Vishwamitra Financial Services Ltd Auditor Reports

To the Members of

BLUE BLENDS FINANCE LTD.

Report on the Financial Statements

We have audited the accompanying Financial Statements of BLUE BLENDS FINANCE LTD. ("the Company"), which comprise the Balance Sheet as at March 31, 2013, the Statement of Profit & Loss and Cash Flow Statement for the year then ended and a Summary of Significant Accounting Policies and other Explanatory Information.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation of these Financial Statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Principles generally accepted in India including Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the Financial Statements that give a true and fair view and free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these Financial Statements based on our Audit. We conducted our Audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatements.

An Audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected depend on the Auditors judgment, including the assessment of the risk of material misstatement of the Financial Statements, whether due to fraud or error. In making those risk assessments, the Auditor considers internal control relevant to the Companys preparation and fair presentation of the Financial Statements in order to design audit procedures that are appropriate in the circumstances. An Audit also includes evaluating the appropriateness of Accounting Policies used and the reasonableness of the Accounting estimates made by Management, as well as evaluating the overall presentation of the Financial Statements.

We believe that the Audit evidence we have obtained is sufficient and appropriate to provide a basis for our Audit opinion. Opinion

i) Attention is drawn to the Note no. "15" regarding non- provision of doubtful advances of Rs. 143.11 lakhs given to its wholly-owned subsidiary company M/s Blue Blends Stocks and Securities Limited.

ii) Subject to above, in our opinion and to the best of our information and according to the explanations given to us, the aforesaid Financial Statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the Accounting Principles generally accepted in India:

(a) In the case of the Balance Sheet, of the state of Affairs of the Company as at March 31, 2013;

(b) In the case of the Statement of Profit & Loss, of the profit for the year ended on that date; and

(c) In the case of the Cash Flow Statement, of the Cash Flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2003 ("the Order") issued by the Central Government of India in terms of Section 227 (4A) of the Act, we give in the Annexure, a Statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by Section 227(3) of the Act, we 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 account as required by law have been kept by the Company so far as appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit & Loss and the Cash Flows Statement dealt with by this Report are in agreement with the books of Account.

(d) In our opinion, the Balance Sheet, the Statement of Profit & Loss, and the Cash Flow Statement comply with the Accounting Standards referred to in section 211(3C) of the Act.

(e) On the basis of the written representations received from the Directors as on March 31, 2013, taken on record by the Board of Directors, none of the Directors is disqualified as on March 31, 2013, from being appointed as a Director in terms of Section 274(1)(g) of the Act.

	For P.C. Surana & Co.
	Chartered Accountants
	(Registration No.110631W)
Place : Mumbai
Date : 28th May, 2013	Sunil Bohra
	Partner
	Membership No.39761

Annexure to Independent Auditors Report

Referred to in Paragraph 1 under the head of "Report on Other Legal and Regulatory Requirements" of our report of even date • ending

(i) In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars details including quantitative details and situation of fixed assets.

b) As informed and explained to us. the management during the year, considering the fixed assets of the Company remaining at their residual value and usefulness and life span of which have expired, has discarded them and has written off their value in the accounts.

c) In our opinion, the Company has not disposed off any part of fixed assets during the year and the going concern status of the Company is not affected.

(ii) The Companys operations do not require it to hold inventories. Accordingly clause 4 (ii) of the order is not applicable.

(iii) In respect of loans, secured or unsecured granted or taken by the Company to/from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956:

a) The Company has given loan to two such parties. In respect of the said loans, the maximum amount outstanding at any time during the year was Rs. 216.61 lacs and the year-end balance is Rs.215.26 lacs.

b) In our opinion and according to the information and explanations given to us, the rate of interest, wherever applicable and other terms and conditions of the loans given by the Company are prima facie not prejudicial to the interest of the Company.

c) The principal amounts are repayable on demand while interest is payable annually in respect of one party and in respect of another party the loans given are interest free.

d) In respect of the said loans and interest thereon, there are no overdue amounts.

e) The Company has taken loans or advances from one such party. The maximum amount outstanding at any time during the year on such loans was Rs.295.50 lacs and the year-end balance is Rs. 273.25 lacs.

f) In our opinion and according to the information and explanations given to us. the rate of interest, wherever applicable and other terms and conditions are prima facie not prejudicial to the interest of the Company.

g) According to the information and explanations given to us, loans from such parties are interest free and the principal amount is repayable on demand and there is no overdue amount of interest and principal in respect of such loans taken by the Company.

(iv) In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business. During the course of our audit, we have not observed any major weaknesses in internal controls.

(v) In respect of contracts and arrangements under Section 301 of the Companies Act.1956:

a) In our opinion and according to the information given to us, the transactions made in pursuance of contracts or arrangements that need to be entered into in the register maintained under section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, where such transactions are in excess of Rs. 5 lakhs in respect of each party, the transactions have been made at prices which are prima fade reasonable as per information available with the Company.

(vi) According to the information and explanation given to us, the Company has not accepted any deposits from the public. Therefore, the provisions of Clause (vi) of paragraph 4 of the Order are not applicable to the Company.

(vii) In our opinion the Company has an internal audit system commensurate with its size and nature of its business.

(viii) The Central Government has not prescribed maintenance of cost records under section 209(1)(d) of the Companies Act. 1956 in respect of services of the Company.

(ix) a) According to the records of the Company, undisputed statutory dues including Provident Fund. Investor Education and Protection Fund. Employees State Insurance. Income-Tax. Sales Tax, Wealth Tax, Customs Duty. Excise Duty. Cess and other statutory dues have been generally regularly deposited with the appropriate authorities According to the information and explanation given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2013 for a period of more than six months from the date of becoming payable.

b) According the information and explanations given to us there are no disputed dues in respect of Sales Tax. Income Tax, Wealth Tax, Service Tax and Excise & Custom Duty.

(x) The Company has accumulated losses of Rs.745.43 Lacs . The Company has not incurred cash losses during the financial year covered by the audit and in the immediately preceding financial year.

(xi) According to the explanations and information given to us. The Company has not taken any loans from any financial institutes or banks or through issue of any debentures. Therefore, the provisions of Clause (xi) of paragraph 4 of the Order as to repayments of such loans are not applicable to the Company.

(xii) In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

(xiii) In our opinion the Company is not a chit fund / nidhi /mutual benefit fund/society. Therefore, the provisions of Clause 4(xiii) of the Order are not applicable to the Company.

(xiv) The Company has maintained proper records of transactions and contracts in respect of trading in shares, securities, debentures and other investments and timely entries have been made therein. All shares, securities, debentures and other investments have been held by the Company in its own name.

(xv) The Company has not given guarantees for loans taken by others from banks or financial institutions.

(xvi) The Company has not raised any new term loans during the year and it does not have any term loan at the beginning of the year Therefore, the provisions of Clause 4(xvi) of the Order are not applicable to the Company.

(xvii) According to the information and explanations given to us and on overall examine of the Balance sheet of the Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long term investment.

(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act. 1956.

(xix) The Company has not issued any Debentures. Therefore, the provisions of Clause 4(xix) of the Order are not applicable to the Company.

(xx) The Company has not raised any money by way public issue during the year.

(xxi) In our opinion and according to the information explanations given to us, no material fraud on or by the Company has been noticed or reported during the year.

	For P.C. Surana & Co.
	Chartered Accountants
	(Registrution No.110631W)
Place : Mumbai
Dale : 28th May, 2013	Sunil Bohra
	Partner
	Membership No.39761