Auditor Report of Funworld & Tourism Development Ltd.

Mar 31, 2014

We have audited the accompanying financial statement of FUNWORLD AND TOURISM DEVELOPMENT LIMITED (''The Company'') which comprise Balance Sheet as at 31st March, 2014 and also the statement of the Profit and Loss and the Cash Flow Statement for the year ended on that date and a summary of significant accounting policies and other explanatory information.

Management''s Responsibility for the financial statement

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

1. As required by the Companies (Auditor''s Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) On the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

ANNEXURE TO THE AUDITORS REPORT

Referred to in our Report of even date:

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year, there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) No disposal of fixed assets of the Company has taken place during the year.

2. As the Company has neither purchased nor sold the goods during the year, also The Company does not possess the opening stock of goods. so the clause 4(ii) of The Companies (Auditor''s Report) order 2003 is not applicable to the company.

3. In our opinion and according to the information and explanation given to us, the Company has not granted or taken any loan secured or unsecured to or from the Companies, Firms or other parties covered in the register maintained under section 301 of the Compa- nies Act, 1956.

4. The Company has adequate internal control procedure commensurate with the size of the Company and nature of its Business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets, and for sale of goods. We have not come across any major weakness in internal control.

5. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956, have been so entered.

(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contract or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding rupees five lakhs each have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted/invited any deposits falling within the preview of Section 58A/58AA of the Companies Act, 1956 during the financial year.

7. In our opinion, the Company has Internal Audit system commensurate with the size and nature of its Business.

8. As informed to us the Central Govt. has not prescribed the maintenance of cost records by the Company under Section 209 (1) (d) of the Companies Act, 1956.

9. (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed Statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Cess and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears, as of 31st March, 2014 for a period of more than six months from the date they became payable.

(c) According to the information and explanation given to us, there are no dues of Income Tax, Customs duty, Wealth Tax, Excise duty and Cess which have not deposited on Account of any dispute.

10. The Company has no accumulated losses. The Company does not incur the cash loss during the current year as well as in the immediate preceding year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial Institutions, Banks or debenture holders.

12. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advance on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not chit fund or a nidhi/Mutual benefit fund/Society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

14. In our opinion, the Company is not dealing in or trading in Shares, Securities, Debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company.

15. In our opinion and according to the information and explanations given to us, the Company has not given guarantees for loans taken by others from Bank or financial institutions.

16. The Company has not taken any term loan during the year therefore the question of its application for the purpose for which they were raised does not arise.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that the no funds raised on short - term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working Capital.

18. The Company has not made any preferential allotment of shares during the year to parties and Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year and therefore the question of creating security in respect thereof does not arise.

20. The Company has not made any Public Issue during the year and therefore the question of disclosing the end use of money does not arise.

21. According to the information and explanations given to us, based upon the audit procedures performed and representations made by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our Audit.

Place : Rajkot For, JEEVAN JAGETIYA & CO. Date : 20-05-2014 Chartered Accountants FRN : 121335W

JEEVAN JAGETIYA Partner M. No. 046553

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Mar 31, 2012

1. We have audited the attached Balance Sheet of FUNWORLD AND TOURISM DEVELOPMENT LIMITED (The Company') as at 31st March, 2012 and also the statement of the Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to ex- press an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 evaluat- ing the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor's Report) order, 2003 (as amended) issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks as we consider appropriate and as per the information and explanation given to us during the course of our audit, we annex hereto a statement on the matters specified in paragraph 4 and 5 of the said order.

4. Further to our comments in the Annexure referred to above, we report that:

(a) We have obtained all the information and explanations which to the best of our knowledge and belief were neces- sary for the purposes of our audit;

(b) In our opinion, proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books of accounts;

(c) The Balance Sheet, statement of Profit and Loss and cash flow statement dealt with by this report are in agreement with the books of accounts;

(d) In our opinion, the Balance Sheet, statement of Profit and Loss and cash flow statement of the company comply with the Accounting Standards as referred in Sub-Section (3C) of Section 211 of the Companies Act, 1956, to the extent applicable;

(e) On the basis of written representation received from the directors, none of the directors of the company are dis- qualified from being appointed as a director under clause (g) of Sub-Section (1) of Section 274 of the Companies Act, 1956;

(f) In our opinion and to the best of our information and according to explanations given to us, the said accounts, read together with Significant Accounting Policies and Notes forming part of Accounts, give the information required by the Companies Act, 1956 in the manner so required, and give a true and fair view in conformity with the accounting principles generally accepted in India,

(i) In case of Balance Sheet, of the state of the affairs of the company as at 31st March 2012.

