Yamini Investment Company Ltd

To The Members of Yamini Investments Company Limited.

We have audited the attached Balance Sheet of YAMINI INVESTMENTS COMPANY LIMITED as at31st March, 2008 and also the Profit and Loss Account and also the Cash Flow Statement forthe year ended on that date annexed thereto.. These financial statements are theresponsibility of the Company's management. Our responsibility is to express an opinion onthese financial statements based on our audit.

1. 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.

2. As required by the Companies (Auditors' Report) Order, 2003, (the order) issued bythe Central Government of India in terms of Section 227(4A) of the Companies Act, 1956(hereinafter to referred to as 'the Act') we enclose in the Annexure a statement on thematters specified in paragraph 4 and 5 of the said order.

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

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

(a) In our opinion, proper books of account as required by law have been kept by theCompany, so far as appears from our examination of those books;

(b) The Balance Sheet, Profit and Loss Account and Cash Flow statement dealt with bythe report are in agreement with the books of account;

(c) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statementcomply with the Accounting Standards referred to in sub-section, (3C) section 211 of theCompanies Act, 1956.

(d) In our openion and based on information and explanation given to us none of theDirectors are disqualified, as on 31st March, 2008 from being appointed as Directors interm of section 274 (1 )(g) of the Companies Act, 1956.___

(e) In our opinion and to the best of our information and according to the explanationsgiven to us, the said accounts read together with the other notes thereon, give theinformation required by the Companies Act, 1956 in the manner so required and give a trueand fair view In conformity with the accounting principles genially accepted in India:-

(i) In so far as it relates to the Balance Sheet of the state of affairs of the Companyas at 31st March, 2008;

(ii) In so far as it relates to the Profit and Loss Account of the loss for the yearended 31st March, 2008; and

(iii) In so far as it related to the Cash Flow Statement of the cash flows for the yearended 31st March, 2008.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITOR REPORT ON THE ACCOUNTS OF YAMINIINVESMENTS COMPANY LIMITED FOR THE YEAR ENDING 31st MARCH 2008

As required by the Companies (Auditor's report) Order, 2003 issued by the centralGovernment of India in terms of section 227(4-A) of the Companies Act, 1956, we reportthat:

1 In respect of fixed assets;

(A) The company has no fixed assets during the year.

2 In respect of its inventories:

(A) The Company has inventory of Rs.965643 during the year.

3 In respect of loans, secured or unsecured, granted or taken by the company to/fromcompanies, firms or other parties covered in the register maintained under section 301 ofthe Companies Act 1956:

The company has taken loan from Directors & Others amounting Rs.172100.00.

4 In our opinion and according to the information and explanations given to us, thereare adequate internal control procedures commensurate with the size of the company andnature of its business. During the course of audit, no major weakness has been noticed inthe internal control.

5 In respect of contracts or arrangements entered in the register maintained inpursuance of Section 301 of the Companies Act, 1956.

(A) The company has not entered any loan of the transactions made in pursuance ofcontracts or arrangements that needed to be entered in the register maintained undersection 301 of the Companies Act 1956 have been so entered.

(B) In our opinion and explanation given to us, the transactions exceeding the value of5 lakh in respect of any party during the year have been made at prices which areprima-facie reasonable having regard to prevailing market prices at the relevant timewhere such prices are available.

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 Section58A and 58AA of the Companies Act, 1956 and Rules made there under are not applicable tothe Company._______

7 In our opinion, the company has no formal internal audit department as such.

8 To the best of our knowledge the Central Government has not prescribed themaintenance of cost records U/s 209(1) (d) of the company act, 1956 for any of theproducts of the company.

9 Based on our audit procedures and on the basis of information and explanations givenby the management, the Company has not defaulted in the repayment of dues to Banks,Financial Institutions and Debentures holders during the year.

10 In our opinion and according to information and explanation given to us, no loansand advances have been granted by the company on the basis of security by way of pledge ofshares, debentures and other security.

11 In our opinion the company is not a Chit Fund, Nidhi or Mutual Benefit Fund/Society.Therefore, the provisions of clause 4(XIII) of the CARO, 2003 are not applicable to thecompany.

12 The company has kept adequate records of its transaction and contracts in shares,securities, debentures and other investments. All theses investments are held in the nameof the company or are in process of being transferred in the company's name.

13 In our opinion, the terms and conditions on which the company has not given anyguarantees for loans taken by other from banks and financial institutions.

14 In our opinion and according to information and explanation given to us, the Companyhas not availed of any term loans during the year. There were no term loans outstanding asat the beginning and as at end of the year.

15 In our opinion and according to the information and explanations given to us nofraud on or by the Company has been noticed or reported during the year that causes thefinancial statements to be materially misstated.