2.We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement(s). An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principals used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis of our opinion.

3.As required by the Companies (Auditors Report) order, 2003, issued by the Central Government in terms of section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement of the matters specified in the said order to the extent applicable to the company.

4.Further to our comments as per annexure referred in paragraph (3) above, we state 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 accounts, as required by law have been kept by the company as appears from our examination of those books.

(c) The Balance sheet and profit and loss account dealt with by this report are in agreement with the books of accounts.

(d) In our opinion, the Profit & Loss account and the Balance Sheet comply with the Accounting Standards referred to in sub-section (3C)if Section 211 of the Companies Act, 1956

(e) On the basis of information made available to us, we are of the opinion that none of the directors of the company are disqualified as on 31.03.2007 from being appointed as directors in term of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.

In our opinion and to the best of our information and according to explanations given to us, the said accounts read with accounting policies and notes thereon, give the information required by the Companies Act, 1956 in the manner so required and gives a true and fair view in conformity with the accounting principals generally accepted in India :-

(i) In the case of the Balance sheet, of the state of affairs of the company as at 31st March, 2007 and

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

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF THE AUDITORS REPORT OF EVEN DATE IN THE ACCOUNTS FOR THE YEAR ENDED ON 31.3.2007

i.) The company has not any fixed assets during the year as such the provisions of Para 1 (a),(b),(c) of the Auditors Report Orders are not applicable to this Company.

ii) There was no inventory at the beginning and at end of the year the provisions of para ii-(a),(b),(c) are not applicable.

iii) (a) The Company has neither taken nor granted any loans, secured or unsecured to / from Companies, Firms or other parties covered in the Register maintained under Section 301 of the Companies Act, 1956.

(b) The company has not taken any loans during the year from outside parties therefore the issue of rate of interest and the other terms and conditions on loan taken are not applicable. How ever a sum of Rs. 67,76,499/- given as loan to a party is outstanding from a long time on which no interest has been charged for the year.

( c) The company has not given and taken any loans during the year except a sum of Rs. 67,76,499/- given in earlier years is outstanding from a long time on which neither the principle amount nor the interest is given by the party.

(d) As explained to us steps are being taken for realization of principle amount and interest on overdue loan of Rs. 67,76,499/-.

(iv) 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 the business for the purchase of inventory and fixed assets and for the sale of goods.

(v) (a) Based on the audit procedure applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under Section 301 has been so entered.

(b) In our opinion and according to the information and explanations give to us, there is no transactions made in pursuance of contracts or arrangements entered in the register maintained under section 301 and exceeding the value of Five lakh rupees in respect of any party during the year.

(vi) The company has not accepted any deposit during the year from the public with in the meaning of provisions of Section u/s 58 A and 58 AA of the Companies Act 1956 and the rules made there under. Hence, this clause is not applicable to the company.

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

(viii) As informed to us, the Central Government has not prescribed the maintenance of cost records under section 209(1 )(d) of the companies Act, 1956.

(ix) (a) According to the information and explanations given to us, the company is regular in depositing undisputed statutory dues, including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income- tax, Sales tax, Wealth Tax, Custom Duty, Excise Duty, cess and any other statutory dues as applicable with appropriate authorities during the year. As at 31.3.2007 there are no undisputed dues payable for a period of more than six months from the date they became payable.

(b) According to the information and explanation given to us there are no dues in respect of Sales Tax / income tax/ custom duty / wealth tax / cess that have not been deposited with the appropriate authorities on account of any dispute.

(x) The Company has not any accumulated losses at the end of the year and has not incured any cash losses during the current year and immediately preceding financial year.

(xi) No comments required since there are no loan from Banks/ financial institution.

(xii) The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) The provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund / societies are not applicable to the company.

(xiv) In our opinion the company is not dealing in shares, securities, debentures and other investments.

(xv) According to the information and explanation given to us, the company has not given any guarantee for the loans taken by others from banks and financial institutions.

(xvi) The company has not taken any term loan during the year.

(xvii) In our opinion and according to the information and explanations given to us and as shown by the records examined by us no funds raised on short term basis have been used for long term investment and vice versa.

(xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained u/s 301 of the Companies Act, 1956 during the year.

(xix) The company has not issued any debenture, therefore the clause is not applicable.

(xx) The company has not raised any money by public issues during the year.

(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year.

Place : Kalkata                             For Gupta & Agrawal
                                          Chartered Accountants
Date : 1.09.2007                                   Sd/-

                                               (G.D.Gupta)
                                                 Partner