UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549





FORM
10-K





[X]
                                                      ANNUAL
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the fiscal year ended:  March
      31, 2009[  ]
                                                      TRANSITION
      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACTFor
      the transition period from _________ to ________Commission
      file number:  333-150388





Granto, Inc.(Exact
      name of registrant as specified in its charter)Nevada
                                                        N/A(State
      or other jurisdiction of incorporation or organization)
                                                        (I.R.S.
      Employer Identification No.)137
      4th Street,
                                                          Riverside
      Vill. Sta Lucia
                                                          Pasig City, the Philippines
                                                        N/A(Address
      of principal executive offices)
                                                        (Zip
      Code)Registrant’s
      telephone number:  001-63-02-916-9339Securities
      registered under Section 12(b) of the Exchange Act:Title
      of each class
                                                        Name
      of each exchange on which registerednone
                                                        not applicableSecurities
      registered under Section 12(g) of the Exchange Act:Title
      of each class
                                                        Name
      of each exchange on which registerednone
                                                        not
applicable


Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the Securities Act.  Yes [  ] No
[X]





Indicate
by check mark if the registrant is not required to file reports pursuant to
Section 13 or Section 15(d) of the Act. Yes
[X]       No
[  ]





Check
whether the Issuer (1) filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90
days.  Yes [X] No
[   ]





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this
chapter) during the preceeding 12 months (or for such shorter period that the
registrant was required to submit and post such files). Yes [  ] No
[X]





Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not
be contained, to the best of registrant’s knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. Yes [X] No
[  ]





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.





Large
accelerated filer [  ] Accelerated filer [  ]
Non-accelerated filer [  ] Smaller reporting company [X]





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).   Yes [X]   No
[  ]





State the
aggregate market value of the voting and non-voting common equity held by
non-affiliates computed by reference to the price at which the common equity was
last sold, or the average bid and asked price of such common equity, as of the
last business day of the registrant’s most recently completed second fiscal
quarter. Not
available





Indicate
the number of shares outstanding of each of the registrant’s classes of common
stock, as of the latest practicable date.  2,150,000 as of June 5,
2009.




Table
of Contents




TABLEOF
CONTENTS





PagePART IItem 1.
                                    Business
                                    3Item 1A.
                                    Risk Factors
                                    7Item 1B.
                                    Unresolved Staff Comments
                                    7Item 2.
                                    Properties
                                    7Item 3.
                                    Legal Proceedings
                                    7Item 4.
                                    Submission of Matters to a Vote of Security
      Holders
                                    7PART IIItem 5.
                                    Market for Registrant’s Common Equity and Related Stockholder
      Matters and Issuer Purchases of Equity Securities
                                    8Item 6.
                                    Selected Financial Data
                                    9Item 7.
                                    Management’s Discussion and Analysis of Financial Condition and
      Results of Operations
                                    10Item 7A.
                                    Quantitative and Qualitative Disclosures About Market
      Risk
                                    14Item 8.
                                    Financial Statements and Supplementary Data
                                    14Item 9.
                                    Changes In and Disagreements With Accountants on Accounting and
      Financial Disclosure
                                    14Item 9A(T).
                                    Controls and Procedures
                                    14Item 9B.
                                    Other Information
                                    15PART IIIItem 10.
                                    Directors, Executive Officers and Corporate
      Governance
                                    15Item 11.
                                    Executive Compensation
                                    17Item 12.
                                    Security Ownership of Certain Beneficial Owners and Management
      and Related Stockholder Matters
                                    19Item 13.
                                    Certain Relationships and Related Transactions, and Director
      Independence
                                    20Item 14.
                                    Principal Accountant Fees and Services
                                    20PART IVItem 15.
                                    Exhibits, Financial Statement Schedules
                                    21





2
 Table
of Contents




PART I


Item1.   Business





Company
Overview





We were
incorporated as “Granto Inc.” (“Granto”) on February 29, 2008, in the State of
Nevada for the purpose of developing, manufacturing, and selling mechanical
chalkboard erasers with built-in micro vacuums (our "Product") specifically for
office and school supply retailers and teachers in the Philippines and other
Asian countries as end users.





Business
of Company





We are
engaged in the business of developing, manufacturing, and selling mechanical
chalkboard erasers with built-in micro vacuums specifically for office and
school supply retailers and teachers in the Philippines and other Asian
countries as end users. Such a product will allow teachers to efficiently and
thoroughly clean chalkboards without the detrimental health effects that often
result from breathing chalk dust propelled into the air and lungs by chalkboard
erasers presently in use in the Asian market. We are currently in the process of
designing and developing our Product, and we are continually refining this
design through experiments, testing different engine speeds and brush lengths in
order to determine optimum features for maximum cleaning performance and
chalk-dust absorption. When we are satisfied that our Product will compete
effectively in the School Supply Industry by being the most practical and
effective chalkboard eraser, we will begin the manufacture and distribution of
the Product to stationery retailers.





Our
offices are located at 137 4th Street, Riverside Vill. Sta Lucia,
Pasig City, the Philippines.





Chalkboards
and Erasers





Chalkboards
have long been a standard school supply in the Asian educational system, and
they are also used in many establishments as a form of advertising upcoming
events and menus. Chalkboard erasers are important supplements to chalkboards.
They make chalkboards reusable and provide an easy means of cleaning up writings
made on the board.





Chalkboard
erasers typically consist of a block of wood covered by a felt pad, or felt
strips that are bound together with sticky paper or cardboard that also serves
as a handle. The felt strips are used to wipe off chalk dust. However,
chalkboard erasers get dirty very quickly, and once this happens they no longer
remove chalk from a board. They require high maintenance to prevent too much
accumulation of dust particles that prevent them from working and can make
allergies and breathing a problem. The most common way of cleaning traditional
chalkboard erasers is by repeatedly pounding the eraser against a metal filter
or the side of a wall, a process that forces the chalk dust into the surrounding
air.




3
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of Contents





Chalk
Dust Hazards





Chalk
dust is the natural by-product of using a chalk crayon on a chalkboard. As the
chalk is scraped across the rough surface of the chalkboard or erased with a
traditional eraser, particles of chalk dust are sent out into the surrounding
air. Some of this chalk dust settles to the ground or is ventilated outside, but
much of it falls on clothing, furniture, electronic equipment and shelves.
Teachers and students also inhale a portion of this chalk dust, which usually
becomes trapped in the mucus layers of the throat and upper lungs.





While the
main ingredients of chalk dust are considered to be non-toxic, which simply means
they do not pose a threat when ingested, chalk dust can and does accumulate in
the human respiratory system and can create long-term health problems due to
overexposure.  So while swallowing a piece of white chalkboard chalk
won't kill you, breathing in chalk dust for a number of years can create or
trigger respiratory problems.  A small amount of inhaled chalk dust is
not considered harmful. Those with healthy respiratory systems can expel the
chalk dust through coughing, and the remaining material should be absorbed
safely into the body. For those with allergies and chronic breathing issues such
as asthma, however, exposure to chalk dust can trigger a reaction. In fact, many
school systems strongly urge teachers to move students with respiratory problems
away from the chalkboard area. Chalkboards, trays and erasers filled with chalk
dust should also be cleaned regularly.





