We have audited the attached Balance Sheet of ANKUSH FINSTOCK LIMITED
 as at 31st March, 2012 and the Statement of Profit and Loss and also
 the Cash Flow Statement for the year ended on 31st March 2012 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.
 
 We have 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 misstatement.  An audit
 includes examining, on a test basis, evidence supporting the amounts
 and disclosures of 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.
 
 1.  As required by the Companies (Auditor''s Report) Order, 2003, as
 amended by the companies (Auditor''s Report) (Amendment) Order, 2004,
 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 paragraphs 4 and 5 of the said order.
 
 2.  Further to our comments in the Annexure referred to in paragraph
 (1) above. We report that,
 
 (a) 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;
 
 (b) In our opinion proper books of accounts as required by law have
 been kept by the Company as far as appears from our examination of
 those books;
 
 (c) The Balance sheet, Profit and Loss account and Cash Flow statement
 dealt with by this report are in agreement with the books of account;
 
 (d) 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.
 
 (e) On the basis of written representations received from the
 directors, as on March 31, 2012 and taken on record by the Board of
 Directors, we report that none of the directors is disqualified as on
 March 31,2012 from being appointed as a Director in terms of clause(g)
 of sub-section (1) of section 274 of the Companies Act 1956;
 
 (f) In our opinion and to the best of our information and according to
 the explanations given to us, the said account read together with the
 significant accounting policies and notes to account give the
 information required by the Companies Act, 1956, in the manner so
 required and gives a true & fair view in accordance with the accounting
 principles generally accepted in India:
 
 (i) In the case of Balance Sheet of the state of affairs of the Company
 as on 31s March 2012;
 
 (ii) In the case of Profit and Loss Account of the Loss 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 TO THE AUDITORS'' REPORT
 
 (1) (a) In our opinion and according to the
 
 information and explanation given to us, the company has maintained all
 the relevant records showing full particulars, including quantitative
 details and situation of fixed assets.
 
 (b) As explained to us, the Fixed Assets have been physically verified
 by the management during the year. There is a regular program of
 verification which in our opinion is reasonable having regard to the
 size of the company and the nature of its assets. No material
 discrepancies were noticed on such verification.
 
 (c) During the year there is no disposal of the Fixed Assets hence
 clause 1(iii) of the Order is not applicable.
 
 (2) (a) The Physical verification of shares has been followed by the
 management at reasonable intervals.
 
 (b) In our opinion and according to the information and explanation
 given to us, the procedure of physical verification of stock of Shares
 followed by the management is reasonable and adequate in relation to
 the size of the company and the nature of it''s business.
 
 (c) According to the information and explanation given to us, the
 company is maintaining proper records of inventory of shares. No
 material discrepancies were noticed on physical verification.
 
 (3) (a) According to the information and explanation
 
 given to us and the records produced to us for our verification, the
 company has not granted loans to a company, firm or other parties
 covered in the register maintained under section 301 of the Companies
 Act, 1956, hence the provisions of clause 4(iii)
 
 (a) to (d) of the companies (Auditor''s Report) Order, 2003 are not
 applicable to the company.
 
 (b) According to the information and explanation given to us, the
 company has taken interest free unsecured loans from two parties
 covered in the register maintained under section 301 of the Companies
 Act, 1956. The maximum amount involved during the year is Rs. 71.8
 lakhs and the year end balance taken from such parties is Rs.81 lakhs.
 
 (c) In our opinion and according to the information and explanations
 given to us, the loan taken from the company is interest free and
 repayable on demand.
 
 (d) In respect of the loan taken from the companies the loan is
 interest free & as the loan taken is on demand, there are no
 stipulation regarding repayment of principal amount.
 
 (4) In our opinion and according to the information and explanation
 given to us, there is adequate internal control system commensurate
 with the size of the Company and the nature of its business for the
 purchase of share, and with regard to the sale of shares. During the
 course of our audit, no major weaknesses have been noticed in the
 internal controls.
 
 (5) (a) In our opinion and according to the
 
 information and explanation given to us. the transactions for the year
 that needed to be entered into the register maintained under section
 301 of the Companies Act, 1956, have so been entered.
 
 (b) In our opinion and according to the information and explanation
 given to us, the transactions made in pursuance of the contracts or
 arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value of five lakhs rupees in
 respect of any party during the year have been reasonable having regard
 to the prevailing market prices at the relevant time
 
 (6) In our opinion and according to the information and explanation
 given to us, the company has not accepted any deposits from the public
 within the meaning of section 58A and 58AA of the Companies Act, 1956
 and the rules framed there under.
 
 (7) In our opinion the company has internal audit system commensurate
 with the size & nature of its business.
 
 (8) To the best of knowledge and according to the information given to
 us, the Central Government has not prescribed maintenance of cost
 record under section 209 (1) (d) of the Companies Act, 1956, for any of
 the products of the Company.
 
 (9) (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, Service
 Tax, Investor education protection fund and Income Tax As informed to
 us provisions of Employee State Insurance, Sales Tax, Wealth Tax,
 Custom duty are not applicable to the company.
 
 (b) According to information and explanation given to us, details of
 dues in respect of income tax were in arrears, on account of dispute is
 as follows:
 
 
 Name of the     Nature of     Amount     Period for 
                                          which          Forum where
 Statute         dues          Rs         the amount 
                                          relates        dispute is 
                                                         pending
 
 Income Tax Act, 
 1961            Income Tax    29,27,851  A.Y.2005-06    Appellate
                                                         Tribunal
 
 
 
 
 (10) In our opinion, the accumulated losses of the company are more
 than fifty percent of its net worth. The company has incurred cash
 losses during the financial year ended on 31st March, 2012 covered by
 our audit and has not incurred cash loss in immediately preceding
 financial year
 
 (11) As the Company has not availed term loan from bank/financial
 institution, provisions of clause 4(xi) of the Order are not applicable
 to the Company.
 
 (12) According to the information & explanation given 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
 
 (13) In our opinion, the company is not a chit fund or a nidhi / mutual
 benefit fund/society. Therefore, the provision of clause 4(xiii) of the
 companies (Auditor''s Report) Order, 2003 are not applicable to the
 company.
 
 (14) According to the information & explanations given to us and on the
 basis of examination of records of the company, proper records have
 been maintained in respect of the transactions and contracts of shares,
 securities debentures and other investments and timely entries have
 been made therein.
 
 (15) According to the information & explanations given to us and on an
 overall examination we report that the company has not given any
 guarantee for loans taken by others from banks or financial
 institutions.
 
 (16) According to the information and explanations given to us and on
 an overall examination of the balance sheet of the company, we report
 that the company has not taken any term loans during the year.
 
 (17) Based on the information and explanations given to us and on an
 overall examination of the balance sheet and cash flows, the company
 has not utilized funds raised on a short term basis for long term
 investment.
 
 (18) According to the information and explanation given to us, the
 company has not made preferential allotment of shares to parties and
 companies covered in the register maintained under section 301 of the
 Companies Act, 1956.
 
 (19) The Company has not issued any debentures during the year.
 
 (20) The company has not raised any money by way of public issue during
 the year.
 
 (21) According to the information and explanation given to us, no fraud
 on or by the company has been noticed or reported during the year.
 
 
 
 PLACE: AHMEDABAD                                        FOR, DJNV & CO.
 
 DATE : 30.07.2012                                CHARTERED ACCOUNTANTS
 
                                                    ICAI REGNO. 115145W
 
                                                        [JAYESH PARIKH] 
 
                                                                PARTNER 
 
                                                         M. NO.: 040650