1.  We have audited the attached Balance Sheet of Anik Industries
 Limitedasat 31st March, 2012, the Statement of Profit and Loss 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 from 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
 madeby 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 (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 toour comments in the Annexure referred to in paragraph 3
 above,were port that:
 
 a.  We have obtained all the information and explanations, which to the
 best of our knowledge and belief were necessary for the purposesofour
 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 examinationofthose
 books and proper returns adequate for the purposes of our audit have
 been received from the branches not visited by us;
 
 c.  The Balance Sheet, the Statement of Profit and Loss and Cash Flow
 Statement dealt with by this report are in agreement with the booksof
 account;
 
 d.  In our opinion, the Balance Sheet, the Statement of Profit and Loss
 and Cash Flow Statement dealt with by this report are prepared
 incompliance with the Accounting standards referred to in Section 211
 (3C)of the Companies Act, 1956;
 
 e.  Onthe basisofwritten representations received from the directors,
 as on 31st March, 2012 and takenonrecord by the Board of Directors,
 wereport that none ofthe directorsis disqualified ason 31st March, 2012
 from being appointed asadirector in terms of clause (g)ofsub section
 (1) of section 274ofthe Companies Act, 1956;
 
 f.  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 accounting principles generally
 acceptedinIndia;
 
 i) inthe case of the Balance Sheet of the state of affairs of the
 Company as at 31st March, 2012;
 
 ii) in the case of the Statement of Profit and Loss, of the Profit for
 the year ended on that date; and
 
 iii) in the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 ANNEXURE TOAUDITORS'' REPORT Referred toinparagraph 3 of our
 reportofeven date.
 
 i) In respect of its Fixed Assets:
 
 a.  The Company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets.
 
 b.  As per the information given to us, the fixed assets are physically
 verified by the management according to a phased programme designed to
 cover all the items over a period which, in our opinion, is reasonable
 having regard to the size of the Company and the nature of its fixed
 assets. No material discrepancies were noticed on such verification on
 comparison with book records.
 
 c.  During the year, the Company has not disposed off a substantial
 part of fixed assets and we are of the opinion that the going concern
 status of the Companyisnot affected.
 
 ii) In respect of Inventories:
 
 a.  The Inventories have been physically verified by the management. In
 our opinion the frequency of verification is reasonable.
 
 b.  In our opinion, the procedures ofphysical verification of
 inventories followed by the management are reasonable and adequate
 inrelation tothe sizeofthe Company and the natureofits business.
 
 c.  The Company is maintaining proper records of inventory. As
 explained to us, there were no material discrepancies notice don
 physical verification of inventories as compared tothe book records.
 
 iii) a.  According to the information and explanations given to us, the
 Company has not granted any loans secured or unsecured to Companies,
 firms or other parties covered in the register maintained under section
 301 of the Companies Act, 1956. Hence the provisions of clauses iii(b),
 iii (c) and iii(d) of the Order are not applicable to the Company.
 
 b. According to the information and explanations given to us, the
 Company has not taken any loans secured or unsecured from Companies,
 firms or other parties covered in the register maintained under section
 301 of the Companies Act, 1956. Hence the provisions of clauses iii(f)
 and iii(g)ofthe Order are not applicable tothe Company.
 
 iv) In our opinion and according to the information and explanations
 given to us, there are adequate internal control systems
 
 commensurate with the size of the Company and the nature of its
 business with regard to purchases of inventory, fixed assets and for
 the sale of goods and services. During the course of our audit, we have
 not observed any continuing failure to correct major weaknesses
 ininternal control system inrespectofthese areas.
 
 v) a.  According to the information and explanations given to us, we
 are of the opinion that the Company has no contract or arrangements
 that need to be entered into the register maintained under section 301
 of the Companies Act, 1956.
 
 b.  Inour opinion the provisionsofclause v(b)ofthe Order are not
 applicable to the Company.
 
 vi) According to the information and explanations given to us, the
 Company has not accepted any deposits from public to which the
 provisions of section 58A, 58AA or any other relevant provisions of the
 Companies Act, 1956 and the Companies (AcceptanceofDeposits) Rules,
 1975 apply.
 