Standard
chalk for classroom use is generally made from gypsum or calcium carbonate, a
processed form of natural limestone. The traditional method of creating white
chalk was to form a clay-like paste with the calcium carbonate and allow it to
cure in chalk-shaped molds. This chalk worked well with slate chalkboards, but
it also generated a significant amount of chalk dust that floated into the
surrounding air. Teachers who used traditional chalk for a number of years often
developed respiratory problems, although they were not generally considered
severe.





There is
now a product called dustless
chalk, designed to address the chalk dust issue. Instead of forming chalk
crayons through individual molds, the new chalk mixture is extruded into ropes,
then cut to size and allowed to dry. This dustless chalk does generate a form of
chalk dust, but the particles are much heavier and tend to fall directly to the
floor instead of floating in the air. Exposure to airborne chalk dust has been
reduced, but the accumulation of chalk dust elsewhere is still
problematic.





Beyond
the human health aspects of chalk dust exposure, there are also potential
electronic hazards. Devices such as computers and digital versatile disc (DVD)
players stored inside classrooms can suffer damage from accumulated chalk dust.
As the dust particles circulate throughout the room, cooling fans may draw them
into the computers' inner workings. As dust builds up on the motherboard and
other heat-sensitive parts, the risk of overheating increases. Chalk dust can
also cause severe damage to sensitive electronics, such as the laser reader of a
DVD player or the playback heads of a video cassette recorder
(VCR).





Chalk
dust is considered an irritant and an occupational hazard by a number of
occupational safety organizations around the world. Many safety experts suggest
using a filtered mask over the mouth and nose and taking a number of breaks in a
fresh air environment for those who work around chalk dust for extended periods
of time.





While
some chalkboards have been replaced by whiteboards, there are many advantages to
using the chalkboard. Whiteboards produce their own kind of "dust": particles of
the dried marker fluid. This dust is much darker in color than chalk dust and is
heavier, so it doesn't travel as far, but it stains the walls and floors
underneath the whiteboards. Expensive solvents may remove some but not all
stains. Erasers and chalk trays are obviously intended to capture and confine
dust. While essential, they do not solve the entire problem. Chalk in bulk costs
less than five cents a stick; marker pens are ten times as expensive. Chalk is
seldom stolen; marker pens are frequently taken from classrooms. Chalk breaks if
you drop it, but marker pens dry out quickly if left uncapped. You can look at a
piece of chalk and see how much of it is left. Looking at a marker pen reveals
nothing. Marker pens can be a budget drain for a school or
university.  Chalkboards can still work fine after 30-50 years of use,
while whiteboards require solvents to return them to their like-new condition as
they age. Solvent is expensive and the cleaning process is laborious. Thus,
financial constraints often lead to chalkboards being utilized over whiteboards
in the Philippines and other Asian countries.




4
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of Contents





Our
Product





The
rising demand in the Philippines and other Asian countries for chalkboards and
chalkboard erasers in conjunction with an increasing awareness of the
detrimental effects of chalk dust have resulted in what we anticipate will be a
highly receptive potential market for our Product.  Teachers and
students are seeking a product that will efficiently and thoroughly clean a
chalkboard without the negative effects of propelled chalk dust. The health
risks of inhaling chalk dust in addition to the damage it inflicts on electronic
equipment in the classroom highlight the necessity of a chalkboard eraser that
cleans effectively and absorbs chalk dust instead of forcing it into the
air.





We are in
the process of developing a chalkboard eraser (see figure 1 below) that contains
a micro-engine system that works like a vacuum to collect the chalk dust as it
cleans the chalkboard. Our Product is designed specifically for school and
office supply retailers and teachers as end users in the Philippines and other
Asian countries. Our product is operated by a simple on/off switch (1), which
activates the micro engine (2). As the brush (3) wipes the chalk from the
chalkboard, the vacuum created by the micro engine draws the chalk dust through
the powder vents (4) located in parallel with the brush sections and into the
powder collecting room (5). The micro engine is powered by two replaceable AA
batteries (6), and there is a removable cover (7) to allow the disposal of the
powder collected.








Figure
1





5
 Table
of Contents




We are in
the process of refining the design for our Product, which will be integral to
its success. We are designing and developing our Product by conducting
experiments to improve on quality and cost. These experiments include testing
different engine speeds and brush lengths in order to determine optimum features
for maximum cleaning performance and chalk-dust absorption. We are also
experimenting with our Product’s use near electronic devices, including the
examination of these devices to determine if any chalk dust accumulates on them
following the use of our Product.  We are searching for the lowest
priced components available in the market in our efforts to reduce cost. We are
researching the benefits of adding more components to further improve our
Product. We are also improving our Product's essential qualities, such as
cleaning ability, chalk-dust absorption, and endurance over time with repeated
use. Refining these qualities will ensure that our Product is practicable,
affordable, and beneficial.





Competition





We
compete with a number of established manufacturers, importers, and distributors
who sell chalkboard erasers and related items. These companies enjoy brand
recognition which exceeds that of our brand name. We compete with several
manufacturers, importers, and distributors who have significantly greater
financial, distribution, advertising, and marketing resources than we do,
including:





·
            The
      StikkiWorks Co. makes a Dust Muncher Chalkboard Eraser/Screen Cleaner that
      they state is made from a “revolutionary super absorbent
      material.”  StikkiWorks Co. claims this product “is the fastest,
      safest & most efficient way to clean chalkboards” and is “also
      exceptional for cleaning computer screens and all electronic
      equipment.”  They assert that it “absorbs dust instead of
      pushing it around...can be used over and over before washing... won’t scratch
      surfaces’” and can be “used dry.”


·
            Beijing Haur Ming
      Stationery Enterprise Co., Ltd. makes a Self Cleaning Chalk
      Board


that
      the company claims features: “no more chalk dust” and a push button
      remote-control operation with auto timer to set the cleaning
      times.  It is also touted as “easy to maintain and
      install.”


·
            Taiwan
      Innovative sells a vacuum product that is designed to sit near chalkboards
      and vacuum the chalk dust off standard chalkboard erasers. While this
      solves the problem of cleaning erasers without releasing dust into the
      air, it fails to address the problem of chalk dust being propelled into
      the air as chalkboards are erased.





There are
also several companies that sell what is referred to as “dustless chalk,” which
purportedly reduces the amount of inhaled chalk dust, though, as mentioned
earlier, dust accumulation elsewhere is still problematic with use of this
chalk.  These companies include:





·
            Quartet
      Manufacturing Company makes an Omega Nontoxic Low Dust Chalk in
      assorted colors, as well as a Quartet Deluxe Chalkboard Eraser/Cleaner
      made with laminated felt and a “special material” on the reverse side of
      the eraser that completes board
cleaning.


·
            Crayola
      sells Anti-Dust Chalkboard Chalk they claim “keeps dust to a
      minimum.”  It is also certified non-toxic and recommended for
      ages 4 and up.





We
compete primarily on the basis of quality, brand name recognition, and price. We
believe that our success will depend upon our ability to remain competitive in
our product area. The failure to compete successfully in the future could result
in a material deterioration of customer loyalty and our image and could have a
material adverse effect on our business.




6
 Table
of Contents





Regulatory
Matters





We are
unaware of and do not anticipate having to expend significant resources to
comply with any governmental regulations of the stationery industry. We are
subject to the laws and regulations of those jurisdictions in which we plan to
sell our product, which are generally applicable to business operations, such as
business licensing requirements, income taxes and payroll taxes. In general, the
development, manufacture, and sale of our Product in the Philippines and other
Asian countries is not subject to special regulatory and/or supervisory
requirements.