(ii) In the case of the statement of Profit and Loss, of the Profit of the Company for the year ended on that date.

(iii) In the Case of Cash Flow Statement, of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT

1. (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) All the assets have been physically verified by the management during the year, there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) No disposal of fixed assets of the Company has taken place during the year.

2. (a) As explained to us, the Inventories has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanation given to us, the procedure of physical verification of Inventories followed by the management is reasonable and adequate in relation to the size of the Company and the nature of its Business.

(c) In our opinion and according to the information and explanation given to us, the Company has maintained proper records of its Inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material.

3. In our opinion and according to the information and explanation given to us, the Company has not granted or taken any loan secured or unsecured to or from the Companies, Firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

4. The Company has adequate internal control procedure commensurate with the size of the Company and nature of its Business with regard to purchase of stores, raw materials including components, plant and machinery, equipment and other assets, and for sale of goods. We have not come across any major weakness in internal control.

5. (a) In our opinion and according to the information and explanations given to us, the transactions that need to be entered into a register in pursuance of section 301 of the Companies Act, 1956, have been so entered. (b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contract or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding rupees five lakhs each have been made at prices, which are reasonable having regard to prevailing market prices at the relevant time.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted / invited any deposits falling within the preview of Section 58A / 58AA of the Companies Act, 1956 during the financial year.

7. In our opinion, the Company has Internal Audit system commensurate with the size and nature of its Business.

8. As informed to us the Central Govt, has not prescribed the maintenance of cost records by the Company under Section 209 (1) (d) of the Companies Act, 1956.

9. (a) According to the records of the Company, the Company is regular in depositing with appropriate authorities undisputed Statutory dues including Provident Fund, Investor Education Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Cass and other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amount payable in respect of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise Duty and Cess were in arrears, as of 31 st March, 2012 for a period of more than six months from the date they became payable.

(c) According to the information and explanation given to us, there are no dues of Income Tax, Customs duty, Wealth Tax, Excise duty and Cess (except Sales Tax) which have not deposited on Account of any dispute.

10. The Company has no accumulated losses. The Company does not incur the cash loss during the current year as well as in the immediate preceding year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial Institutions, Banks or debenture holders.

12. In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advance on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, theComp.my is not chit fund or a nidhi / Mutual benefit fund / Society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

14. In our opinion, the Company is not dealing in or trading in Shares, Securities, Debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor's Report) Order, 2003 are not applicable to the Company.

15. In our opinion and according to the information and explanations given to us, the Company has not given guarantees for loans taken by others from Bank or financial institutions.

16. The Company has not taken any term loan during the year therefore the question of its application for the purpose for which they were raised does not arise.

17. According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that the no funds raised on short - term basis have been used for long-term investment. No long-term funds have been used to finance short-term assets except permanent working Capital.

18. The Company has not made any preferential allotment of shares during the year to parties and Companies covered in the register maintained under Section 301 of the Companies Act, 1956.

19. The Company has not issued any debentures during the year and therefore the question of creating security in respect thereof does not arise.

20. The Company has not made any Public Issue during the year and therefore the question of disclosing the end use of money does not arise.

21. According to the information and explanations given to us, based upon the audit procedures performed and representations made by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our Audit.



Place : AHMEDABAD

Date . 02/05/2012 For JEEVAN JAGETIYA AND CO

Chartered Accountants

JEEVAN JAGETIYA 303, SHILP-II, ABOVE HDFC BANK,

ASHRAM ROAD, AHMEDABAD,

GUJARAT-380009

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Mar 31, 2011

1. We have audited the attached Balance Sheet of Funworld & Tourism Development Limited as at 31st March, 2011 and also the Profit and Loss Account for the year ended on that date annexed thereto. 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 audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstate- ment. 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 over all financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies Auditors Report Order 2003, issued by the Central Government of India in term of section 227 (4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and as per information and explanation given to us during the course of our audit, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the annexure referred to the paragraph 3 above, we report as under :-

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of accounts as required by Law have been kept by the Company so far as appears from our examination of the books.

c. The Balance Sheet and Profit & Loss Account dealt with by this Report are in agreement with the books of account of the company.

d. In our opinion, the Balance Sheet and the Profit & Loss Account dealt with by the report are in compliance with the Accounting standards referred to in section 211 (3C) of the companies Act, 1956.

e. On the basis of written representation received from the directors and taken on records by the Board of Directors, we report you that none of the Directors of the company disqualified as on 31sl march 2011 from being appointed as Director of the company under clause (g) of sub-section (1) of section 274 of the Act 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said Financial Statement read together with the notes thereon give the information required by the companies Act, 1956 in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India.

