Auditor Report of Yamini Investments Company Ltd.

Mar 31, 2015

Report on Financial Statements

We have audited the accompanying financial statements of YAMINI INVESTMENTS COMPANY LIMITED, which comprise the Balance Sheet as at 31st March, 2015 and the Statement of Profit and Loss, the 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

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 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 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 but not for the purpose of expressing an opinion on whether the Company has in place the adequate internal financial control system over financial reporting and the operating effectiveness of such controls. 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 financial statements.

Opinion

In our opinion and to the best of our information and 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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March 2015 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

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, 2015 taken 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 in its financial statements;

ii) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses. However, company does not enter into any long-term contracts including derivative during the specified period;

iii) The Company is not required to transfer any amount to the Investor Education and Protection Fund.

g) As required by the Companies (Auditors' Report) Order 2015 (the Order) issued by the Central Government of India in terms of section 143(11) of the Act, we give in the 'Annexure' a statement on the matters specified in paragraphs 3 and 4 of the Order.

"ANNEXURE" TO THE AUDITOR'S REPORT

(As referred in paragraphs of our report)

(i) In respect of fixed assets: -

(a) According to information and explanations given to us, the company has maintained proper records showing the full particulars including quantitative details and situation of fixed assets; and

(b) According to information and explanation given to us, fixed assets of the Company has been physically verified by its management once during the year which in our opinion, is reasonable having regard to size of business and nature of fixed assets. We have been informed that no material discrepancies have been noticed by the management on such verification; and

(ii) In respect of Inventories: -

(a) As per information, physical verification of inventories has been conducted once at the end of year which in our opinion is reasonable having regard to size and nature of business; and

(b) According to information and explanations given to us, the procedure followed by the management at the time of physical verification of inventories is reasonable and adequate in relation to size of the Company and nature of its business; and

(c) According to information and explanations given to us, the Company is maintaining proper records of inventories and we have been informed that no material discrepancies were noticed on physical verification;

(iii) According to the information and explanations given to us and on the basis of our examination of the books of account, 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 Companies Act, 2013. Consequently, the provisions of clauses iii(a) and iii(b) of the order are not applicable to the Company

(iv) In our opinion and according to the explanations 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 the purchase of fixed assets and for sale of goods or supply of services. During the course of audit, we have not observed any continuing failure to correct major weaknesses in internal controls;

(v) According to information and explanations given to us, the Company has not accepted public deposits and the provision of section 73 to 76 or other relevant provisions of the Companies Act, 2013 and rules framed thereunder are not applicable to the Company.

(vi) Maintenance of cost records as prescribed under section 148(1) of the Companies Act, 2013 are not applicable to the company;

(vii) In respect of timely deposit of statutory dues as applicable to Company: -

(a) The company is generally regular in payment of its undisputed statutory dues such as Income Tax, Provident Fund, Wealth Tax, Service Tax and other statutory dues as applicable, to the appropriate authorities. There are no statutory dues outstanding as on last day of financial year for a period of more than six months from the date they became payable; and

(b) According to information and explanations given to us, there is no outstanding statutory dues on the part of Company which is not deposited on account of dispute;

(c) According to information and explanations given to us, Company is not required to transfer any amount to Investor Education and Protection Fund in accordance with the relevant provisions of Companies Act, 1956 and rules made thereunder to transfer such fund.

(viii) According to information and explanations given to us, the company does not have any accumulated losses and the Company has not incurred any cash losses during the financial year covered by this report and immediately preceding financial year;

(ix) According to information and explanation given to us, the company has not defaulted in repayment of dues to any bank or financial institution;

(x) According to information and explanation given to us, the Company has not given guarantee for loan taken by others from bank or financial institutions;

(xi) According to information and explanation given to us, Company has not obtained any term loan during the year and no term loans are outstanding on the Company at the end of year;

(xii) During the course of our examination of books of accounts and according to information and explanation given to us, no fraud on or by the company has been noticed or informed during the year.

Signed for the purpose of identification

FOR V.N. PUROHIT & CO.

Chartered Accountants

Firm Regn. No. 304040E

Sd/-

O.P. Pareek

Partner

Membership No. 014238

New Delhi, the 30th day of May 2015

---

Mar 31, 2014

REPORT ON THE FINANCIAL STATEMENTS

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

MANAGEMENT S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company''s 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 and in accordance with the accounting principles generally accepted in India. 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 g-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 of 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 of 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 risk 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 Company''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 aforesaid financial statements 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;

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2014; and

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

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

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor''s Report) Order. 2003 as amended by the Companies (Auditor''s Report) (Amended) Order, 2004 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.

