2. We conducted our audit in accordance with the 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.

3. 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 (the Act), and on the basis of such checks of the books and 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 4 and 5 of the said order.

4. In accordance with the provision of Section 227 of the Companies Act, 1956, we report as under:

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 books;

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

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 from the directors, taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2010 from being appointed as a director under section 274(1 )(g) of the Companies Act, 1956.

vi. In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in manner so required and give a true and fair view in conformity with 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 2010;

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

c) in the case of Cash Flow Statement of the Cash Flow for the year ended on that date.

Annexure to Auditors Report (Referred to in paragraph 3 of our report of even date)

1. There are no fixed assets in the company, hence sub clause (a), (b) and (c) are not applicable.

2. There is no inventory. The Company has stopped its production activity in February, hence clause no. (a), (b), & (c) are not applicable

3. As informed, the Company has granted loan to one party covered in the register maintained under section 301 of the Act. The maximum amount involved during the year was 88 lakhs and the year end balance was Rs.88 lakhs.

4. The company has an adequate internal control system commensurate with its size and nature of its business.

5. To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the companies Act 1956 have been so entered.

6. The Company has not accepted deposits from the public within meaning of Section 58A and 58AA of the Act during the year.

7. The company has an internal audit system commensurate with its size and nature of its business.

8. Maintenance of Cost records as prescribed by the Central Government under clause (d) of Sub section (1) of Section 209 of the act is not applicable to the company.

9. The company is regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees Sate Insurance, Income Tax, Sales Tax, Wealth Tax, Customs Duty, cess and any other statutory dues with the appropriate authorities.

10. At the end of the financial year, accumulated losses of the Company are more than fifty percent of its net worth. The Company has incurred profit in the year under review and cash loss in the previous year.

11. The Company has not taken any loan from financial institutions or banks. Hence there is no default in repayments of dues to financial institutions and banks.

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

13. Clause (xiii) of the Order is not applicable to the Company as the Company is not Chit Fund Company or nidhi/ mutual benefit fund/ societies.

14. Clause (xiv) of the Order is not applicable to the company as the company is not dealing in or trading in shares, securities, debentures and other investments.

15. The company has not given any guarantee for loan taken by others from Banks or financial institutions.

16. The Company has not taken any term loan during the year.

17. The Company has not used short term funds for long term investments and vice versa.

18. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act during the year.

19. The Company has not issued any debentures during the year.

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

21. No fraud on or by the company has been noticed or reported during the year.

For RSVA & Co. Chartered Accountants

FRN:N10504W

Rarnesh Ramu            

Place : Pune

Date : 30 Jun 2010