The provisions of Section 372A of the Act are not applicable as the principlebusiness of the Company is acquisitionofshares,stocksorothersecurities.

26. The Company has not altered the provisions of the memorandum withrespect to situation of the company’s registeredofficefromonestatetoanotherstate during the financial year underreview.

27. The Company has not altered the provisions of the memorandum withrespect to the objects of the companyduringthefinancialyearunderreview.

28. The Company has not altered the provisions of the memorandum withrespect to name of the Company duringthefinancialyearunderreview.

29. The Company has not altered theprovisions of the memorandum withrespect to share capital during the financialyearunderreview.

30. The Company has not altered its Articles of Association during the financialyearunderreview.

31. As per the information given by theofficersoftheCompany,therewerenoprosecutionsinitiatedagainstorshowcausenoticesreceivedbythecompanyduring the financial year for offencesunder the Act.

32. The company has not received any money as security from its employees duringthefinancialyear.

33. The Company has not constituted a separate provident fund trust for its employees or class of its employees as contemplated under Section 418 of the Act.

ForP S Rao & Associates Company Secretaries

Sd/- CS Vanitha Company Secretary

C.P.No:10573DATE:14-08-2013PLACE:Hyderabad

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DATE:14-08-2013PLACE:Hyderabad

ANNEXURE - A STATUTORY REGISTERS AS MAINTAINED BY THE COMPANY

1. Register of Directors’ U/s 3032. Register of Directors’ Shareholdings U/s 3073.RegisterofMembersU/s1504.MinutesofBoardMeetingsU/s1935.MinutesofAnnualandExtra-OrdinaryGeneralMeetingsU/s1936.Registerofcontracts,firmsandCompaniesinwhichDirectorsareinterestedU/s301.7. Register of Investment U/s 372A

ANNEXURE – BFormsandReturnsasfiledbytheCompanywiththeRegistrarofCompanies,duringthefinancialyear ending on 31st March, 2013

Sl. No Forms/ Section Purpose Remarks Returns

1 FormNo.66 383A SubmissionofCompliancecertificate Filedwithadditionalfees on 27/11/2012

2 Form20B 159 FilingofAnnualreturnason29.09.2012 Filedwithnormalfeeson 27/12/2012

ForP S Rao & Associates Company Secretaries

Sd/- CS Vanitha Company Secretary C.P.No:10573

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CORPORATE GOVERNANCE REPORT(Incompliancewithclause49ofthelistingagreemententeredwiththestockexchanges)

1. COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE: Your company believes in providing highest transparency and ethical value in Corporate

Governance. Your company also believes in taking into confidence all the stakeholders viz.Shareholders, Employees, Creditors, Customers etc.Your company is committed to take thetorchofCorporateGovernanceforward,sothateverystakeholderofthecompanysynchronizesandsynergiestheireffortsintheirgrowthalongwiththegrowthoftheircompany.

2. BOARD OF DIRECTORS:

• Composition of Board of Directors

Atpresent,thestrengthoftheBoardisFiveDirectors.TheBoardcomprisesof1Executive,1NonExecutive Not Independent Director and 3 Non-Executive and Independent Directors.

• Board meeting and attendance

Five Board Meetings were held during the Financial Year and the gap between two boardmeetings did not exceed four months.

Thedatesonwhichmeetingwereheldareasfollows:

30.5.201209.08.201208.11.2012 11.02.2013 14.03.2013

TheconstitutionoftheBoardisgivenbelow:

S. Director Category Attendance Attendance Other Boards No at AGM held in Board on Meeting 29.09.2012 He Atte Direct Comm Committee ld nded orship ittee member Chairman ship ship 1 Smt Madhavi Musnuru Executive Director Yes 5 5 1 Nil Nil 2 Sri Ratan Kishan Musurnur Non Executive Not Independent Director Yes 5 5 1 Nil Nil

3 Sri Miriyalad Doraisamy Non Executive & Ethirajan Independent Director Yes 5 5 1 Nil Nil

4 Sri Parthasarathi Prattipati Non Executive & Independent Director Yes 5 5 6 1 1

5 Sri Anil Kumar Talasila Non Executive & Independent Director Yes 5 5 4 Nil Nil

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3. AUDIT COMMITTEE:

G Brief description of terms of reference

• Reviewtheun-auditedquarterlyresults,halfyearlyandannualaccountsofthecompany.

• OverseetheCompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible.

• RecommendingtheappointmentandremovalofStatutoryauditors,fixationofauditfeeandalsoapproval for payment of any other services.

• Reviewingwiththemanagement,theannualfinancialstatementsbeforesubmissiontotheBoardfocusingprimarilyon:

(i) Any changes in accounting policies and practices

(ii) Majoraccountingentriesbasedonexerciseofjudgmentbymanagement

(iii) Qualificationsindraftauditreports

(iv) Significantadjustmentsarisingoutoftheaudit

(v) The going concern assumption

(vi) Compliancewithaccountingstandards

• Anyrelatedpartytransactionsi.e.transactionsofthecompanyofmaterialnature,withpromotersorthemanagement,theirsubsidiariesorrelativeetc.;thatmayhavepotentialconflictwiththeinterests of the company at large.

• Reviewingwithmanagement,externalandinternalauditor’s,theadequacyofinternalcontrolsystems.

• Reviewingtheadequacyofinternalauditfunction,includingthestructureoftheinternalauditdepartment, staffing and seniority of the official heading thedepartment, reporting structurecoverageandfrequencyofinternalaudit.

• Discussionwithinternalauditorsanysignificantfindingsandfollow-upthereon.

• Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditorsintomatterswherethere is suspected of fraud or irregularity or a failure of internal control systems of a material natureandreportingthemattertotheboard.

• Discussionwithexternalauditorsbeforetheauditcommences,onthenatureandscopeofauditaswellhavepost-auditdiscussiontoascertainanyareasofconcerns.

• Reviewingthecompany’sfinancialandriskmanagementpolicies.

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• Tolookintoandreviewthereasonsforsubstantialdefaults,ifany,inpaymentstothedepositors,debentureholders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors;

TheChairmanoftheAuditCommitteeshallbepresentattheAnnualGeneralMeetingoftheCompanytoprovideanyclarificationonqueriesfromshareholders.

G Composition

TheAuditCommitteeoftheCompanycompriseofthefollowingDirectors:

Name of the Director Designation

Sri Parthasarathi Prattipati ChairmanSriAnilKumarTalasila MemberSmt.MadhaviMusnuru Member

G Meetings and Attendance during the Financial Year:

MEETINGS:

TheAuditcommitteeoftheBoardmetfourtimesduringtheyear,themeetingswasheldforapprovalofUn-AuditedFinancialResultsandAuditedFinancialresultsoftheCompanyi.e.on: 30.05.2012 09.08.201208.11.201211.02.2013

ATTENDENCE:

Name NoofMeetingsHeld NoofMeetingsAttended

Sri Parthasarathi Prattipati 4 4

Sri Anil Kumar Talasila 4 4

Smt Madhavi Musnuru 4 4

Theun-auditedfinancialresultsforeachquarterareapprovedbytheAuditCommitteebeforepassedon to the Board of Directors for approval and adoption..

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4. REMUNERATION COMMITTEE:

G Terms of Reference:

• TheRemunerationCommitteerecommendstotheboardthecompensationtermsoftheexecutive directors / non-executive directors

• FramingandimplementingonbehalfoftheBoardandonbehalfoftheshareholders,acredibleandtransparentpolicyonremunerationofexecutivedirectorsincludingESOP,Pension Rights and any compensation payment

• ConsideringapprovingandrecommendingtotheBoardthechangesindesignationandincrease in salary of the executive directors

• Ensuringtheremunerationpolicyisgoodenoughtoattract,retainandmotivatedirectors

• BringingaboutobjectivityindeemingtheremunerationpackagewhilestrikingabalancebetweentheinterestofourCompanyandtheshareholders

G Composition

RemunerationCommitteeoftheCompanyconsistsoffollowingNon-ExecutiveDirectors,whichisasfollows:

NAME OF THE DIRECTOR DESIGNATION

Sri Parthasarathi Prattipati Chairman

SriAnilKumarTalasila Member

Sri Miriyalad Ethirajan Member

G Remuneration paid to Directors during the Financial Year

RemunerationforFinancialYear Name of Director Designation 2012-13 (in Rs.) Salary&Perks Total

SmtMadhaviMusnuru Director(Finance) 300000 300000

No sitting fees is paid to the Directors of the Company

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5. INVESTORS AND SHAREHOLDERS GRIEVANCE COMMITTEE:

G Brief description of terms of reference:

To supervise andensure:(i) Efficienttransferofshares;includingreviewofcasesforrefusaloftransfer/transmissionof

sharesanddebentures;

(ii) Redressalofshareholderandinvestorcomplaintsliketransferofshares,non-receiptofbalancesheet, non-receipt of declared dividends etc;

(iii) Issueofduplicate/split/consolidatedsharecertificates;

(iv) Allotment and listing of shares;

(v) Reviewofcasesforrefusaloftransfer/transmissionofsharesanddebentures;

(vi) Reference to statutory and regulatory authorities regarding investor grievances;

(vii) Andtootherwiseensureproperandtimelyattendanceandredressalofinvestorqueriesandgrievances.

