Esquire Money Guarantees Ltd

To

The Members,

M/s. Esquire Money Guarantees Ltd.,

We have audited Balance Sheet of M/s. ESQUIRE MONEY GUARANTEES LIMITED asat March 31, 2010 and also the Profit and Loss Account for the period ended on that dateand the Cash Flow Statement annexed there to. These financial statements are theresponsibility of the company management. Our responsibility is to express an opinion onthese financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basisfor our opinion.

1. As required by the Companies (Auditor's Report) Order, 2003, issued by the CentralGovernment of India terms of Section (4A) of the Companies Act, 1956, we enclose, in theannexure, a statement on the matters specified in paragraphs 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to in paragraph 3 above, we statethat:

a) We have obtained all the information and explanations, which to the best of ourknowledge 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 theCompany so far as appears from our examination of the books;

c) The Balance Sheet and the Profit and Loss Account dealt with by this report are inagreement with the books of accounts;

d) In our opinion Profit and Loss Account & the Balance Sheet comply with themandatory accounting Standards referred to in sub- section (3C) of Section 211 of theCompanies act, 1956.

e) On the basis of the written representations received from the Directors as on March31, 2010, and taken record by the Board of Directors, we report that none of them isdisqualified as on March 31, 2010 from being appointed as a Director in terms of clause(g) of sub section of the Companies Act. 1956.

f) In our opinion; and to the best of our information and according to the explanationgiven 1 us, the said accounts, and read together with other notes there on give theinformation required by the Companies Act, 1956 in manner so requires and give a true andfair view conformity with the accounting principles generally accepted in India:

(i) In the case of the Balance Sheet, of the state of affairs of the Company as on,

March, 31 2010

(ii) In the case of the Profit and Loss Account, of the profit of the Company for theperiod ended on that date.

ANNEXURE REFERRED TO IN PARAGRAPH 4 OF THE AUDITOR'S REPORT TO THE MEMBERS OF M/s. ESQUIREMONEY GUARANTEES LIMITED FOR THE YEAR ENDED 31st MARCH 2010

i. ) In respect of fixed assets :

a) The company has maintained proper records showing full particulars, includingquantitative details and situation of fixed assets.

b) The Fixed assets of the company have been physically verified by the management atthe end of the year and we are informed that no discrepancies between book records and thephysical Inventory has been noticed.

c) In our opinion, and according to the information and explanation given to us, thecompany has not made any substantial disposals during the year Concern assumption.

ii. ) (a). Inventories have been physically verified during the year by the managementand in ouropinion, the frequency of verification is reasonable.

(b) . The Procedure of physical verification of stock followed by the management areadequate in relation to the size of the company and the nature of its business.

(c) . The company is maintaining proper record of inventory. The discrepancies noticedonverification between the physical stocks and book records were not material and havebeen properly dealt with in the books of account

iii.) (a). The company has not accepted / granted any loans, during the year from thepartiescovered in the register maintained under section 301 of the companies Act, 1956.

(b) . It is not prejudicial to the interest of the Company.

(c) . There is regularity in the terms of payment of interest and principals.

iv. ) In our opinion, the company has an internal audit system commensurate with thesize andnature of its business.

v. ) As the information received from management, there are no transaction with thepartiescovered under section 301 of the companies Act 1956.

vi. ) In our opinion as per the explanation given to us the Company has not compliedwith theprovisions of section 58A and 58AA of the companies Act, 1956 and The Companies(Acceptance of deposits) rules, 1975 with regards to the deposits accepted from theshareholders, friends, relatives of directors and business associates.

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

viii.) As inform to us no cost audit under section 209(1 )(d) of the companies Act,1956 have been prescribed.

ix. ) The company is regular in depositing undisputed statutory dues includingprovident fund,investor education and protection fund, employees state insurance, incometax, wealth tax, custom duty, excise duty, cess and other statutory dues with theappropriate authorities if any

x. ) The company has not incurred cash loss in the current year and in the immediatelyprecedingfinancial year and there are accumulated losses in the balance sheet as on 31stMarch 2010, but net worth of the company has not been eroded by more than 50%.

xi. ) The company has not defaulted during the year in repayment of dues to anyfinancialinstitutions, banks.

xii. ) No loans and advances given against pledge of share, debenture and othersecurities.

xiii. ) As the company in not a chit fund, nidhi, mutual benefit fund or society theprovisions of

clause 4(xiii) of the companies (Auditors report) order, 2003 is not applicable to thecompany.

xiv. ) Adequate documents are maintained for transaction and contracts in shares /securities and shares and securities are held by the company in its own name unlessexempted under section 49 of the companies Act

xv. ) The company has not given any guarantee for loans to others

xvi. ) According to the information and explanations received, the company has notapplied short terms borrowings for long term use and vice versa.

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

xviii. ) The company has not issued any debentures during the year.

xix. ) The company has not raised any money by way of public issue during the year.

xx. ) As per the information and explanation given to us, no material fraud on or bythe company has been noticed during the year