Yash Trading & Finance Ltd

TO THE SHAREHOLDERS OF YASH TRADING AND FINANCE LIMITED, MUMBAI.

We have audited the attached Balance Sheet of YASH TRADING AND FINANCE LIMITED,MUMBAI as at 31st March, 2012, the Profit and Loss Account and the Cash FlowStatement for the year ended on that date annexed thereto. These financial statement arethe responsibility of the Company's management. Our responsibility is to express anopinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatements. Anaudit includes examining, on test basis, evidence supporting the amounts and disclosure inthe financial statement. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall financialstatements presentation. We believe that our audit provides a reasonable basis for ouropinion.

1. As required by the Companies (Auditors' Report) Order; 2003, as amended by theCompanies (Auditors' Report) (Amendment) Order; 2004 (together the 'Order") issued bythe Central Government of India in terms of section 227(4A) of the Companies Act, 1956('the Act') and on the basis of such checks as we considered appropriate, and according tothe information and explanations given to us, we enclosed in the Annexure a statement onthe matters specified in paragraph 4 and 5 of the said Order to the extent applicable tothe Company.

2. In accordance with the provision of section 227 of the Companies Act , 1956, wereport as under:

i) We have obtained all the information and explanations 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 said Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt withby this report are in agreement with the Books of Account.

iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statementdealt with by the report is in compliance with the Accounting Standards referred to inSection 211 (3C) of the Companies Act, 1956.

v) On the basis of written representations received from the Directors as on March 31,2012 and taken on record by the Board of Directors, we report that the none of theDirectors are disqualified as on 31st March, 2012 from being appointed as Director underclause (g) of sub-section (1) of Section 274 of the Companies act, 1956.

vi) In our opinion and to the best of our information and according to the explanationgiven to us. the said- accounts read with the significant accounting policies and notesthereon, give the information required by the Companies Act, 1956 in the manner sorequired and give a true and fair view in the accounting principles generally accepted inIndia : -

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

b) In the case of the Profit and Loss Statement, of the Profit for the year ended on31st March, 2012.

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on 31stMarch, 2012.

Annexure to the Auditor’s Report of even date to the members of Yash Trading andFinance Limited.

(i) The Company does not have any Fixed assets.

(ii) As informed to us, during the year the Company has neither granted nor taken anyloans, secured or unsecured to/from companies, firms or other parties covered in theregister maintained under Section 301 of the Companies Act, 1956.

(iii) In our opinion, and according to the information and explanation given to us,there is an adequate internal control procedure commensurate with the size of the companyand nature of its business. During the course of our audit no major weakness has beennoticed the internal control. We have not observed any failure on the part of the companyto correct major weakness in internal control.

(iv) There are no transctions of Purchase/Sale of goods , materials and services madein pursuance of contracts or arrangement entered into the register maintained undersection 301 of the Companies Act.

(v) The company has not accepted any deposits from the public within the meaning ofsections 58A and 58AA of the Companies Act, 1956 and the rules framed there under.

(vi) The Company is not required to have an internal audit system during the periodunder Audit.

(vii) Maintenance of cost records under section 209 (1) (d) of the Act have not beenprescribed by the Central Government.

(viii) (a) According to the records, information and explanation provided to us, thecompany is regular in depositing with appropriate authorities undisputed amount ofProvident Fund, Employees' State Insurance, Income Tax, Sales Tax, Wealth Tax, CustomDuty, Excise Duty, Service Tax, Cess and other statutory dues as applicable withappropriate authorities and no undisputed amounts payable were outstanding as at 31^stMarch, 2012 for a period of more than six months from the date they became payable.

(b) According to the records of the company, there are no dues of Sales Tax, Customduty, Wealth Tax, Excise duty, Service Tax, Cess and other statutory dues which has notbeen deposited on account of any dispute.

(ix) The Company has neither accumulated losses as at the end of the financial year norit has incurred any cash losses during the year and in the immediately preceding financialyear.

(x) Based on our audit procedures and on the information and explanation given to us,the company has not defaulted in repayment of dues, to any financial institution or bank.

(xi) Based on our examination and according to the information and explanation given tous, the company has not granted loans and advances on the basis of security by way ofpledge of shares, debentures and other securities.

(xii) The company is not a Chit/Nidhi/Mutual Benefit Fund/Society and Clause (xiii) ofthe Order is not applicable.

(xiii) In our opinion, and according to the information and explanation given to us,there is dealing in trading in shares & mutual funds but not in debentures and otherinvestments.

(xiv) On the basis of the information and explanation given to us, the company has notgiven any guarantee for loans taken by others from bank or financial institutions.

(xv) On the basis of the information and explanation given to us, the Company has notavailed any fresh term loans during the year

(xvi) On the basis of our examination of the books of accounts and information andexplanation given to us, in our opinion, no funds have been raised on short term basis.

(xvii) During the year, the Company has not made any preferential allotment of sharesto parties and companies covered in the register maintained under Section 301 of the Act.

(xviii) The Company did not have any outstanding debentures during the year.

(xix) The Company has not raised any money by public issues during the year.

(xx) During the course of our examination of the book of account carried out inaccordance with the generally accepted auditing practices in India and according to theinformation and explanation given to us, we have neither come across any instance of fraudon or by the Company, noticed or reported during the year, nor have we been informed ofsuch case by the management.