1.  We have audited the attached Balance Sheet of Alpa Laboratories
 Limited (''the Company'') as at 31st March 2012 and also the Profit
 and Loss Account and the Cash Flow Statement of the Company 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 of material misstatement.  An audit
 includes examining, on 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 the 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 (Auditors'' Report) Order, 2003 (as
 amended) issued by the Central Government of India in terms of
 sub-section (4A) of section 227 of the Companies Act, 1956, we enclose
 in the Annexure a statement on the matters specified in paragraphs 4
 and 5 of the said order.
 
 4.  Further to our comments in the Annexure referred to above, 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 account as required by law have
 been kept by the Company so far as 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
 account;
 
 (iv) in our opinion, the Balance Sheet, 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 211 of
 the Companies Act, 1956;
 
 (v) we report that none of the directors is disqualified as on 31st
 March 2012 from being appointed as director under clause (g) of
 sub-section (1) of section 274 of 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 read with the Notes
 there on 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 Statement of Affairs of the
 Company as at 31st March 2012
 
 (b) in the case of Profit and Loss Account, of the profit for the year
 ended on that date
 
 (c) in the case of Cash Flow Statement, of the cash flows for the year
 ended on that date
 
 ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR AUDITORS'' REPORT OF EVEN
 DATE ON THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2012 OF
 ALPA LABORATORIES LIMITED
 
 On the basis of such checks as we considered appropriate and in terms
 of the information and explanations given to us, we state that:
 
 (i) (a) The company has maintained proper records showing full
 particulars including quantitative details and situation of fixed
 assets.
 
 (b) All the fixed assets have not been physically verified by the
 management during the year but there is a regular programme of
 verification which, in our opinion, 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) In our opinion, and according to the information and explanations
 given to us, a substantial part of fixed assets has not been disposed
 off by the Company during the year.
 
 (ii) (a) We have been informed that the inventory has been physically
 verified during the year by the management except material lying with
 third party (which has substantially been confirmed). In our opinion,
 the frequency of verification is reasonable.
 
 (b) In our opinion, and according to the information and explanations
 given to us, 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) On the basis of our examination of the records of inventory, in our
 opinion, the Company has maintained proper records of inventory and the
 discrepancies noticed on physical verification between the physical
 stocks and the book records were not material in relation to the
 operations of the Company.
 
 (iii) (a) The Company has not granted any loans, secured or unsecured,
 to companies , firms or other parties listed in the Register maintained
 under the section 301 of the Companies Act, 1956. As the Company has
 not granted any loans, secured or unsecured, to parties listed in the
 Register maintained under the section 301 of the Companies Act, 1956,
 paragraphs (iii- b), (iii-c) and (iii-d) of the Order, are not
 applicable.
 
 (b) The Company has not taken any loans, secured or unsecured, from
 companies , firms or other parties listed in the Register maintained
 under the section 301 of the Companies Act, 1956. As the Company has
 not granted any loans, secured or unsecured, to parties listed in the
 Register maintained under the section 301 of the Companies Act, 1956,
 paragraphs (iii- f) and (iii-g) of the Order, are not applicable.
 
 (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 it''s business, with
 regard to purchase of fixed assets. Further, on the basis of our
 examinations and according to the information and explanations given to
 us, we have neither come across nor have we been informed of any
 instance of major weakness in the aforesaid internal control systems.
 
 (v) In our opinion and according to the information and explanations
 given to us, there are no contractor arrangements referred to in
 section 301 of the Companies Act, 1956 that need to be entered in the
 Register required to be maintained under that section. Hence clause
 (v-b) of the Order is not applicable.
 
 (vi) The Company has not accepted any deposits under the provisions of
 Sections 58A and 58AA of the Companies Act, 1956 and the rules framed
 there under.
 
 (vii) In our opinion the company has an internal audit system
 commensurate with the size of the Company and nature of its business.
 
 (viii) We have broadly reviewed the books of account maintained by the
 Company pursuant to the Rules made by the Central Government for the
 maintenance of cost records under section 209(1)(d) of the Companies
 Act, 1956 and are of the opinion that, prima facie, the prescribed
 accounts and records have been made and maintained. We have not,
 however, made a detailed examination of the accounts and records with a
 view to determine whether they are accurate or complete.
 