Employees





We have
no other employees other than our officers and directors. Our President oversees
all responsibilities in the areas of corporate administration, business
development, and research. We intend to expand our current management to retain
skilled directors, officers, and employees with experience relevant to our
business focus. Our current management team is highly skilled in technical areas
such as researching and developing our product, but not skilled in areas such as
marketing our product and business management. Obtaining the assistance of
individuals with and in-depth knowledge of operations and markets will allow us
to build market share more effectively. We intend on employing sales
representatives in the Philippines when our product is ready for production and
shipping and in various provinces of China when we are ready to expand
internationally.





Environmental
Laws





We have
not incurred and do not anticipate incurring any expenses associated with
environmental laws.





Item1A.   Risk Factors.





A smaller
reporting company is not required to provide the information required by this
Item.





Item1B.   Unresolved Staff Comments





A smaller
reporting company is not required to provide the information required by this
Item.





Item2.   Properties





We
maintain our corporate office at 137 4th Street, Riverside Vill. Sta Lucia,
Pasig City, the Philippines.





Item3.   Legal Proceedings





We are
not a party to any pending legal proceeding. We are not aware of any pending
legal proceeding to which any of our officers, directors, or any beneficial
holders of 5% or more of our voting securities are adverse to us or have a
material interest adverse to us.





Item4.   Submission of Matters to a Vote of Security
Holders





No
matters were submitted to a vote of the Company's shareholders during the fourth
quarter of the fiscal year ended March 31, 2009.




7
 Table
of Contents





PART II





Item5.    Market for Registrant’s Common Equity
and Related Stockholder Matters and Issuer Purchases of Equity
Securities





Market
Information





Our
common stock is currently quoted on the OTC Bulletin Board (“OTCBB”), which is
sponsored by FINRA. The OTCBB is a network of security dealers who buy and sell
stock. The dealers are connected by a computer network that provides information
on current "bids" and "asks", as well as volume information. Our shares are
quoted on the OTCBB under the symbol “GNTQ.”





The
following table sets forth the range of high and low bid quotations for our
common stock for each of the periods indicated as reported by the OTCBB. These
quotations reflect inter-dealer prices, without retail mark-up, mark-down or
commission and may not necessarily represent actual transactions.





Fiscal
      Year Ending March 31, 2009Quarter
      Ended
                
                High
      $
                
                Low
      $March
      31, 2009
                
                N/A
                
                N/ADecember
      31, 2008
                
                N/A
                
                N/ASeptember
      30, 2008
                
                N/A
                
                N/AJune
      30, 2008
                
                N/A
                
                N/A





Penny
Stock





The SEC
has adopted rules that regulate broker-dealer practices in connection with
transactions in penny stocks. Penny stocks are generally equity securities with
a market price of less than $5.00, other than securities registered on certain
national securities exchanges or quoted on the NASDAQ system, provided that
current price and volume information with respect to transactions in such
securities is provided by the exchange or system. The penny stock rules require
a broker-dealer, prior to a transaction in a penny stock, to deliver a
standardized risk disclosure document prepared by the SEC, that: (a) contains a
description of the nature and level of risk in the market for penny stocks in
both public offerings and secondary trading; (b) contains a description of the
broker's or dealer's duties to the customer and of the rights and remedies
available to the customer with respect to a violation of such duties or other
requirements of the securities laws; (c) contains a brief, clear, narrative
description of a dealer market, including bid and ask prices for penny stocks
and the significance of the spread between the bid and ask price; (d) contains a
toll-free telephone number for inquiries on disciplinary actions; (e) defines
significant terms in the disclosure document or in the conduct of trading in
penny stocks; and (f) contains such other information and is in such form,
including language, type size and format, as the SEC shall require by rule or
regulation.




8
 Table
of Contents





The
broker-dealer also must provide, prior to effecting any transaction in a penny
stock, the customer with (a) bid and offer quotations for the penny stock; (b)
the compensation of the broker-dealer and its salesperson in the transaction;
(c) the number of shares to which such bid and ask prices apply, or other
comparable information relating to the depth and liquidity of the market for
such stock; and (d) a monthly account statement showing the market value of each
penny stock held in the customer's account.





In
addition, the penny stock rules require that prior to a transaction in a penny
stock not otherwise exempt from those rules, the broker-dealer must make a
special written determination that the penny stock is a suitable investment for
the purchaser and receive the purchaser's written acknowledgment of the receipt
of a risk disclosure statement, a written agreement as to transactions involving
penny stocks, and a signed and dated copy of a written suitability
statement.





These
disclosure requirements may have the effect of reducing the trading activity for
our common stock. Therefore, stockholders may have difficulty selling our
securities.





Holders
of Our Common Stock





As of
March 31, 2009, we had forty (40) shareholders of
record.





Dividends





There are
no restrictions in our articles of incorporation or bylaws that prevent us from
declaring dividends.  The Nevada Revised Statutes, however, do
prohibit us from declaring dividends where after giving effect to the
distribution of the dividend:





1.
            we
      would not be able to pay our debts as they become due in the usual course
      of business, or;


2.
            our
      total assets would be less than the sum of our total liabilities plus the
      amount that would be needed to satisfy the rights of shareholders who have
      preferential rights superior to those receiving the
      distribution.





We have
not declared any dividends and we do not plan to declare any dividends in the
foreseeable future.





Securities
Authorized for Issuance under Equity Compensation Plans





We do not
have any equity compensation plans.





Recent
Sales of Unregistered Securities





None.





Item6.   Selected Financial Data





A smaller
reporting company is not required to provide the information required by this
Item.




9
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of Contents





Item7.  Management’s Discussion and Analysis of Financial
Condition and Results of Operations





Forward-Looking
Statements





Certain
statements, other than purely historical information, including estimates,
projections, statements relating to our business plans, objectives, and expected
operating results, and the assumptions upon which those statements are based,
are “forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These forward-looking
statements generally are identified by the words “believes,” “project,”
“expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,”
“will,” “would,” “will be,” “will continue,” “will likely result,” and similar
expressions. We intend such forward-looking statements to be covered by the
safe-harbor provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995, and are including this statement for
purposes of complying with those safe-harbor provisions. Forward-looking
statements are based on current expectations and assumptions that are subject to
risks and uncertainties which may cause actual results to differ materially from
the forward-looking statements. Our ability to predict results or the actual
effect of future plans or strategies is inherently uncertain. Factors which
could have a material adverse affect on our operations and future prospects on a
consolidated basis include, but are not limited to: changes in economic
conditions, legislative/regulatory changes, availability of capital, interest
rates, competition, and generally accepted accounting principles. These risks
and uncertainties should also be considered in evaluating forward-looking
statements and undue reliance should not be placed on such statements. We
undertake no obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.
Further information concerning our business, including additional factors that
could materially affect our financial results, is included herein and in our
other filings with the SEC.





Plan
of Operation





Product
Development





We intend
to continue the development and refinement of our Product over the coming
months. We will first focus on our experiments to improve the quality of our
Product to increase its appeal to teachers. We feel our final Product will
compete effectively in the marketplace due to its highly functional performance
and beneficial health qualities relative to similar products in the
marketplace.