(i) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2011.

(ii) In the case of profit and Loss Account of the Profit of the company for the year ended on that date.

(iii) In the case of Cash Flow Statement, of the Cash Flow for the year ended on that date.

ANNEXURE TO THE AUDITORS' REPORT REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

1. In Respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals in a phased manner in accordance with a programme of verification adopted by the company which in our opinion is reason- able, having regard to the company and nature if its assets. To the best of our knowledge no material discrepancies were noticed on such verification.

(c) In our opinion, the company has not disposed off substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of Inventories:

(a) As explained to us, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of the business.

(c) The Company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of the having regard to the size of the operations of the Company.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(a) The company has given the loan to companies covered under the register maintained under section 301 of the Act.

(b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by the company , are not prima facie prejudicial to the interest of the company.

(c) The principal amount are repayable on demand and there is no repayment schedule. The interest is payable on demand.

(d) The company has not taken loan, secured or unsecured, from the Companies, Firms, Parties covered under the register maintained under section 301 of the Companies Act.

4. In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regards to Sale of goods. During the course of audit, we have not observed any continuing failure to correct major weakness in internal controls.

5. In respect of transaction covered under section 301 of the Companies Act, 1956.

(a) Based on audit procedures applied by us and according to the information and explanation given to us, the transaction that needed to be entered into the register have been so entered.

(b) In our opinion and according to the information and explanation given to us, there are no transactions in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1956 and exceeding Rupees Five Lac or more in respect of each party during the year, have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

6. In our opinion and according to the information and explanation given to us the Company has not accepted any deposit from the public during the financial year. Hence Provision of Clause (vi) Companies (Auditors Report) Order, 2003 is not applicable to the Company

7. In our opinion and according to the information and explanation given to us the company has adequate internal audit system commensurate with the size and nature of the business.

8. In the best of our knowledge and according to the information and explanation given to us the maintenance of cost records nas not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 for any of its products.

9. a. In respect of Statutory Dues: According to the information and explanations given to us, there are no undisputed and outstanding amount payable in respect of Provident fund, Investor Education and Protection fund, Employee's State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Custom Duty, Excise Duty, as on 31st March 2011 for a period of more than six moths from the date they become payable.

10. The accumulated losses of the company is Rs. 509977.67 and same is not more than fifty percent of its net worth. The Company has not incurred any cash loss in current year as well as in the immediately preceding Year.

11. Based on our audit procedure and according to the information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks.

12. In our opinion and according to the information and explanations given to us. No loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutul benefit fund society. Therefore the provision of clause 4(xiii) of the Companies (Auditors Report) order 2003, is not applicable to the company.

14. The company is not dealing or trading in shares, security, debentures and other investments, hence, the provision of clause 4(xiii) of the Companies (Auditor's Report) order 2003, is not applicable to the company.

15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

16. The company has not raised term loans during the year. Therefore, the provision of clause 4(xvi) of the Companies (Auditor's Report) order 2003, is not applicable to the company.

17. According to the information and explanation given to us and on and overall examination of Balance sheet of the company, funds raised on short-term basis, prima facie, have not been used during the year for long-term investment. Similarly long-term funds, prima facie have not been used to finance short-term assets.

18. During the year, the company has not made any preferential allotment of share to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provision of clause 4(xviii) of the Companies Auditor's Report) order 2003, is not applicable to the company.

19. The company has not issued any debentures. Therefore, the provision of clause 4(xix) of the Companies (Auditor's) order 2003, is not applicable to the company.

20. The company has not raised any money by public issue during the year, therefore, the provision of clause 4(xx) of the Companies (Auditor's Report) order 2003, is not applicable to the company.

21. Based upon the audit procedure performed and information and explanation given by the Management, we report that, no fraud on or by the company has been noticed or reported during the course of our audit for the year ended March 31, 2011.

Place : Ahmedabad For, JEEVAN JAGETIYA & CO.

