Auditor Report of Shree Salasar Investment Ltd.

Mar 31, 2012

We have audited the attached Balance Sheet of Shree Salasar Investments Ltd., as at 31st March, 2012, the Profit and Loss Account and 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 express an opinion on these financial statements based on our audit.

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 evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

i. 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;

ii. 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;

iii. The Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of;

iv. In our opinion, the Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;except AS-15 regarding Retirement benefits treated on Cash basis.

v. On the basis of written representations received from the directors, as on 31st March, 2012, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2012 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi. In our opinion and to the best of our information and according to the explanation given to us, the said accounts Subject to Para no.7 of note A regarding non provision of retirement benefits amount is unascertained and read together with other notes thereon given in Note 'A' give a true and fair view in conformity with the accounting principles generally accepted in India:

a. In the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2012; and

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

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

ANNEXURE TO THE AUDITOR'S REPORT

Annexure in terms of para 1 of our report of even date to the members of SHREE SALASAR INVESTMENTS LTD. on the accounts for the year ended 31st March 2012.

la. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

lb. we are informed that Fixed Assets have been physically verified by the management and no discrepancies were observed between book record and physical verification.

lc. The Company has not disposed off substantial part of Fixed Asset during the year to effect to its going concern.

2. During the year there is no inventory hence relevant clause is not applicable.

3a. The Company has not granted loan, secured or unsecured to parties covered in the Register maintained u/s. 301 of the Companies Act, 1956. Hence provisions of sub clause (a) to (d) of clause 4(iii) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies.

3b. The Company has not taken unsecured loan from parties covered u/s. 301 of the Companies Act, 1956. Hence relevant clause is not applicable.

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, for the purchase and sale of inventory, fixed assets and with regard to the sale of goods/services. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal controls.

5. As per information and explanations given to us there is no transaction in the company that needs to be entered into register in pursuance of section 301 of the Companies Act, 1956.

6. As per information and explanations given to us the company has not accepted deposit from public in contravention of provisions of section 58A of the Companies Act, 1956.

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

8. According to the information and explanations given to us, maintenance of cost records have not been prescribed by the Central Government under Section 209(1) (d) of the Companies Act, 1956 with regard to the nature of business of the company.

9a. The Company is regular in statutory dues including provident fund, income tax, sales tax, wealth tax, custom duty, service tax, excise duty, cess and any other material statutory dues wherever applicable with the appropriate authorities

9b. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears.. There are no undisputed statutory dues outstanding for more than six months.

10. The company does not have accumulated loss at the financial year and it has not incurred cash loss in the financial year but in the financial year immediately preceding such financial year there was accumulated loss of Rs.8,72,546 /-

11. According to information and explanations provided to us, the Company has not taken any loan from bank. Hence relevant clause is not applicable.

12. The company has not granted any loans or advance on the basis of security by way of pledge of shares and debentures or any other securities. Therefore, the provisions of clause 4(Xii) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies.

13. In our opinion, the company is not a 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 companies.

14. The company is not dealing in shares and securities. Hence the provisions of clause 4(Xiv) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies.

15. The company has not given any guarantee for loans taken by others from bank or financial institution. Hence, the provisions of clause 4(XV) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies.

16. Company has not taken any term loan. Hence relevant clause is not applicable.

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.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued any debentures.

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

21. According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

FOR SHANKARLAL JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Registration No. 109901W

S.L. AGRAWAL

PARTNER.

M.NO. 72184

PLACE: MUMBAI

DATED: 11 AUG 2012

---

Mar 31, 2011

We have audited the attached Balance Sheet of Shree Salasar Investments Ltd., as at 31st March, 201 l,the Profit and Loss Account and 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 express an opinion on these financial statements based on our audit.

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 evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

i) 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;

ii) 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;

iii) The Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of;

iv) In our opinion, the Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 21 1 of the Companies Act, 1956;

v) On the basis of written representations received from the directors, as on 31st March, 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion and to the best if our information and according to the explanation given to us, the said accounts read together with other notes thereon given in schedule 'T gives 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:

a. In the case of Balance Sheet, of the state of affairs of the Company as at 31sl March, 2011; and

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

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

ANNEXURE TO THE AUDITOR'S REPORT

Annexure in terms of para 1 of our report of even date to the members of SHREE SALASAR INVESTMENTS LTD. on the accounts for the year ended 31st March 2011.

la. The company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets.

lb We are informed that Fixed Assets have been physically verified by the management and no discrepancies were observed between book record and physical verification.

lc. The company has not disposed off substantial part of Fixed Asset during the year to effect to its going concern.

