Sanchay Finvest Ltd Auditors Report.

AUDITORS REPORT

TO THE MEMERS OF SANCHAY FINVEST LIMITED

We have audited the attached Balance sheet of M/s SANCHAY FINVEST LIMITED as at 31st March, 2012 and also the annexed Profit & Loss Account and Cash Flow Statement for the year ended on that date. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit also 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion: -

1. As required by the Comapnies (Auditor’s Report) order, 2003 Issued by the Central Government of India in terms of section 227 (4) (A) of the Companies Act 1956, and on the basis of checks of the books & records as we considered necessary and appropriate,and according to the information and explanations given to us during the course of audit ,we enclose in the annexure a statement on the matters specified in paragraph 4 & 5 of the said order to the extent applicable to the Company.

2. Further to our comments in the Annexure referred to in paragraphs (1) above and report that : -

A ) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

B ) In our opinion, proper books of accounts(except stock record), as required by law, have been kept by the Company so far as appears from our examination of those books.

C ) The Balance Sheet, Profit & Loss Account and cash flow Statement dealt with by this report are in agreement with the books of account.

D ) In our opinion the Balance Sheet, Profit & Loss Account and Cash Flow Statement complies with the mandatory Accounting Standards referred in section 211 ( 3C ) of the Companies Act 1956.

E ) On the basis of the written representation received from the directors as on 31.03.2012 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31.03.2012 from being appointed as a director in terms of clause (g ) of sub-section (1) of section 274 of the Companies Act, 1956.

F ) In our opinion and to the best of our information and according to the explanation given to us, the said accounts subject to and read with the notes thereon, give the information required by Companies Act, 1956 in the manner as required and give a true and fair view in Conformity with the accounting principles generally accepted in India : -

1) in the case of the Balance Sheet, of the state of affairs of the company as at 31st March, 2012 and 2 ) in the case of the profit and loss account , of the profit/ loss for the year ended on that date.

PLACE : MUMBAI For. V. R. BHABHRA & CO. (CHARTERED ACCOUNTANTS)
DATE : 27th August, 2012 (V. R. BHABHRA )
PROPRIETOR.
FRN : 112861W
Mem. No. 46043

ANNEXURE TO THE AUDITOR’S REPORT

(Referred to in paragraph (1) of our report of even date)

1. (a)The Company has maintained proper records showing full particulars including quantitative details and location of fixed assets. All the assets have been physically verified by the management during the year. There is a regular programme of such verification. No material discrepancies were noticed during such verification.

(b)None of the fixed assets have been revalued during the year.

2. (a)The stocks of shares & securities were reported to have been physically verified during the year by the management at regular intervals and at the close of the accounting year.

(b)In our opinion, the procedures of physical verification of stocks followed by the managementare not reasonable and adequate in relation to the size of the company and the nature of its business.

(c)As per the information and explanations given to us, the management is reported to us that discrepancies on physical verification of stocks as compared to book records are reconciled and balance as on 31st March, 2012 are in line with the book records.

(d)In our opinion, the valuation of stocks is fair and proper and in accordance with the normally accepted accounting principals and is on the same basis as in the preceding year.

3. (a)The company has not taken any loan from companies, firms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 or from the company under the same management.

(b)The company has not granted any loans, secured or unsecured to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956, or to companies under the same management within the meaning of section 370 (IB) of the Companies Act, 1956.

(c )On the basis of our checking and according to the information and explanations given to us during the course of our audit , the parties to whom loans or advances in the nature of loans have been given by the Company, are repaying the principal as stipulated and are also regular in payment of interest.

4. In our opinion and according to the information and explanation given to us, there are adequate internal control procedure commensurate with the size of the company and nature of its business.

5. As far as we have been able to ascertain and according to the information and explanations given to us, purchases made during the year, of shares & securities and services as applicable aggregating during the year to Rs. 50, 000 /- or more in respect of each party made in pursuance of contracts or arrangement entered in the Register maintained under section 301 of the companies Act, 1956 are not prejudicial to the interest of the Company.

6. The Company has not accepted any deposit from the public.

7. In our opinion, the internal control procedure involves reasonable internal checking of its financial records with is considered by us to be adequate under the circumstances.

8. (a) The Company is generally regular in depositing provident fund and Employee State Insurance dues with the appropriate authorities.

(b)In our opinion and according to the information and explanations given to us, there is no undisputed and outstanding amount payable in respect of Income tax or any other taxes, duties etc. as at the last day of financial year concerned for a period of more than six month from the date they became payable.

9. Maintenance of cost records has not been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act.

10. In our opinion, the company has no accumulated losses at the end of the financial year but has incurred cash losses during the current financial year under report .

11. In our opinion, and according to the information and explanation given to us the company has not defaulted in repayment of dues.

12. The clause of the order is not applicable as the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13.The clause of the order is not applicable as the company is not nidhi / mutual benefit fund/societies.

14. In our opinion, the Company has kept proper records of the transaction and contracts for dealing or trading in shares, debentures, securities and other investment and timely entries have been made therein. The shares, securities, debentures and other investments have been held by the company in its own name.

15. In our opinion and according to explanations given to us, the company has not given any guarantee for loans taken by others from bank or other financial institutions during the year.

16. According to the information and explanations given to us and on an overall examination of the balance sheet, we report that no funds raised on short-term basis have been used for long term investment and vice versa.

17. The Company has not made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act.

18. As the Company has not issued any debenture during the year , so the question of creating charges does not arrive.

19. The company has not raised any money by public issue during the year.

20. To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the company was noticed or reported during the year.

PLACE : MUMBAI For. V. R. BHABHRA & CO. (CHARTERED ACCOUNTANTS)
DATE : 27th August, 2012 .
(V. R. BHABHRA )
PROPRIETOR.
FRN : 112861W
Mem. No. 46043