1.  We have audited the attached Balance Sheet of ANAND CREDIT LIMITED,
 Ahmedabad as at 31st March, 2012 and the Profit & Loss Account and 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 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, 2003
 issued by the Central Government of India in terms of sub-section ( 4A
 ) of section 227 of the Companies Act, 1956. We enclosed 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 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 accounts as required by law, have
 been kept by the Company so far as appears from our examination of
 those books;
 
 (iii) The Balance Sheet and Profit & Loss Account and cash flow
 Statement dealt with by this report are in agreement with books of
 account;
 
 (iv) In our opinion, the Balance Sheet and the Profit & 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) On the basis of written representations received from the
 Directors, as on 31st March, 2012 and taken on record by the Board of
 Directors, we report that none of directors is disqualified as on 31st
 March, 2012 from being appointed as a director 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 read together with the
 Significant Accounting Policies and other 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 so far as it relates to Balance Sheet, of the state of affairs
 of the company as at 31st March, 2012; and
 
 b.  in so far as it relates to the Profit and Loss Account, of the Loss
 of the Company for the year ended on that date.
 
 c.  In the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 ANNEXURE TO AUDITORS'' REPORT [Referred to paragraph 3 of our report
 of even date]
 
 1.  In respect of its fixed assets:
 
 (a) The Company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets on the
 basis of available information.
 
 (b) As explained to us, 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 nature of its assets. No material
 discrepancies were noticed on such physical verification.
 
 (c) In Our Opinion the company has not disposed off substantial part of
 fixed assets during the year and the going concern status of the
 company is not affected.
 
 2.  In respect of its inventories:
 
 (a) As explained to us, inventories have been physically verified by
 the management at regular intervals during the year.
 
 (b) In our opinion and according to the information and explanations
 given to us, 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) The company has maintained proper records of inventories. As
 explained to us, there was no material discrepancies noticed on
 physical verification of inventories as compared to the book records,
 if any noticed on physical verification of inventory as compared to the
 book records were properly adjusted.
 
 3.  i) 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 not granted any loans or advances in the nature of
 loans to parties covered in the register maintained under section 301
 of the Companies Act, 1956. Hence, the question of reporting whether
 the terms and conditions of such loan are prejudicial to the interest
 of the company, whether reasonable steps for recovery/repayment of
 overdue of such loans are taken does not arise.
 
 (b) The Company has taken loan from one parties covered in the register
 maintained under section 301 of the Companies Act, 1956. The maximum
 amount involved during the year was Rs. 35.00 lacs and the year end
 balance of loans taken from such parties was Rs. 35.00 lacs.
 
 (c) 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 loan taken are not prima facie prejudicial to the
 interest of the company.
 
 (d) The company is regular in repaying the principal amount as
 stipulated and has been regular in the payment of interest.
 
 4.  In respect of internal control
 
 In our opinion and according to the information and explanations given
 to us, there are adequate internal control procedures commensurate with
 the size of the Company and the nature of its business for purchase of
 inventory, fixed assets and also with to the sale of goods & services.
 During the course of our audit, we have not observed any continuing
 failure to correct major weaknesses in internal control system.
 
 5.  In respect of transactions covered under section 301 of the
 Companies Act, 1956.
 
 (a) In our opinion, and according to the information and explanations
 given to us, the particulars of contracts or arrangements referred to
 in section 301 of the Companies Act, 1956, 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, transactions made in pursuance of such contracts or
 arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value of rupees five lacs in
 respect of a party during the year have been made at prices which are
 reasonable having regard to prevailing market prices at the relevant
 time.
 
 6.  In respect of deposits from public
 
 The Company has not accepted deposits from the public within the
 meaning of section 58A and 58AA of the Companies Act, 1956 and the
 Rules framed there under. We are informed that no Order has been passed
 by the Company Law Board or National Company Law Tribunal or Reserve
 Bank of India or any Court or any other Tribunal.
 