2. During the year there is no inventory hence relevant clause is not applicable.

3a The company has not granted loan, secured or unsecured to parties covered in the Register maintained u/s. 301 of the Companies Act, 1956. Hence provisions of subclause (a) to (d) of clause 4(iii) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies,

3b The company has taken unsecured loan from a director covered u/s. 301 of the Companies Act, 1956. Amount of loan outstanding as on 315! March 11 is Rs.10000.

3c. In our opinion, the terms & conditions of such loans are not Prima facie prejudicial to the interest of the company.

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

5 As per information and explanations given to us there is no transaction in the company that needs to be entered into register in pursuance of section 301 of the Companies Act, 1956.

6 As per information and explanations given to us the company has not accepted deposit from public in contravention of provisions of section 58A of the Companies Act, 1956.

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

8 According to the information and explanations given to us, maintenance of cost records have not been prescribed by the Central Government under Section 209(1) (d) of the Companies Act, 1956 with regard to the nature of business of the company.

9a The Company is regular in depositing undisputed statutory dues including provident fund, income tax, sales tax, wealth tax, custom duty, service tax, excise duty, cess and any other material statutory dues wherever applicable with the appropriate authorities.

9b. According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty, excise duty and cess were in arrears.. There are no undisputed statutory dues outstanding for more than six months.

10. The company does have accumulated loss of Rs. 14,78,846/- at the financial year and it has incurred cash loss in the financial year of Rs.8,56,242/- and in the financial year immediately preceeding such financial year of Rs.12,07,110/-

11. According to information and explanations provided to us, the Company has not taken defaulted in repayment of dues to bank.

12. The company has not granted any loans or advance on the basis of security by way of pledge of shares and debentures or any other securities. Therefore, the provisions of clause 4(Xii) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies.

13. In our opinion, the company is not a 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 companies.

14. The company is not dealing in shares and securities. Hence the provisions of clause 4(Xiv) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies.

15. The company has not given any guarantee for loans taken by others from bank or financial institution. Hence, the provisions of clause 4(XV) of the companies (Auditor's Report) Order, 2003 are not applicable to the companies.

16. As per information and explanations given to us term loans taken during the year were applied for the purpose for which it was taken. During the year there is no loan accepted.

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.

18. The company has not made any preferential allotment of shares during the year.

19. The company has not issued any debentures.

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

21 According to the information and explanations given to us, no fraud on or by the company has been noticed or reported during the course of our audit.

For SHANKARLAL JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS Firm Reg. No.109901 W

S.L. Agrawal PARTNER M NO 72184

Place : Mumbai

Date :23 AUG 2011

---

Mar 31, 2010

We have audited the attached Balance Sheet of Shree Salasar Investments Ltd., as at 31st March, 2010,the Profit and Loss Account and Cash Flow Statement 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.

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 evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

i) 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;

ii) 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;

iii) The Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of;

iv) In our opinion, the Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the directors, as on 31st March, 2010, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2010 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion and to the best if our information and according to the explanation given to us, the said accounts read together with other notes thereon given in schedule 7 gives 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:

a. in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2010; and

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

c. in case of the Cash Flow Statement, of the cash flow for the year ended on that date



ANNEXURE "A" TO THE AUDITORS REPORT

(Referred to in Paragraph 3 of the Auditors Report of even date to the members of Shree Salasar Investments Ltd On the financial statements for the year ended 31st March 2010)

1. The company has maintained proper records showing full particulars including, quantitativedetails and situation of fixed assets. The assets have been disposed during the year .Hence question of physical verification does not arise.

2. The company is not dealing / trading in goods , as such this para is not applicable .

3. The company has granted unsecured loans of Rs 119721/- to a company listed in the register maintained under section 301 of the Companies Act, 1956. The company is paying the principal amount and the interest as stipulated. In our opinion terms and conditions on which loan has been granted are not prima facie prejudicial to the interest of the company out of this Rs 107000/- has been repaid during the year. The company has not taken any loan from parties 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 the nature of its business, and for the sale of shares/assets. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal controls.

5. As explained to us, in case of transactions exceeding the value of Rs 5 Lakhs in the financial year in respect of any party (a) the transaction 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 these transaction have been made at the prices which are reasonable having regards to prevailing market price at relevant price.

6. The Company has not accepted any deposits from the public within the meaning of Section 58A and 58AA of the Act. According to the information and explanations given to us, no order has been passed by Company Law Board and as such the requirement of compliance thereof is not applicable to the Company.

7. Internal audit is carried out by the own Internal Audit Celi of the Company. In our opinion, the internal audit system has been found to be generally commensurate with the size and nature of the business of the Company.