G Composition

TheCommitteecomprisesofthefollowingmembers:

NAME OF THE DIRECTOR DESIGNATION

Sri Parthasarathi Prattipati Chairman

SriAnilKumarTalasila Member

SriMiriyaladEthirajan Member

Name & Designation of the Compliance Officer : Smt Madhavi Musnuru Director

No. of shareholderscomplaintsreceivedduringtheFinancialYear : 3No.ofcomplaintssolvedtothesatisfactionoftheshareholders : 3No. of pendingcomplaints : Nil

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6. LOCATION AND TIME WHERE THE LAST THREE AGM’S HELD:

Year Date Location Time

2011-12 29-09-2012 8-3-678/42/5,1stFloor,SantoshManor, 2.00 P.M. Navodaya Colony, Yellareddyguda, Hyderabad-500073

2010-11 22-09-2011 8-3-678/42/5,1stFloor,SantoshManor, 2.00 P.M. Navodaya Colony, Yellareddyguda, Hyderabad-500073

2009-10 16-09-2010 8-3-678/42/5,1stFloor,SantoshManor, 11.00A.M. Navodaya Colony, Yellareddyguda, Hyderabad-500073 No Special Resolution is passed in the Previous three Annual General Meeting

POSTAL BALLOT:

No special Resolution is passed through Postal Ballot during the last Financial Year under Review

No Special Resolution is proposed to be conducted through postal ballot at the ensuing Annual General Meeting.

7. DISCLOSURES:

a. Materiallysignificantrelatedpartytransactionsi.e.transactionsoftheCompanyofmaterialnature,withitspromoters,theDirectorsorthemanagement,theirsubsidiariesorrelativesetc.,thatmayhavepotentialconflictwiththeinterestsofCompanyatlarge. – NIL –

b. Detailsonnon-compliancebytheCompany,penaltiesandstricturesimposedontheCompanybyStockExchangeorSEBIoranystatutoryauthority,onanymatterrelatedtocapitalmarkets,duringthelastthreeyears.: - NIL -

8. MEANS OF COMMUNICATION:

• TheQuarterlyresultsareusuallypublishedintheBusiness Standard (in English) and Andhra bhoomi (in regional language) dailies.

9. SHAREHOLDER INFORMATION:

• AGM : The21stAnnualGeneralMeetingoftheCompanywillbeheldonMonday,30thSeptember,2013attheRegisteredOfficeoftheCompany

• Financial Year: 1st April 2013 to 31st March 2014

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CALENDER OF EVENTS:

Event DatesFirstQuarterun-audited(Provisional)FinancialResults SecondWeekofAugust,2013SecondQuarterun-audited(Provisional)FinancialResults SecondWeekofNovember,2013ThirdQuarterun-audited(Provisional)FinancialResults SecondWeekofFebruary,2014FourthQuarterAuditedFinancialResults LastWeekofMay,2014

• BOOK CLOSURE DATE:

• Book Closure Date: FROM THURSDAY, 26th SEPTEMBER, 2013 TO MONDAY, 30th SEPTEMBER, 2013 (bothdaysinclusive).

• Listing on Stock Exchanges: The shares of the Company are listed at BSELimited MadrasStockExchangeLimited

TheDelhiStockExchangeAssociationLimited

ThecompanyhaspaidthelistingfeestotheaboveStockExchanges

• Dividend Payment Date: NA

• StockExchangeCode: BSELimited 531235 MadrasStockExchangeLimited CITIPORFIN TheDelhiStockExchangeAssociationLimited 03193• DematISINNumber

Under the Depository System the International Securities IdentificationNumber(ISIN)allottedtotheCompany’s INE494D01011 EquitySharesbyNSDL&CDSL

• Share Transfer System:

AllthephysicalsharetransfersreceivedareprocessedbytheShareTransferAgentsM/s. Bigshares Services Private Limited Hyderabad. The Company’s shares are being traded in compulsory Demat form. TheCompanyhasenteredintoagreementwithbothNSDLandCDSLtodematerializeitsshares,whichenabletheCompany’ssharestobetransferredelectronicallythroughDepositoriesSystem.

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• Market Price Data: DuringthenFinancialYear2012-13

Month BSE Limited

High Low

(Rs.) (Rs.)

April,2012 9.10 8.20May, 2012 7.80 7.80June, 2012 - -July, 2012 7.50 7.50August, 2012 7.15 6.47September,2012 7.84 6.47October,2012 9.99 8.23November,2012 8.70 8.70December,2012 -- --January, 2013 - -February,2013 8.68 8.25March, 2013 7.85 7.85

*NosharesweretradedduringthemonthofJune,DecemberandJanuary.

• Registrar and Transfer Agents : M/s. Bigshare Services Private Limited FlatNo.306,RightWing,3rdfloor,

AmruthaVilleApt.,Opp.YashodhaHospital, Raj Bhavan Road,Somajiguda, Hyderabad-500082

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• SHAREHOLDING PATTERN AS ON 31ST MARCH 2013:

Sl No Category No. of Shares Held % of Shareholding

SHAREHOLDING OF PROMOTERS & PROMOTER GROUPA1. INDIAN Individuals/HinduUndividedFamily - - Central Government /State Government(s) - - BodiesCorporate 899304 29.01 FinancialInstitutions/Banks Sub Total of A1 899304 29.01A2. FOREIGN Individuals (Non-Residents) - - Bodies Corporate - - Institutions - - Any Other (Specify) - - Sub Total of A2 - - TOTAL SHAREHOLDING OF PROMOTER 899304 29.01 AND PROMOTER GROUP ( A1 +A2)B.1 Public Shareholdings Institutions - - MutualFundsandUTI - - Banks/FinancialInstitutions - - Central Government/State Government - - VentureCapitalFunds - - Insurance Companies - - ForeignInstitutionInvestor - - ForeignVentureCapitalInvestors - - Any Other (Specify) - - Sub Total B1 - -

B2. Non Institutions Bodies Corporate 625,424 20.17 Individuals - - Individuals share holders holdings nominal sharecapitaluptoRs.1Lakhs 316,819 10.22

Individual Shareholding holding nominal sharecapitalinexcessofRs.1Lakhs 1256941 40.55

Any Other (Specify) NRIs/OCBs 12 - ForeignCollaborators - - HUF - -

Sub Total B2 22,00,696 70.99

TOTAL OF PUBLIC SHAREHOLDING (B1+B2) 22,00,696 70.99

C SharesheldbyCustodianandagainstwhich - - DepositoryReceiptshavebeenissued

TOTAL A+B+C 3100000 100.00

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DISTRIBUTION OF SHAREHOLDING AS ON 31.03.2013

Sl. No. Category From - To No. of % of No. of % of

Holders Holders Shares Shares

1 Upto - 5000 482 74.15 80,883 2.61

2 5001 - 10000 65 10.00 51,881 1.67

3 10001 - 20000 30 4.61 45,136 1.45

4 20001-30000 7 1.08 18,544 0.59

5 30001 - 40000 3 0.46 10,254 0.33

6 40001-50000 8 1.23 36,498 1.17

7 50001-100000 12 1.85 89,959 2.90

8 100001andabove 43 6.62 27,66,845 89.28

TOTAL 650 100.00 31,00,000 100.00

• DEMATERIALIZATION OF SHARES AND LIQUIDITY: Since the Company has already entered into agreement with both the depositories, viz., NSDL and CDSL for dematerialization of its shares,the shareholdersare free todematerialize their sharesandkeep them indematerialized fromwithanyDepository Participant.

• Outstanding GDRs/ADRs/Warrants or any Convertible instruments, conversion date and likely impact on equity: Not Issued : NIL

• ADDRESS FOR CORRESPONDENCE : Madhavi Musnuru HouseNo.8-3-678/42/5, 1stFloor,SantoshManor, Navodaya Colony, Yellareddyguda,

Hyderabad-500073

CEO & CFO CERTIFICATION : The Executive Director of the Company gave annual certificatesonfinancialreportingandinternalcontrols

totheboardIntermsofclause49.

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DECLARATION BY DIRECTOR ON COMPLIANCE WITH CODE OF CONDUCT AND ETHICS

CITIPORTFINANCIALSERVICESLIMITEDhasadoptedCodeofBusinessConductandEthics(“thecode”)whichappliedtoalltheemployeesandDirectoroftheCompany.UndertheCode,itisresponsibilityofallemployeesandDirectorstofamiliarizethemselveswiththeCodeandcomplywithitsStandards.

I hereby certify that the Board members and senior management personnel of CITIPORTFINANCIALSERVICESLIMITEDhaveaffirmedcompliancewiththeCodefortheFinancialYear2012-2013.

By order of the Board For CITIPORT FINANCIAL SERVICES LIMITED

Sd/-Place:Hyderabad MADHAVI MUSNURUDate:14-08-2013 Director

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Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Certificates:

I,MadhaviMusnuru,DirectorandCFOofM/sCitiportFinancialServicesLimitedtothebestofourknowledgeandbelief,certifythat:

1. IhavereviewedtheBalanceSheetandProfitandLossAccountandallitsschedulesandnotesonaccountsaswellastheCashFlowStatementfortheyearended31.03.2013

2. Tothebestofourknowledgeandbelief:

a) These statements do not contain any untrue statement or omit any material fact or contain statementsthatmightbemisleading.

b) ThefinancialstatementsandotherfinancialinformationincludedinthisreportpresentatrueandfairviewoftheCompany’saffairsandareincompliancewithexistingaccountingstandardsandapplicablelawsandregulations.