Locate
Suitable Manufacturing





We do not
currently have any manufacturing facilities. Our management has contacted
several general manufacturers in the Philippines and other Asian countries, and
have begun negotiations for the manufacture of our Product on a contract basis.
We are currently negotiating price, payment, customer guarantee, shipping,
inventory, delivery schedule and returns. We plan to pursue this further upon
the final development and commercialization of our Product. Production of our
chalkboard eraser doesn't require any facilities or equipment beyond what is
available to any general manufacturer. We could contract with any general
manufacturer to produce our Product by following our instructions. We do not
anticipate renting a warehouse at this stage of our business. The general
manufacturer that will work with us will provide packaging, storage, and
shipping service for us as part of our agreement. All of the raw materials
necessary to produce our Product are available in the public marketplace. We
will only accept wholesale orders from wholesale distributors. Once we receive
wholesale orders, we will hold the order until certain quantities, which will be
pre-negotiated with our general manufacturer, are attained. Then we will
contract with our general manufacturer to produce our Product for us at
pre-negotiated prices. Typically the order will be shipped within five business
days after we place the order.




10
 Table
of Contents





Sales
and Distribution Strategy





Our goal
is for our chalkboard eraser to become a leading product in the marketplace in
the Philippines. In order to achieve our goal, we intend to increase awareness
of our Product with potential customers, who we anticipate will be major office
and school supply chains as wholesale customers and teachers as end users. We
intend to do this by engaging in the following:





§
            Attending
      national and regional school supply promotional events and conferences.
      There are events and conferences managed by regional and central
      institutions and organizations to promote school and office related
      products. We plan to attend a number of events attended by school and
      office supply merchants and stationery chain representatives in the order
      to further expose our product. These events will include trade meetings,
      promotional events, seminars, and conferences, such as the International
      Stationery and Office Products Fair Tokyo ("ISOT"), which are heavily
      attended by stationery products wholesalers and chain representatives, in
      order to further expose our
Product.





§
            Developing
      direct marketing programs to attract retailers. In addition to attending
      the foregoing conferences and seminars, we intend to market directly to
      wholesalers and major school and office supply chains. Our marketing will
      include conducting seminars and the use of online and traditional
      advertising media such as newspapers and trade
    publications.





§
            Promoting
      to the public through internet-based and traditional media advertising. We
      intend to use Internet-based and traditional media to promote our product
      directly to the public to raise public awareness of our product. A
      health-conscious public could pull our Product through the supply chain if
      they are properly educated regarding our
  Product.





§
            We
      will also mail our brochure to wholesale distributors, and, initially, we
      will do special promotions providing small amounts of our Product to a few
      major stores, while allowing them to pay us after three months. If the
      market shows an interest in our Product, they will then begin to order
      from us regularly. We will begin marketing from the Philippines, where our
      directors have many contacts, and we will then move forward in marketing
      our Product in China and other Asian
countries.





Intellectual
Property Protection





We intend
to aggressively assert our rights under trade secret, unfair competition,
trademark and copyright laws to protect our intellectual property, including
product formulas, proprietary manufacturing processes and technologies, product
research and concepts, and recognized trademarks. These rights are protected
through the acquisition of patents and trademark registrations, the maintenance
of trade secrets, the development of trade dress, and, where appropriate,
litigation against those who are, in our opinion, infringing these
rights.





We are
currently consulting with law firms to protect our brand name and product
design. While there can be no assurance that registered trademarks will protect
our proprietary information, we intend to assert our intellectual property
rights against any infringer. Although any assertion of our rights can result in
a substantial cost to, and diversion of effort by, our company, management
believes that the protection of our intellectual property rights is a key
component of our operating strategy.




11
 Table
of Contents





Sales
Personnel





We do not
currently employ any sales personnel. In the short term, we intend to use the
services of our management to sell our Product. As our Product approaches the
manufacturing stage, however, we plan to employ sales representatives in the
Philippines to promote and sell our product to wholesalers, retailers, and
end-user teachers. These sales representatives will be responsible for
soliciting, selecting and securing accounts within a particular regional
territory. We expect to pay such sales representatives on a commission basis. In
addition, we may decide to pay each sales representative a base salary. We
expect to provide service and support to our sales representatives, including
advertising and sales materials. When we determine to expand our sales
internationally, we will employ sales personnel in various provinces of China
and other Asian nations.





In the
event we hire sales personnel, we do not intend to do so in the next twelve
months unless our revenues are enough to absorb the cost of these
personnel.





Expenses





We
estimate the costs to implement our business strategy over the following twelve
months to be:





§
            Travel
      and Related expenses, which will consist primarily of our executive
      officer and directors visiting school supply merchants and resellers in
      their sales efforts. We estimate travel and related expenses for the next
      twelve months will be approximately
$4,000;





§
            Initial
      Marketing, which will consist of the marketing efforts discussed above,
      including direct marketing and attendance at trade shows. We estimate
      initial marketing expenses for the next twelve months will be
      approximately $6,000;





§
            Research
      and Development costs consist of developing and testing our Product and
      determining the best combination of materials and suppliers for
      production. We estimate that research and development costs for the next
      twelve months will be approximately
$10,000.





We intend
to obtain business capital through the use of private equity fundraising or
shareholders loans. We anticipate that, in time, the primary source of revenues
for our business model will be the sale of our Product.





Significant
Equipment





We do not
intend to purchase any significant equipment for the next twelve
months.




12
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of Contents





Results
of Operations for the Year Ended March 31, 2009 and Period from February 29,
2008 (Date of Inception) until March 31, 2009





We
generated no revenue for the period from February 29, 2008 (Date of Inception)
until March 31, 2009. Our Operating Expenses were $44,500 for the year ended
March 31, 2009, and $48,500 for the period from February 29, 2008 (Date of
Inception) to March 31, 2009. For each period mentioned, our Operating Expenses
consisting entirely of Professional Fees. We, therefore, recorded a net loss of
$44,500 for the year ended March 31, 2009, and $48,500 for the period from
February 29, 2008 (Date of Inception) until March 31, 2009.





We
anticipate our operating expenses will increase as we undertake our plan of
operations. The increase will be attributable to the continued development of
our Product and the professional fees associated with our becoming a reporting
company under the Securities Exchange Act of 1934.





Liquidity
and Capital Resources





As of
March 31, 2009, we had total current assets of $0.  We had $5,500 in
current liabilities as of March 31, 2009, as a result of a loan from our
officer. Thus, we have a working capital deficit of $5,500 as of March 31,
2009.





Operating
activities used $48,500 in cash for the period from February 29, 2008 (Date of
Inception) until March 31, 2009. Our net loss of $48,500 was the sole basis of
our negative operating cash flow.  Financing Activities during the
period from February 29, 2008 (Date of Inception) until March 31, 2009 generated
$48,500 in cash during the period, represented by $43,000 in the sale of common
stock and $5,500 from loan proceeds from our officer.





As of
March 31, 2009, we have insufficient cash to operate our business at the current
level for the next twelve months and insufficient cash to achieve our business
goals. The success of our business plan beyond the next 12 months is contingent
upon us obtaining additional financing. We intend to fund operations through
debt and/or equity financing arrangements, which may be insufficient to fund our
capital expenditures, working capital, or other cash requirements. We do not
have any formal commitments or arrangements for the sales of stock or the
advancement or loan of funds at this time. There can be no assurance that such
additional financing will be available to us on acceptable terms, or at
all.