 (ix) (a) According to the information and explanations given to us and
 according to the books and records as produced and examined by us, in
 our opinion, the Company is regular in depositing undisputed statutory
 dues including Provident Fund, Investor Education and Protection Fund,
 Value Added Tax, Wealth tax, Customs duty, Excise duty, Cess and other
 material statutory dues as applicable with the appropriate authorities
 except Income Tax, Entry Tax, Service tax and Tax deducted at source.
 
 (b) According to the information and explanations given to us, no
 undisputed amounts payable in respect of Provident Fund, Investor
 Education and Protection Fund, Employees State Insurance, Income Tax,
 Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
 other material statutory dues were outstanding, at the year end, for a
 period of more than six months from the date they become payable.
 
 (c) According to the records of the Company, the dues of Sales Tax,
 Income Tax, Service Tax, Excise Duty and cess that have not been
 deposited with the appropriate authorities on account of disputes as at
 31st March 2012 and the forum where disputes are pending are given
 below:
 
 Name of the    Period to 
                which the    Forum where dispute 
                             is pending                       Amount
                                                             (Rs.in lac)
 Statue         amount 
                relates
 
 Value Added 
 Tax            01/04/02 to
                31/03/03     Second appeal filed before 
                             Madhya Pradesh                       3.98
                             Appeal Board, Bhopal
 
 Central Sales 
 Tax            01/04/02 to 
                31/03/03     Second appeal filed before
                             Madhya Pradesh                      18.79
                             Appeal Board, Bhopal
 
 Central Sales 
 Tax            01/04/05 to 
                31/03/06     Second appeal filed before
                             Madhya Pradesh                      28.52
                             Appeal Board, Bhopal
 
 Value Added 
 Tax            01/04/05 to 
                31/03/06     Second appeal filed before 
                             Madhya Pradesh                      20.69
                             Appeal Board, Bhopal
 
 Value Added 
 Tax            01/04/07 to 
                31/03/08     Proceedings under Section 21
                             of Madhya                           12.00
                             Pradesh Value Added Tax Act,
                             2002 is pending
 
 Central Sales 
 Tax            01/04/09 to 
                31/03/10     First appeal filed before Deputy
                             Commissioner,                       19.01 
                             Division 1, Indore
 
 (x) The Company has neither accumulated losses as at 31st March 2012
 nor it has incurred any cash loss either during the year ended on that
 date or in the immediately preceding financial year.
 
 (xi) According to the information and explanations provided by the
 management, the Company has not defaulted in repayment of dues to bank
 or financial institution. The Company has not obtained any borrowing by
 way of debentures.
 
 (xii) According to the information and explanations provided by the
 management and based on the documents and records produced to us, the
 Company has not granted loans and advances on the basis of security by
 way of pledge of shares, debentures and other securities.
 
 (xiii) In our opinion, and to the best of our information and
 explanations provided by the management, the Company is not a chit fund
 or nidhi mutual benefit society. Therefore, the provisions of clause
 4(xiii) of the Companies (Auditors'' Report), 2003 are not applicable to
 the Company.
 
 (xiv) As per records of the Company and information and explanations
 provided to us by the management, the Company is not dealing or trading
 in share, securities, debenture and other investment. Accordingly the
 provisions of clause 44(xiv) of the order are not applicable to the
 Company.
 
 (xv) According to the records of the Company and the information and
 explanation provided by the management, the Company has not given any
 guarantees for loans taken by others from banks or financial
 institutions.
 
 (xvi) The term loans obtained by the Company from Bank of Baroda,
 Indore have been applied for the purpose for which they were raised.
 
 (xvii) According to the information and explanation given to us and on
 an overall examination of the balance sheet of the Company, we report
 that funds raised on short term basis have not been used for long term
 investment by the Company.
 
 (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, during the year.
 
 (xix) As the Company has no debentures outstanding at any time during
 the year, paragraph (xix) of the Order is not applicable to the
 Company.
 
 (xx) The Company has not raised any money by public issue during the
 period covered by our report.
 
 (xxi) Based upon the audit procedures performed for the purpose of
 reporting the true and fair view of the financial statements and as per
 the information and explanations given to us, we report that no fraud
 on or by the Company has been noticed or reported during the course of
 our audit.
 
 For and on behalf of 
 
 C. H. PADLIYA & CO., 
 
 Chartered Accountants, 
 
 FRN 003151C
 
 S.  C. Padliya, Partner, Membership Number 071666
 
 Indore, 28th May 2012