1.  We have audited the attached Balance Sheet of AASWA TRADING AND
 EXPORTS LIMITED, as at 31st March, 2012, the statement of Profit and
 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 Company''s management. Our responsibility is to
 express an opinion on these financial statements based on our audit .
 
 2.  We conducted our audit in accordance with auditing standards
 generally accepted in India. Those Standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free on 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 principles used and significant estimates made
 by management, as weil 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 (Auditor''s Report) order, 2003 issued
 by Central Government of .
 
 India in-terms of section 227(4A) of the Companies Act, 1956, and on
 the basis of such checks of the books and records of the company as we
 considered appropriate and according to the information and
 explanations given to us, we enclose in the Annexure a statement on the
 matters specified in paragraph 4 & 5 of the said order.  
 
 4.  Further to our comments in the Annuxure referred to above, 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 purposes of our
 audit.
 
 (b) In our opinion, proper books of account as required by law have
 been kept by the Company so far as it appears from our examination of
 those books.
 
 (c) The Balance Sheet, the statement of Profit and Loss Account and
 Cash Flow Statement referred to in this report are in agreement with
 the books of account.
 
 (d) In our opinion, the Balance Sheet, the statement of Profit and Loss
 Account and Cash Flow : statement dealt with by this report comply with
 the Accounting Standards referred to in sub- .  section (3C) of section
 2 I 1 of the Companies Act, 1956; . . .
 
 (e) On the basis of written representations received from the directors
 of the company as at March 31. 2012 and taken on record by the board of
 directors, we report that none of the '' .  directors is disqualified as
 on March 31, 2012 from being appointed as director of the company under
 clause (g) of sub-section (I) of section 274 of the Companies Act,
 1956.
 
 Subject to the foregoing, in our opinion and to the best of our
 information and according to the explanations given to us, the
 financial statements read with notes thereon 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) In the case of Balance Sheet, of the State of affairs of the
 Company as at 31st March, '' 2012;and
 
 (b) In the case of the statement of Profit and Loss Account, of the
 Profit of the Company for the year ended on that date; and
 
 (c) In the case of Cash Flow Statement, of the Cash Flows of the
 company for the year ended on that date. ...
 
 ANNEXURE TO THE AUDITOR''S REPORT
 
 (Referred to in paragraph (3) of our report of even date)
 
 1.  (a) The company has maintained proper records showing full
 particulars including quantitative details and situation of fixed assets.
 
 (b) All the assets have been physically verified by the management at
 reasonable intervals. In our opinion, the program of verification is
 reasonable having regard to the size of the company and the nature of
 its assets. We have been informed that no material discrepancies were
 noticed on such verification.
 
 (c) During the year, the company has not disposed off any of its fixed
 asset.
 
 2.  (a) The inventory has been physically verified during the year by
 the management. In our opinion, the frequency of verification is
 reasonable -
 
 (b) In our opinion, the procedures of physical verification of
 inventories followed by the management are reasonable and adequate in
 relation to the size of the company and the nature of its business.
 
 (c) In our opinion, the company is maintaining proper records of
 inventory. As informed to us, no discrepancies were noticed on
 verification between the
 
 physical stocks and book records.
 
 3.  (a) As explanation to us, the company has granted interest bearing
 loan to a company covered in the register maintained under section 301
 of the Companies Act, 1956. The maximum amount involved during the year
 was Rs. 140.70 lacs.
 
 (b) In our opinion and according to information and explanation given
 to us, the terms and conditions of loans granted by the company are not
 prima facie prejudicial to the interest Of the company.
 
 (c) We are informed that the repayment of the principal amount is not
 stipulated.
 
 (d) We are informed that the loan granted to the above company does not
 have any stipulation for the repayment of principal and hence, no
 amount outstanding as at 31sl march, 2012 has been considered overdue.
 
 (e) The company has not taken any loan, secured or unsecured from
 companies, Firms or other parties covered in the register maintained
 under section 301 of the Companies Act, 1956.
 
 (f) Not applicable in view of 3(e) above.  .
 
 (g) Not applicable in view of 3(e) above.
 
 4.  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 with regard to purchases of inventory, fixed assets and with
 regard to the sale of goods, During the course of our audit, we have
 not observed any continuing failure to correct major weakness in
 internal controls. 
 
 5.  (a) We have been informed that the transactions that need to be
 entered into 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 explanation
 given to us, ; there is no transaction made in pursuance of contracts
 or arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value of rupees five iacs in 
 respect of any party during the year.
 
 6.  In our opinion and according to the information and explanations
 given to us, the company has not accepted any fixed deposits from the
 public. Further, no order has been passed by the Company Law Board.
 
 7.  In our opinion, the company has an internal audit system
 commensurate with the size and nature of its business.  .  .
 
 8.  According to the information and explanations given to us, the
 Central Government has not prescribed for maintenance of cost records
 as required under clause (d) of sub-section (1) of Section 209 of the
 Companies Act, 1956.
 
 9.  (a) According to the information and explanations given to us, the
 company is
 
 generally regular in depositing with appropriate authorities undisputed
 statutory dues including provident fund, investor education and
 protection fund, employee''s state insurance, income tax, sales tax,
 wealth tax, custom duty, service tax, excise duty, cess and other
 material statutory dues applicable to it. According to the information
 and explanations given to usi, no undisputed amounts payable in respect
 of provident fund, investor education and protection fund, employee''s
 state insurance, income tax, sales tax, wealth tax, custom duty,
 service tax, excise duty, cess and other material statutory dues
 applicable to it were in arrears as at 31st March, 2012 for a period of
 more than six months from the date they became payable.
 
 (b) According to the information and explanations given to us, there is
 no statutory dues which are disputed,  
 
 10.  As the company has not any accumulated losses, so this clause is
 not applicable to the company.
 
 11.  According to the information. and explanations given to us, the
 company has not defaulted in repayment of dues to financial
 institutions, banks and debenture holders.  .
 
 12.  As per the information and explanations given to us, the company
 has not granted any loans and advances on the basis of security by way
 of pledge of shares, debentures and other securities.
 
 13.  As per the information and explanations given to us, the company
 is not dealing in or trading in shares, securities debentures and other
 investments. Accordingly, the provisions of clause 4(xiv) of the
 Companies (Auditor''s Report) order,2003 is not applicable to the
 company.
 
 14.  As per the information and explanations given to us, the company
 has not given guarantees for loans taken by others from Bank or
 Financial Institutions.
 
 15.  As informed to us, the company has not received any money by way
 of term loans, hence the question of application of it does not arise.
 
 16.  According to the information and explanations given to us and on
 an overall examination of the balance sheet of the company, we report
 that no funds raised on a short term basis have been used for long term
 investments and vice versa except permanent working capital.  ;
 
 17.  According to the information and explanations given to us, 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. Accordingly, the provision of.  clause 4(xviii) of Companies
 (Auditor''s Report) Order, 2003 is not applicable to the company.  ...
 
 18.  According to the information and explanations given to us, the
 company has not issued any debentures and hence the question of
 creating security in respect thereof does not arise.
 
 19.  As per the information and explanations given to us, the company
 has not raised any money by way of public issues during the year under
 audit.
 
 20.  According to the information and explanations given to us, no
 fraud on or by the company has been noticed or reported during the
 course of our audit.
 
 For DHIRUBHAISHAH & CO.
 
 Chartered Accountants.  ''
 
 Firm Registration  
 
 Harish B.Patel 
 
 Date :30/05/2012
 
 PARTNER.
 
 Place : Ahmedabad
 
 Membership No.14427