Off
Balance Sheet Arrangements





As of
March 31, 2009, there were no off balance sheet arrangements.





Going
Concern




We have
negative working capital and have not yet received revenues from sales of
products or services. These factors have caused our accountants to express
substantial doubt about our ability to continue as a going concern.  The
financial statements do not include any adjustment that might be necessary if we
are unable to continue as a going concern.





Our
ability to continue as a going concern is dependent on our generating cash from
the sale of our common stock and/or obtaining debt financing and attaining
future profitable operations. Management’s plans include selling our equity
securities and obtaining debt financing to fund our capital requirement and
ongoing operations; however, there can be no assurance we will be successful in
these efforts.




13
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of Contents





Item7A.   Quantitative and Qualitative Disclosures
About Market Risk





A smaller
reporting company is not required to provide the information required by this
Item.





Item8.   Financial Statements and Supplementary
Data





See the
financial statements annexed to this annual report.





Item9.   Changes In and Disagreements with
Accountants on Accounting and Financial Disclosure





No events
occurred requiring disclosure under Item 307 and 308 of Regulation S-K during
the fiscal year ending March 31, 2009.





Item9A(T).  Controls and Procedures





Evaluation
of Controls and Procedures





We
carried out an evaluation of the effectiveness of the design and operation of
our disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) as of March 31, 2009.  This evaluation was
carried out under the supervision and with the participation of our Chief
Executive Officer and Chief Financial Officer, Ms. Rosalinda
Ritualo.  Based upon that evaluation, our Chief Executive Officer and
Chief Financial Officer concluded that, as of March 31, 2009, our disclosure
controls and procedures are effective.  There have been no significant
changes in our internal controls over financial reporting during the quarter
ended March 31, 2009 that have materially affected or are reasonably likely to
materially affect such controls.





Disclosure
controls and procedures are controls and other procedures that are designed to
ensure that information required to be disclosed in our reports filed or
submitted under the Exchange Act are recorded, processed, summarized and
reported, within the time periods specified in the SEC's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in our
reports filed under the Exchange Act is accumulated and communicated to
management, including our Chief Executive Officer and Chief Financial Officer,
to allow timely decisions regarding required disclosure.





Limitations on the
Effectiveness of Internal Controls





Our
management does not expect that our disclosure controls and procedures or our
internal control over financial reporting will necessarily prevent all fraud and
material error. Our disclosure controls and procedures are designed to provide
reasonable assurance of achieving our objectives and our Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and
procedures are effective at that reasonable assurance level.  Further,
the design of a control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within our company have been detected. These inherent
limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake.
Additionally, controls can be circumvented by the individual acts of some
persons, by collusion of two or more people, or by management override of the
internal control. The design of any system of controls also is based in part
upon certain assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated goals under
all potential future conditions. Over time, control may become inadequate
because of changes in conditions, or the degree of compliance with the policies
or procedures may deteriorate.




14
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of Contents





Management’s
Annual Report on Internal Control over Financing Reporting





This
annual report does not include a report of management's assessment regarding
internal control over financial reporting or an attestation report of the
company's registered public accounting firm due to a transition period
established by rules of the Securities and Exchange Commission for newly public
companies.





Changes
in Internal Control over Financial Reporting





During
the most recently completed fiscal quarter, there has been no change in our
internal control over financial reporting that has materially affected or is
reasonably likely to materially affect, our internal control over financial
reporting.





Item9B.   Other Information





None


PART III





Item10.  Directors, Executive Officers and Corporate
Governance




Name
                  Age
                  Position
      Held with the CompanyRosalinda
      Ritualo
                    137
      4th Street,
                    Riverside
      Vill. Sta Lucia
                    Pasig
      City, the Philippines
                  27
                  President,
      Chief Executive Officer, Principal Executive Officer, Chief Financial
      Officer, Principal Financial Officer, Principal Accounting Officer, and
      DirectorNanette
      Mercado
                    137
      4th Street,
                    Riverside
      Vill. Sta Lucia
                    Pasig
      City, the Philippines
                  29
                  Director





Set forth
below is a brief description of the background and business experience of our
executive officer and Directors.





Rosalinda
Ritualo is our President, Chief Executive Officer, Principal Executive Officer,
Chief Financial Officer, Principal Financial Officer, Principal Accounting
President and Director. She graduated with a Bachelor of Science Degree from
Polytechnic University of the Philippines in 2002. Since that time, she has
worked at Pancho Construction Inc.





Nanette
Mercado is our director. She graduated with a Bachelor’s Degree from Assumption
College in 2001. Since that time, she has worked for the Directories Philippines
Corp.




15
 Table
of Contents





Term
of Office





Our
directors are appointed for a one-year term to hold office until the next annual
general meeting of our shareholders or until removed from office in accordance
with our bylaws.  Our officers are appointed by our board of directors
and hold office until removed by the board.





Significant
Employees





We do not
currently have any significant employees aside from Rosalinda
Ritualo.





Involvement
in Certain Legal Proceedings




To the
best of our knowledge, during the past five years, none of the following
occurred with respect to our present or former director, executive officer, or
employee: (1) any bankruptcy petition filed by or against any business of which
such person was a general partner or executive officer either at the time of the
bankruptcy or within two years prior to that time; (2) any conviction in a
criminal proceeding or being subject to a pending criminal proceeding (excluding
traffic violations and other minor offenses); (3) being subject to any order,
judgment or decree, not subsequently reversed, suspended or vacated, of any
court of competent jurisdiction, permanently or temporarily enjoining, barring,
suspending or otherwise limiting his or her involvement in any type of business,
securities or banking activities; and (4) being found by a court of competent
jurisdiction (in a civil action), the SEC or the Commodities Futures Trading
Commission to have violated a federal or state securities or commodities law,
and the judgment has not been reversed, suspended or vacated.




Committees
of the Board




Our
company currently does not have nominating, compensation or audit committees or
committees performing similar functions nor does our company have a written
nominating, compensation or audit committee charter. Our directors believe that
it is not necessary to have such committees, at this time, because the functions
of such committees can be adequately performed by the board of
directors.




Our
company does not have any defined policy or procedural requirements for
shareholders to submit recommendations or nominations for directors. The board
of directors believes that, given the stage of our development, a specific
nominating policy would be premature and of little assistance until our business
operations develop to a more advanced level. Our company does not currently have
any specific or minimum criteria for the election of nominees to the board of
directors and we do not have any specific process or procedure for evaluating
such nominees. The board of directors will assess all candidates, whether
submitted by management or shareholders, and make recommendations for election
or appointment.




A
shareholder who wishes to communicate with our board of directors may do so by
directing a written request addressed to our President and director, Ms. Zandra
Grace Hernandez, at the address appearing on the first page of this annual
report.




16
 Table
of Contents





Code
of Ethics





As of
March 31, 2009, we had not adopted a Code of Ethics for Financial Executives,
which would include our principal executive officer, principal financial
officer, principal accounting officer or controller, or persons performing
similar functions.





Item11.  Executive Compensation





Summary
Compensation Table





The table
below summarizes all compensation awarded to, earned by, or paid to both to our
officers and to our directors for all services rendered in all capacities to us
for our fiscal years ended March 31, 2009 and 2008.