2. As required by sub-section (3) of section 227 of the Companies Act. 1956, we report that:

(i) We have obtained all the information and explanations which to the best of our knowledge an 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 books.

(iii) The Balance Sheet and profit and Loss Account and the cash flow statements dealt with by this report are in agreement with the books of account.

(iv) In our opinion, the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement comply with the Accounting Standards notified under 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;

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

Annexure to Independent Auditors Report

Referred to in Paragraph 1 under the heading "report on other legal and regulatory requirements" of our report of even date

1. In respect of its fixed assets:

The Company does not have any fixed assets during the financial year ended 31/03/2014.

2. In respect of Inventories consisting of shares and securities held in other Company :

a) The inventories have 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 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 the nature of its business.

c) The Company has maintained proper records of inventories. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.

3. In respect of the 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) In our opinion, and according to the information and explanation given to us, the company has not granted any loans, secured or unsecured during the year to companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the requirements as per clause (iii) (e) of paragraph 4 of the order are not applicable in case of the company.

b) The Company has not taken any loans, secured or unsecured during the year from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Consequently, the requirements as per clause (iii) (f) and (iii) (g) of paragraph 4 of the order are not applicable in case of the company.

4. In our opinion, and according to the information and explanation given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods or services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

5. As explained and according to information given to us there has not been any contract or arrangement referred to in section 301 of the Act, particulars of which need to be entered in the register required to be maintained under section 301 of the Companies Act, 1956.

6. According to the information and explanations given to us, the Company has not accepted any deposits from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the company.

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

8. The cost record maintained by the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209(1)(d) of the Companies Act, 1956 are not applicable to the company.

9. In respect of statutory dues:

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 and other statutory dues have been generally regularly deposited with the appropriate authorities. According to the information and explanations given to us, there are no undisputed amount payable in respect of the aforesaid statutory dues were outstanding as at 31.03.2014 for a period of more than six months from the date of becoming payable.

b) According to the information and explanations given to us, there are no outstanding statutory dues on the part of company which is not deposited on account of dispute.

10. The company does not have accumulated losses at the end of financial year. The company has not incurred any cash losses during the financial year covered by the audit and in the immediately preceding financial year.

11. According to the information and explanations given to us the company has not taken any loan from any financial institution or bank or debenture holder.

12. The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities, and in our opinion, adequate documents and records are maintained.

13. The Company is not a chit fund, nidhi or mutual benefit society. Therefore, the provisions of clause (xiii) of paragraph 4 of the Order are not applicable to the Company.

14. The Company has kept adequate records of its transactions and contracts in shares, securities, debentures and other investments and timely entries have been made therein. The shares, securities, debentures and other investments held by the company, in it''s own name.

15. According to the information and explanations given to us, the company has not given any guarantee for loans taken by other from bank or financial institutions.

16. As per information and explanations given to us. the company has not obtained any term loans during the year and no term loans are outstanding on the company at the end of year.

17. According to the information and explanations given to us, no funds raised on short-term basis have been used for long-term investment.

18. According to the information and explanations given to us no preferential allotment of shares has been made by the company to companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956.

19. The company has not issued any debentures. Hence the requirements of clause (xix) of paragraph 4 of the Order is not applicable to the company.

20. As explained to us. the management has disclosed on the end use of money raised by public issues and the same has been verified.

21. According to the information and explanations given to us, a fraud on or by the company has not been noticed or reported during the year.

For V.N. PUROHIT & CO. Firm Regn. No. 304040E Chartered Accountants

Sd/- O.P. Pareek Place : New Delhi Partner Date : 30.05.2014 M.No.014238

---

Mar 31, 2013

We have audited the attached Balance Sheet as at 31st Match, 2013 and also the Profit and Loss Account it the Cash Flow Statement for the year ended on I at 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 asked in 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 off in reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining, on a lest basis, evidence supporting the amounts and closures in the financial statements. An audit also includes assessing the accounting, prince les used and significant estimates made by management, as well as evaluation the m rail financial statement presentation. We believe that our audit provides a reasonable basis (r our opinion.

As required by the Companies (Auditor''s Report) Order, 2003 as an ended by the Companies (Auditors Report) (Amended) Order, 2004 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act 956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and of the said Order.

Further to our comments in the Annexure referred to above, we rep *t that:

(i.) We have obtained all the information and explanations, such to the best of our knowledge an belief were necessary for the purpose of our at it;

(ii) In our opinion, proper books of account as required by Un have been kept by the company so far as appears from our examination of those books.

