1 We have audited the attached Balance Sheet of Abee Info-Consumables
 Ltd., situated at Akshay, 156-1/B, Mangalwar Peth, Barne Road, Near
 Sinchan Bhavan, Pune as at 31 st March, 2011, the 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 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 require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free of material misstatements. 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 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 (Auditor''s Report) Order 2003, issued by
 the Central Government in terms of section 227 (4A) of the Companies
 Act, 1956, we enclose in the Annexure a statement on the matters
 specified in paragraph 4 and 5 of the said order.
 
 4 Further to our comments in the Annexure and Notes to accounts
 referred to, we report that:
 
 i.  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;
 
 ii.  In our opinion, proper books of accounts as required by the law
 have been kept by the company so far
 as it appears from our examination of those books;
 
 iii.  The Balance Sheet, Profit and Loss account and cash flow
 statement dealt with by this report are in
 agreement with the books of accounts and returns;
 
 iv.  In our opinion, subject to the accounting policies and notes to
 and forming part of the Final Accounts,
 the Balance Sheet and Profit and Loss Account comply with the
 Accounting Standards referred to in subsection (3C) of section 211 of
 the Companies Act, 1956, except AS-15 Employee Benefitsand AS-26
 Intangible Assets;
 
 v.  On the basis of records verified and explanations received by us,
 we report that none of the directors are disqualified as on 31st March,
 2011 in terms of clause (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 explanations given to us, the said accounts 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 the Balance Sheet, of the state of affairs as at
 31st March, 2011;
 
 b.  In the case of Profit and Loss account, of the loss 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.
 
 ANNEXURE TO AUDITORS REPORT
 
 [As referred to in the paragraph 3 of the Auditors Report of even date
 to the members of Abee Info - Consumables Ltd. on the financial
 statements for the year ended March 31, 2011.
 
 i.  a) The Company has not maintained proper records showing full
 particulars including quantitative detailsand situation of fixed
 assets.
 
 b) The fixed assets have been physically verified by the management at
 reasonable intervals. No material discrepancies were noticed on such
 verification.
 
 c) During the year, the Company has not disposed off any part of the
 Fixed Assets.
 
 ii.  a) The inventory has been physically verified during the year by
 the management. In our opinion, the frequency of verification is
 reasonable.
 
 b) The procedures of physical verification of inventory followed by the
 management are reasonable and adequate in relation to the size of the
 company and the nature of its business.
 
 c) The company is maintaining proper records of inventory. The
 discrepancy noticed on verification between the physical stocks and the
 book records were not material. However, no revision of overhead
 standard rates for valuation of inventory is carried out for the
 production at Parwanoo factory.
 
 iii.  a) The Company had granted loan to Directors covered in the
 register maintained under section 301 of the Companies Act, 1956. The
 maximum amount of granting of loan during the year was Rs. 790,732.00
 and the year-end balance of loans granted to such parties was Rs.
 39,446,891.00. There are other parties covered in the register
 maintained under section 301 of the Companies Act, 1956 to which the
 company has granted loans. The year end balance of loans granted to
 such parties was Rs. 2,649,598.00. Such loan is given without obtaining
 previous approval of Central Government uls 295.
 
 Sr.                                  Amount (Rs.)      Amount (Rs.)
 No. Name Of the Director            Current Year     Previous Year
 
 1.  Mr. B. B. Somani               36,477,394.00     36,457,394.00
 
 2.  Mrs. P. B. Somani               2,657,637.00      2,016,705.00
 
 3.  Mrs. Radhika Joglekar             311,860.00        182,060.00
 
     Total                          39,446,891.00     38,656,159.00
 
 
 b) Company has not recovered or charged any interest on loans granted
 and taken from such parties listed in the register maintained under
 section 301 of the Companies Act.
 
 c) As the agreement for repayment of principal amounts and interest for
 the loans taken or granted had not been executed, we are unable to make
 any specific comment on whether payment of principal amount and
 interest are regular.
 
 d) As the terms and conditions are not specified, we are unable to make
 any specific comment on whether the overdue amount is more than one
 lakh or not.
 
 iv.  In our opinion and according to the information and explanations
 given to us, there is an adequate internal control system commensurate
 with the size of the company and the nature of its business, for the
 purchase of inventory and fixed assets and for the sale of goods as
 there is a greater degree of personal supervision. We have not observed
 any major weakness in internal control system during the course of
 audit.
 
 v.  a) In our opinion and according to the information and explanation
 given to us, the particulars of contracts or arrangements referred to
 in section 301 of the Act have been entered in the register required to
 be maintained under that section.
 
 b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of such contracts or
 arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 are exceeding the value of rupees five lakhs in
 respect of Abbee Consumables and Peripherals Sshoppe Ltd. during the
 year have been made at prices which are reasonable having regard to
 prevailing market prices at the relevant time.
 
 vi.  In our opinion and according to the information and explanations
 given to us, the Company has not accepted any deposits from the public
 where the provisions of Section 58A and Section 58AA of the Companies
 Act, 1956 and the Companies (Acceptance of Deposit) Rules, 1975 are
 applicable.
 
 vii.  In our opinion, the company has no an internal audit system
 commensurate with the size and nature of its business.
 
 viii. The 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, so this clause is not applicable to the Company.
 
 ix.  a) The Company is not regular in depositing with appropriate
 authorities undisputed statutory dues including provident fund, Income
 Tax, Investor Protection Fund, and other material statutory dues
 applicable to it.
 
 b) According to information and explanations given to us, there are
 disputed amounts payables in respect of Income Tax & Excise duty, which
 are reported under Contingent Liabilities.
 
 x.  In our opinion, the accumulated losses of the Company are more than
 50 percent of its net worth. There are cash losses during the current
 financial year.
 
 xi.  According to the information and explanations given to us, the
 company has defaulted in repayment of dues to a financial institution
 and bank. Interest provision on the loan taken from Rupee Co-operative
 Bank (C C and T L.) and Mahesh Sahakari Bank not charged as the
 accounts statement of the same was not available.  Both the loans are
 Non Performing Assets in the record of Banks. Charge on the fixed
 assets of the Company i. e. Factory and Office building, Stock in Trade
 and Book debts still exists. Court cases filed by both these banks for
 recovery are pending as on date of Balance Sheet.
 
 xii.  The Company has not granted any loans or advances 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 Companies (Auditors Report) order, 2003 are not applicable to the
 company.
 
 xiv. According to 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 (Auditors Report) Order, 2003 are not applicable to the
 Company.
 
 xv.  According to the information and explanations given to us, the
 company has not given any guarantee for loans taken byothersfrom
 banksorfinancial institutions.
 
 xvi.  In our opinion, the company has not obtained any fresh term loans
 during the year.
 
 xvii. 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 no funds were raised during the year on short term
 basis, which have been used for long term investment. No long-term
 funds have been raised during the year, which are used to finance short
 term assets.
 
 xviii. 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 during the year.
 
 xix. According to the information and explanations given to us during
 the period covered by our audit report, the company had not issued any
 debentures. Hence there is no question of creating security in respect
 of debentures issued.
 
 xx.  During the year company has not raised any money by public issues.
 
 xxi. According to the information and explanations given to us, no
 fraud on or by the company had been noticed or reported during the
 year.
 
 For Pawar & Associates 
 Chartered Accountants
 
 
 
 SD/- 
 CA Paritosh J. Pawar 
 (Proprietor)
 Membership No. 132557 
 F. R. N. 130148W
 
 Place: Pune 
 Date: 05/09/2011