##### 



Exhibit 13
  UROPLASTY,
    INC. AND SUBSIDIARIES
  Index to
    Consolidated Financial Statements
 March 31,
    2009 and 2008
  TABLE OF
    CONTENTS
   
 Page(s)Report of Independent Registered Accounting
    Firm


F-2Financial Statements:Consolidated Balance Sheets


F-3Consolidated Statements of Operations


F-5Consolidated Statements of Shareholders
    Equity and Comprehensive
    Loss


F-6Consolidated Statements of Cash Flows


F-7Notes to Consolidated Financial Statements


F-8   F-1




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##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED ACCOUNTING FIRM             
    F-2




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##### Table of Contents



UROPLASTY,
    INC. AND SUBSIDIARIES
  CONSOLIDATED
    BALANCE SHEETS
 March 31,
  2009


2008AssetsCurrent assets:Cash and cash equivalents


$3,276,299



$3,880,044Short-term investments


4,500,000



6,266,037Accounts receivable, net


1,214,049



2,318,604Income tax receivable


-



50,841Inventories


495,751



558,657Other


279,898



244,517Total current assets


9,765,997



13,318,700Property, plant, and equipment, net


1,401,229



1,638,953Intangible assets, net


3,378,648



4,200,890Prepaid pension asset


66,130



26,482Deferred tax assets


68,793



105,298Total assets


$14,680,797



$19,290,323    F-3




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##### Table of Contents



UROPLASTY,
    INC. AND SUBSIDIARIES
  CONSOLIDATED
    BALANCE SHEETS
 March 31,
  2009


2008Liabilities and Shareholders EquityCurrent liabilities:Current maturities  long-term debt


$-



$84,879Current portion  deferred rent


35,000



35,000Accounts payable


604,593



661,624Income tax payable


56,785



-Accrued liabilities:Compensation


983,052



1,471,950Other


248,568



486,480Total current liabilities


1,927,998



2,739,933Long-term debt  less current maturities


-



413,279Deferred rent  less current portion


147,576



180,979Accrued pension liability


296,646



353,411Total liabilities


2,372,220



3,687,602Commitments and Contingencies


-



-Shareholders equity:Common stock $.01 par value; 40,000,000 shares
    authorized, 14,946,540 and 14,916,540 shares issued and
    outstanding at March 31, 2009 and 2008, respectively


149,465



149,165Additional paid-in capital


35,763,619



35,014,313Accumulated deficit


(23,413,350
)


(19,835,230
)Accumulated other comprehensive (loss) income


(191,157
)


274,473Total shareholders equity


12,308,577



15,602,721Total liabilities and shareholders equity


$14,680,797



$19,290,323    F-4




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##### Table of Contents



UROPLASTY,
    INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF OPERATIONS
 Years ended
    March 31,
  2009


2008Net sales


$14,742,182



$13,855,811Cost of goods sold


2,283,975



2,935,135Gross profit


12,458,207



10,920,676Operating expensesGeneral and administrative


3,428,959



3,692,678Research and development


2,551,075



1,798,062Selling and marketing


9,255,025



8,515,598Amortization


845,524



843,53316,080,583



14,849,871Operating loss


(3,622,376
)


(3,929,195
)Other income (expense)Interest income


196,714



312,162Interest expense


(17,160
)


(35,266
)Foreign currency exchange loss


(13,843
)


(117,990
)Other, net


(6,747
)


1,513158,964



160,419Loss before income taxes


(3,463,412
)


(3,768,776
)Income tax expense


114,708



55,464Net loss


$(3,578,120
)


$(3,824,240
)Basic and diluted loss per common share


$(0.24
)


$(0.28
)Weighted average common shares outstanding:Basic and diluted


14,922,502



13,839,371    F-5




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##### Table of Contents



UROPLASTY,
    INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF SHAREHOLDERS EQUITY AND COMPREHENSIVE
    LOSS
 Years ended
    March 31, 2009 and 2008
  AccumulatedAdditional



Other

TotalCommon Stock

Paid-in

Accumulated

Comprehensive

ShareholdersShares

Amount

Capital

Deficit

Income (loss)

EquityBalance at March 31, 2007


11,614,330


$
116,143


$
23,996,818


$
(16,010,990
)

$
(298,924
)

$
7,803,047Issuance of common stock in connection with the purchase of
    intellectual property