3. Tothebestofourknowledgeandbelief,therearenotransactionsenteredintobytheCompanyduringtheyearwhicharefraudulent,illegalorviolativeoftheCompany’scodeofconduct.

4. Iacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreporting.Wehaveevaluatedtheeffectivenessof internalcontrolsystemsoftheCompanypertainingtofinancialreportingandhavedisclosedtotheAuditorsandtheAuditCommittee,deficienciesinthedesignoroperationofsuchinternalcontrols,ifany,ofwhichweareawareandstepstakenorproposedtobetakenforrectifyingthesedeficiencies.

5. a) Therehasnotbeenanysignificantchangeininternalcontroloverfinancialreportingdur-

ing the year under reference;

b) Therehasnotbeenanysignificantchangesinaccountingpoliciesduringtheyearunderreference; and

c) Wearenotawareofanyinstancesduringtheyearofsignificantfraud,withinvolvementthereinofthemanagementoranyemployeehavingasignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting.

Sd/-Place:Hyderabad MadhaviMusnuruDate:14.08.2013 Director

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AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To The Board of DirectorsCitiportFinancialServicesLimitedHyderabad

I have examined the compliance of the conditions ofCorporateGovernance byCiti Port FinancialServices Limited for the year ended onMarch 31, 2013, as stipulated in Clause 49 of the ListingAgreementofthesaidcompanywiththestockexchanges.

ThecomplianceoftheconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Myexamination,conductedinthemannerdescribedintheguidancenoteon‘CertificationofCorporateGovernance’issuedbytheInstituteofCharteredAccountantsofIndiawaslimitedtoproceduresandimplementationsthereof,adoptedbytheCompanyforensuringthecomplianceoftheconditionsofCorporateGovernance.Itisneitheranauditnoranexpressionofopiniononthefinancialstatementsof the Company.

Inmyopinionandtothebestofmyinformationandaccordingtotheexplanationsgiventome,andtherepresentationsmadebytheDirectorsandtheManagement,IcertifythattheCompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabove-mentionedListingAgreement.IfurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.

ForGV&Co., Chartered Accountants

Sd/- Grandhi Vittal Proprietor MembershipNo.206462 FirmRegn.No.012875SPlace:HyderabadDate:14.08.2013

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INDEPENDENT AUDITOR’S REPORTTo THEMEMBERS,CITIPORTFINANCIALSERVICESLIMITED Wehave audited the accompanying financialstatementsofCitiportFinancialServicesLimited(“theCompany”),whichcomprisetheBalanceSheetasatMarch31,2013,andtheStatementofProfitandLossandCashFlowStatementfortheyearended,andasummaryofsignificantaccountingpoliciesand other explanatory information.

Management’s Responsibility for the Financial Statements:

Managementisresponsibleforthepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceand cash flows of theCompany in accordancewith theAccounting Standards referred to insub-section(3C)ofsection211oftheCompaniesAct,1956(“theAct”).Thisresponsibilityincludesthe design, implementation and maintenance of internal control relevant to the preparation and presentationofthefinancialstatementsthatgivea true and fair viewandare free frommaterialmisstatement,whetherduetofraudorerror.

Auditors’ Responsibility:

Our responsibility is to express an opinion onthese financial statements based on our audit.We conductedour audit in accordancewith theStandardsonAuditing issuedbythe InstituteofChartered Accountants of India. Those Standards requirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsare free from material misstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddepend on the auditor’s judgment, including the

assessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditor considers internal control relevant to the Company’s preparation and fair presentation of thefinancial statements inorder todesignaudit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies usedandthereasonablenessoftheaccountingestimatesmade bymanagement, aswell asevaluating the overall presentation of the financialstatements.

We believe that the audit evidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion. Opinion

Inouropinionandtothebestofourinformationand according to the explanations given to us, thefinancial statements give the informationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththe 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;

b) inthecaseoftheProfitandLossAccount,oftheprofit/lossfortheyearendedonthat date; and

c) inthecaseoftheCashFlowStatement,ofthecashflowsfortheyearendedonthatdate.

Report on Other Legal and Regulatory Requirements

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e) o n t h e b a s i s o f w r i t t e nrepresentations received from the directors as on March 31, 2013, and takenon recordby theBoardofDirectors, none of the directors is disqualifiedasonMarch31,2013,frombeingappointedasadirectorintermsofclause(g)ofsub-section(1) of section 274 of the Companies Act,1956.

f) Since the Central Government hasnotissuedanynotificationastotherateatwhichthecessistobepaidundersection441AoftheCompaniesAct, 1956nor has itissued any Rules under the said section, prescribing themannerinwhichsuchcess is tobepaid,nocessisdueandpayablebytheCompany.

For G.V & Co.,CHARTEREDACCOUNTANTS

Sd/-Grandhi VittalProprietor.MembershipNo.206462FirmRegn.No.012875S

Place:HYDERABADDate:06.06.2013

1. AsrequiredbytheCompanies(Auditor’sReport) Order, 2003 (“the Order”) issued by theCentralGovernmentof India intermsofsub-section(4A)ofsection227of theAct,wegive in theAnnexure astatement on the matters specified in paragraphs 4 and 5 of the Order.

2. Asrequiredbysection227(3)oftheAct,wereportthat

a) we have ob ta ined a l l t heinformation and explanations whichtothebestofourknowledgeandbeliefwerenecessaryforthepurpose of our audit;

b) in our opinion proper books ofaccountas requiredby lawhavebeenkeptbytheCompanysofaras appears from our examination ofthosebooks

c) the Balance Sheet, Statement of Profit andLoss, andCash FlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount.

d) in our opinion, the Balance Sheet, StatementofProfitandLoss,andCashFlowStatementcomplywiththe Accounting Standards referred toinsubsection(3C)ofsection211oftheCompaniesAct,1956;

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ANNEXURE TO THE AUDITOR’S REPORT (Referred to in Paragraph 1 under the heading of “reportonotherlegalandregulatoryrequirements”ofour report of even date)

I. In respect of its Fixed Assets

a. The Company has maintained proper records showing fullparticulars including quantitativedetailsandsituationoffixedassets.

b. All the fixed assets have beenphysically verified by themanagement at the reasonableinterval. According to the information and explanations given to us, no material discrepancies werenoticedonsuchverification.

c. In our opinion and according to information and explanations given to us, the Company has not disposed off substantial part offixedassetsduringtheyear.

II. The Company is a financial servicescompany, therefore physical verificationand maintenance of adequate recordof inventory is not applicable to thecompany.

III. a. The company has granted unsecured loans, to companies, firms and other parties coveredin the register maintained under section 301 of the Act.

b. Inouropinionandaccordingtotheinformation and explanations given tous,therateofinterest,wheneverapplicable and other terms andconditions of the unsecured loans given by the company are notprimafacie, prejudicial to the interest of the company.

IV. In my opinion and according to the information and explanation given to me, there are adequate internal controlprocedures commensurate with the sizeofthecompanyandnatureofitsbusiness.

V. In our opinion and according to the information and explanations given to us, we are of the opinion, that thetransactionthatneedtobeenteredintheregister maintained under section 301 of the companies act, 1956 have been soenteredandtheyhavebeenmadeatpricewhicharereasonablehavingregardtotheprevailing market price at the relevanttime.

VI. In my opinion and according to the information and explanations given to us, the company has not accepted deposits frompublicandtherefore,theprovisionofSection 58A and 58AA of the Companies Act, 1956 and rules there under are notapplicabletothecompany.

VII. In my opinion, there is an internal audit system commensurate with the size ofbusiness.

VIII. The Central Government has not prescribedmaintenanceofcostrecordsbytheCompanyundersection209(1) (d)ofthe Act.

IX. The company has been regular indepositing undisputed statutory dues, including provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax,wealth-tax, customduty,exciseduty, cess andother statutorydueswiththe appropriate authorities. According to the information and explanation given to me, no undisputed amounts payable inrespect of income tax, wealth tax, salestax, customs duty and excise duty wereoutstanding, at the year-end for a period of more than six months from the date theybecamepayable.

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X. The Company have accumulated losses at the end of the year of Rs. Nil and the company has not incurred cash losses during current year and the company hasn’t incurred any cash losses in the immediatelyprecedingfinancialyear.

XI. Based on my audit procedures and on the information and explanation given bythemanagement, Iamoftheopinionthat the company has not defaulted in the repayment of dues to financialinstitutions,banksanddebentureholders.

XII. According to the information and explanations given to me, the company hasgivenloansandadvancesonthebasisofsecuritybywayofPronotes,postdatedinstruments,pledgeofshares,debenturesand other securities.

XIII. The provisions of any special statute applicabletoChitFund,NidhiorMutualBenefitFund/Societiesarenotapplicableto the Company.

XIV. In my opinion the company is not dealing ortradinginshares,securities,debenturesand other investments during the year under review; however there are long-term investments in the company.

XV. According to the information and explanations given to me, the company has not given any guarantee for loans taken by others from bank or financialinstitutions.

XVI. Therewerenotermloansobtainedbythecompany during the year.

XVII. Accordingtothecashflowstatementandother records examined by me and theinformation and explanations given to me,onoverallbasis,fundsraisedonshorttermbasishave,primafacie,notbeenused

during the year for long term investment and vice versa, other than temporary deployment pending application.

