Kemistar Corporation Ltd

To,

The Members of:

KEMISTAR CORPORATION LIMITED (Formerly "Integrated Amusement Limited " )

(1) I have audited the attached Balance Sheet of KEMISTAR CORPORATION LIMITED asat 31^st March 2012 and the Profit and Loss Account and Cash Flow Statement forthe year ended on that date, annexed thereto. These financial statements are theresponsibility of the management of the Company. My responsibility is to express anopinion on these financial statements.

(2) I have conducted my audit in accordance with the Auditing Standards generallyaccepted in India. Those Standards require that, I plan and perform the audit to obtain _areasonable assurance about whether the financial statements are free of materialmisstatement. An audit includes examining of evidence supporting the amounts and on a testbasis disclosure in the financial statements. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well asevaluating the overall presentation of the financial statements. I believe that, my auditprovides a reasonable basis for my opinion.

(3) As required by Companies (Auditors' Report) Order,2003(as amended ) issued by theCentral Government under Section 227 (4A) of the Companies Act, 1956,and on the basis ofthe books and records of the Company as I considered appropriate and according to theinformation and explanation given to me, I enclose in the annexure a statement on thematter specified in paragraph 4 and 5 of the said Order .

(4) . Further to my Comments in Paragraph (3) above I Report that:-

(a) I have obtained all the information and explanation which to the best of myknowledge and belief were necessary for the purpose of my audit.

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

(c) The Balance Sheet and Profit and Loss Account dealt with by this report are inagreement with the Books of Accounts.

(d) In my opinion, the Balance Sheet and Profit and Loss Account of the Companycomplies with the mandatory Accounting Standards referred to in Sub Section 3(C)Section 211 of the Companies Act, 1956 read together with and subject to relevant NotesForming part of the financial statements.

(e) On the basis of written representations received from the Directors of the Companyas at 31^s1 March 2012 and taken on record by the Board of Directors, I reportthat, none of the Directors is disqualified as on 31st March, 2012 from being appointed asa Director of the Company in terms of Clause (g) of Sub Section (1) of Section 274 of theCompanies Act, 1956.

(f) In my opinion and to the best of my knowledge and according to the explanationsgiven to me, the said accounts read together with and subject to relevant notes Formingpart of financial statements, give the information required by the Companies Act ,1956 inmanner so required and give true and fair view in conformity with the accountingprinciples accepted in India :-

(i) In the case of Balance Sheet of the state of affairs of the Company as at 31^stMarch 2012;

(ii) In the case of Profit and Loss Account of the loss for the year ended on thatdate;

(iii) In the case of Cash Flow Statement, of the cash flow for the year ended on thatdate.

(Referred to in Paragraph 3 of My Report of even date on the Accounts for the-yearended on 31st March, 2012 of KEMISTAR CORPORATION LIMITED)

1. In respect of its fixed assets:-

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

(b) The fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such physical verification.

(c) The Company has not disposed off substantial part of its fixed assets during theyear and the going concern state of the Company is not affected.

2. In respect of its inventories:-

(a) Inventories have been physically verified by the management at reasonably regularintervals during the year.

(b) In my opinion and according to the information and explanation given to me, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) The Company has maintained proper records of inventories. As explained to me, therewas no material discrepancies noticed on physical verification of inventory as compared tothe book records.

3. (a) The Company has not granted any secured or unsecured loans to Companies, Firmsor other parties covered in the register maintained under Section 301 of the CompaniesAct, 1956. Therefore, no further comments are required to be made.

(b) The Company has not taken any secured or unsecured loans from Companies, Firms orother parties covered in the register maintained under Section 301 of the Companies Act,1956. Therefore, no further comments are required to be made.

4. In my opinion and according to the information and explanation given to me, thereexists an adequate internal control system commensurate with the size of the Company andthe nature of its business for the purchase of inventory, and for the sale of goods andservices. During the course of my audit, I have not observed any continuing failure tocorrect major weakness in internal control system of the Company.

(a) According to the information and explanations given to me, I am of the opinionthat, the particulars of contracts or arrangements that need to be entered into theregister maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) According to the information and explanation given to me, there were notransactions exceeding the value of five lakh rupees in respect of any party in thecurrent financial year. Therefore, Clause 4 (v) of the Companies (Auditor's Report) Order,2003 is not applicable.

6. The Company has not accepted any deposits from public. Consequently the directivesissued by the Reserve bank of India read with the provisions of Section 58A , 58AA or anyother relevant provisions of the Companies Act,1956 and the rules framed there under arenot applicable . Therefore, no further comments are made.

7. In my opinion, the Company has an Internal Audit System commensurate with the sizeof the Company and nature of its business

8. I have been informed that the Central Government has not prescribed maintenance ofCost records under Section 209(l)(d) of the Companies Act , 1956 . Therefore, no commentsare required to be made.

9. In respect of statutory dues:-

(a) According to the records of the Company, undisputed statutory dues includingProvident Fund, Employees' State Insurance Contribution, Income tax, Excise Duty andCustoms Duty, Sales tax and other dues as may be relevant have been generally regularlydeposited with the appropriate authorities.

(b) As informed to me , there are no disputed statutory dues , which have not beendeposited on account of matters pending before appropriate authorities .

10. The accumulated losses of the company has not exceeded 50 percent of its Net Worth.It has incurred cash losses in the financial Year concerned however The Company has notincurred cash losses in immediately preceding financial year.

11. The Company had no dues to financial institution, bank or debenture holders duringthe year under Audit. Therefore, no comments are required about repayment of dues thereon.

12. As information given to me the Company has not granted loans and advances on thebasis of security by way of pledge of shares, debentures and other securities. Therefore,no further comments are required to be made.

13. In my opinion, the Company is not a Chit fund, Nidhi / Mutual benefit fund /society. Therefore, Clause 4 (xiii) of the Companies ( Auditor's Report) Order, 2003 isnot applicable.

14. According to the information and explanations given to me, the Company is notdealing or trading in shares, securities, debentures and other investments.Therefore-Clause 4 (xiv) of the Companies (Auditor's Report) Order, 2003 is notapplicable.

15. According to the information and explanation given to me, the Company has not givenany guarantee for loans taken by others from banks or financial institutions during theyear. Therefore, Clause 4 (xv) of the Companies (Auditor's Report) Order, 2003 is notapplicable.

16. As per the information and explanation given to me, the Company has not taken anyterm loan. Therefore, Clause 4 (xvi) of the Companies (Auditor's Report) Order, 2003 isnot applicable.

17. According to the information and explanations given to me and on the basis of anoverall examination of the balance sheet of the Company, in my opinion .there are no fundsraised on a short - term basis which have been used for long- term investment.

18. During the year , the Company has not made any preferential allotment of shares toparties and companies covered in the register maintained under Section 301 of theCompanies Act, 1956. Therefore, Clause 4 (xviii) of the Companies (Auditor's Report)Order, 2003 is not applicable.

19. The Company has not issued any debentures. Accordingly, Clause 4 (xix) of theCompanies ( Auditor's Report ) Order, 2003 is not applicable.

20. The Company has not raised any money by public issues during the year. Accordingly,Clause 4 (xx) of the Companies (Auditor's Report) Order, 2003 is not applicable.

21. In my opinion and according to the information and explanations given to me , nofraud on or by the Company has been noticed or reported during the year , that causes thefinancial statements to be materially misstated . Accordingly, Clause 4 (xxi) of theCompanies (Auditor's Report) Order, 2003 is not applicable.