1,417,144



14,171



4,644,690



-



-



4,658,861Proceeds from secondary offering, net of issuance costs of
    $526,465


1,466,400



14,664



4,591,271











4,605,935Registration costs private placement


-



-



(38,470
)


-



-



(38,470
)Proceeds from exercise of warrants


50,000



500



149,500



-



-



150,000Proceeds from exercise of stock options


368,666



3,687



631,611



-



-



635,298Share-based consulting and compensation expense


-



-



1,038,893



-



-



1,038,893Comprehensive loss


-



-



-



(3,824,240
)


573,397



(3,250,843
)Balance at March 31, 2008


14,916,540



149,165



35,014,313



(19,835,230
)


274,473



15,602,721Share-based consulting and compensation expense


30,000



300



749,306



-



-



749,606Comprehensive loss


-



-



-



(3,578,120
)


(465,630
)


(4,043,750
)Balance at March 31, 2009


14,946,540


$
149,465


$
35,763,619


$
(23,413,350
)

$
(191,157
)

$
12,308,577    F-6




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##### Table of Contents



UROPLASTY,
    INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
 Years ended
    March 31,
  2009


2008Cash flows from operating activities:Net loss


$(3,578,120
)


$(3,824,240
)Adjustments to reconcile net loss to net cash used in operations:Depreciation and amortization


1,135,800



1,072,552Loss on disposal of equipment


6,757



27Share-based consulting expense


60,093



49,749Share-based compensation expense


689,513



989,144Deferred income taxes


17,594



5,262Deferred rent


(35,000
)


(35,000
)Changes in operating assets and liabilities:Accounts receivable


918,959



(947,869
)Inventories


(19,512
)


346,598Other current assets and income tax receivable


50,086



107,204Accounts payable


(25,781
)


86,190Accrued liabilities


(655,186
)


553,757Accrued pension liability, net


13,111



(248,160
)Net cash used in operating activities


(1,421,686
)


(1,844,786
)Cash flows from investing activities:Proceeds from sale of short-term investments


14,157,410



6,648,447Purchase of short-term investments


(12,391,373
)


(9,914,484
)Purchases of property, plant and equipment


(199,704
)


(302,457
)Proceeds from sales of equipment


-



1,847Payments for intangible assets


(23,282
)


(77,469
)Net cash provided by (used in) investing activities


1,543,051



(3,644,116
)Cash flows from financing activities:Proceeds from financing obligations


-



178,374Repayment of debt obligations


(455,913
)


(259,650
)Net proceeds from issuance of common stock, warrants and option
    exercise


-



5,352,762Net cash (used in) provided by financing activities


(455,913
)


5,271,486Effect of exchange rates on cash and cash equivalents


(269,197
)


333,758Net (decrease) increase in cash and cash equivalents


(603,745
)


116,342Cash and cash equivalents at beginning of year


3,880,044



3,763,702Cash and cash equivalents at end of year


$3,276,299



$3,880,044Supplemental disclosure of cash flow information:Cash paid during the year for interest


$13,612



$32,479Cash paid during the year for income tax


$18,335



$-Supplemental disclosure of non-cash financing and investing
    activities:Purchase of intellectual property funded by issuance of stock


-



4,658,861    F-7




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##### Table of Contents



UROPLASTY,
    INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
 March 31,
    2009 and 2008
  1.
    Summary of
    Significant Accounting Policies  Nature of Business.
  ®
    ®
      Principles of Consolidation.
  Revenue Recognition.
 F-8




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##### Table of Contents



Use of Estimates.
  Disclosures About Fair Value of Financial
    Instruments.
  
    Cash equivalents and short-term investments: The
    carrying amount approximates fair value because of the short
    maturity of these instruments.
    Notes payable: We estimated the fair value of its
    notes payable based on the current rates offered to us for
    similar instruments with the same remaining maturities and
    similar collateral requirements. At March 31, 2008, the
    fair value of our notes payable approximated their carrying
    value. There was no balance outstanding on notes payable at
    March 31, 2009.  Cash and Cash Equivalents.
  Short-term Investments.
  Accounts Receivable.
 F-9




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##### Table of Contents



Inventories. (first-in,
  2009


2008Raw materials

$
227,054


$
215,378Work-in-process


23,326



15,438Finished goods


245,371



327,841$
495,751


$
558,657   Property, Plant, and Equipment.
  2009


2008Land

$
161,829


$
193,586Building


737,999



882,824Leasehold improvements


324,555



416,951Internal use software


287,960



212,850Equipment


1,206,371



1,277,5502,718,714



2,983,761Less accumulated depreciation


(1,317,485)



