1.  We have audited the attached Balance Sheet of ASHIM INVESTMENT
 COMPANY LIMITED as at 30th June 2007 and the Profit & Loss Account for
 the year ended on that date annexed thereto. These financial statements
 are the responsibility of the companys management. Our responsibility
 is to express an opinion on these financial statements based on our
 audit.
 
 2.  We 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 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 (Auditors 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 enclose 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 purpose 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 and profit & loss account 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) On the basis of written representation received from the directors,
 as on 30th June 2007 and taken on record by the Board of Directors, we
 report that none of the directors is disqualified as on 30th June 2007
 from being appointed as 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 note and read together with the
 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 the case of the Balance Sheet, of the state of affairs of the
 Company as at 30th June 2007.
 
 (b) In the case of Profit and Loss Account, of the Profit for the year
 ended 30th June 2007.
 
 (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 report of even date
 
 (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 been physically verified by the
 management at year end and no material discrepancies were observed on
 such verification.
 
 (c) During the year the company has not disposed / sold off any fixed
 assets.
 
 (ii) The company is an investment company hence the clause (ii) (a),
 (ii) (b) & (ii) (c) of the Companies (Auditors Report) Order, 2003 are
 not applicable to the company.
 
 (iii) The Company has not granted or taken any loans, secured or
 unsecured to/from companies, firms or other parties covered in the
 register maintained under section 301 of the Companies Act 1956.
 
 (iv) 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. During the
 course of our audit, we have not observed any continuing failure to
 correct major weakness in internal controls.
 
 (v) According to the information and explanation given to us, we are of
 the opinion that the company has no transaction that to be entered into
 a register in pursuance of section 301 of the Act.
 
 (vi) In our opinion and according to the information and explanation
 given to us, the company has not accepted any deposit from the public
 under section 58A and 58AA of the Companies Act 1956.
 
 (vii) The company has an internal audit system commensurate with the
 size and nature of its business.
 
 (viii) The maintenance of cost records has not been prescribed by the
 Central Government under clause (d) of sub-section (1) of section 209
 of the Act.
 
 (ix) (a) The Provisions of Employees Provident Fund Act and Employees
 State Insurance Act are not applicable to the Company.
 
 (b) According to the information and explanation given to us, no
 undisputed amounts payable in respect of income tax, wealth tax, sales,
 tax, custom duty, excise duty and other statutory dues as at 30th June
 2007 are outstanding for a period of more than six months from the date
 they became payable.
 
 (c) According to the information and explanation given to us, there are
 no dues of sale tax, income tax, customs duty, wealth tax, excise duty
 which have not been deposited on account of any dispute.
 
 (x) The company does not have any accumulated losses. The Company has
 not incurred cash losses during the period covered by our audit and
 also in the previous year immediately preceding financial year.
 
 (xi) The company has not taken any loans from financial institution,
 bank or in the form of debentures.
 
 (xii) The company has not granted any loans or advance on the basis of
 security by way of pledge of shares, debentures or 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, 2003 are not applicable to the
 company.
 
 (xiv) In our opinion the company has maintained proper records and made
 timely entries in respect of investment made by the company and the
 companys investments are held in its own name.
 
 (xv) The company has not given any guarantee for loans taken by others
 from bank or financial institution
 
 (xvi) The company does not have any term loan from financial
 institutions or banks hence clause 4(xv) of the Companies (Auditors
 Report) Order, 2003 are not applicable to the company.
 
 (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 the company has not raised any short term fund.
 
 (xviii) The company has not made any preferential allotment of shares
 to parties and companies covered in the Register maintained under
 section 301 of the Act.
 
 (xix) According to the information and explanation given to us, during
 the period covered by our audit report, the company has not issued any
 debentures hence of clause 4(xix) of the Companies (Auditors Report)
 Order, 2003 are not applicable to the company.
 
 (xx) The company has not raised any money by public issue hence the
 clause 4(xx) of the Companies (Auditors Report) Order, 2003 are not
 applicable to the company.
 
 (xxi) According to the information and explanations given to us, no
 fraud on or by the company has been noticed or reported during the
 course of our audit.
 
                                               FOR G.P. AGRAWAL & CO.
                                               Chartered Accountants
 
                                                  CA. A.K. Khanna
 New Delhi                                             Partner
 21st February 2008                                  M.No. 50016