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Auditor Report of Rajath Finance Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of M/S Rajath Finance Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2015,the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.

.Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 the 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 financial control relevant to the Company's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company's Directors, 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 on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at 31st March, 2015, and its profit/loss and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2015, and on the basis of such checks of the books of records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143 (3) of the Act, we report that:

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

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

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

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of the written representations received from the directors as on 31st March, 2015taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015 from being appointed as a director in terms of Section 164 (2) of the Act.

f) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company

The Annexure referred to in paragraph 1 of Our Report on "Other Legal and Regulatory Requirements".

We report that:

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

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

ii. Since the Company does not hold any physical inventory, the requirement of reporting of physical verification of inventory and maintenance of inventory records does not arise.

iii. The Company has not granted any loans, secured or unsecured, to companies, firms or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) of the said Order are not applicable to the Company.

iv. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and for sale of goods and services. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

v. The Company has not accepted any deposits from the public covered under sections73 to 76 of the Companies Act, 2013.

vi. As per information & explanation given by the management, maintenance of cost records has not been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013.

vii. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales- tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, value added tax, cess and any other statutory dues to the extent applicable, have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amount payable in respect of income tax, wealth tax, service tax, sales tax, customs duty, excise duty, value added tax and cess whichever applicable, which have not been deposited on account of any disputes.

(c) The provision of clause (vii)(c) of the order is not applicable on the company.

viii. The Company does not have accumulated losses at the end of financial year more than fifty percent of its net worth and has not incurred cash loss during the financial year and in the immediately preceding financial year.

ix. In our opinion and according to the information and explanations given by the management, we are of the opinion that, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders, as applicable to the company.

x. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

xi. Based on our audit procedures and on the information given by the management, the company has not taken any term loan during the year.

xii. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For S A D P AND CO

Chartered Accountants

FRN: 112625W

Place:-Rajkot

PARAG GUNVANTRAI BHUPTANI

Date: 30/May/2015

(PARTNER )

Membership No.122330


Mar 31, 2014

We have audited the accompanying financial statements of M/S Rajath Finance Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2014 and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

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 notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013. 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.

AUDITOR''S 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.

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 Profit and Loss Account, of the profit/ loss 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.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT

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

bb) **The report on the accounts of the branch offices audited under section 228 by a person other than the company''s auditor has been forwarded to us as required by clause (c) of sub-section (3) of section 228 and have been dealt with in preparing our report in the manner considered necessary by us.

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, the Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

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.

f) Since the Central Government has not issued any notification as to the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR''S REPORT ON THE ACCOUNTS OF M/S Rajath Finance Limited FOR THE YEAR ENDING 31st March 2014

As required by the Companies (Auditor''s report) Order, 2003 issued by the central Government of India in terms of section 227(4-A) of the Companies Act, 1956, we report that:

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

(b) As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.

(c) In our opinion and according to the information and explanations given to us, no fixed asset has been disposed during the year and therefore does not affect the going concern assumption.

2. Since the company does not hold any physical inventory, the requirement of reporting of physical verification of inventory and maintenance of inventory records in our opinion does not arise.

3. (a) The Company has granted loans to 3 parties covered in the register maintained under section 301 of the Companies Act, 1956 wherein the balance receivable as at the year-end is Rs. Nil. The maximum amount outstanding during the year was Rs. 75,00,000.

(b) In our opinion, the rate of interest and other terms and conditions on which the loans have been granted to the parties listed in the register maintained under Section 301 of the Act are not, prima facie, prejudicial to the interest of the Company.

(c) In the case of the loans granted to the parties listed in the register maintained under section 301 of the Act, the borrowers have been regular in the payment of the interest, wherever stipulated.

(d) There are no overdue amounts of more than rupees one lakh in respect of the loans granted to the parties listed in the register maintained under section 301 of the Act.

(e) The Company has taken loans from Nil parties covered in the register maintained under section 301 of the Companies Act, 1956

4. In our opinion and according to the information and explanations given to us, there is generally an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventories & fixed assets and payment for expenses & for sale of goods. During the course of our audit, no major instance of continuing failure to correct any weaknesses in the internal controls has been noticed.

5. a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section.

b)As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act aggregating Rs. Five lacs in the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6. The Company has not accepted any deposits from the public covered under section 58A and 58AA of the Companies Act, 1956.