(iii) The Balance Sheet and profit and Loss Account and the ca flow statements dealt with by this report are in agreement with the books of accord

(iv) In our opinion, the Balance Sheet and Profit and Loss Account and the Cash Flow

Statement dealt with by this report comply with the account g standards referred to in sub-section (3Q of section 211 of the Companies Act, 1956;

(v) On the basis of written representations received from the doctors, as on 31- March, 2013 and taken on records by the Board of Directors, we export mat none of the directors is disqualified as on 31- March, 2013 from being a pointed as a director in terms of clause (g) of sub-section (1) section 274 of the Companies Act, 1956,

(vi) In our opinion and of the best of our information and accounting to the explanations given to us, the so id accounts give the information require by the Companies Act 1956, in the manner so required and give a true and fair vio in conformity with the accounting principles generally accepted in India;

(a) in the case o* the Balance Sheet, of the state of affairs < the Company as at 31* March, 2013; and

(b) in the case of the Profit and Loss Account, of the profit of the year ended on that date; and

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

Referred to in Paragraph 3 of our report of even date

1 The Co m pa n y does not have any fixed assets during year.

2. In respect of its inventories:

a) The inventories have been physically verified during the year the management In our opinion, the frequency of verification is reasonable.

b) in our opinion and according to the information and explanation Rive to us the procedures of physical verification of inventories followed by the management are Sets in Nation to the size of the company and the nature of its business.

c) The Company has maintained proper records of inventories. As explanation to us there were no material discrepancies'' noticed on physical verification of interviews as compared to the book records.

In respect of the loans, secured or unsecured, granted or taken v the company to/from companies firms or other parties covered in the registers maintain under section 301 of the companies Act,1956;

a) In our opinion and according to the information and explanted given to us. the company has not granted any Joins, secured or unsecured during days to company the parties covered in the register maintained under Section it of the Company Act 1956 Consequently the requirements as per clause (iii) (f) and (iii) (g) of paragraph 4 of the order are not applicable in case of the company.

4. In our opinion and according to the information and explanation given to us there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods or service During the course of our audit we have not on served any continuation failure to correct major weaknesses in internal control system. order are not applicable in case of the company

b) The Company has not taken any loans, secured or unsecure I during the year from company firms or other parties covered in the register mint and under Section 3o1 of the Companies Act 1956. Consequents, the requirements as pen :Cause (iii) transfer of paragraph 4 of the order are not applicable in case of the company.

6. According to the information and explanations given to us, the Camp has not accepted any deposits From the public. Therefore, the provisions (it Clause (up) of pa graph 4 of the Order are not applicable to the company.

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

8. The cost record maintained by the Companies (Cost Accounting Record Rules, 2011 prescribed by the Central Government under section 209(1 (d) of the Companies Act 1956 are not applicable to the company.

9. In respect of statutory dues:

a) According to the records of the company, undisputed statutory tees including Provident Fund, Investor Education and Protection Fund, Employees Sat Insurance, Income-tax, Sales-tax, Wealth Tat, Service Tax, Custom Duty, Excise Duty, ess and other statutory dues have been generally regularly deposited with the appropriate authorities According to the information and explanations given to us. there are no units kited amount payable in respect of the aforesaid statutory dues were outstanding as at 03.2013 for a period of more than six months from the date of becoming payable.

b) According to the information and explanations given to us, I .Te are no outstanding statutory dues on the part of company which is not deposited on a count of dispute.

10. The company does not have accumulated losses at the end of finance year. The company has not incurred any cash losses during the financial year covered the unfit and in the immediately preceding financial year

11 According to the information and explanations given to us the com pa r has not taken any loan from any financial institution or bank or debenture holder.

12 The Company has not granted loans and advances on the basis of sec by way of pledge of shares, debentures and other securities, and in our opinion, ad equal documents and records are maintained.

13 The Company is not a chit fund, night or mutual benefit society. True of ore. the provisions of clause (xiii) of paragraph 4 of the Order are nut applicable to the Company,

14 The Company has kept adequate records of its transactions and cont cots in shares, securities, debentures and other investments and timely entries have been a de therein. I he shares. securities, debentures and other investments held by the company, in name.

15. According to the information and explanations given to us. the cot Ivan has not given any guarantee for loans taken by other from bank or financial institutions.

18 As per information and explanations given to us, the company has not obtained any term loans during the year and no term loans are outstanding on the company at e end of year.

17 According to the information and explanations given to us, no funds used on short-term basis hove been used for long-term investment.

18 According to the information and explanations given to us no prep mutual allotment of shares has been meads by the tympanic to companies, firms or other polices listed in the register maintained under section 301 of the Companies Act 1956.