Date : 30-08-2011 Firm Reg. No.121335W

Chartered Accountants Jeevan Jagetiya Proprietor M No. 046553

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Mar 31, 2010

1. We have audited the attached Balance Sheet of Funworld & Tourism Development Limited as at 31st March, 2010 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 over all financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies Auditors Report Order 2003, issued by the Central Government of India in term of section 227 (4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate and as per information and explanation given to us during the course of our audit, we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the said order.

4. Further to our comments in the annexure referred to the paragraph 3 above, we report as under :-

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit.

b. In our opinion proper books of accounts as required by Law have been kept by the Company so far as appears from our examination of the books.

c. The Balance Sheet and Profit & Loss Account dealt with by this Report are in agreement with the books of account of the company.

d. In our opinion, the Balance Sheet and the Profit & Loss Account dealt with by the report are in compliance with the Accounting standards referred to in section 211 (3C) of the companies Act, 1956.

e. On the basis of written representation received from the directors and taken on records by the Board of Directors, we report you that none of the Directors of the company disqualified as on 31st march 2010 from being appointed as Director of the company under clause (g) of sub-section (1) of section 274 of the Act 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said Financial Statement read together with the notes thereon give the information required by the companies Act, 1956 in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India.

(i) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2010.

(ii) In the case of profit and Loss Account of the Profit of the company for the year ended on that date.

(iii) In the case of Cash Flow Statement, of the Cash Flow for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT REFERRED TO IN PARAGRAPH 2 OF OUR REPORT OF EVEN DATE

1. In Respect of Fixed Assets:

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals in a phased manner in accordance with a programme of verification adopted by the company which in our opinion is reasonable, having regard i j the company and nature if its assets. To the best of our knowledge no material discrepancies were noticed on such verification.

(c) In our opinion, the company has not disposed off substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2. In respect of Inventories:

(a) As explained to us, the inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of its business.

(b) tn our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and nature of the business.

(c) The Company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of the having regard to the size of the operations of the Company.

3. In respect of loans, secured or unsecured, granted or taken by the Company to/ from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(a) The company has given the loan to Gujarat Amusement and Funworld ltd. The maximum amount outstanding in respect of it is Rs. 2000000 and the year end balance is Rs.2000000.

(b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions of the loans given by the company, are not prima facie prejudicial to the interest of the company.

(c) The principal amount are repayable on demand and there is no repayment schedule. The interest is payable on demand.

(d) In respect of the said loans, the same are repayable on demand and therefore the question of overdue amounts does not arise. In respect of interest, There is no overdue amount.

4. In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensu- rate with the size of the company and the nature of its business with regard to purchase of inventory, fixed assets and with regards to Sale of goods. During the course of audit, we have not observed any continuing failure to correct major weakness in internal controls.

5. In respect of transaction covered under section 301 of the Companies Act, 1956.

(a) Based on audit procedures applied by us and according to the information and explanation given to us, the transaction that needed to be entered into the register have been so entered.

(b) In our opinion and according to the information and explanation given to us, there are no transactions in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1956 and exceeding Rupees Five Lac or more in respect of each party during the year, have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

6. In our opinion and according to the information and explanation given to us the Company has not accepted any deposit from the public during the financial year. Hence Provision of Clause (vi) Companies (Auditors Report) Order, 2003 is not applicable to the Company

7. In our opinion and according to the information and explanation given to us the company has adequate internal audit system commen- surate with the size and nature of the business.

8. In the best of our knowledge and according to the information and explanation given to us the maintenance of cost records has not been prescribed by the Central Government under section 209 (1) (d) of the Companies Act, 1956 for any of its products.

9. a. In respect of Statutory Dues: According to the information and explanations given to us, there are no undisputed and outstanding amount payable in respect of Provident fund, Investor Education and Protection fund, Employees State Insurance, Income-Tax, Sales- Tax, Wealth Tax, Custom Duty, Excise Duty, as on 31st March 2010 for a period of more than six moths from the date they become payable.

b. The disputed Rent and Taxes payable to Rajkot Municipality Corporation amounting to Rs.552372.09 as on 31st March 2010 for a period of more than six moths from the date they become payable have not been deposited.

10. The accumulated losses of the company are not more than fifty percent of its net worth.

11. Based on our audit procedure and according to the information and explanations given to us, we are of the opinion that the company has not defaulted in repayment of dues to financial institutions or banks.

12. In our opinion and according to the information and explanations given to us. No loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi/mutul benefit fund society. Therefore the provision of clause 4(xiii) of the Companies (Auditors Report) order 2003, is not applicable to the company.