SUMMARY
      COMPENSATION TABLEName
                    and
                    principal
                    position
                  Year
                  Salary($)
                  Bonus
                    ($)
                  Stock
                    Awards
                    ($)
                  Option
                    Awards
                    ($)
                  Non-Equity
                    Incentive
      Plan
                    Compensation
                    ($)
                  Nonqualified
                    Deferred
                    Compensation
                    Earnings
      ($)
                  All
      Other
                    Compensation
                    ($)
                  Total
                    ($)Rosalinda RitualoPresident, Chief Executive Officer, Principal Executive
      Officer,
                    Chief
      Financial Officer, Principal Financial Officer,
                    Principal
      Accounting Officer and Director
                  2009
                    
                    2008
                  0
                    
                    0
                  0
                    
                    0
                  0
                    
                    0
                  0
                    
                    0
                  0
                    
                    0
                  0
                    
                    0
                  0
                    
                    0
                  0
                    
                    0





Narrative
Disclosure to the Summary Compensation Table





We have
not entered into any employment agreement or consulting agreement with our
executive officers.  There are no arrangements or plans in which we
provide pension, retirement or similar benefits for executive
officers.





Although
we do not currently compensate our officers, we reserve the right to provide
compensation at some time in the future.  Our decision to compensate
officers depends on the availability of our cash resources with respect to the
need for cash to further our business purposes.




17
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of Contents





Outstanding
Equity Awards at Fiscal Year-End





The table
below summarizes all unexercised options, stock that has not vested, and equity
incentive plan awards for each named executive officer as of March 31,
2009.





OUTSTANDING
      EQUITY AWARDS AT FISCAL YEAR-ENDOPTION
      AWARDS
                  STOCK
      AWARDSName
                  Number
      of
                    Securities
                    Underlying
                    Unexercised
                    Options
                    (#)
                    Exercisable
                  Number
      of
                    Securities
                    Underlying
                    Unexercised
                    Options
                    (#)
                    Unexercisable
                  Equity
                    Incentive
                    Plan
                    Awards:
                    Number
      of
                    Securities
                    Underlying
                    Unexercised
                    Unearned
                    Options
                    (#)
                  Option
                    Exercise
                    Price
                    ($)
                  Option
                    Expiration
                    Date
                  Number
                    of
                    Shares
                    or
      Units
                    of
                    Stock
      That
                    Have
                    Not
                    Vested
                    (#)
                  Market
                    Value
                    of
                    Shares
                    or
                    Units
                    of
                    Stock
                    That
                    Have
                    Not
                    Vested
                    ($)
                  Equity
                    Incentive
                    Plan
                    Awards:
                    Number
                    of
                    Unearned
                    Shares,
                    Units
      or
                    Other
                    Rights
                    That
      Have
                    Not
                    Vested
                    (#)
                  Equity
                    Incentive
                    Plan
                    Awards:
                    Market
      or
                    Payout
                    Value
      of
                    Unearned
                    Shares,
                    Units
      or
                    Other
                    Rights
                    That
                    Have
      Not
                    Vested
                    (#)Rosalinda
      Ritualo
                  -
                  -
                  -
                  -
                  -
                  -
                  -
                  -
                  -





Stock
Option Grants





We have
not granted any stock options to the executive officers or directors since our
inception.





Director
Compensation





We do not
pay any compensation to our directors at this time. However, we reserve the
right to compensate our directors in the future with cash, stock, options, or
some combination of the above.





We have
not reimbursed our directors for expenses incurred in connection with attending
board meetings nor have we paid any directors fees or other cash compensation
for services rendered as a director in the year ended March 31,
2009.





Stock
Option Plans





We did
not have a stock option plan as of March 31, 2009.




18
 Table
of Contents





Item12.  Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder
Matters





The
following table sets forth, as of  March 31, 2009, certain information
as to shares of our common stock owned by (i) each person known by us to
beneficially own more than 5% of our outstanding common stock, (ii) each of our
directors, and (iii) all of our executive officers and directors as a
group:





Name
      and Address of Beneficial Owners of Common Stock
                                  Title
      of Class
                                  Amount
      and Nature of Beneficial Ownership1
                                  %
      of Common Stock2Rosalinda
      Ritualo
                                    137
      4th Street,
                                    Riverside
      Vill. Sta Lucia
                                    Pasig
      City, the Philippines
                                  Common
      Stock
                                  600,000
                                  27.9%Nanette
      Mercado
                                    137
      4th Street,
                                    Riverside
      Vill. Sta Lucia
                                    Pasig
      City, the Philippines
                                  Common
      Stock
                                  600,000
                                  27.9%DIRECTORS
      AND OFFICERS – TOTAL
                                  
                                  1,200,000
                                  55.8%5%
      SHAREHOLDERSNONE
                                  Common
      Stock
                                  NONE
                                  NONE





1.
            As
      used in this table, "beneficial ownership" means the sole or shared power
      to vote, or to direct the voting of, a security, or the sole or shared
      investment power with respect to a security (i.e., the power to dispose
      of, or to direct the disposition of, a security).  In addition,
      for purposes of this table, a person is deemed, as of any date, to have
      "beneficial ownership" of any security that such person has the right to
      acquire within 60 days after such
date.




2.
            The
      percentage shown is based on denominator of 2,150,000 shares of common
      stock issued and outstanding for the company as of March 31,
      2009.




Changes
in Control




We are
unaware of any contract, or other arrangement or provision of our Articles of
Incorporation or Bylaws, the operation of which may at a subsequent date result
in a change of control of our company.




19
 Table
of Contents




Item13.   Certain Relationships and Related
Transactions, and Director Independence





Except as
follows, none of our directors or executive officers, nor any proposed nominee
for election as a director, nor any person who beneficially owns, directly or
indirectly, shares carrying more than 5% of the voting rights attached to all of
our outstanding shares, nor any members of the immediate family (including
spouse, parents, children, siblings, and in-laws) of any of the foregoing
persons has any material interest, direct or indirect, in any transaction over
the last two years or in any presently proposed transaction which, in either
case, has or will materially affect us.





The
amount due to officer of $5,500 at March 31, 2009 consisted of amounts owed to
an officer of the Company for amounts advanced to pay for professional services
provided by the Company’s outside independent auditors for services rendered for
periods ending on and prior to March 31, 2009. The amount is unsecured, due upon
demand, and non-interest bearing.





Item14.   Principal Accounting Fees and
Services





Below is
the table of Audit Fees (amounts in US$) billed by our auditor in connection
with the audit of the Company’s annual financial statements for the years
ended:





Financial
      Statements for the Year Ended March 31
                    Audit
      Services
                    Audit
      Related Fees
                    Tax
      Fees
                    Other
      Fees2009
                    $9,000
                    -
                    -
                    -2008
                    $4,000
                    -
                    -
                    -





20
 Table
of Contents




PART IV





Item15.   Exhibits, Financial Statements
Schedules





Index to
Financial Statements Required by Article 8 of Regulation S-X:





Audited
      Financial Statements:F-1
                            Report of Independent Registered Public Accounting
      FirmF-2
                            Consolidated Balance Sheets as of March 31, 2009 and
      2008;F-3
                            Statements of Operations for the Years Ended March 31, 2009 and
      2008 and for the Period from February 29, 2008 (Date of Inception) to
      March 31, 2009;F-4
                            Statement of Stockholders’ Equity for period from inception to
      March 31, 2009;F-5
                            Statements of Cash Flows for the Years Ended March 31, 2009 and
      2008 and for the Period from February 29, 2008 (Date of Inception) to
      March 31, 2009;F-6
                            Notes to Financial
Statements




Exhibit
      Number
                          Description3.1
                          Articles
      of Incorporation, as amended (1)3.2
                          Bylaws,
      as amended (1)23.1
                          Consent of Maddox Ungar Silberstein,
      PLLC31.1
                          Certification of Chief Executive Officer pursuant to
      Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to
      Section 302 of the Sarbanes-Oxley Act of 200231.2
                          Certification of Chief Financial Officer pursuant to
      Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to
      Section 302 of the Sarbanes-Oxley Act of 200232.1
                          Certification of Chief Executive Officer and Chief
      Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant
      to Section 906 of the Sarbanes-Oxley Act of
  2002





1
            Incorporated
      by reference to the Registration Statement on Form S-1 filed on April 23,
      2008.





21
 Table
of Contents





SIGNATURES





In
accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.