(1,344,808)$
1,401,229


$
1,638,953       Internal Use Software. SOP No. 98-1, Accounting for Costs of Computer Software Developed or
    Obtained for Internal Use, No. 00-02, Accounting for Web Site Development Cost.
  Intangible Assets.
  GrossEstimated

Carrying


AccumulatedLives
    (Years)

Amount


Amortization


Net valueMarch 31, 2009Patents and inventions

6


5,472,512



2,093,864



3,378,648March 31, 2008Patents and inventions

6


5,449,230



1,248,340



4,200,890    F-10




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##### Table of Contents



2010

$
846,0002011


843,0002012


842,0002013


842,0002014 and beyond


6,000$
3,379,000     Impairment of Long-Lived Assets.
  Product Warranty.
  Deferred Rent.
  Foreign Currency Translation.
    Income Taxes.
   F-11




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##### Table of Contents



Basic and Diluted Net Loss per Common Share.
  Number of


Range ofOptions/Warrants


exercise pricesYears ended:March 31, 2009


4,215,428


$
1.82  5.30March 31, 2008


4,155,028


$
1.82  5.30   Advertising Expenses.
  New Accounting Pronouncements.
  Employers Disclosures about Postretirement
    Benefit Plan Assets
  FAS 142-3, Determination of the Useful Life of Intangible
    Assets FAS 142-3),  FAS 142-3
 F-12




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##### Table of Contents



FAS 142-3
  Business Combinations Accounting for Assets Acquired and
    Liabilities Assumed in a Business Combination That Arise from
    Contingencies,
  Noncontrolling Interest in Consolidated Financial
    Statements  An Amendment of ARB 51
  Fair
    Value Measurements FAS 157-2, Effective date of FASB Statement No. 157 FAS 157-2). FAS 157-2 FAS 157-2 FAS 157-2
  2.
    Notes Payable    $100,000 secured note, monthly payments $3,152,
    inclusive of interest, through June 2009, at a fixed
    interest rate of 8.25% per annum.

$
44,746Mortgage note, monthly payments of $3,832 plus
    interest through December 2017, at a fixed interest
    rate of 4.7% per annum from May 2006 through April 2011.


449,956Note payable, monthly payments of $696 plus interest
    through August 2008 at a fixed rate of 4.4% per annum.


3,456498,158Less current maturities


84,879$
413,279  F-13




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##### Table of Contents



3.
    Shareholders
    Equity  Stock Options.
        Weighted Average


Weighted Average


AggregateNumber of Shares


Exercise Price


Fair Value


Intrinsic ValueBalance at March 31, 2007


2,169,866


$
3.62Options granted


320,000



4.21


$
2.83Options exercised


(368,666
)


1.72Options surrendered


(83,100
)


4.66Balance at March 31, 2008


2,038,100



4.01






$
1,006,000Options granted


237,000



3.02



1.88Options exercised


-



-Options surrendered


(140,600
)


3.59Balance at March 31, 2009


2,134,500


$
3.93







-Options exercisable at March 31, 2009


1,892,327


$
3.99







-    F-14




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##### Table of Contents



Options outstanding


Options exercisableWeighted








Weightedaverage


Weighted





average


Weightedremaining


average





remaining


averageRange of exercise




life in


exercise





life in


exerciseprices

Shares


years


price


Shares


years


price$1.82 to $2.50


480,000



5.34


$
2.30



476,666



5.34


$
2.30$2.51 to $3.50


482,500



4.14



3.00



326,999



4.07



2.98$3.51 to $4.50


277,500



3.00



4.17



199,162



2.86



4.16$4.51 to $5.30


894,500



3.57



5.24



889,500



3.57



5.242,134,500



4.02


$
3.93



1,892,327



4.03


$
3.99       WeightedWeighted


averageaverage


remaininggrant date


life in


AggregateNumber of Shares


fair value


years


intrinsic valueBalance at March 31, 2008


-


$
-






$
-Shares granted


30,000



3.11Shares vested


16,000



3.07Shares cancelled


-



-Balance at March 31, 2009


14,000


$
3.15



0.16


$
44,100       2009


2008Expected life, in years


4.06



4.06Risk-free interest rate


3.13%



4.51%Expected volatility


82.70%



91.78%Expected dividend yield


0%



0%    F-15




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##### Table of Contents



Warrants.
      Other Comprehensive Loss.
  Year Ended March 31,2009


2008Net loss

$
(3,578,120
)