14. The company is not dealing or trading in shares, security, debentures and other investments, hence, the provision of clause 4(xiii) of the Companies (Auditors Report) order 2003, is not applicable to the company.

15. According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks and financial institutions.

16. The company has not raised term loans during the year. Therefore, the provision of clause 4(xvi) of the Companies (Auditors Report) order 2003, is not applicable to the company.

17. According to the information and explanation given to us and on and overall examination of Balance sheet of the company, funds raised on short-term basis, prima facie, have not been used during the year for long-term investment. Similarly long-term funds, prima facie have not been used to finance short-term assets.

18. During the year, the company has not made any preferential allotment of share to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956. Therefore, the provision of clause 4(xviii) of the Companies Auditors Report) order 2003, is not applicable to the company.g

19. The company has not issued any debentures. Therefore, the provision of clause 4(xix) of the Companies (Auditors) order 2003, is not applicable to the company.

20. The company has not raised any money by public issue during the year, therefore, the provision of clause 4(xx) of the Companies (Auditors Report) order 2003, is not applicable to the company.

21. Based upon the audit procedure performed and information and explanation given by the Management, we report that, no fraud on or by the company has been noticed or reported during the course of our audit for the year ended March 31,2010.

Place: Ahmedabad For, JAGETIYA & GURBANI

Date : 29-05-2010 (006551C)

Chartered Accountants

Jeevan Jagetiya

Partner

M No. 046553

---

Mar 31, 2009

1. We have audited the attached Balance Sheet of Fun world & Tourism Development Limited as at 31st March, 2009 and also the Profit and Loss Account for the year ended on that date annexed thereto. Those financial statements are the responsibility of the Companys Management Our responsibility is to express an opinion on these financial statements based on our audit

2. We have conducted our audit in accordence with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements era free of material misstatement. An audit includes examining, on a test basis, evidence. Supporting the amounts end 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 statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies Auditors Report Order 2003, issued by the Central Government of India In term of suction 227 (4A) of the Companies Act. 1956 and on the basis of such chocks as we considered appropriate and as per information and explanation given to us during the course of our audit, we annex hereto a statement on the matters specified In paragraphs 4 and 5 of the sold order.

4. Further to our comments in the annexure referred 10 the paragraph 3 above. we report as under :¦

a. We have obtained all the information end explanations, which to the best of our knowledge and belief were necessary tar the purpose of our audit.

b. In our opinion proper books of accounts as required by Law have- boon kept by the Company so far as appears from our examination of the books.

c. The Balance Sheet and profit & Loss Account dealt with by this Report are in agreemenl with the. books of account of the company.

d. In our opinion, the Balance Sheet and the Profit & Loss Account dealt with by the report are in compliance with the Accounting standards referred 1o in section 211 (3C) of the companies Act, 1956.

e. On the basis of written representation received from the directors and taken on records by the Board of Directors, we report you that none of the Directors of the company disqualified as on 31st march 2009 from being appointed as Director of the company under clause (g) of sub-section (1) of section 274 of the Act 1956.

f. In our opinion and to the best of our information and according to the explanations given to us, the said Financial Statement read together with the notes thereon give the information required by the- companies Act,1956 in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India.

(i) In the case of Balance Sheet of the state of affairs of the Company as at 31st March, 2009.

(ii) In the case of profit and Loss Account of the Loss of the company for the year ended on that date.

(iii) In the case of Cash Flow statement, of the Cash Flow for the year ended on that date.



1 In Respect of Fixed Assets:

{a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(p) As explained to us, the fixed assets have been physically verified by the management at reasonable intervals in a phased manner In accordance with a programme of verification adopted by the company which in our opinion is reasonable, having regard to the company and nature if its assets. To (he best of our knowledge no malarial discrepancies were noticed on such verification

(c) In our opinion, the company has not disposed off substantial part of fixed assests during the year and the going concern status of the Company is not affected.

2. In respect of Inventories:

(a} As explained to us, the Inventories have been physically verified by the management at reasonable intervals dumig the year. In our opinion, the frequency of such verification is reasonable having regard to the size of the Company and the nature of Its business,

(b) In our opinion end according to the information end explanations given 10 us, the procedures of physical verification of inventories fallowed by the management ere reasonable and adequate In relation to the size of Ihe Company end nature of the business.