XVIII. The company has not made any preferential allotment during the year nor does the company have any outstanding debenturesduringtheyear.

XIX. The company has not issued any debenturesandnosecuritiesandchargesarerequiredtobecreated.

XX. The company has not raised any money bypublicissueduringtheyear.

XXI. To the best of my knowledge andbelief and according to the informationexplanation given to me, no fraud on or bythecompanywasnoticedorreportedduring the year.

For G.V & Co.,CHARTEREDACCOUNTANTS

Sd/-Grandhi VittalProprietor.MembershipNo.206462FirmRegn.No.012875S

Place:HyderabadDate:06.06.2013

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A Equity and Liabilities: Shareholders funds (a) God Account 22 22 (b)ShareCapital 1 31000000 31000000 (c)ReservesandSurplus 2 1778057 2918999 (d)MoneyReceivedagainstShareWarrants - -Share application money pending allotment 3 - - Non-current liabilities (a)Long-termborrowings 4 - - (b)Deferredtaxliabilities(Net) (c)OtherLongtermliabilities 5 - - (d)Long-termprovisions 6 - - Current Liabilities (a)Short-termborrowings 7 - - (b)Tradepayables 8 - - (c)Othercurrentliabilities 9 191267 143923 (d)Short-termprovisions 10 388374 205489 TOTAL 33357721 34268433 B. Assets: Non-current assets (a)Fixedassets (i)Tangibleassets 11 46459 50375 (ii)Intangibleassets - - (iii)Capitalwork-in-progress - - (iv)Intangibleassetsunderdevelopment - - (b)Non-currentInvestments 12 107138 2107138 (c)Deferredtaxassets(net) 29 1570 2290 (d)Long-termloansandadvances 13 12529580 22545959 (e) Other non-current assets 14 30000 30000 Current assets (a) Current Investments - - (b)Inventories 15 - - (c)TradeReceivable 16 - - (d)CashandBankbalances 17 639936 761473 (e)Short-termloansandadvances 18 20003038 8771199 (f)Othercurrentassets 19 - - TOTAL 33357721 34268433 Accounting Policies & Other relevant Notes 27 to 41 PreviousYearFigureshavebeenregrouped/reclassified/rearrangedwherevernecessary.

Particulars Note As At As At No. 31.03.2013 31.03.2012

BALANCE SHEET AS ON 31ST MARCH, 2013

As per the report of even date attachedFor G.V & Co.,Chartered Accountants Sd/-(Grandhi Vittal)ProprietorMembershipNo.206462FirmRegnNo.:012875SPlace:HyderabadDate:06.06.2013

For and on behalf of the Board

Sd/- Sd/- MADHAVI MUSNURU PARTHASARATHI PRATTIPATI WholetimeDirector Director

Amount in INR.

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A Continuing Operations: 1 Revenuefromoperations 20 1691562 1688373 Less:ExciseDuty - - Revenuefromoperations(net) 1691562 16883732 Other income 21 - - 3 Total Revenue (1 + 2) 1691562 1688373 4 Expenses: Cost of materials consumed - - PurchasesofStockinTrade 22 - - “Changesininventoriesoffinishedgoods, work-in-progressandStock-in-Trade” 23 - - EmployeeBenefitExepense 24 687710 682704 OtherExpenses 25 1956531 518958 Total 2644241 1201662 5 Earnings before exceptional and extra ordinary items, interest, tax, depreciation and amortisation (EBITDA) (3 - 4) (952679) 486711 6 FinanceCosts 26 47571 637837 Depreciationandamortisationexpense 11 3916 39128 Profit / (Loss) before exceptional and extraordinary items and tax (5 - 6 - 7) (1004165) 419016 9 Exceptional Items - - 10 Profit / (Loss) before extraordinary items and tax (8 - 9) (1004165) 419016 11 Extraordinary items - - 12 Profit / (Loss) before tax (10 - 11) (1004165) 419016 13 TaxExpense: - Current Tax 136056 146658 - Deferred Tax 720 1000 14 Profit / (Loss) for the period from continuing operations (12 - 13) (1140941) 271358 B Discontinuing Operations 15 Profit/(loss)fromdiscontinuingoperations - -16 Tax expense of discontinuing operations - - 17 Profit/(Loss)fromDiscontinuingoperations(aftertax)(15-16) - -C Total Operations 18 Profit / (Loss) for the year (14 + 17) (1140941) 271358 19 Earningsperequityshare: -Basic (0.37) 0.09 -Diluted (0.37) 0.09 Accounting Policies & Other relevant Notes 27 to 41

PreviousYearFigureshavebeenregrouped/reclassified/rearrangedwherevernecessary. .

S. Particulars Note For the Year For the YearNo. No ended 31.03.2013 ended31.03.2012

STATEMENT PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH, 2013

As per the report of even date attachedFor G.V & Co.,Chartered Accountants Sd/-(Grandhi Vittal)ProprietorMembershipNo.206462FirmRegnNo.:012875S

Place:HyderabadDate:06.06.2013

For and on behalf of the Board

Sd/- Sd/- MADHAVI MUSNURU PARTHASARATHI PRATTIPATI WholetimeDirector Director

Amount in INR

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CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013(Pursuanttoclause32ofListingAgreementasamended)

Particulars For the Year For the Year ended 31.03.2013 ended 31.03.2012A. Cash flow from Operating activities NetProfitbeforetaxasperProfitandlossaccount (1004165) 419016Adjustments

(Profit)/Lossonsaleofinvestments(net) 1400000 - DepreciationandAmortisationExpense 3916 3912 PreliminaryExpenditureWrittenOff - - Interest Income - - Dividend income - - FinanceCosts 47571 63783 447321 486711 (Increase)/DecreaseinTradeandOtherReceivables - - Increase/(Decrease)inTradePayables - - (Increase)/DecreaseinFixedDepositshavingoriginalmaturityover3months - - Increase/(Decrease)inOtherCurrentLiab./ShortTermProv. 94173 (124440) Increase/(Decrease)inOtherLongTermLiab./LongTermProv. - -CashgeneratedfromOperations 541494 362271 DirectTaxespaid - (10900)NetCashfromOperatingactivities 541494 351371B. Cash flow from Investing Activities (Purchase)/SaleofFixedAssets(Net) - - CapitalWork-in-progress - - (Purchase)/SaleofInvestments(Net) 600000 206919 MovementinLoans&Advances (1215461) (954153) Changes in Other Current Assets / Non current Assets - 313423 Interest Income - - Dividend income - - Cashflowbeforeexceptionalitems (615461) (433811) Exceptional Items Net Cash from Investment Activities (615461) (433811)C. Cash Flow from Financing Activities Proceeds from issue of Share Capital/ Share Application Money - - Proceeds/(Repayment)fromBorrowings - - FinanceCosts (47571) (63783) Dividends Paid - - Dividend tax paid - - Effect of Exchange Rate change - - Netcashusedinfinancingactivities (47571) (63783)Net (Decrease) / Increase in cash and cash equivalents (121537) (146223)Cash and cash equivalents at the beginning of the year 761473 907696 Cash and Cash equivalents at the end of the year 639936 761473 ShortTermBankDeposits - -Cash and Bank Balances at the end of the year 639936 761473 1.TheaboveCashFlowStatementhasbeenpreparedundertheIndirectMethodassetoutinAccountingStandard3onCashFlowStatementsnotifiedundersection211(3C)oftheCompaniesAct,1956. 2.PreviousYearFigureshavebeenregrouped/reclassified/rearrangedwherevernecessary.

As per the report of even date attachedFor G.V & Co.,Chartered Accountants Sd/-(Grandhi Vittal)ProprietorMembershipNo.206462FirmRegnNo.:012875S

For and on behalf of the Board

Sd/- Sd/-

MADHAVI MUSNURU P. PARTHASARATHI WHOLETIMEDIRECTOR DIRECTOR

Amount in INR

Place:HyderabadDate:06.06.013

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33

Note No. 1 : SHARE CAPITAL

Sl Particulars As At 31.03.2013 As At 31.03.2012 No. Number Amount Number Amount

1 Authorised EquitySharesofRs.10/-eachwith 3200000 32000000.00 3200000 32000000.00 Voting Rights

2 Issued, Subscribed and Paid up EquitySharesofRs.10/-eachfullypaidup 3100000 31000000.00 3100000 31000000.00 withVotingRights

Total 3100000 31000000.00 3100000 31000000.00

(a) Reconciliation of the number of shares outstanding as at 31.03.2013 and 31.03.2012 Sl Particulars As At 31.03.2013 As At 31.03.2012 No. Number Amount Number Amount1 EquitySharesoutstandingatthe 3100000 31000000.00 3100000 31000000.00 beginningoftheyear

2 EquitySharesIssuedduringtheyear 0 0.00 0 0.00

3 EquitySharesboughtbackduringtheyear 0 0.00 0 0.00

4 EquitySharesoutstanding 3100000 31000000 3100000 31000000 at the end of the year

(b) Details of Shareholders holding more than 5 percent shares:

Sl Particulars As At 31.03.2013 As At 31.03.2012 No. No of % of No of % of Shares Held Holding Shares Held Holding

Equity Shares with Voting Rights 1 GoldenValleyHoldingsPrivateLimited 899304 29.01% 899304 29.01%2 GinzaCommunicationPrivateLimited 307600 9.92% 307600 9.92%3 MithulInvestmentPrivateLimited 242200 7.81% 242200 7.81%

(c) Aggregate number and class of shares allotted as fully paid up for consideration otherthan cash, bonusshares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date

S.No. Particulars No. of shares As At 31.03.2013 As At 31.03.2012

Nil Nil

NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Amount in INR

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34

NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.212No Rs. Rs.