Granto,
Inc.





By:
            /s/
      Rosalinda RitualoRosalinda
      Ritualo
              President,
      Chief Executive Officer, Principal Executive Officer,
              Chief
      Financial Officer, Principal Financial Officer,
              Principal
      Accounting Officer and DirectorJune
      10, 2009





In accordance with Section 13 or 15(d)
of the Exchange Act, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates
indicated:





By:
            /s/
      Rosalinda RitualoRosalinda
      Ritualo
              President,
      Chief Executive Officer, Principal Executive Officer,
              Chief
      Financial Officer, Principal Financial Officer,
              Principal
      Accounting Officer and DirectorJune
      10, 2009




By:
            /s/
      Nanette
      MercadoNanette
      Mercado
              DirectorJune
      10, 2009





22
 Table
of Contents


MaddoxUngar Silberstein, PLLC CPAs and Business Advisors


Phone
(248) 203-0080
 Fax (248)
281-0940
 30600
Telegraph Road, Suite 2175
 Bingham
Farms, MI 48025-4586
 www.maddoxungar.com
 
 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 Board of
Directors
 Granto,
Inc.
 Pasig
City, the Philippines
 
 We have
audited the accompanying balance sheets of Granto, Inc. (a development stage
company) as of March 31, 2009 and 2008, and the related statements of
operations, stockholders’ equity and cash flows for the periods then
ended.  These financial statements are the responsibility of the
Company’s management.  Our responsibility is to express an opinion on
these financial statements based on our audits.
 
 We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require
that we plan and perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement.The Company has determined
that it is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting.  Our audits included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such
opinion.  An audit includes examining on a test basis, evidence
supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe
that our audits provide a reasonable basis for our opinion.
 
 In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Granto, Inc. as of March 31, 2009
and 2008, and the results of its operations and its cash flows for the period
then ended, in conformity with accounting principles generally accepted in the
United States of America.
 
 The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern.  As discussed in Note 5 to the
financial statements, the Company has negative working capital, has incurred
operating losses since inception, has not yet received revenue from sales of
products or services.  These factors raise substantial doubt about the
Company’s ability to continue as a going concern.  Management’s plans
with regard to these matters are described in Note 5. The accompanying financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
 
 /s/ Maddox Ungar
Silberstein, PLLC
 
 Maddox
Ungar Silberstein, PLLC
 Bingham
Farms, Michigan
 June 8,
2009
 F-1
 Table
of Contents
 GRANTO, INC.
 (A
DEVELOPMENT STAGE COMPANY)
 BALANCE
SHEETS
 As
of March 31, 2009 and March 31, 2008
 
 March
      31,
                                  2009
                                
                                March
      31,
                                  2008ASSETSCurrent
      AssetsCash
      and equivalents
                                $
                                -0-
                                
                                $
                                35,000Prepaid
      expenses
                                
                                -0-
                                
                                
                                4,000TOTAL
      ASSETS
                                $
                                -0-
                                
                                $
                                39,000LIABILITIES
      AND STOCKHOLDERS’ EQUITY (DEFICIT)LiabilitiesCurrent
      LiabilitiesDue
      to officer
                                $
                                5,500
                                
                                $
                                -0-Stockholders’
      Equity (Deficit)Common
      Stock, $.001 par value, 100,000,000 shares authorized, 2,150,000
      shares issued and outstanding
                                
                                2,150
                                
                                
                                2,150Additional
      paid-in capital
                                
                                40,850
                                
                                
                                40,850Deficit
      accumulated during the development stage
                                
                                (48,500)
                                
                                
                                (4,000)Total
      stockholders’ equity (deficit)
                                
                                (5,500)
                                
                                
                                39,000TOTAL
      LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
                                $
                                -0-
                                
                                $
                                39,000
  See
accompanying notes to financial statements.
 F-2
 Table
of Contents
 GRANTO, INC.
 (A
DEVELOPMENT STAGE COMPANY)
 STATEMENTS
OF OPERATIONS
 Years
Ended March 31, 2009 and 2008
 Period
from February 29, 2008 (Inception) to March 31, 2009
 
 Year
      ended
                                              March 31, 2009
                                          
                                          Year
      ended
                                              March 31, 2008
                                          
                                          Period
      from
                                            February 29, 2008
                                            (Inception) to
                                            March 31, 2009Revenues
                                          $
                                          -0-
                                          
                                          $
                                          -0-
                                          
                                          $
                                          -0-Expenses
      :Professional
      fees
                                          
                                          44,500
                                          
                                          
                                          4,000
                                          
                                          
                                          48,500Net
      Loss
                                          $
                                          (44,500)
                                          
                                          $
                                          (4,000)
                                          
                                          $
                                          (48,500)Net
      loss per share:Basic
      and diluted
                                          $
                                          ( 0.02)
                                          
                                          $
                                          (0.00)
                                          
                                          $
                                          (0.02)Weighted
      average shares outstanding:Basic
      and diluted
                                          
                                          2,150,000
                                          
                                          
                                          2,150,000
                                          
                                          
                                          2,150,000
 
 See
accompanying notes to financial statements.
 F-3
 Table
of Contents
 GRANTO, INC.
 (A
DEVELOPMENT STAGE COMPANY)
 STATEMENT
OF STOCKHOLDERS’ EQUITY (DEFICIT)
 Period
from February 29, 2008 (Inception) to March 31, 2009
 
 Common
      stock
                  
                  Additional
                    paid-in
                  
                  Deficit
                    accumulated
                    during
      the developmentShares
                  
                  Amount
                  
                  capital
                  
                  stage
                  
                  TotalIssuance
      of common stockfor
      cash @$.001
                  
                  2,150,000
                  
                  $
                  2,150
                  
                  $
                  40,850
                  
                  $
                  -
                  
                  $
                  43,000Net
      loss for the period
                  
                  -
                  
                  
                  -
                  
                  
                  -
                  
                  
                  (4,000)
                  
                  
                  (4,000)Balance,
      March 31, 2008
                  
                  2,150,000
                  
                  
                  2,150
                  
                  
                  40,850
                  
                  
                  (4,000)
                  
                  
                  39,000Net
      loss for the period
                  
                  -
                  
                  
                  -
                  
                  
                  -
                  
                  
                  (44,500)
                  
                  
                  (44,500)Balance,
      March 31, 2009
                  
                  2,150,000
                  
                  $
                  2,150
                  
                  $
                  44,850
                  
                  $
                  (48,500)
                  
                  $
                  (5,500)
 