(c) The Company has maintained proper records of inventory. As explained to us, there were no material discrepancies noticed on physical verification of the having regard to the size of the operations of the Company.

3. In resped of loans, secured of unsecured, granted or taken by the Company from companies, firms or of her parties covered in the register maintained under Section 301 of the Companies Act, 1956,

{a) The company has not taken or granted any loans, secured or unsecured 1o companies. firms or other parties covered in the register maintained undersection 301 of the Act.

(b) Since the Company has not granted or taken any loans, secured or unsecured lo/from companies, firms or other parties covered in the register mainlained under section 301. Hence the relevanl Pare for the rate of interest, payment of principal amount & interest and overdue are not applicable.

4. In our opinion and according to me information and explanation given to us, those are adequate internal control procedures commensurate wilh the size of the company and the nature of its business with regard 1o purchase of inventory, feed assets and with regards to Sale of goods. During the course of audit. we have not observed any continuing failure to correct major weakness in internal controls.

5. In respect of transaction covered under section 301 of (he Companies Act. 1956.

(a) Based on audit procedures applied by us and according to the information and explanation given to usf

the transaction that needed to be enterec into the register have been so entered.

(b) In our opinion and according to the information and explanation given to us. there are no transactions in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act. 1956 and exceeding Rupees five Lacs or more in respect of each party during the year. have been made at prices which are reasonable having regard to the prevalent market prices at the relevant time.

6, In our opinion and according to the Information and explanation given to us the Company has not accepted any deposit from the public during the financial year. Hence Provision of Clause (vi) Companies (Auditors Report) Oder. 2003 is not applicable to the Company

7 In our opinion and according to the information and explanation given, to us the company has adequate Internal audit system commensurate with the size and nature of the business.

8 In the best of our knowledge and according to the Information and explanation given to us the

maintenance of cost records has not been prescribed by the Central Government under section 209 (1) 1 (d) of me Companies Act. 1956 for any of the products.

9 In respect of Statutory Dues: According to the Information and explanations given to us. there are no

undisputed and outstanding amount payable in respect of Provident fund, investor Education and Protection fund, Employees State Insurance, Income-Tax, Sales-Tax, Wealth Tax, Custom Duly, Excise Duly, Excise end any other slatutory dues Willi the appropriate authorities as at 31st March 2009 for a period of more than six months from the date they become payable.

10. The Company does have accumulated losses at the end of the financial year amounted to Rs 25,82,229.53/-.

11. Based on our audit procedure and according to the information end explanations given to us. we an? of the opinion that the company has not defaults in repayment of dues to financial Institutions or banks.

12. In our opinion and according to the information and explanations given to us. No loans and advances have been granted by the company on the basis of security by way of pledge of shares. dabentures and other securities.

13. In our opinion, the company is not a chit fund or a nidhi /mutual benefit fund society, Therefore the provision of clause 4(xill) or the Compenies (Auditors Report) order 2003, is not applicable to [he company.

14. The company is not.dealing or trading In shares, security, debentures and other Investments. Iience, the provision of clause 4(xiii) of the Companies (Auditors Report) order 2003, is not applicable to the company,

15. According to the Information and explanations given to us. the Company has not.given any guarantee for loans taken by others from banks and financial institutions.

16. The company has not raised term loans during the year. Therefore, the provision of clause 4(xvi) of Ihe

Companies (Auditors Reportj) order 2003. is not applicable to the company.

17, According to the information and explanation given to us and on and overall examination of Balance sheet

of the company, funds raised on short-term basis, prima facie, have not been used during the year for long-term investment. Similary long-term funds, prime facie have not been used to finance short-term assets.

16. During the year, the company has not made any preferential allotment of share to parties and companies .covered in the register maintained under section 301 of the Companies Act, 1956. Therefore the provision of clause 4(xvi) of the Companies (Auditors Report) order 2003, is not applicable to the company

19. The company has not issued any dobentures. Therefore, the provision of clause 4(xix) of the Companies

(Auditors) order 2003, is not applicable to the company.

20, The company has not raised any money by public issue during the year, therefore. the provision of clause 4(xix) of the Companies (Auditors Report) order 2003, Is not applicable to the company.

21, Based upon the audit procedure performed and Information and explanation given by the Management

we report that, no fraud on or by the company has bean noticed or reported during the course of our audit for the year ended March 31,2009.

for JAGETIYA & GURBANI Chartered Accountants Place :Ahmedabad Date:25-08-2009 Jeevan Jagetiya Partner