Auditors Report

AUDITORS REPORT

(b) The Company has a regular programme of physical verification of its

fixed assets by which all fixed assets are verified in a phased manner over

a period of three years. In our opinion, this periodicity of physical

verification is reasonable having regard to the size of the Company and the

nature of its assets. Pursuant to the programme, a portion of fixed assets

have been physically verified during the year and no material discrepancies

were observed on such verification.

(iv) In our opinion and according to the information and explanations given

to us, there is an adequate internal control system commensurate with the

size of the Company and the nature of its business with regard to purchase

of inventories and fixed assets and with regard to the sale of goods and

services. We have not observed any major weaknesses in the internal control

system during the course of the audit.

(x) The Company does not have any accumulated losses at the end of the

financial year and has not incurred cash losses in the financial year and

in the immediately preceding financial year

(xi) In our opinion and according to the information and explanations given

to us, the Company has not defaulted in repayment of dues to banks or

debenture holders. The Company did not have any outstanding dues to any

financial institutions

xxi) According to the information and explanations given to us, no fraud

on or by the Company during the year has been noticed or reported during

the course of our audit

DIRECTORS REPORT

Against this adverse economic scenario and continued competitiveness that

eroded the overall industry profit pool, your Company continued to focus on

its growth strategy, led by its Power Brands and at the same time

restructured operations to reduce cost. Britannia bakery brands including

cake, rusk and bread grew 23.9% with biscuit brands outpacing...