Platinum Corporation Ltd Auditor Reports

Auditors Report to the members of Platinum Corporation Limited

1. We have audited the attached Balance Sheet of Platinum Corporation Limited as at March 31, 2011 and the Profit & Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principals used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order 2003 issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 of the said Order.

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

4.1 We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

4.2 In our opinion, proper books of accounts, as required by law, have been kept by the Company, so far as appears from our examination of those books;

4.3 The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account;

4.4 In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the mandatory Accounting Standards referred in sub-section (3C) of section 211 of the Companies Act 1956;

4.5 On the basis of written representation received from the Directors as on March 31,2011 and taken on record by the Board of Directors, we report that none of the director is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act 1956.

4.6 In our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with the Significant Accounting Policies and notes thereon and subject to our following remarks, 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 accounting principles generally accepted in India:

(a) Refer to Note No.1.4 of Schedule: 12 for Non- Provision of Depreciation and loss in Fixed Assets.

(b) Refer to Note No. 1.6 Schedule: 12 for Non-Provision of Interest payable to Banks.

(c) Refer to Note No. 1.9 Schedule: 12 for not debited 1/10th amount of intangible assets.

(i) In the case of the Balance Sheet of the states of affairs, of the company as at 31st March, 2011.

(ii) In the case of the Profit and Loss Accounts, of the loss of the Company for the year ended on that date; And

(iii) In the case of the Cash Flow Statement, of the cash flows of the Company for the year ended on that date.

Referred to in our report of even date

1. In respect of its fixed assets:

a. The Company is mamtaining proper records showing full particulars including quantitative details and situation of fixed assets except Deep Freezers. With regard to Deep Freezers, we have been informed that the company has discontinued the activity of manufacturing Ice Cream in the year ended on March 31, 2008. As such, these assets are in the custody of distributors / dealers and as such the possessions of the said assets have not taken by the company and thus the conditions of such Assets are also not known to the company.

b. Subject to our remark in above para, substantial portion of fixed assets has been physically verified by the management during the year, except Deep Freezers, as mentioned in Para: 1(a) with regard to other assets, no material discrepancies between the book records and the physical inventory have been noticed on such verification. In our opinion, the frequency of verification is reasonable.

As reported in Para 1.6 of Schedule: 12, some of the Fixed Assets have been sold or Written off due to they become scrap.

c. None of the Fixed Assets have been revalued during the year.

2. In respect of its Inventories

There being no trading / manufacturing activity as well as Stock on hand in the company, the matters pertaning to Inventory are not applicable.

3. The Company has not granted unsecured loans to Companies, firms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

With regard to Loans and Advances given by the Company, refer to Note No. 1.10 of Schedule : 12.

5. In our opinion and according the information and explanations given to us, there are generally adequate internal control system commensurate with the size of the Company and the nature of its business of the purchase of inventory and fixed assets and also the for sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls as it is not applicable in the current year.

6. In our opinion and according to information and explanation given to us, there are no transactions that need to be entered in to a register in pursuance of Section 301 of the Companies Act, 1956.

7. According to the information and explanations given to us, Company has not accepted any deposits from the public. Therefore, the provisions of Clause (vi) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

8. In our opinion, the Company has no internal audit system.

9. The Central Government has not prescribed maintenance of Cost Records under Section 209(l)(d) of the Companies Act, 1956.

10. According to the information and explanation given to us in respect of statutory and other dues:

10.1 The matter of depositing statutory dues, such as Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues is not applicable to the company.

There were no undisputed amounts payable in respect of Income-tax Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2011 for a period more than six months from the date they became payable. However, the amounts of Income Tax of Rs. 8,50,000/- for the year ended on 31st Mach 2008, Rs. 22,28,520/- for the year ended on 31^st Mach 2009 and Rs. 1,44,900/- for the year ended on 31^st Mach 2010 have not been paid by the Company. A sum of Rs. 25,112/- is also not paid by the Company in respect of T. D. S. .

10.2 With regard to VAT, a sum of Rs. 4,37,862/- is outstanding. The Company has filed an Appeal in the matter.

10.3 The Company has increased the Authorised Share Capital from Rs. 32,00,00,000/-to Rs. 68,00,00,000/-. On this increased share capital the total fees which have to paid to R.O.C. comes to Rs. 48,00,000/-against which the Company has made provision of Rs.15,00,000/- in books of accounts. However, the said amount is not paid to R O C. A sum of Rs. 33,00,000/- is neither provided nor paid. Due to nonpayment of above fees, the required Form for the increase in the said Share Capital has also not been filed in the office of Registrar of Companies, (Guj.).

11. The company has incurred cash loss of Rs. 51,34,539/- for the current year ended on March 31, 2011. (In the year ended on March 31, 2010 there was no cash loss). However, as on March 31, 2010 & 2011 there are no accumulated losses.

12. On the basis of the records examined by us, we report that the company has borrowed loans (secured) from the banks, as shown in the Balance Sheet / Schedule of Secured Loans. The company has not made the repayment as per schedule. As a result the account has been become NPA and the legal actions for the recovery for their dues.

13. In our opinion and according the information and explanations given to us, no loan and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

14. The provision of any special statute applicable to chit fund / nidhi / mutual benefit fund/ society are not applicable to the Company.

15. The Company has given Guarantee for loans taken by others from Bank. According to the information & explanations given to us, we are of the opinion that the terms & conditions thereof are not prime- facie prejudicial to the interest of the Company.

16. The Company has not raised / taken any loans during the year.

17. According to the information and explanations given to us and on an overall examination of the Balance sheet of the Company, we are of the opinion that the Company has not utilized short term resources towards repayment of long term borrowings and acquisition of fixed assets.

18. During the year the Company has not made preferential allotment of Equity Shares.

19. The Company has not issued any debentures, during the year.

20. The Company has not raised any money by public issue during the year.

21. In our opinion & according to the information and, explanation given to us, no material fraud on or by the company has been noticed or reported during the year.