2 Note : Reserves & Surplus General Reserve AsperlastBalanceSheet 18913 18913 Add:TransferredfromProfit&LossA/c - - Closing Balance 18913 18913 Statutory Reserve Fund * OpeningBalance 929224 874952 (+) Addition during the year - 54272 Closing Balance 929224 929224 *StatutoryReserveFundCreatedasperSection45-ICofReserveBankofIndiaAct,1934 ProfitandLossAccount AsperlastBalanceSheet 1970861 1753775 (+)NetProfitforthecurrentyear -1140941 271358 (+) Transfer from Reserves - - (-)NetLossforthecurrentyear - - (-) Proposed Dividends - - (-) Interim Dividends - - (-) Transfer to Statutory Reserve - 54272 Closing Balance 829920 1970861 Total 1778057 2918999 3 Note: Share Application money pending allotment Total Amount - - 4 Note: Long Term Borrowings Secured TermLoansfromBanks - - VehicleLoansfromBanks - - Unsecured - -

5 Note: Other Longterm Liabilities OtherLiabilites - -

Amount in INR

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35

NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.212No Rs. Rs.

6 Note: Long Term Provisions Provisions - Others - - - - 7 Note: Short Term Borrowings Secured LoansrepayableondemandfromBanks - - LoansrepayableondemandfromOthers - - Unsecured - LoansfromRelatedParties - - OtherLoansandAdvances - - - -

8 Note: Trade Payables Dues to Micro, Small and Medium Enterprises * - - Dues to Others - -

- - 9 Note: Other Current Liabilities CurrentMaturitiesofLongTermDebt(Secured) TermloansfromBanks - - InterestAccrued&DueonBorrowings - - Advances received from Customers - - OtherPayables* 191267 143923

191267 143923 *OtherPayablesinclude ExpensesPayable 181018 138871 StatutoryLiabilities 10249 5052 10 Note: Short Term Provisions ProvisionsforEmployeeBenefits - - Provisions-Others: Provision for Taxes 282714 146658 Contingency Provision Against Standard Assets * 105660 58831 388374 205489

Amount in INR

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36

Note

No.

: 11

Fix

ed A

sset

s

(A

mou

nt IN

R)

Net

Bloc

kS.

Particualrs

Balan

ce

Addition

sD

isposals

Acquisitions

Recla

ssifie

d

Revalu

ation

Effectof

Borro

wing

OtherA

dj.

“Bala

nce

No.

AsAt

through

asheld

inc

rease

foreign

cost

AsAt

01.04.2012

busin

ess

forsale

exchange

capitalised

31.03.203

combin

ation

s

differences

1 2

3 4

5 6

7 8

9 10

=1+2

+3+4

+5

+6-7+

8-9A

Tangibleassets:

(a)

Computers&Software

Owned

188130

-

-

-

-

-

-

-

-

188130

Takenunderfinancelea

se

-

-

-

-

-

-

-

-

-

-

Givenunderoperatinglea

se

-

-

-

-

-

-

-

-

-

-

(b)

FurnitureandFixtures

Ow

ned

277269

-

-

-

-

-

-

-

-

277269

Takenunderfinancelea

se

-

-

-

-

-s

-

-

-

-

-

Givenunderoperatinglea

se

-

-

-

-

-

-

-

-

-

-

(c)

Plant&

Machin

ery

Ow

ned

82350

-

-

-

-

-

-

-

-

82350

Takenunderfinancelea

se

-

-

-

-

-

-

-

-

-

-

Givenunderoperatinglea

se

-

-

-

-

-

-

-

-

-

-

Tota

l (A)

54

7749

-

-

-

-

-

-

-

-

54

7749

Pr

evio

us Y

ear

5477

49

-

-

-

-

-

-

-

-

5477

49

B In

tang

ible

ass

ets

-

-

-

-

-

-

-

-

-

-

Tota

l (B)

-

-

-

-

-

-

-

-

-

-

Pr

evio

us Y

ear

-

-

-

-

-

-

-

-

-

-

Gran

d To

tal (

A +

B)

5477

49

-

-

-

-

-

-

-

-

5477

49

Page 38: 21ST ANNUAL REPORT 2012 -2013 - Citi Port Financial Services

37

Ac

cum

ulate

d de

prec

iation

and

impa

irmen

t

N

et b

lock

S.

Particualrs

Balan

ce

Deprecitio

nElim

inated

Elimina

ted

Impairm

ent

Revalu

ation

other

Bala

nce

Balan

ce

“Bala

nce

No.

AsAt

amortisation

ondisp

osal

onrecla

ssi-

losses

ofim

pairm

ent

adjus

tments

AsAt

AsAt

AsAt

01.04.2012

expense

ofassets

fication

recognise

din

losses

31.03.2013

31.03.20133

1.03.2013

fortheye

ar

asheld

for

Statem

entof

recognise

din

sale

Profitandloss

Statem

entof

Profitandloss

1 2

3 4

5 6

7 8

9 10

=1+2

+3+4

+5

+6-7+

8-9A

Tang

ible

ass

ets

:

(a)

Computers&Software

Ow

ned

181630

-

-

-

-

-

-

181630

6500

6500

Takenunderfinancelea

se

-

-

-

-

-

-

-

-

-

-

Givenunderoperatinglea

se

-

-

-

-

-

-

-

-

-

-

(b)

FurnitureandFixtures

Ow

ned

267677

-

-

-

-

-

-

267677

9592

9592

Takenunderfinancelea

se

-

-

-

-

-

-

-

-

-

-

Givenunderoperatinglea

se

-

-

-

-

-

-

-

-

-

-

(c)

Plant&

Machin

ery

Ow

ned

48067

3916

-

-

-

-

-

51983

30367

34283

Takenunderfinancelea

se

-

-

-

-

-

-

-

-

-

-

Givenunderoperatinglea

se

-

-

-

-

-

-

-

-

-

-

To

tal (

A)

4973

74

3916

-

-

-

-

-

50

1290

46

459

50

374

Pr

evio

us Y

ear

4934

63

3912

-

-

-

-

4973

75

5037

4 54

286

B In

tang

ible

ass

ets

-

-

-

-

-

-

-

-

-

-

To

tal (

B)

-

-

-

-

-

-

-

-

-

-

Pr

evio

us Y

ear

-

-

-

-

-

-

C

Capi

tal W

ork

in P

rogr

ess

-

-

Gr

and

Tota

l (A

+ B

+ C)

49

7374

39

16

-

-

-

-

-

5012

90

4645

9 50

374

Page 39: 21ST ANNUAL REPORT 2012 -2013 - Citi Port Financial Services

38

12 Note : Non Current Investments

In Equity Shares (Quoted - fully paid up) EnsaSteelLtd. 550 5500 550 5500 NaharSpinningMillsLtd. 50 12525 50 12525 PankajPolymersLtd. 3400 27168 3400 27168 SamtelColorLtd. 200 16940 200 16940 SkypackLtd. 100 3155 100 3155 StandardIndustriesLtd. 4000 20000 4000 20000 SurajLtd. 55 3850 55 3850 UniroyalIndustriesLtd., 1700 17000 1700 17000 VinylChemicals(India)Ltd. 50 1000 50 1000 Total 107138 107138 In Equity Shares (Unquoted - fully paid up) SuryaudaySpinningMills(P)Ltd. - - 200000 2000000 Total - 2000000 Grand Total 107138 2107138

Note1:AggregateamountofQuotedInvestmentsRs.1,07,138/-(PreviousYearRs.1,07,138/-) Note2:MarketValueofQuotedInvestmentsRs.1,07,402/-(PreviousYearRs.1,14,596/-/) Note3:BookvaluehasbeentakenintheabsenceofStockExchangequotationsinMarketValueofQuotedInvestmentsNote4:AggregateamountofUn-quotedInvestmentsRs.Nil/-(PreviousYearRs.20,00,000)

Note Particulars No of As at No of As at No Shares 31.03.2012 Shares 31.03.211 Rs. Rs.

NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Amount in INR

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.2012 No Rs. Rs. 13 Note : Long Term Loans & Advances

(a) Capital Advances - - (b) SecurityDeposits - -(c) Loans&Advancestorelatedparties - -(d) Loans&AdvancestoEmployees - -(e) Prepaid Expenses - - (f) Advance Income Tax - - (g) MAT Credit Entitlement - - (h) BalanceswithGovernmentAuthorities TDSReceivable 284580 115738(i) OtherLoans&Advances Secured, considered good - - Unsecured, considered good GinzaCommunicationsPvtLtd. 14930221 PrecisionInfrastructure(P)Ltd. 2500000 2500000 CitiportCreditLtd. 9745000 5000000(j) Doubtful - - 12529580 22545959 Less:Provisionforotherdoubtfulloans&advances - - 12529580 22545959

Note: LongTermLoans&Advancesincludeamountsduefrom Directors - - OtherOfficersofcompany - - Firmsinwhichanydirectorisapartner - - Privatecompaniesinwhichanydirectorisadirectorormember - - 14 Note : Other Non-Current Assets (a) Long-termtradereceivables - - (b) Unamortisedexpenses *(totheextentnotwrittenoffornotadj.) - - (i) Ancillaryborrowingcosts - - (ii) Share issue expenses - - (iii) Discount on shares - - (iv) Other Expenses - - Preliminary Expenditure - - (c) Accruals - - (d) Other Non-current Assets Rent Deposit 30000 30000 Telephone Deposit - - Other Deposits - - 30000 30000

Amount in INR

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.2012 No Rs. Rs. 15 Note : Investments (a) Rawmaterials - - Goods-in-transit - - (b) Work-in-progress - - Goods-in-transit - - (c) Finishedgoods(otherthanthoseacquiredfortrading) - - Goods-in-transit - - (d) Stock-in-trade(acquiredfortrading) - - Goods-in-transit - - (e) Stores and spares - - Goods-in-transit - - (f) Loosetools - - Goods-in-transit - - (g) Others (Specify nature) - - Goods-in-transit - - 0 0 16 Note : Other Current Assets Tradereceivablesoutstandingforaperiodexceeding sixmonthsfromthedatetheyweredueforpayment Secured, considered good - - Unsecured, considered good - - Doubtful - - Tradereceivablesoutstandingforaperiodlessthan sixmonthsfromthedatetheyweredueforpayment Secured, considered good - - Unsecured, considered good - - Doubtful - - Less:Provisionfordoubtfultradereceivables - 0 0 *Tradereceivablesincludedebtsduefrom: Directors - - OtherofficersoftheCompany - - Firmsinwhichanydirectorisapartner(givedetailsperfirm)- - Privatecompaniesinwhichanydirectorisadirectoror member(givedetailspercompany) - -

Amount in INR

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.2012 No Rs. Rs. 17 Note: Cash and Bank balances (a) CashandCashEquivalents (i) Balanceswithbanks; In Deposit Accounts - - InCurrentAccounts 438951 411190 (ii) Cheques,draftsonhand - 336000 (iii) Cashonhand 200985 14282 (b) OtherBankbalances In Deposit Accounts - - 639936 761473

18 Note: Short Term Loans & Advances (a) Loans&Advancestorelatedparties Secured, considered good - - Unsecured, considered good TrinoxInfrastructureandDevelopersPrivateLtd 1544325 1094325 Doubtful - - 1544325 1094325 Less:Provisionfordoubtfulloans&advances 1544325 1094325 (b) SecurityDeposits - - (c) Loans&AdvancestoEmployees 800000 - (d) Prepaid Expenses 4075 - (e) BalanceswithGovernmentAuthorities TDSReceivable 169158 168842 (f) Inter-Corporate Deposits - - (g) Others Secured, considered good - - Unsecured, considered good GinzaCommunicationsPvtLtd. 13924882 - InnovationShowRoom - 1505952 KatragaddaLaxmiNarasimaRao - 2739534 KiteWomenCollegeofProfessionalEngineeringSciences 502811 502811 PhatPhishFilms(P)Ltd 3057787 2759735 (j) Doubtful - - 20003038 8771199 Less:Provisionforotherdoubtfulloans&advances - - 20003038 8771199

Note:ShortTermLoans&Advancesincludeamountsduefrom Directors - - OtherOfficersofcompany - - Firmsinwhichanydirectorisapartner - - Privatecompaniesinwhichanydirectorisadirectorormember- -

Amount in INR

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19 Note: Other Current Assets (a) Unbilledrevenue - - (b) Unamortisedexpenses - - (c) Accruals - - (d) Other Current Assets * - -

- -

20 Note: Revenue from Operations Interest 1691562 1688373 OtherfinancialServices - - 1691562 1688373

21 Note: Other Income Other Income - - - - 22 Note: Purchases Purchases - -

- -

23 Note: Changes in inventories of finished goods, work-in-progress and stock-in-trade Inventoriesattheendoftheyear: Finishedgoods(acquiredfortrading) - - Work-in-progress - - Stock-in-trade - -

- - Inventoriesatthebeginningoftheyear: Finishedgoods(acquiredfortrading) - - Work-in-progress - - Stock-in-trade - - - - Net increase / (decrease) - -

NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.2012 No Rs. Rs.

Amount in INR

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.2012 No Rs. Rs.

Amount in INR

24 Note: Employee Benefit Expenses Salariesandwages 378000 378000 Directors Remuneration 300000 300000 Contributiontoprovidentandotherfunds - - Staffwelfareexpenses 9710 4704 687710 682704

25 Note: Other Expenses

AdvertisementExpenses 58707 29700 AuditFee 50562 50562 InternalAuditFee 12500 - ComputerSoftware/MaintenanceExp - 1250 Conveyence Expenses 4236 670 DeMat & RTA Expenses 45311 51223 FilingFees 3000 3000 Internet/CableCharges 7635 6625 ListingFees 39326 36618 LossonSaleofInvestments 1400000 - Meeting Expenses 2520 5251 OfficeMaintenance 24000 24000 Postage&Courier 11497 14210 Printing&Stationery 30589 25309 Professional/LegalFees 202248 198540 Rent 60000 65000 WebsiteHostingCharges 4400 7000

1956531 518958 26 Note: Finance Costs Interest Expense Interest - - Interest on Others * - 1072 OtherFinanceExpenses

BankCharges 741 3881 ProvisionforStandardAssets* 46829 58831 47571 63783 *InterestonOthersincludeInterestonIncomeTaxPayable

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NOTE 27: SIGNIFICANT ACCOUNTING POLICIES

1. Basis of accounting

TheFinancialStatementsarepreparedunderhistoricalcostconventiononthebasisofgoingconcernand as perAccounting Standards notified under Section 211(3C) of theCompaniesAct, 1956. TheCompany follows theAccrual systemofAccounting andPrudentialNormsprescribedbyReserveBankofIndiaconsistentlyfromyeartoyear.

2. Use of estimates

Thepreparationoffinancialstatementsinconformitywithgenerallyacceptedaccountingprinciplesrequiresthemanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandthedisclosureofcontingentliabilitiesonthedateofthefinancialstatementsandthereported amount of revenues and expenses during the reporting periods. Although these estimates are baseduponmanagement’sknowledgeofcurrenteventsandactions,actualresultscoulddifferfromthoseestimatesandrevisions,ifany,arerecognizedinthecurrentandfutureperiods.

3. Intangible assets and amortization

Softwareswhicharenotintegralpartofthehardwareareclassifiedasintangiblesandisstatedatcostlessaccumulatedamortization.Softwaresarebeingamortizedovertheestimatedusefullifeof5years.

4. Fixed assets and depreciation / amortization

FixedAssets(GrossBlock)arestatedathistoricalcostlessaccumulateddepreciation.Costcomprisesthepurchasepriceandanyattributablecostofbringingtheassettoitsworkingconditionforitsintendeduse.Building/specificidentifiableportionofBuilding,includingrelatedequipmentsarecapitalizedwhentheconstructionissubstantiallycompleteoruponreceiptoftheoccupancycertificate,whicheveris earlier. Depreciation on assets is provided on straight-line method at the rates and in the manner prescribedinscheduleXIVtotheCompaniesAct,1956.

5. Investments

Currentinvestmentsarestatedatlowerofcostandfairvalue.Long-terminvestmentsarestatedatcostandprovisionfordiminutioninvalue,otherthantemporary,isconsideredwherevernecessary.Profit/lossonsaleofinvestmentsiscomputedwithreferencetotheaveragecostoftheinvestment.

6. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefitswill flow to thecompanytherevenuecanbereliablymeasuredonmercantilebasis.

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7. Borrowing costs

Borrowing costs that are attributable to the acquisition and / or construction of qualifying assetsare capitalized as part of the cost of such assets, in accordancewithAccounting StandardAS-16 –“BorrowingCosts”.Aqualifyingassetisonethatnecessarilytakesasubstantialperiodoftimetogetreadyforitsintendeduse.CapitalisationofBorrowingCostsissuspendedintheperiodduringwhichtheactivedevelopmentisdelayeddueto,otherthantemporaryinterruption.Allotherborrowingcostsarechargedtotheprofit&lossaccountasincurred.

8. Taxation

Provision for tax for the year comprises current income tax and deferred tax. Current income tax is determinedinrespectoftaxableincomewithdeferredtaxbeingdeterminedasthetaxeffectoftimingdifferencesrepresentingthedifferencebetweentaxableincomeandaccountingincomethatoriginateinoneperiod,andarecapableofreversalinoneormoresubsequentperiod(s).Suchdeferredtaxisquantifiedusingratesandlawsenactedorsubstantivelyenactedasattheendofthefinancialyear.

9. Foreign currency transactions

Transactions in foreign currency and nonmonetary assets are accounted for at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are convertedattheyearendexchangerate.AsspecifiedunderAccountingStandard(AS-11)–EffectsofChangesinForeignExchangeRates,theexchangegain/lossontransactionwithregardtotheFixedAssetshasbeencapitalizedalongwithFixedAssets.Theotherexchangegainsrelatedtocurrentassetshasbeenchargedtotheprofit&lossaccount

10. Employees benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with RevisedAccounting Standard 15 – Employee Benefits (Revised 2005) issued by the Institute of CharteredAccountants of India (the “ICAI”).

