Silicon Valley Infotech Ltd

SILICON VALLEY INFOTECH LIMITED

We have audited the attached Balance Sheet of M/s. SILICON VALLEY INFOTECH LIMITED,as at 31 st March, 2012 and also the Statement of Profit and Loss for the year ended onthat date annexed thereto. These financial statements are the responsibility of theCompany's management. Our responsibility is to express an opinion on these financialstatements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted inIndia. These 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.

Further, we report that:

1. We have obtained all the information and explanations, which to the best of ourknowledge and belief were necessary for the purposes of our audit;

2. In our opinion, proper books of accounts as required by law, have been kept by theCompany so far as appears from our examination of those books ;

3. The Balance Sheet and Profit and Loss Account dealt with by this report are inagreement with the books of account;

4. In our opinion, the Balance .Sheet and Profit & Loss Account dealt with by thisreport comply with the accounting standards referred to in sub-section (3C) of Section 211of the Companies Act, 1956, to the extent applicable;

5. On the basis of written representations received from the directors, as on 31 stMarch, 2012 and taken on record by the Board of Directors, we report that none of thedirectors is disqualified as on 31st March, 2012 from being appointed as a Director interms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 ;

6. In our opinion and to the best of our information and according to the explanationsgiven to us, the said accounts give the information required by the Companies Act, 1956,in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India :

a) In the case of the Balance Sheet, of the state of affairs of the Company as at 31 stMarch, 2012.

b) In the case of the Profit & Loss Account, of the Profit for the year ended onthat date.

c) In the case of Cash Flow Statement of the cash flows for the year ended on thatdate.

7. As required by the Companies (Auditor's Report) Order, 2003, and as amended by theCompanies (Auditor's Report), (Amendment) Order, 2004 issued by the Central Government ofIndia in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclosein the annexure a statement on the matters specified in paragraph 4 and 5 of the saidOrder.

(Referred to in Paragraph 7 of our Report of even date on the Accounts of SiliconValley Infotech Limited as on 31.03.2012)

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

(b) Fixed Assets have been physically verified by the management of the Company duringthe year, which in our opinion is reasonable having regard to the Company and the natureof its fixed assets.

(c) There is no disposal of fixed assets during the year.

2. (a) As explained to us, the inventory has been physically verified during the yearby the management.

In our opinion, the frequency of verification is reasonable.

(b) In our opinion and according to the information and explanation given to us, theprocedures of physical verification of inventory followed by the management are reasonableand adequate in relation to the size of the Company and the nature of its business.

(c) In our opinion and according to the information and explanations given to us, andon the basis of our examination of the records of inventory, the Company is maintainingproper records of inventory. The discrepancies noticed on physical verification ofinventory as compared to the book records were not material and have been properly dealtwith in the books of account.

3. The Company has neither given nor taken any loan, secured and unsecured loans,to/from any Company, firms or other parties covered in the register maintained undersection 301 of the Act.

4. In our opinion and according to the information and explanations given to us, thereare adequate internal control system commensurate with the size of the Company and natureof its business with regard to the purchase of inventory and fixed assets, and with regardto the sale of goods & services. During the course of our audit, no major weakness hasbeen noticed in the internal controls.

5. There were no transactions that need to be entered in the register maintained underSection 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, theCompany has not accepted deposits from the public and therefore, the provisions of theSection 58A and 58AA of the Companies Act, 1956 and rules there under are not applicableto the Company.

7. In absence of any Internal Audit Report, we are not in a position to state whetherinternal audit system commensurate with the size and the nature of its business.

8. To the best of our knowledge and as explained, the Central Government has notprescribed maintenance of cost records under clause (d) of sub-section (1) of Section 209of the Companies Act, 1956 for the products of the Company.

9. (a) According to the records of the Company and information and explanations givento us, the

Company has been regular in depositing undisputed statutory dues including ProvidentFund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, SalesTax, Wealth Tax, Customs Duty, Excise Duty, Service Tax & Cess and other statutorydues with the appropriate authorities during the year.

(b) There were no disputed amount payable in respect of Provident Fund, InvestorEducation and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, WealthTax, CustomDuty, Excise Duty, Service Tax, cess and other material statutory dues inarrears as at 31st March, 2012 for a period of more than six months from the date itbecome payable.

10. The Company does not have accumulated losses as at the end of the year and theCompany has not incurred cash losses during current and the immediately precedingfinancial year.

11. Based on our audit procedures and on the basis of information and explanationsgiven by the management, we are of the opinion that Company has not defaulted in therepayment of dues to financial institutions, banks and debenture holders.

12. According to the information and explanations given to us, the Company has notgranted any loans and advances on the basis of security by way of pledge of shares,debentures and other securities.

13. In our opinion and according to the information and explanations given to us, thenature of activities of the Company does not attract any special statute applicable tochit fund and nidhi / mutual benefit fund / societies.

14. Based on the records examined by us and according to the information andexplanations given to us, we are of the opinion that the Company is maintaining properrecord of the transactions and contracts of dealing in shares and securities and thattimely entries have been made in these records.

15. According to the information and explanations given to us, the Company has notgiven any guarantee for loans taken by others from bank and financial institutions.

16. To the best of our knowledge and belief and according to the information andexplanations given to us, the Company were, prima facie, applied by the Company during theyear for the purpose for which loans were obtained.

17. According to the information and explanations given to us and overall examination,we report that no fund raised on short-term basis have used for long-term investment.

18. The Company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under Section 301 of the Companies Act, 1956.

19. The.Company has not issued any debentures.

20. The Company has hot raised any money through a public issue during the year.

21. Based on information and explanation furnished by the management, which have beenrelied upon by us, there were no frauds on or by the Company noticed or reported duringthe year.