$
(3,824,240
)Items of other comprehensive income (loss):Translation adjustment


(554,498
)


504,680Pension related


88,868



68,717Comprehensive loss

$
(4,043,750
)

$
(3,250,843
)     4.
    Commitments
    and Contingencies  Royalties.
  Purchase Requirements.
  Operating Lease Commitments.
 F-16




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##### Table of Contents



2010

$
179,0002011


180,0002012


176,0002013


156,0002014


155,000Thereafter


13,000$
859,000     Employment Agreements.
  Product Liability.
  5.
    Savings and
    Retirement Plans         F-17




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##### Table of Contents



2010

$
3712011


7792012


1,2262013


1,7172014


2,2522015 to 2019


287,531$
293,876       2009


2008Changes in benefit obligations:Projected benefit obligation, beginning of year

$
1,660,310


$
1,770,353Service cost


63,104



99,599Interest cost


91,589



93,373Other


(4,216)



(3,313)Actuarial result


(187,810)



(507,534)Foreign currency translation


(328,588)



207,832Projected benefit obligation, end of year

$
1,294,389


$
1,660,310Changes in plan assets:Plan assets, beginning of year

$
1,333,381


$
1,174, 328Contributions to plan


153,385



394,194Benefits paid


(4,216)



(3,313)Management cost


(17,010)



(11,762)Actual return on assets


(114,605)



(357,785)Foreign currency translation


(287,062)



137,719Plan assets, end of year

$
1,063,873


$
1,333,381     2009


2008Unrecognized net prior service benefit

$
(447,003
)

$
(572,116
)Unrecognized net losses


514,384



754,710Additional Other Comprehensive Income (gross of deferred taxes)

$
67,381


$
182,594     2009


2008Projected benefit obligation

$
959,452


$
1,176,617Accumulated benefit obligation


717,254



870,014Fair value of plan assets


662,806



823,206  F-18




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##### Table of Contents



2009


2008Projected benefit obligation

$
334,937


$
483,693Accumulated benefit obligation


334,937



483,695Fair value of plan assets


401,067



510,175       2009


2008Gross service cost, net of employee contribution

$
48,522


$
80,929Interest cost


91,589



93,373Management cost


17,010



11,762Expected return on assets


16,875



(69,192
)Amortization


3,919



6,866Net periodic retirement cost

$
177,915


$
123,738     2009


2008Discount rate


6.60-6.70
%


6.10-6.70
%Expected return on assets


5.00-6.60
%


5.00-6.10
%Expected rate of increase in future compensation:General


3
%


3
%Individual


0-3
%


0-3
%     6.
    Income Taxes    2009


2008Income tax provision:Current:U.S. and State

$
4,795


$
1,300Foreign


73,408



47,090Deferred:U.S. and State


-



-Foreign


36,505



7,074Total income tax expense

$
114,708


$
55,464  F-19




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##### Table of Contents



2009


2008Statutory federal income tax benefit

$
(1,177,567
)

$
(1,281,383
)State tax benefit


(81,243
)


(98,981
)Foreign tax


(55,997
)


13,954Valuation allowance increase


1,252,824



1,609,511Netherlands tax settlement


67,100



-Other


109,591



(187,637
)Total income tax expense

$
114,708


$
55,464     2009


2008Deferred tax assets (liabilities):Depreciation

$
(88,405
)

$
30,073Amortization


(1,151,081
)


(1,438,817
)Pension liability


42,622



68,894Stock options


825,575



584,280Other reserves and accruals


86,755



125,838Deferred profit on intercompany sales


154,926



97,781Net operating loss carryforwards


8,404,247



7,590,2718,274,639



7,058,320Less valuation allowance


(8,205,846
)


(6,953,022
)$
68,793


$
105,298        F-20




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##### Table of Contents



non-U.S. subsidiaries.
        7.
    Business
    Segment Information  Disclosures about Segments of
    an Enterprise and Related Information
    United


The


UnitedStates


Netherlands


Kingdom


ConsolidatedFiscal 2009Sales to customers

$
7,980,140


$
4,855,857


$
1,906,185


$
14,742,182Long-lived assets at March 31, 2009


4,083,646



691,251



71,110



4,846,007Fiscal 2008Sales to customers

$
6,298,307


$
5,067,052


$
2,490,452


$
13,855,811Long-lived assets at March 31, 2008


4,973,368



862,364



30,593



5,866,325    F-21