8. According to the information and explanations given to us, the Central Government has not prescribed for the maintenance of cost records under clause (d) of sub-section (1) of Section 209 of the Companies Act, 1956 in respect of the product of the Company.

9. i.According to the information and explanations given to us, the Company, has been generally regular in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employees state insurance, income tax, sales tax, wealth tax, excise duty, cess and other material statutory dues with the appropriate authorities. As far as available from the records verified by us and according to the information and explanations given to us, there were no arrears of dues outstanding for a period of more than six months as at 31st March 2010 from the date they became payable.

ii. According to the information and explanations given to us, there is no disputed statutory unpaid during the year.

10. The Company has accumulated losses of Rs 6.06 lacs and there is a cash loss of Rs 12.08 lacs during the 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 Banks or Debentures holders.

12. As informed, the Company has not granted any loans and advances on the basis of any security by way of pledge of shares, debentures and other securities.

13. According to the information and explanations given to us, the Company is not a chit fund or a nidhi/mutual benefit fund/society.

14. According to the information and explanations given to us, the Company is engaged in investments in shares, securities, debentures and other investments and in our opinion proper records are maintained in this regard.

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 banks.

16. The Company has not taken term loan from a bank.

17. According to the information and explanations given to us and on overall examination of the Balance Sheet of the Company, has no short term funds .

18. According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of Companies Act, 1956.

19. According to the information and explanations given to us, no debentures has been issued during the year by the Company.

20. According to the information and explanations given to us, the Company has not raised any money during the year by public issue.

21. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices and according to the • information and explanations given to us, we have neither come across any fraud on or by the Company nor have we have been informed of any such case by the Management.



For SHANKARLAL JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS

SLAGARWAL

Place : Mumbai PARTNER

Date : 06/05/2010 M NO 72184

---

Mar 31, 2009

We have audited the attached Balance Sheet of Shree Salasar Investments Ltd., as at 31st March, 2009,the Profit and Loss Account and Cash Flow Statement 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.

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 evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

i) 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;

ii) 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;

iii) The Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of;

iv) In our opinion, the Balance Sheet , Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956;

v) On the basis of written representations received from the directors, as on 31st March, 2009, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

vi) In our opinion and to the best if our information and according to the explanation given to us, the said accounts subject to note No.4 in respect of certain shares not held by the company and non-provision of fall in market value of investments of Rs.1254941/- and read together with other notes thereon given in schedule 7 gives the information required by the Companies Act, 1956, in the matter so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a. in the case of Balance Sheet, of the state of affairs of the Company as at 31st March, 2009; and

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

c. in case of the Cash Flow Statement , of the cash flow for the year ended on that date

(Referred to in Paragraph 3 of the Auditors Report of even date to the members of SHREE SALASAR INVESTMENTS LTD. On the financial statements for the year ended 31st March 2009)

1. The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. We are informed that fixed assets were verified by the management at the end of the year and no material discrepancy was noticed on such verification by the management. No assets have been disposed off during the year.

2. The company has granted unsecured loans of Rs 119721/- to a company listed in the register maintained under section 301 of the Companies Act, 1956. The company is paying the principal amount and the interest as stipulated. In our opinion terms and conditions on which loan has been granted are not prima facie prejudicial to the interest of the company. The company has not taken any loan from parties listed in the register maintained under section 301 of the Companies Act, 1956.

3. 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 the nature of its business, for the purchase of securities and for the sale of securities.

4. The company has transactions in pursuance of contracts or arrangements duly entered in the register maintained under section 301 of the Companies Act, 1956 in respect of each party have been made. In our opinion these transactions have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

5. The company has not accepted deposit from public.

6. According to the information and explanations given to us, there are no undisputed amounts payable in respect of Income-tax, Wealth-tax, Sales Tax, Service tax ,Customs duty and Excise duty were outstanding, as at 31st March, 2009 for a period of six months from the date they became payable. Income Tax demand of Rs.479368/- plus interest thereon has been disputed by the company and appeal is pending.

7. The company has not granted any loans or advances on the basis of security by way of pledge of shares, debenture and other securities. Hence, there is no need to maintain the records regarding security of loans.

8. As the company is not Chit fund, Nidhi or mutual benefit society, the question of application of special statue does not arise.

9. The company has maintained proper records of the transactions and contracts of investments in shares and has also made timely entries therein. The shares held by the company at the end of the year are in its own name except 5200 shares of Shree Dhanop Finance & Consultancy Ltd.

10. During the checks carried out by us, any frauds on or by company has not been noticed or reported during the year under report.