(i) Provident fund

The Company makes contribution to statutory provident fund in compliance with theEmployeesProvidentFundandMiscellaneousProvisionAct, 1952. In termsof theGuidanceon implementing therevisedAS–15, issuedby theAccountingStandardBoardof the ICAI,contribution made towards statutory provident fund is treated as a defined benefit plan.Accordingly,thecontributionpaidorpayableandtheinterestshortfall,ifany,isrecognizedasanexpenseintheperiodinwhichservicesarerenderedbytheemployee.

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(ii) Gratuity

Gratuityisapostemploymentbenefitandisinthenatureofadefinedbenefitplan.Theliabilityrecognizedinthebalancesheetinrespectofgratuityisthepresentvalueofthedefinedbenefit/obligationatthebalancesheetdatelessthefairvalueofplanassets,togetherwithadjustmentsforunrecognizedactuarialgainsorlossesandpastservicecosts.Thedefinedbenefit/obligationisprovidedatornearthebalancesheetdatebyanindependentactuaryusingtheprojectedunitcredit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptionsarecreditedorchargedtotheprofit&lossaccountintheyearinwhichsuchgainsor losses are determined.

(iii) Compensated absences

Liabilityinrespectofcompensatedabsencesbecomingdueorexpectedtobeavailedwithinoneyearfromthebalancesheetdateisrecognizedonthebasisofundiscountedvalueofestimatedamountrequiredtobepaidorestimatedvalueofbenefitexpectedtobeavailedbytheemployees.

(iv) Other short term benefits

Expenseinrespectofothershort-termbenefitsisrecognizedonthebasisoftheamountpaidorpayablefortheperiodduringwhichservicesarerenderedbytheemployee.

11. Leases

Assetssubjecttooperatingleasesareincludedunderfixedassetsorcurrentassetsasappropriate.Rent(Lease)incomeisrecognizedintheprofit&lossaccountonastraight-linebasisovertheleaseterm.Costs,includingdepreciation,arerecognizedasanexpenseintheprofit&lossaccount.

12. Impairment of assets

TheCompanyassessesateachbalancesheetdatewhetherthereisanyindicationthatanassetmaybeimpaired.Ifanysuchindicationexists,theCompanyestimatestherecoverableamountoftheasset.Ifsuchrecoverableamountoftheassetortherecoverableamountofthecashgeneratingunittowhichtheassetbelongsislessthanitscarryingamount,thecarryingamountisreducedtoitsrecoverableamountandthereductionistreatedasanimpairmentlossandisrecognizedintheprofit&lossaccount.Ifatthebalancesheetdatethereisanindicationthatapreviouslyassessedimpairmentlossnolongerexists,therecoverableamountisreassessedandtheassetisreflectedattherecoverableamountsubjecttoamaximumofdepreciatedhistoricalcostandisaccordinglyreversedintheprofit&lossaccount.

13. Provisions, Contingent Liabilities & Contingent Assets:

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities. In respect ofstatutoryduesdisputed and contestedby theCompany, contingent liabilities areprovided for anddisclosedasperoriginaldemandwithouttakingintoaccountanyinterestorpenaltythatmayaccrue

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thereafter.TheCompanymakesaprovisionwhen there is apresentobligationas a result of apasteventwhere theoutflowofeconomicresources isprobableandareliableestimateof theamountofobligationcanbemade.Possiblefutureorpresentobligationsthatmaybutwillprobablynotrequireoutflowofresourcesorwherethesamecannotbereliablyestimated,isdisclosedascontingentliabilityintheFinancialStatements.ContingentAssetsareneitherrecognizedornordisclosedinthefinancialstatements.

14. Earnings per share

Basicearningspershareiscalculatedbydividingthenetprofitor lossfortheperiodattributabletoequityshareholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheperiod.Theweightedaveragenumberofequitysharesoutstandingduringtheperiodareadjustedforeventsincludingabonusissue,bonuselementinarightsissuetoexistingshareholders,sharesplitandreversesharesplit(consolidationofshares).Forthepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheperiodattributabletoequityshareholdersandtheweightedaveragenumberofsharesoutstandingduringtheperiodareadjustedfortheeffectsofalldilutivepotentialequityshares.

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.2012 No Rs. Rs.

Amount in INR

28 Note: Auditors Remuneration PaymentstoAuditorscomprises: AsAuditors-StatutoryAudit 37900 37900 Fortaxationmatters 12662 12662 Forcompanylawmatters - - Formanagementservices - - Forotherservices - - ReimbursementofExpenses - - Total 50562 50562 29 Note: Deferred Tax Asset On account of DepreciationandAmortisation 1570 2290 Total 1570 2290 30 Note: Earnings Per Share TheCalculationofEarningsPerShare(EPS)asdisclosedintheProfitandLossAcounthasbeen

madeinaccordancewithAccountingStandard(AS-20)onEarningsPerShareissuedbytheInsti-tutue of Chartered Accountants of India. A statement on calculation of Basic and diluted EPS is as under:

ProfitafterTax(INR) -1140941 271358 Numberofequityshares(inNos) 3100000 3100000 Earningspershare(INR) -0.37 0.09 31 Note: Tax Expense The Tax Expenses for the year comprises of; Current Tax 136056 146658 Deferred Tax 720 1000 Provision for tax for the year comprises current income tax and deferred tax. Current income tax

isdeterminedinrespectoftaxableincomewithdeferredtaxbeingdeterminedasthetaxeffectoftimingdifferencesrepresentingthedifferencebetweentaxableincomeandaccountingincomethatoriginateinoneperiod,andarecapableofreversalinoneormoresubsequentperiod(s).Suchdeferredtaxisquantifiedusingratesandlawsenactedorsubstantivelyenactedasattheendofthefinancialyear.

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32 Note: Details of Leasing Arrangements ThecompanyhasenteredintooperatingleasearrangementsforitsRegd.Officepremises:

Futureminimumleasepayments not later than one year 60000 60000 laterthanoneyearandnotlaterthanfiveyears - - laterthanfiveyears - - Thefutureminimumleaserentalobligationundernon-cancellableoperatingleasesinrespect

oftheseassetsisonaccountoflock-inperiodandnoticeperiodinsomeoftheleaseagreementsenteredbythecompanyforoperatingofshowrooms:

OnaccountofLock-inPeriod - - On account of Notice Period 15000 15000 33 Note: Disclosures required under Section 22 of the Micro, Small and Medium Enterprises

Development Act, 2006 (i) Principal amount remaining unpaid to any supplier as at the end of the accounting year - - (ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year - - (iii) Theamountofinterestpaidalongwiththe amounts of the payment made to the supplier beyondtheappointedday“ - - (iv) Theamountofinterestdueandpayablefortheyear - - (v) The amount of interest accrued and remaining unpaid at the end of the accounting year” - - (vi) Theamountoffurtherinterestdueandpayable eveninthesucceedingyear,untilsuchdatewhenthe interestduesasaboveareactuallypaid - - DuestoMicroandSmallEnterpriseshavebeendeterminedtotheextentsuchpartieshavebeen

identifiedonthebasisofinformationcollectedbytheManagement.Thishasbeenrelieduponbythe auditors.

34 Note: Earnings in foreign currency Nil Nil 35 Note: Expenditure in foreign currency Nil Nil

NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013 Note Particulars As at 31.03.2013 As at 31.03.2012 No Rs. Rs.

Amount in INR

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2012

S.No. Name of the Related Party Nature of Relationship

1 Madhavi Musnuru Key Management Personnel 2 Ratan Kishan Musnuru Key Management Personnel 3 Prattipati Parthasarathi Key Management Personnel 4 Minjur Doraisamy Ethirajan Key Management Personnel 5 Anil Kumar Talasila Key Management Personnel6 TalusInfraVenturesPrivateLimited7 GoldenValleyHoldingsLimited8 GreenFireAgriCommoditiesLimited 9 NorthgateTechnologiesLimited “Enterprisesownorsignificantly10 SocialMediaIndiaLimited influencedbyKeyManagement11 CitizenCommunicationsLimited Personnelortheirrelatives12 BioBhanolAgroIndustriesLimited (Associates)”13 NakshatraOrganicsPrivateLimited 14 DRKAgroFarmsPrivateLimited 15 CitizenElectronicsLimited 16 ManjeetChemicalsPrivateLimited 17 MadhuhaDesignerWearPrivateLimited 18 V5ITESPrivateLimited19 TrinoxInfrastructureandDevelopersPvtLtd

Transations with Related Parties : Amount in INR

S.No. Nature of Transaction FY 2011-13 FY 2011-12 Associates KMP Total Associates KMP Total

1 Remuneration 0 300000 300000 0 30000 30000

2 SittingFee 0 0 0 0 0 0

3 ShortTermLoans 450000 - 450000 -344215 - -344215 & Advances

Balances with Related Parties As At 31.03.2013: (Amount INR)S.No. Nature of Transaction FY 2012-13 FY 2011-13

Associates KMP Total Associates KMP Total1 ExpensesPayable - - - - 2500025,000.002 ShortTermLoans 1544325 253091569634 1094325 - 1094325

& Advances

Note No : 36 Related party Disclosures

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2012

Note No. 37 Details of provisions (Amount INR)

