Mahavir Advanced Remedies Ltd

To the Members of INDOAMERICAN ADVANCED PHARMACEUTICALS LIMITED

I have audited the attached Balance Sheet of INDO AMERICAN ADVANCED PHARMACEUTICALS LIMITED as at 31^ST March, 2012 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company management. My responsibility is to express an opinion on the financial statements based on my audit.

1. I conduct my audit in accordance with auditing standards accepted in India. These standards require that I 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 disclosing 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. I believe that my audit provides a reasonable basis for my opinion.

2. As required by the Manufacturing and Other Companies (Auditor’s Report) Order, 1988 issued by the Central Government of India in terms of sub-section (4A) of Section 227 of Companies Act,1956, I enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

3. Further My comments in the Annexure referred to above, I report that :

(i) We have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of my audit.

(ii) In my opinion, proper books of accounts as required by law have been kept by the Company so far as appears from my examination of these books.

(iii) The Balance Sheet and Profit and Loss Account is dealt with by this report are in agreement with the books of account.

(iv) In my report, the Balance Sheet and Profit & Loss Account dealt with by this report comply with the accounting standards referred to in sub section (3C) of section 211 of the Companies Act.

(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, I report that none of the directors are 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 my opinion and to the best my information and according to the Explanations given to me the Balance Sheet and Profit and Loss Account give a true and fair view in conformity with the accounting principles generally accepted in India.

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

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

ANNEXURE REFERRED TO IN PARAGRAPH 2 OF MY REPORT OF EVEN DATE TO THE MEMBERS OF INDO AMERICAN ADVANCED PHARMACEUTICALS LIMITED ON THE ACCOUNTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2012.

1. The Company generally maintained proper records showing full particulars including quantitative details and location of its Fixed Assets. The management has physically verified the Fixed Assets at reasonable intervals and no material discrepancies are reported to have been observed on such verification as compared to book records.

2. None of the Fixed Assets of the Company have been revalued during the year.

3. The stocks, finished goods, stores and spares, raw materials etc., have been physically verified by the management at reasonable intervals during the year.

4. The Company has not taken any loans, secured or unsecured from the companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. T am informed that there is no Company under the same management as defined under section 370 (1B) of the Companies Act, 1956.

5. The Company has not granted any loans, secured or unsecured, to the companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956. I am informed that there is no Company under the same management as defined under section 370 (1B) of the Companies Act, 1956.

6. In my opinion and according to the information and explanations given to me, there are adequate internal control procedures commensurate with the size of the Company and the nature of the business with regard to purchase of spares and stores, raw materials, plant and machinery equipment and other assets and for the sale of goods.

7. According to the information and explanations given to me, there is no transactions of purchase of goods and sale of medicines made in pursuance of contracts or arrangements entered in the register maintained under Section 301 or more during the year in respect of each party have been made at prices, which were reasonable having regards to the prevailing market prices for such medicines or prices at which the transactions for similar goods have been made with other parties.

8. As informed to me, the Company generally has a reasonable system of determination of unserviceable or damage stores and spares, raw materials, and finished goods, and adequate provision for the loss arising on such items has been made during the year and review.

9. The Company has not accepted any deposited from the public within the meaning of Section 58A of the Companies Act, 1956 and the rules framed thereunder.

10. In my opinion, the Company has maintained reasonable records for the sale of disposal of its realizable scrap.

11. The Company is yet to install an internal Audit System commensurate with the size and nature of business.

12. 12.According to the information and explanations given to us no personal expenses of employees of directors have been charged to revenue account, other than those payable under contractual obligations or in accordance with generally accepted business practice.

13. I have been informed that the Central Government has not prescribed maintenance of cost records under section 209 (1) (d) of the Companies Act 1956 for any of the products of the Company.

14. The Company does not have any Provident Fund Scheme.

15. The Company has generally been regular in depositing Employees State Insurance with appropriate authorities in time.

16. According to the information and explanation given to me and the books records examined by me, there is no undisputed amounts payable is respect of income-tax, Wealth Tax, Sales Tax, Customs duty and Excise duty outstanding as at 31^st March 2012 for a period exceeding six months from the data it became payable.

17. The Company is not a sick industrial Company as defined in the sick industrial Companies (Special provisions) Act, 1956.