7. In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.

8. As per information & explanation given by the management, maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act.

9. (a) According to the records of the company, undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, cess to the extent applicable and any other statutory dues have generally been regularly deposited with the appropriate authorities. According to the information and explanations given to us there were no outstanding statutory dues as on 31st of March, 2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there is no amounts payable in respect of income tax, wealth tax, service tax, sales tax, customs duty and excise duty, whichever applicable, which have not been deposited on account of any disputes.

10. The Company does not have any accumulated loss and has not incurred cash loss during the financial year covered by our audit and in the immediately preceding financial year.

11. Since no fund has been raised from banks or financial institution, hence not applicable.

12. According to the information and explanations given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. The Company is not a chit fund or a nidhi /mutual benefit fund/society. Therefore, the provision of this clause of the Companies (Auditor''s Report) Order, is not applicable to the Company.

14. The company has maintained proper records of transactions and contracts in respect of dealing and trading in shares, securities, debentures and other investments and timely entries have been made there in. All shares, debentures and other investments have been held by the company in its own name. The company had purchased 23,300 nos. of Master Gain, The same were misappropriated in transit. The company had filed suit before the Hon''ble Civil Court,Rajkot.

15. According to the information and explanations given to us, the Company has not given any guarantees for loan taken by others from a bank or financial institution.

16. Based on our audit procedures and on the information given by the management, the company has not taken any term loan during the year.

17. Based on the information and explanations given to us and on an overall examination of the Balance Sheet of the Company as at 31st March, 2014, we report that no funds raised on short- term basis have been used for long-term investment by the Company.

18. Based on the audit procedures performed and the information and explanations given to us by the management, we report that 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.

19. The Company has not issued any secured outstanding debentures during the period.

20. The Company has not raised any money by public issue during the year.

21. According to the information and explanations given to us, we report that no fraud on or by the Company has been noticed or reported during the year, nor have we been informed of such case by the management.

For S A D P AND CO Chartered Accountants FRN: 112625W

Place: Rajkot PARAG GUNVANTRAI BHUPTANI

Date: 28/05/2014 (PARTNER)

Membership No. 122330


Mar 31, 2012

1 We have audited the attached Balance Sheet of Rajath Finance Limited as at 31st March 2012 and the Profit and Loss Account for the year ended on that date both of which we have signed under rcfcrcncc lo this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on these financial statements based on our audit.

2 We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is 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 overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3 As required by the Companies (Auditors' Report), 2003 issued by the Central Government of India in terms of section 227(4A) of the Companies Act, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Without qualifying our opinion we draw attention that company has incurred director remuneration of Rs.6.00 Lae during the year which is in excess of limit specified by the relevant provision of the Companies Act 1956. We have been informed by the BoD that they are in process to get the approval from relevant authority for excess remuneration paid. In view of BoD's opinion of seeking approval from relevant authority no adjustment has been j made to accompanying financial statement in this regard.

5 Further we report that:

We have obtained all the information and explanations, which to the best of our knowledge and belief were j

necessary for the purposes of our audit. j

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 such books.

c. The Balance Sheet referred to in this report is in agreement with the books of account.

d. In our opinion, this financial statement have been prepared in compliance with the applicable accounting i standards referred to in section 211(3C) of the Companies Act, 1956.

e. Based on the representations made by all the Directors of the company as on March 31, 2012 and taken on I record by the Directors of the company and in accordance with the information and explanations as made j available the Directors of the company do not prima facie have any disqualification as referred to in clause (g) of subsection (1) to section 274 of the Act.

f. In our opinion, and to the best of our information and according to the explanations given to us, the said Balance-Sheet and Profit & Loss Account read together with the notes thereon give the information required and give a true and fair view: j

i. In the case of Balance Sheet, of the state of affairs of the company as at 31'1 March 2012; and

ii. In the case of the Profit and Loss Account, of the loss for the year ended on that date.

iii. In caser of cash flow statement of cash flows for the year ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITOR'S REPORT ON THE ACCOUNTS OF M/S Rajath Finance Limited FOR THE YEAR ENDING 31st March 2012

As required by the Companies (Auditor's report) Order, 2003 issued by the central Government of India in terms of section 227(4-A) of the Companies Act, 1956, we report that:

1. In respect f fixed assets:

(A) The company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets on the basis of available information.

(B) As explained to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed on such physical verification.

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

2. Since the company does not have any inventory, the requirement of reporting on physical verification of inventory and maintenance of inventory records, in our opinion, does not arise.