TheCompanyhasmadeprovisionforvariouscontractualobligationsanddisputedliabilitiesbasedonitsassessmentoftheamountitestimatestoincurtomeetsuchobligations,detailsofwhicharegivenbelow:S. Particulars As At As AtNo 01.04.2012 Addition Utilisation Reversal 31.03.2013

1 Provisionforwarranty Nil Nil Nil Nil Nil (Nil) (Nil) (Nil) (Nil) (Nil)2 Provision for estimated Nil Nil Nil Nil Nil losses on onerous contracts (Nil) (Nil) (Nil) (Nil) (Nil) Nil Nil Nil Nil Nil (Nil) (Nil) (Nil) (Nil) (Nil)

3 Provision for other contingencies Nil Nil Nil Nil Nil (give details) (Nil) (Nil) (Nil) (Nil) (Nil) Total Nil Nil Nil Nil Nil (Nil) (Nil) (Nil) (Nil) (Nil)

Oftheabove,thefollowingamountsareexpectedtobeincurredwithinayear:

S. No. Particulars As At As At 31.03.2013 31.03.2012

1 Provisionforwarranty Nil Nil

2 “Provision for estimated losses on onerous contracts” Nil Nil

3 Provision for other contingencies Nil Nil (give details)

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NOTES FORMING PART OF FINANCIAL STATEMENTS AS AT 31.03.2013

Note No. Particulars 38 Note : Segment Reporting Thecompany’soperationsconsistonelineofactivityyearbyyear.TheCompanyisprimarily operatinginIndiawhichisconsideredasasinglegeographicalsegment.Hencethereareno reportablesegmentsunderAccountingStandard–17,issuedbyInstituteofChartered AccountantsofIndia,duringtheyearunderreport.TheconditionsprevailinginIndiabeing uniform, no separate geographical disclosures are considered necessary. 39 Note: Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovided for(netofadvances)is:Nil(Nil) 40 Note: IntheopinionoftheBoard,currentassets,loansandadvancesarestatedatavaluewhich couldberealizedintheordinarycourseofbusiness.Theprovisionforallknownliabilities madeisadequateandnotinexcessoftheamountreasonablynecessary. 41 Note: AdditionalinformationpursuanttoNon-BankingFinancial(Non-DepositAcceptingor Holding)CompaniesPrudentialNorms(ReserveBank)Directions,2007isannexed.

*[email protected]%onstandardassetsasperReserveBankofIndiadirection,videitsnotificationno.DNBS.223/CGM(US)-2011dated17.01.2011 As per the report of even date attached For GV & Co., ForandOnbehalfoftheBoardChartered Accountants Sd/- Sd/- Sd/- Grandh Vittal Madhavi Musnuru Parthasarathi PrattipatiPropreitor WholeTimeDirector DirectorMembershipNo.206462 FirmRegn.No.012875S Place:Hyderabad Date:06.06.2013

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Schedule to the Balance Sheet of M/sCitiportFinancialServicesLimitedAsOn31.03.2013

(Asrequiredintermsofparagraph13ofNon-BankingFinancial(Non-DepositAcceptingorHolding)CompaniesPrudentialNorms(ReserveBank)Directions,2007)

(Amount in INR)

S. Particulars Amount Amount No Outstanding overdue

Liabilities side : (1) Loans and advances availed by the Non-Banking Financial Company inclusive of interest accrued thereon but not paid:

(a) Debentures : Secured Nil Nil : Unsecured Nil Nil (otherthanfallingwithinthe meaningofpublicdeposits) (b) DeferredCredits Nil Nil (c) TermLoans Nil Nil (d) Inter-corporateloansandborrowing Nil Nil (e) Commercial Paper Nil Nil (f) OtherLoans(specifynature) Nil Nil

S. Particulars Amount No Outstanding

Assets side : (2) Break-up of Loans and Advances including Bills Receivables: [Other than those included in (4) below] :

(a) Secured Nil (b) Unsecured 3,12,74,805

(3) Break up of Leased Assets and stock on hire and other assets counting towards AFC activities:

i) Leaseassetsincludingleaserentalsundersundrydebtors:(a) Financiallease Nil(b) Operatinglease Nil

ii) Stockonhireincludinghirechargesundersundrydebtors:(a) Assets on hire Nil (b) RepossessedAssets Nil

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54

iii) OtherloanscountingtowardsAFCactivities (a) Loanswhereassetshavebeenrepossessed (b) Loansotherthan(a)above Nil Nil

(4) Break-up of Investments : CurrentInvestments:

1. Quoted:

(i) Shares: (a)Equity Nil (b)Preference Nil

(ii) DebenturesandBonds(iii) Units of mutual funds Nil(iv) Government Securities Nil(v) Others (please specify) Nil

2. Unquoted:

(i) Shares: (a)Equity Nil (b)Preference Nil(ii) DebenturesandBonds Nil(iii) Units of mutual funds Nil(iv) Government Securities Nil(v) Others (please specify) Nil

Long Term investments :

1. Quoted:

(i) Shares: (a)Equity 1,07,138 (b)Preference Nil(ii) DebenturesandBonds Nil(iii) Units of mutual funds Nil(iv) Government Securities Nil(v) Others (please specify) Nil

2. Unquoted:(i) Shares:(a)Equity Nil (b)Preference Nil(ii) DebenturesandBonds Nil(iii) Units of mutual funds Nil(iv) Government Securities Nil(v) Others (please specify) Nil

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Sd/- Sd/- MADHAVIMUSNURU PARTHASARATHIPRATTIPATI WholeTimeDirector Director

ForandOnbehalfoftheBoardFor GV & Co Chartered AccountantsSd/- Grandhi Vittal Propreitor MembershipNo.206462FirmRegn.No.012875S

(5) BorrowerGroup-WiseClassificationofAssetsFinancedasin(2)and(3)above: Amountnetofprovisions

Secured Unsecured Total1. Related Parties (a) Subsidiaries Nil Nil Nil (b)CompaniesinthesameGroup Nil Nil Nil (c)Otherrelatedparties Nil 15,44,325 Nil2. Otherthanrelatedparties Nil 2,97,30,480 Nil Total Nil 3,12,74,805 Nil

(6) InvestorGroup-WiseClassificationofAllInvestments(CurrentandLongTerm)inSharesandSecurities(BothQuotedandUnquoted): Market Value / Book Value Breakuporfairvalue (NetofProvisions) orNAV(Quoted) (Unquoted)

1. Related Parties (a) Subsidiaries Nil Nil (b)CompaniesinthesameGroup Nil Nil (c)Otherrelatedparties Nil Nil2. Otherthanrelatedparties 1,07,402 Nil

Total 1,07,402 Nil

Particulars Amount(7) Otherinformation

1. GrossNon-PerformingAssets (a) Related parties (b)Otherthanrelatedparties2. NetNon-PerformingAssets Nil (a) Related parties (b)Otherthanrelatedparties3. Assetsacquiredinsatisfactionofdebt

Category

Category

Place:HyderabadDate:06.06.2013

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CITIPORT FINANCIAL SERVICES LIMITEDRegisteredOffice:HouseNo.8-3-678/42/5,1stFloor,SantoshManor,NavodayaColony,

Yellareddyguda,Hyderabad-500073.ATTENDANCE SLIP

(Tobehandedoverattheentranceofthemeetinghall)21STANNUALGENERALMEETINGMONDAY,30THSEPTEMBER2013

I/Weherebyrecord/my/ourpresenceatthe21stAnnualGeneralMeetingoftheMembersoftheCompanywill beheldat the RegisteredOfficeof theCompanyatHouseNo.8-3-678/42/5,1stFloor,SantoshManor,NavodayaColony,Yellareddyguda,Hyderabad-500073.on MONDAY 30th SEPTEMBER, 2013 at 2.00 P.M

FullNameoftheMember:..............................................................................................................................(InBlockLetters)

Regd.FolioNo.:........................................................NoofSharesheld.......................................................FullNameofProxy:

FullNameofProxy:.........................................................................................................................................(InblockLettrs)

SIGNATURE(S)OFTHEMEMBER(S)ORPROXY/PROXIESPRESENT

PROXY FORM

Regd.FolioNo.:...............................................................NoofSharesheld...............................................I/We................................................................................................. of................................................................ being aMember/Members of CITIPORT FINANCIAL SERVICES LIMITED here byappoint.............................................................................................................................of.....................................................................................failing him/her.......................................................................of...............................................................................................of....................................................................as my/our proxytoattendandvoteforme/usandonmy/ourbehalfon MONDAY 30th SEPTEMBER, 2013 at 2.00 P.M RegisteredOfficeoftheCompanyatHouseNo.8-3-678/42/5,1stFloor,SantoshManor,NavodayaColony,Yellareddyguda,Hyderabad-500073

AsWitnessedmyhand/ourhandsthis.................dayof............................2013

Signature................................................

Note:Theformordertobeeffectiveshouldbedulycompleted,stampedandsignedandmustbedepositedattheRegisteredOfficeoftheCompany48hoursbeforethemeeting.

Signatureaccross

Re. 1Revenue

Stamp

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REGISTERED OFFICEHouse No.8-3-678/42/5,1stFloor, SantoshManor,NavodayaC o l o n y, Ye l l a r e d d y g u d a , Hyderabad-500073

if undelivered please return to :

CITI PORT FINANCIAL SERVICES LIMITED

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