19. The company has not issued any debentures, Hence the requirements of clause {xix) of paragraph that of the Order is not applicable to the company.

20 As explained to us, the management has disclosed on the end use f money raised by public issues and the same has been verified,

21 According to the information and export nations given to us. a fraud or by the company has not been noticed or reported during the year.

For V.N. PUROHIT & CO.

Firm Regn. No. 3O4O40E

Chartered Accountants



Sd/-

O.P. Pareek

Place : Now Delhi Partner

Date : 19.04.2013 M.No.014238

---

Mar 31, 2012

We have audited the Balance Sheet of Yamini Investments Company Limited as at 31st March, 2012 and also the Profit and Loss Statement 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 express an opinion on these financial statements based on our audit.

1 We conducted our audit in accordance with auditing standards generally accepted in India which requires 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, and also includes assessing the accounting principles used and significant estimates mace by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

2. 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 and on the basis of such checks of books and records of the Company as considered appropriate and as per the information and explanations given to us we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 o the said order.

3. 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 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, Profit and Loss Statement and Cash Flow Statement dealt with by this report are in agreement with the books of account of the Company.

d) in our opinion, the Bo, once Sheet. Profit and Loss Statement 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:

e) On the basis of written representations received from the Directors of the company taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March. 2012 from being appointed as a Director in terms of Section 274 {1) (g) of the Companies Act, 1956;

f) Though the accounts for the year have been prepared on the assumption of going '' concern basis, the company''s ability to continue as a going concern, however is dependent upon restructuring of operations by considering appropriate business strategies and financial viabilities.

g) Subject to the foregoing, in our opinion and to the best of our and according to the explanations given to us. the said accounts read with the notes thereon given the information required by the Companies Act. 1956, ,n 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 31 st March, 2012;

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

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

As required by the Companies (Auditor''s report) Order, 2003 issued by the central Government of India in terms of section 227(4-Aj 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 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) ir our opinion the Company has not disposed off any substantial/major pan of fixed assets during the year and the going concern status of the company is not affected.

2 In respect of its inventories:

(A) The Company has Closing Inventories of Rs.2,412 during the previous year.

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 not granted any Loan from Directors during the previous year.

(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 not prima-facie prejudicial to the interest of the company.

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

4 In our opinion and according to the information and explanations given to us, there are adequate internal contra: procedures commensurate with the size of the company and nature of its business. During the course of audit, no major weakness has been noticed in the internal control

5 In respect of contracts or arrangements entered in the register maintained in pursuance of Section 301 of the Companies Act, 1956.

(A) in our opinion and according to the information and explanation given to us. the transistors made in pursuance of contracts or arrangements that needed to be entered in the register maintained under section 301 of the Companies Ac4 1956 have been so entered''.

(B) in our opinion and explanation given to us, the transactions exceeding The value of 5 lakh in respect of any party during the year have been made at prices which are prima-facie reasonable having regard to prevailing Market prices at the relevant time where such prices are available.

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 53A end 58AA 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 Tc the best of our knowledge the Central Government has not prescribed the maintenance of cost records U/s 209(1) (d) of the company act, 1956 for any of the products of the company.

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 Income Tax and other statutory dues with the appropriate authority during the year.

(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 and other statutory dues at the end of the year.

10 The Company has accumulated profit amounting to Rs. 217,411 as at the end of tr e year out the Company has not incurred any cash losses during current immediately preceding financial year.

11 Based on our audit procedures and on the basis of information and explanations given by the management, the Company is not required for any repayment of dues to Banks, Financial Institutions and Debentures holders during the year.

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 o; shares, debentures and other security.

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

14 The company has key adequate records of its transaction and contracts and i . Time v'' entries of transactions are made in their former in respect of shares. securities and other investments dealt with or traded by the Company.

15 In Our opinion, the company no not given any guarantees for loans taken by other from banks end fir ,one al institutions.

16 In our opinion arid 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 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 Curing the year for long term investment and vice versa.

18 The company has no; made by preferential allotment to parties and companies covered under register maintained under Section 301 of the Companies Act, 1956. during the year.

19 The Cause 13 of the aider is not applicable, as the company has not issued and debentures during tie year.

20 The Company has not is sea money by any public issues during the year and here the question of d closure are 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 or by the Company has been noticed or reported during the year that causes the financed statements to be materially misstated.

For KVSRY & ASSOCIATES

CHARTERED ACCOUNTANTS

Firm Registration No. 008169S

CA.K.VENKATESWARLU

PARTNER

M No. 207068

Place: Hyderabad

Date: 2. 05. 2012