 See
accompanying notes to financial statements.
 F-4
 Table
of Contents
 GRANTO, INC.
 (A
DEVELOPMENT STAGE COMPANY)
 STATEMENTS
OF CASH FLOWS
 Years
ended March 31, 2009 and 2008
 Period
from February 29, 2008 (Inception) to March 31, 2009
 
 Year
      ended
                                              March 31, 2009
                                        
                                        Year
      ended
                                              March 31, 2008
                                        
                                        Period
      From
                                                  February 29, 2008
                                                  (Inception) to
                                                  March 31, 2009CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      loss
                                        $
                                        (44,500)
                                        
                                        $
                                        (4,000)
                                        
                                        $
                                        (48,500)Change
      in non-cash working capital itemsPrepaid
      expenses
                                        
                                        4,000
                                        
                                        
                                        (4,000)
                                        
                                        
                                        -0-CASH
      FLOWS USED BY OPERATING ACTIVITIES
                                        
                                        (40,500)
                                        
                                        
                                        (8,000)
                                        
                                        
                                        (48,500)CASH
      FLOWS FROM FINANCING ACTIVITIESProceeds
      from sales of common stock
                                        
                                        -0-
                                        
                                        
                                        43,000
                                        
                                        
                                        43,000Loan
      from related party
                                        
                                        5,500
                                        
                                        
                                        -0-
                                        
                                        
                                        5,500CASH
      FLOWS PROVIDED BY FINANCING ACTIVITIES
                                        
                                        5,500
                                        
                                        
                                        -0-
                                        
                                        
                                        48,500NET
      INCREASE (DECREASE) IN CASH
                                        
                                        (35,000)
                                        
                                        
                                        35,000
                                        
                                        
                                        -0-Cash,
      beginning of period
                                        
                                        35,000
                                        
                                        
                                        -0-
                                        
                                        
                                        -0-Cash,
      end of period
                                        $
                                        -0-
                                        
                                        $
                                        35,000
                                        
                                        $
                                        -0-SUPPLEMENTAL
      CASH FLOWINFORMATIONInterest
      paid
                                        $
                                        -0-
                                        
                                        $
                                        -0-
                                        
                                        $
                                        -0-Income
      taxes paid
                                        $
                                        -0-
                                        
                                        $
                                        -0-
                                        
                                        $
                                        -0-
 
 See
accompanying notes to financial statements.
 F-5
 Table
of Contents
 GRANTO, INC.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO THE FINANCIAL STATEMENTS
 March
31, 2009
 
 NOTE 1 –
SUMMARY OF ACCOUNTING POLICIES
 
 Nature of
Business
 
 Granto
Inc. (“Granto”) is a development stage company and was incorporated in Nevada on
February 29, 2008. The Company is developing a chalk dust-eliminating blackboard
eraser specifically for teachers and professionals in the Philippines. Granto
operates out of office space owned by a director and stockholder of the Company.
The facilities are provided at no charge. There are no assurances that the
facilities will continue to be provided at no charge in the future.
 
 Development
Stage Company
 
 The
accompanying financial statements have been prepared in accordance with the
Statement of Financial Accounting Standards No. 7 ”Accounting and Reporting by
Development-Stage Enterprises”.  A development-stage enterprise is one
in which planned principal operations have not commenced or if its operations
have commenced, there has been no significant revenues there from.
 
 Cash and
Cash Equivalents
 
 Granto
considers all highly liquid investments with maturities of three months or less
to be cash equivalents.  At March 31, 2009 and 2008, respectively, the
Company had $-0- and $35,000 of cash.
 
 Basic
loss per share
 
 Basic
loss per share has been calculated based on the weighted average number of
shares of common stock outstanding during the period.
 
 Income
Taxes
 
 Income
taxes are computed using the asset and liability method.  Under the
asset and liability method, deferred income tax assets and liabilities are
determined based on the differences between the financial reporting and tax
bases of assets and liabilities and are measured using the currently enacted tax
rates and laws.  A valuation allowance is provided for the amount of
deferred tax assets that, based on available evidence, are not expected to be
realized.
 
 Recent
Accounting Pronouncements
 
 Granto
does not expect the adoption of recently issued accounting pronouncements to
have a significant impact on the Company’s results of operations, financial
position or cash flow.
 
 F-6
 Table
of Contents
 GRANTO,
INC.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO THE FINANCIAL STATEMENTS
 March
31, 2009
 
 NOTE 1 –
SUMMARY OF ACCOUNTING POLICIES (continued)
 
 Income
Taxes
 
 Income
taxes are computed using the asset and liability method.  Under the
asset and liability method, deferred income tax assets and liabilities are
determined based on the differences between the financial reporting and tax
bases of assets and liabilities and are measured using the currently enacted tax
rates and laws.  A valuation allowance is provided for the amount of
deferred tax assets that, based on available evidence, are not expected to be
realized.
 
 Use of
Estimates
 
 The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date the financial statements and the
reported amount of revenues and expenses during the reporting
period.  Actual results could differ from those
estimates.
 
 Fair
Value of Financial Instruments
 
 Granto’s
financial instruments consist of cash and cash equivalents and accrued expenses.
The carrying amount of these financial instruments approximates fair value due
either to length of maturity or interest rates that approximate prevailing
market rates unless otherwise disclosed in these financial
statements.
 
 NOTE 2 –
PREPAID EXPENSES
 
 Prepaid
expenses at March 31, 2008 consisted of an advance retainer paid to the
Company’s outside independent auditors for services to be rendered for periods
after the Company’s year-end.
 
 NOTE 3 –
DUE TO OFFICER
 
 The
amount due to officer of $5,500 at March 31, 2009 consisted of amounts owed to
an officer of the Company for amounts advanced to pay for professional services
provided by the Company’s outside independent auditors for services rendered for
periods ending on and prior to March 31, 2009. The amount is unsecured, due upon
demand, and non-interest bearing.
 
 F-7
 Table
of Contents
 GRANTO,
INC.
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO THE FINANCIAL STATEMENTS
 March
31, 2009
 
 NOTE 4 –
INCOME TAXES
 
 For the
periods ended March 31, 2009, Granto has incurred net losses and, therefore, has
no tax liability.  The net deferred tax asset generated by the loss
carry-forward has been fully reserved.  The cumulative net operating
loss carry-forward is approximately $48,500 at March 31, 2009, and will expire
beginning in the year 2028.
 
 The
cumulative tax effect at the expected rate of 34% of significant items
comprising our net deferred tax amount is as follows:
  2009Deferred
      tax asset attributable to:Net
      operating loss carryover
                        $
                        16,500Valuation
      allowance
                        
                        (16,500)Net
      deferred tax asset
                        $
                        -
 
 NOTE 5 –
LIQUIDITY AND GOING CONCERN
  Granto
has negative working capital, has incurred operating losses since inception, and
has not yet received revenues from sales of products or
services.  These factors create substantial doubt about the Company’s
ability to continue as a going concern.  The financial statements do
not include any adjustment that might be necessary if the Company is unable to
continue as a going concern.
  The
ability of Granto to continue as a going concern is dependent on the Company
generating cash from the sale of its common stock and/or obtaining debt
financing and attaining future profitable operations.  Management’s
plans include selling its equity securities and obtaining debt financing to fund
its capital requirement and ongoing operations; however, there can be no
assurance the Company will be successful in these efforts.
  F-8
 Table
of Contents