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 granted Loans to one party. At the year end the outstanding balance of such loans granted was Rs.55,00,000/- and the maximum amount involved during the year was Rs. 65,00,000/-

(B) In our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other the terms and conditions are prima-facie prejudicial to the interest of the company since there is no stipulation regarding repayment of Principle and interest.

(C) In respect of loans granted by the company, the interest and the principal amount is repayable on demand.

(D) Since the loans granted by the company are repayable on demand, no question of overdue amounts arises.

(E) The company has not taken any new loans during the year.

(F) Since the company has not taken any new loans during the year hence Not Applicable

(G) Since the company has not taken any loans during the year hence Not Applicable

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedure commensurate with the size of the company and nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control.

5. In our opinion and according to the information and explanation given to us, there are no contracts or arrangements that need to be entered into the register maintained in pursuance of Section 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public and therefore, the provisions of Section 58 A and 58 AA of the Companies Act, 1956 and Rules made there under are not applicable to the Company.

7. In our opinion, the company has an internal audit system commensurate with its size and nature of its business.

8. As explained to us, the provisions section 209(1) (d) are not applicable to the company as the company is not in production, processing, manufacturing or mining activities.

9. In respect of statutory dues:-

(A) According to the information and explanations given to us, the company was generally regular in depositing dues in respect of Employees Provident Fund, Employees State Insurance Fund and other statutory dues with the appropriate authority during the year except Income Tax. The company has not paid the Income Tux for the Financial Year 2010-11 till date. The approximate amount of such tax payable is of Rs. 13,93,000.

(B) According to the records examined by us and the information and explanations given to us, there arc no disputed amounts due in respect of income tax, wealth tax, sales tax, excise duty, Employees provident fund, Employee state insurance fund and other statutory dues at the end of the year.

10. The Company does not have accumulated losses more than fifty percent of its net worth as at the end of the year and the company has not incurred cash losses during current year or in the year immediately preceding the previous year.

11. Since no fund is raised/ outstanding to banks, financial institution and from debenture holders, hence Not Applicable

12. In our opinion and according to information and explanation 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 security.

13. In our opinion the company is not a Chit Fund, Nidhi or Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(XIII) of the CARO,2003 are not applicable to the company.

14. The company has maintained proper records of transactions and contracts in respect of dealing and trading in shares, securities, debentures and other investments and timely entries have been made there in. All shares, debentures and other investments have been held by the company in its own name. The company had purchased 23,300 Nos. of Mater Gain. The same were misappropriated in transit. The company had filed suit before the Hon'ble Civil Court Rajkot. The same was disposed in favour of the company and an execution application has also been filed, which is pending for disposal before the Hon'ble Civil Court, Rajkot.

15. According to the records of the company and information and explanations given to us, the company has not given guarantees for loans taken by others from banks and financial institutions.

16. In our opinion and according to information and explanation given to us, the Company has not availed of any term loans during the year. There were no term loans outstanding as at the beginning and as at end of the year.

17. According to the information and explanations given to us and on examination of balance sheet, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

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

19. The company has not issued any debentures during the year, hence question of creation of securities does not arise.

20. The Company has not raised money by any public issues during the year and hence the question of disclosure and verification of end use of such money does not arise.

21. In our opinion and according to the information and explanations given to us no fraud on or by the Company has been noticed or reported during the year that causes the financial statements to be materially misstated. For S A D P & Co. Chartered Accountants (FRN: 11262SW)

Place: Rajkot (PC Bhuptani)

Date: 30/05/2012 Partner

Membership no. : 122330


Mar 31, 2010

1 We have audited the attache Balance Sheet of Rajath Fiance Limited as at 31st March 2010 and the Profit and Loss Account for the year ended of that date both of which we have signed under reference to this report. These financial statements are the responsibility of the management of the Company. Our responsibility is to express an opinion on there financial statements based on our audit.

2 We conducted our audit in accordance with auditing standards generally accepted India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is 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 and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion

3 As required by the Companies (Auditors Report), 2003 issued by the Central Government of India in terms of section 227 (4A) of the Companies Act, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order

4 Further we report that:

a Wh have obtained all the information an explanations, which to the best of our knowledge and belief necessary for the purposes 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 such books.

c The Balance Sheet referred to in this report is in agreement with the books of account.

d In our opinion, this financial statement have been prepared in compliance with the applicable accounting standards referred to in section 211 (3C) of the Companies Act, 1956.

e Based on the representations made by all the Directors of the company as on March 31,2010 and taken on record by the Directors of the company and in accordance with the information and explanations as made available the Directors of the Company fo not prima facie have any disqualification as referred to in clause (g) of subsection (1) to section 274 of the Act.

