1.  We have audited the attached Balance Sheet of ALKA SECURITIES
 LIMITED Mumbai as at 31st March 2011 and the Profit and Loss Account
 annexed thereto. These financial statements are 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 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 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, 2004 issued
 by the Company Law Board 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 & 5 of the said order.
 
 4.  Further to our comments in the annexure referred to in paragraph 3
 above.
 
 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 such
 books.
 
 c) The Balance Sheet and Profit & Loss Account referred to in this
 report are in agreement with the Books of Account.
 
 d) In our opinion the Profit & Loss Account and the Balance Sheet
 comply with the Accounting Standards referred in Sub-section (3c) of
 Section 211 of the Companies Act, 1956.
 
 e) Based on representations made by all the Directors of the company to
 the Board and the information and explanations as made available to us
 by the Company, none of the Directors of the Company prima-facie have
 any disqualifications as referred to in section 274 sub-section (I)
 clause (g) of the Companies Act, 1956.
 
 In our opinion and to the best of our information and according to the
 explanations given to us the said account read with the Notes thereon
 give the information required by the Companies Act, 1956 in the manner
 so required and give a true and fair view: 
 
 i.  in the case of Balance Sheet of the state of affairs of the company
 as at 31st March, 2011 and
 
 ii.  in the case of Profit & Loss Account of the Profit for the year
 ending on that date.
 
 AND iii in the case of Cash Flow Statement for the year ending on that
 date.
 
 ANNEXURE TO THE AUDITOR''S REPORT (Referred to in paragraph 3 of our
 Report of even date)
 
 (I) a) the company has maintained proper records showing full
 particulars including Quantitative details & situation of fixed assets.
 
 b) All the assets have been physically verified by management during
 the year and no material discrepancies were noticed on such
 verification.
 
 c) During the year, the company has not disposed any substantial part
 of fixed assets affecting the going concern of the Company.
 
 (ii) (a) The inventory physically verified during the year by the
 management of the company. In our opinion, the frequency of such
 verification is reasonable.
 
 (b) The procedures of physical verification of inventories followed by
 the management are reasonable and adequate in relation to the size of
 company and nature of its business.
 
 (c) The company is maintaining proper records of inventory''- The
 Discrepancies noticed on verification between physical stock and book
 stocks were not material.
 
 (iii) (a)\Ve have been informed that the company has not taken
 Unsecured loan from other parties listed in the register to be
 maintained under section 301 of the companies Act, I956..The Company
 has not given any loans to companies, firms and other parties covered
 in the Register maintained under section 301 of the Companies Act,
 1956.
 
 (b) The rate of interest and terms and conditions of such loans are
 prima facie not prejudicial to the interest of the company.
 
 (c)The principal amount and interest thereon are paid regularly on due
 date or immediately thereafter.
 
 (d)There is no overdue amount of loan taken from or granted to
 companies, firms or other parties listed in the register maintained
 under section 301 of the companies Act. 1956.
 
 (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 its nature of its
 business with regard to purchase of inventory, fixed assets and with
 regards to sale of goods.  During the course of our audit, we have not
 observed any continuing failure to correct major weaknesses in internal
 controls.
 
 (v) (a)According to the information and explanation given to us. we are
 of the opinion that the transaction 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 given to us, the
 transaction made in pursuance of contract or arrangement entered in the
 register maintained under section 301 of the Companies Act, 1956 and
 exceeding the value of Rs. 5,00,000/- in respect of any party during
 the year have been made at price which are reasonable having regard to
 prevailing market price at the relevant time.
 
 (vi) As informed, the company has not taken any deposits in accordance
 with section 58A, 58AA of the companies'' act 1956 during the year.
 
 (vii) In our opinion, the company has an in house internal audit system
 commensurate with the size and nature of its business.
 
 (viii) As informed the maintenance of cost record under section 209 (1)
 (d) is not applicable to the company.
 
 (be) (a)According to the information and explanation given to us, the
 company is regular in depositing with appropriate authorities
 undisputed statutory dues including provident fund, investor education,
 protection fund, employees'' state insurance, income tax, sales tax,
 wealth tax, custom duty, excise duty, cess and other material statutory
 dues applicable to it.
 
 (b)According to the information and explanation given to us, there is
 no undisputed amount payable in respect of income tax, sales tax,
 wealth tax, custom duty, excise duty, cess that have not been deposited
 as on 31 03''2011.
 
 (x) The company does not have accumulated losses as at 31s1 March 2011,
 it has not brought forward loss of last year.
 
 (xi) Based on our audit procedures and on the information and
 explanation given by management, we are of the opinion that the company
 has not defaulted in repayment of its due to any financial institution
 and bank during the year.
 
 (xii) As informed, the Company has not granted loans and advances on
 the basis of securities by way of pledge of shares, debenture and other
 securities.
 
 (xiii) In our opinion, the Company is not a chit fund or a nidhi /
 mutual benefit fund/society. Therefore, the provisions of clause
 4(xiii) of the Companies (Auditors Report) Order 2004 are not
 applicable to the Company.
 
 (xiv) The Company is dealing in or trading in shares, securities,
 debentures and other investments and in our opinion and according to
 the information and explanations given to us, the company has
 maintained proper records of all transaction and contracts and has made
 timely entries therein. The stock and investment of the shares held by
 the company are in its own name or are in the process of transfer in
 its own name.
 
 (xv) In our opinion, and as per the information given to us Company has
 not given any guarantee for loans taken by others from banks or
 financial institutions.
 
 (xvi) The company has not obtained any term loans that were not applied
 for the purpose for which - these were raised.
 
 (xvii) According to the information and explanation given to us and on
 an overall examination of Balance Sheet of the Company, we report that
 the no funds raised on short-term basis have been used for long-term
 investment and Vice-versa.
 
 (xviii) The company has not made any preferential allotment of shares
 to parties and companies covered in the Register maintained U/s.301 of
 the Companies Act, 1956 during the year.
 
 (xix) No debenture is issued during the year; hence the clause is not
 applicable.
 
 (xx) We have been informed that there is no fraud on or by the Company
 has been noticed / reported during the F.Y. 2008-2011
 
 PLACE : MUMBAI                             FOR B. N. KEDIA & Co.
 
 DATED : 30/07/2011                         CHARTERED ACCOUNTANTS
 
                                            S. K. Keia
                                            Partner    
                                            ICAI M. NO: 052579