 7.  In respect of internal audit system
 
 In our opinion, the company has an internal audit system commensurate
 with the size of the company and the nature of its business.
 
 8.  In respect of maintenance of cost records
 
 According to information and explanation given to us, neither order has
 been passed by Central Government nor have cost records been prescribed
 under section 209 (1) (d) of the Companies Act, 1956 in respect of
 products manufactured by the Company.
 
 9.  In respect of statutory dues:
 
 (a) According to the records of the Company, the company is regular in
 depositing with appropriate authorities undisputed statutory dues
 including Provident Fund, Income Tax, Investor Education and Protection
 Fund, Employees'' State Insurance dues, Sales Tax, Service Tax, Custom
 duty, Excise duty, Professional tax, Cess and other statutory dues as
 may be applicable to the Company have generally been regularly
 deposited with the appropriate authorities.
 
 (b) According to the information and explanations given to us,
 undisputed Income tax liabilities of Rs. 1,53,190 was outstanding as at
 31st March, 2012 for a period of more than Six months from the date
 they become payable.
 
 The disputed statutory dues aggregating to Rs. 35.34 lacs., that have
 not been deposited on account of matters pending before appropriate
 authorities are as under.
 
 Name of statue  Nature of the 
                 dues            From where dispute 
                                 is pending?             Amount
 
 Income Tax Act  Income Tax      I.T.A.T.               29,68,762
 
 Income Tax Act  Income Tax      C.I.T. (A)              5,65,215
 
 (c) According to the information and explanations given to us, there
 are no dues of Income Tax, Sales Tax, Wealth tax, Service tax, Excise
 duty, Customs duty and Cess which have not been deposited on account of
 any dispute.
 
 10.  In respect of accumulated losses and cash losses
 
 The accumulated losses of the company have exceeded fifty percent of
 its net worth as at 31st March, 2012.
 
 11.  In respect of dues to financial institution / banks / debentures
 
 In our opinion and according to the information and explanations given
 to us, the Company has defaulted in repayment of no dues to banks /
 financial institutions, or debenture holders.
 
 12.  In respect of loans and advances granted on the basis of security.
 
 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.
 
 13.  In respect of provisions applicable to Chit fund
 
 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 Order are not applicable to the Company.
 
 14.  In respect of dealing or trading in shares, securities, debentures
 and other investment According to the information and explanations
 given to us, the company is not dealing in or trading in shares,
 securities, debentures and other investments. Hence clause 4(xiv) of
 the companies (Auditor''s Report) Order 2003 is not applicable to the
 company.
 
 15.  In respect of guarantee given for loans taken by others
 
 According to the information and explanations given to us, the company
 is not given any guarantee for loans taken by others from bank or
 financial institutions.
 
 16.  In respect of application of term loans
 
 The company has not raised any new term loan during the year. The term
 loans outstanding at the beginning of the year were applied for the
 purpose for which they were raised.
 
 17.  In respect of fund used
 
 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 raised on short term basis have been used for
 long term investment.
 
 18.  In respect of preferential allotment of shares
 
 According to the information and explanations given to us, the company
 has not made preferential allotment of shares, during the year, to
 parties and companies covered in the register maintained under section
 301 of the Companies Act, 1956.
 
 19.  In respect of securities created for debentures
 
 The Company has not issued any debentures during the year. Therefore,
 the provision of clause 4 (xix) of the Order is not applicable to the
 Company.
 
 20.  In respect of end use of money raised by public issues
 
 The Company has not raised any money by way of public issue during the
 year.
 
 21.  In respect of fraud
 
 According to the information and explanations given to us, no fraud on
 or by the Company has been noticed or reported during the year.
 
                                          FOR, A.L. THAKKAR & CO.  
 
                                           Chartered Accountants
 
 Date : August 13, 2012                          (SANJIV V. SHAH)
 
                                                         Partner
 
 Place : Ahmedabad                         Membership No.: 42264
 
                                                Firm No. 120116W