UV Boards Ltd

The Members of UV Boards Ltd, (Formerly known as Paro Leasing & Finance Ltd)

1. We have audited the attached Balance Sheet of UV Boards Limited, as at 31st March,2011, and also the Profit and Loss Account for the year ended on that date annexed theretoand both of which we have signed under reference of this report. These Financialstatements are the responsibility of the Company’s management. Our responsibility isto express an opinion on these financial statements based on our audit.

2. 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.

3. As required by the Companies (Auditor’s Report) Order 2003 issued by theCentral Government of India in terms of Section 227(4-A) of the Companies Act, 1956, Weenclose in the annexure, a statement on the matters specified in paragraph 4 and 5 of thesaid order.

Further to our comments in the Annexure referred to above, we report that:-

i. We have obtained all the information and explanation which to the best of ourknowledge and belief were necessary for the purpose of our audit.

ii. In our opinion proper books of accounts as required by law have been kept by thecompany so far as appears from our examination of such books.

iii. The Balance Sheet, the Profit and Loss Account dealt with by this report are inagreement with the books of accounts.

iv. In our opinion, the Balance Sheet, the Profit and Loss Account dealt with by thisreport comply with the Accounting Standards referred to in Sub-section (3C) of Section 211of the Companies Act, 1956.

v. On the basis of the written representations received from the directors, as on31.03.2011 and taken on record by the Board of Directors, we report that none of thedirectors are disqualified as on 31.03.2011 from being appointed as a director in terms ofclause (g) of subsection 1 of section 274 of the Companies Act 1956;

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 Balance Sheet, of the State of Affairs of the Company as at 31stMarch 2011

b) In the case of Profit and Loss Account, of the profit for the year ended on thatdate.

c) In the case of Cash flow Statement, of the Cash flows for the year ended on thatdate.

ANNEXURE REFERRED TO IN PARAGRAPH (3) OF THE AUDITORS REPORT TO THE MEMBERS OF UVBOARDS LIMITED, ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2011:

In the terms of the information and explanations given to us and the books and recordsexamined by us in the normal course of audit and to the best of our knowledge and belief,we state that:

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

b) All the assets have been physically verified by the management at reasonableintervals.

No material discrepancies were noticed on verification made during the year.

c) The Company has disposed off substantial part of the fixed assets during the year;however the disposal mainly pertains to sale of agricultural estate and its related assetsand as such has not affected the going concern of the Company, which is mainly manufactureof plywood.

2) a) The management has conducted physical verification of inventory at reasonableintervals.

b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness

c) The company is maintaining proper records of inventory. No material discrepancies ininventory were noticed during the physical verification

3) a) The Company has not granted any loans secured / unsecured to companies, firms orother parties listed in the register maintained under Section 301 of the Companies Act1956.

Hence Clauses (b), (c) and (d ) are not applicable.

e) The company has not taken any loans secured/unsecured loans from companies, firms orother parties listed in the register maintained under Section 301 of the Companies Act1956.

Hence Clauses (f) and (g) are not applicable.

4) In our opinion and according to the information and explanations given to us, thereare adequate internal control systems commensurate with the size of the company and thenature of its business, for the purchase of inventory and fixed assets and for the sale ofgoods and services. Accordingly the issue of continuing failure to correct major weaknessin internal control system does not arise.

5) a) The particulars of contracts or arrangements referred to in section 301 of theAct have been entered in the register required to be maintained under that section.

b) There are no transactions made in pursuance of such contracts or arrangements.

6) The company has not accepted any deposits from the public.

7) In our opinion, the company has an internal audit system commensurate with the sizeand nature of its business.

8) The Central Government has not prescribed maintenance of cost records under clause(d) under sub-section (1) of Section 209 of the Companies Act 1956 for the products of theCompany.

9) a) The company is generally regular in depositing undisputed statutory duesincluding Provident fund, Investor education and protection fund, Income tax, Sales tax,Wealth tax, Service Tax, Customs duty, Excise duty, cess and other statutory duesapplicable to it with appropriate authorities and there are no arrears of outstandingstatutory dues as at the last day of the financial year concerned for a year of more thansix months from the date they became payable.

b) According to the records of the Company there are no dues outstanding of Income Tax,Sales tax, Wealth tax, Service tax, customs duty, Excise duty , cess on account of anydispute.

10) The company has no accumulated losses at the end of the financial year and it hasnot incurred any cash losses in the current financial year and in the immediatelypreceding financial year.

11) Based on the information and explanations given by the management, we are of theopinion that the Company has not defaulted in repayment of dues to banks and financialinstitutions. The company has no outstanding dues to debenture holders.

12) According to the information and explanations given to us, the company has notgranted loans and advances on the basis of security by way of pledge of shares, debenturesand 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 the provisions of any special statuteapplicable to Chit fund and Nidhi/mutual benefit fund/societies.

14) In our opinion, the company is not dealing in or trading in shares, securities,debentures and other investments. Accordingly, the provisions of clause 4 (xiv) of theCompanies (Auditor’s Report) Order, 2003 are not applicable to the company.

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

16) The term loans availed have been used for the purpose for which it has beenavailed.

17) According to the information and explanations given to us and on an overallexamination of the Balance Sheet of the company, we report that no funds raised on shortterm basis have been used for long term investments.

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 1956during the year.

19) The company has not issued any debentures and as such the creation of security orcharge does not arise.

20) The company has not raised any money through a public issue during the year.

21) According to the information and explanations given to us, by the management, wereport that no fraud on or by the Company has been noticed or reported during the year.