 vii) Inour opinion, the Company has aninternal audit system
 commensurate with the size and natureofits business.
 
 viii) We have broadly reviewed the books of accounts and records in
 respect of manufacturing of milk product and wind power generation
 maintained by the Company pursuant to the Companies (Cost Accounting
 Records) Rules, 2011 prescribed by the Central Government under Section
 209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima
 facie the prescribed cost records have been maintained.We have,
 however, not made a detailed examination of the cost records with
 aviewtodetermine whether they are accurateorcomplete.
 
 ix) a.  The Company is generally regular in depositing with appropriate
 authorities undisputed statutory dues including provident fund,
 investor education protection fund, employee''s state insurance, income
 tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
 and other material statutory dues applicable to it.  There were no
 arrears, as at 31st March, 2012 for a period of more than six months
 from the date they became payable except Central Sales Tax Rs. 1,381
 andVATRs. 9,994 outstanding for more than six months.
 
 b. According to the records of the Company and information and
 explanation given to us, the disputed statutory dues including
 provident fund, sales tax, income tax, custom duty, wealth tax, service
 tax, excise duty and cess which have not been deposited with
 appropriate authorities are as under:
 
                 Nature of    Amount   Period to   Forum where Dispute
 Name of the 
 Statute         Dispute    Involved   which the   is Pending
                            (Rupees)   Amount
                                       Relates
 
 Central Excise 
 & Service Tax   Excise 
                 Duty     56,00,554   2002-03 to   CESTAT
                                      2004-05
 
 The Sales Tax 
 Act             Sales 
                 Tax    5,71,73,950   2001-02      Dy Commissioner of
                                                   Sales Tax (Appeal)
 
 The Central 
 Sales Tax Act   Central
                 Sales
                 Tax      13,47,641   2004-05      Additional Commissi
                                                   -oner Commercial Tax
 
 M.P. VAT Act, 
 2002            Commerc
                -ial Tax  28,56,777   2007-08      M.P. Commercial Tax
                                                   (Appellate Board)
 
 x) The Company has no accumulated losses as at 31 March 2012. The
 Company has not incurred cash losses during the year under audit and in
 the immediately preceding financial year.
 
 xi) In our opinion and according to the information and explanations
 given to us, the Company has not defaulted in repayment of dues to a
 financial institution or bank. The Company has not issued any
 debenture.
 
 xii) According to 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.
 
 xiii) In our opinion, the Company is not a chit fund or anidhi/mutual
 benefit fund/society. Therefore, the provisions of clause 4
 
 (xiii) of the Companies (Auditor''s Report) Order, 2003 are not
 applicable to the Company.
 
 xiv) In our opinion, 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 Reports)
 Order, 2003 are not applicable to the Company.
 
 xv) According to the information and explanations given to us, and the
 representations made by the management, we are of the opinion that the
 terms and conditions of the guarantee given to banks for and on behalf
 of loan taken by others are not prejudicial to the interest of the
 Company.
 
 xvi) In our opinion and according to the information and explanations
 given to us, the company has not raised any term loan during the year.
 
 xvii) According to the information and explanations given to us and on
 an overall examination of the Financial Statements of the Company, we
 report that no funds raised on short term basis have been utilised for
 long term purposes.
 
 xviii) According to the information and explanations given to us, the
 Company has not made preferential allotment of shares to parties or
 Companies covered in the register maintained under section 301 of the
 Act.
 
 xix) According to the information and explanations given to us, during
 the period covered by our audit report, the Company has not issued any
 debentures.
 
 xx) The Company has not raised money by public issues during the year.
 
 xxi) During the course of our examination of the books of accounts and
 records of the Company, carried out in accordance with the generally
 accepted auditing practices in India and according to the information
 and explanations given to us, we have not come across any instance of
 fraud on or by the Company noticed or reported during the year, nor
 have we been informed of such case by the management.
 
                                     For ASHOK KHASGIWALA & CO.
 
                                         Chartered Accountants
                                         (Firm Regn. No.0743C)
 
 Place : Indore
 
 Dated : 3rd September, 2012                    CAAVINASH BAXI
 
                                                       Partner
                                         (Membership No: 79722)