In our opinion, and ot the best of our information and according to the explanations given to us, the said Balance-sheet and profit & Loss Account read together with the notes thereon give the information required and give a true and fair view:

i, In the case of Balance Sheet, of the state of affairs of the company as at 31st March 2010;

and

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT ON THE ACCOUNTS OF Rajath Finance Limited for THE YEAR ENDING 31 ST MARCH 2010

As required by the Companies (Auditors report) Order, 2003 issued by the Central Government of India in terms of section 227(4-A) of the Companies Act, 1956, we report that:

1 In Respect of Fixed Assets:

(a) The company has maintained proper records showing full particulars, including quantitative details and situatio of fixed assets on the basis of available information.

(b) As explained to us, all the fixed assets have been physically verified by the management during the year at reasonable intervals, which in our opinion, is reasonable having regard to the size of the company and the nature of assets. No material discrepancies were noticed no such physical verification

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

2 Since the Company does not have any inventory, the requirement of reporting on physical verification of inventory and maintenance of inventory records, in our opinion, does not arise

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

(a) The company has not granted or taken any loans from the persons covered in the register maintained u/s. 301 of the Companies Act, 1956.

(b) Not applicable , since no loans are granted or taken during the year.

(c) We are unable to express our opinion, since there in no stipulation as regard repayment of loan and interest.

(d) There in no overdue amount of loans, secured or unsecured from companies, firms or other parties covered in the register maintained u/s. 301 of the Companies Act, 1956.

(e) According to the information and explanation given to us, the Company has not taken loans, secured or unsecured, from any party listed in the register maintained under section 301 of the Companies Act, 1956.

4 In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and nature of its business with regard to purchase of inventory and fixed assets and with regard for the sale of goods and services. During the course of audit, no major weakness has been noticed in the internal control.

5 As no new contracts or arrangements are entered in pursuance of section 301 of the Companies Act, 1956; the requirement of reporting in this in this matter does not arise.

6 In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public an therefore, the provisions of Section 58A and 58AA of the Companies Act, 1956 and Rules made there under are not applicable to the Company.

7 In our opinion, the company has a proper internal audit system commensurate with is size and nature of its business.

8 As explained to us, the provisions section 209(1) (d) are not applicable to the company as the Company is not engaged in production, processing manufacturing or mining activities.

9 In respect of statutory dues:

(a) According to the information and explanations given to us, the company was generally regular in depositing dues in respect of Employees Provident Fund, Employees State Insurance Fund, Income Tax, and other statutory dues with the appropriate authority during the year except in the payment of tax deducted at source but no outstanding dues exists for more than six month.

(b) According to the records examined by us and the information and explanations given to us, there are no disputed amounts due in respect of income tax, wealth tax, sales tax, excise duty, Employees provident fund, Employees state insurance fund and other statutory dues, at the end of the year.

10 The Company does not have accumulated losses more than fifty percent of its net worth as at the end of the year and the Company has not incurred cash losses during current year or in the year immediately preceding the precious year.

11 Since no fund is raised/ outstanding to banks, financial institutions and debenture holders, hence not applicable.

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

13 In our opinion the company is not a chit fund, Nidhi or Mutual benefit fund/society. Therefore, the provisions of clause 4(XIII) of the CARO, 2003 are not applicable to the company.

14 The company in not dealing in or trading in shares, securities, debentures and other investments. Accordingly , the provisions of clause 4(xiv) of the order are not applicable.

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

16 In our opinion and according to information and explanation given to us, the Company has not availed of any term loans during the year. There were no term loans outstanding as at the beginning and as at end of the year.

17 According to the information and explanation given to us and on examination of balance sheet, funds raised on short term basis have, prima facie, not been used during the year for long term investment and vice versa.

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

19 The company has not issued any debentures during the year, hence question of creation of securities does not arise.

20 The Company has not raised money by any public issues during the year and hence the question of disclosure and verification of end use of such money does not arise.

21 In our opinion and according to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year causes that causes the financial statements to be materially misstated.



For, S A D P & CO.

Chartered Accountants

S. G. Bhuptani

Place:- Rajkot Partner

Date:- 27th May, 2010 Membership No. 107361

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