11. In our opinion, provisions of Para 4A (ii), (vii),(viii), (x) ,(xi), (xv) to (xx) are not applicable to the company.

For SHANKARLAL JAIN & ASSOCIATES CHARTERED ACCOUNTANTS

S.L.Agrawal

PARTNER

M NO 72184

Place : Mumbai

Date : 31/07/2009

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Mar 31, 2008

We have united the attached Balance Sheet or Shree Salasar Investments Ltd., as at 31st March. 2008.The Profit and Loss Account and Cash Flow Statement for the year ended on that date annexed hereto These financial statements arc the responsibility of the Company''s management Our responsibility is to express an opinion on these Financial Statements based on our audit

We conducted our audit in accordance with auditing standards generally accepted in India Those Standards require that we plan and perform the audit 10 obtain reasonable assurance about whether the financial statements are Tree 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 estimate* made by management, as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion

As required by the Companies (Auditor''s Report) Order 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act. 1956. we enclose in the Annexure a statement on the matters specified in paragraphs I and 3 of the said Order

l-further to our comments in the Annexure referred to above, we report that

i) We have obtained all the information and explanations, which lo the best of our knowledge and belief were necessary for the purpose of our audit

ii) In our Opinion, proper books of account as required by law have been kepi by the company so far as appears from our examination of those.

iii) The Balance Sheet Profit and Loss Account and Cash Flow Statement dealt with by this report arc in agreement with the books of;

iv) In our opinion, the Balance Sheet Profit and Loss Account and ( ash Flow Statement dealt with by this report comply with the accounting standards referred to in sub-section (3C)of section 211 of the Companies Act 1956

v) On the basis of written representations received from the directors, as on 11th March, 2008, amid taken on record by the Board of Directors, we report half none of the directors is disqualified as on 31- March 2008 from being appointed as u director in terms of clause
''i) In our opinion and to the best if our information and according to the explanation given to us. the said accounts subject to note No 4 in respect of certain shares not held by the company and non-provision of fall in market value of investments of Rs. 1254941/- and read together with other notes thereon given in schedule "7" gives the information required by the Companies Act, 1956. if the matter so required and give a true and fair view in conformity with the accounting principles generally accepted in India

a. in the case of Balance Sheet, of the state of affairs of the Company as at 31st March. 2008,and

b. in case of the Profit and loss Account, of the profit for the year ended on that date

c in case of the Cash Mow Statement of the cash flow for the year ended on that date

(Referred to in Paragraph 3 of the Auditors Report of even date To the members of SHREE SALASAR INVESTMENTS LTD. On the financial statements for the year ended 31 March 2008)

1 The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets We are informed that fixed assets were verified by the management at the end of the year and no material discrepancy was noticed on such verification by the management No assets have been disposed of during the year

2 the company has granted unsecured loans of Rs 104750/- lo a company listed in the register maintained under section 301 of the Companies Act. 1956 The company is paying the principal amount and the interest as stipulated In our opinion terms and conditions on which loan has been granted are not prima faces prejudicial to the interest of the company. The company has not taken any loan from parties listed in the register maintained under section 301 of the Companies Act 1956

3 In our opinion and according to the information and explanations given to us. there are adequate internal control procedures commensurate with the shed of the Company and the nature of its business, for the purchase of securities and for the sale of securities

4. the company has transactions in pursuance of contracts of arrangements duly entered in the register maintained under section 301 of the Companies Act. IV56 iii respect of catch party have been made In our opinion these transactions have been made at prices which are reasonable having regard to the prevailing market price at the relevant time.

5 The company has not accepted deposit from public

6. According to the information and explanations given to us. there arc no undisputed amounts payable in respect of Income-tax. Wealth-tax, S.des Tax. Service tax .Customs duty and Excise duty were outstanding, as at 31st March. 2008 for a period of six months from the date they became payable Income fax demand of Rs.479368/- plus interest thereon has been disputed by the company ,quid appeal is pending

7 The company lugs not granted an loans of advances on the basis of security by way of pledge of shares, debenture and other securities Hence, there is no need to maintain the records regarding security of loans

8. As the company is not Chit fund, Nidhi or mutual benefit society. the question of application of special statue does not arise

9. The company has maintained proper records of the transactions amid contracts of investments in shares and has also made timely entries therein The them held by the company at the end of the year are in its own name except 5200 shares of Shock Jhanop Finance & Consultancy Ltd

10 During the checks earned our by us. any frauds on or by company has not been noticed or reported during the year under report

11 In our opinion, provisions of Para 4A (ii). (vii),(viii). (x) .(XI). (xv) to (xx) are not applicable to the company

For SHANKARLAL JAIN & ASSOCIATES

CHARTERED ACCOUNTANTS



SL Agrawal

PARTNER

M NO 72184

Place Mumbai

Date 05/07/2008