We have audited the attached Balance Sheet of Balurghat Technologies
 Limited as at 31st March, 2011 and the annexed Profit & Loss Account for
 the year ended on that date. 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 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 examination on a test basis the evidence supporting the
 amounts and disclosures made 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 reporting. We believe that our audit provides a reasonable
 basis for our opinion.
 
 As required by the Companies .Auditor''s Report) Order, 2003 as amended
 by the Companies (Auditors Report) (Amendment) order 2005, issued by
 the Central Govt 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 & 5 of the said Order.
 
 Further to our comments in the Annexure referred to 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 purpose of our
 Audit;
 
 b) In our opinion, proper books of accounts as required by law had been
 kept by the Company so far as it appears from our examination of those
 books and proper returns adequate for the purpose of our Audit have
 been received from the Branches, not visited by us.
 
 c) The Balance Sheet and Profit & Loss Account dealt with by this
 report are in agreement with the books of Accounts and the returns from
 the Branches.
 
 d) Subject to the observations made in para 1 of clause 6 of the Notes
 on Accounts, in our opinion the Balance Sheet and Profit & Loss Account
 dealt with by this report, substantially complies with the Accounting
 Standards referred to in Sec. 211 (3C) of the Companies Act, 1956.
 
 e) On the basis of representations received from the Director''s taken
 on record by the Board, we report that none of the Director''s are
 disqualified as on 31.03.2011 from being reappointed as a Director in
 terms of clause (g) of Sub-section (1) of Section 274 of the Companies
 Act, 1956.
 
 Subject to the observation referred to above, in our opinion and to the
 best of the information and explanation given to us, the annexed
 accounts give the information required under the Companies Act, 1956 in
 the manner so required and give a true & fair view, in conformity, with
 the accounting principles generally accepted in India.
 
 i.  in the case of the Balance sheet, of the state of affairs of the
 Company as on 31st March, 2011;
 
 ii.  in the case of the Profit & Loss Account of the Losses incurred by
 the Company for the year ended on that date.
 
 ANNEXURE
 
 Re: Balurqhat Technologies Limited.  Referred to in para 3 of our report
 of even date.
 
 a) The fixed assets of the Company are widely dispersed and the Company
 is maintaining necessary records of all the particulars relating of
 such assets including the situation thereof:
 
 b) The Fixed Assets of the Company have not been physically verified
 during the year.
 
 ii.  a) The inventory had been physically verified by the Management
 during the year.
 
 b) The frequency and the procedures of the physical verification of the
 inventories followed by the Management are reasonable and adequate
 commensurate with! the volume of business.
 
 c) The Company is maintaining proper and adequate records of the
 inventories at the location and no material discrepancies were reported
 during the year
 
 iii.  a) The Company has granted the above loan free of interest which
 in contrary to the provisions of Sec 372A (3) of the Companies Act,
 1956.
 
 b) The principal amount repayable on demand is good and fully
 recoverable as per stipulated terms, in the regular  course of
 business.
 
 c) No amount is overdue on such loan account with the concerned party.
 
 d) The Company has taken interest free unsecured loan from three
 parties enlisted in the Register maintained pursuant to Sec 301 of the
 Companies Art, 1956. The maximum amount outstanding during the year is
 Rs.  20,75,,000/-(previous year Rs. 50,25„000/-)
 
 e) In our opinion the terms of funding of the said loans are
 prima-facie not prejudicial to the interests of the Company
 
 f) According to the information and explanations given to us, due to
 acute paucity of funds, the Company was not in a position to repay the
 matured obligations as such all of which stands overdue for repayment.
 However the Management has obtained favorable re schedulement in almost
 all cases, expect a few cases wherein the recovery proceedings
 initiated and are being contested on merits also expected to be settled
 favorable.
 
 iv. In our opinion and as per the information and the explanations
 given to us in the course of the Audit, the Internal control systems
 are satisfactory and there are no evidences of any continuing weakness
 and /or failure in the system.
 
 v. In our opinion and according to the information and explanations
 given to us in course of our Audit, there were no transactions with any
 related party listed in the Register maintained under Sec. 301 of the
 Companies Art, 1956 over Rs. Five Lacs during the year
 
 vi. In our opinion and according to the information and explanation
 given to us, the Company has not accepted any deposit from the public
 to which the provisions of Sec. 58A & Sec. 58AA along with applicable
 rules under the Companies Art, 1956 are applicable, as such the
 question of compliance or non- compliance with the said rules does not
 arise.
 
 vii. In our opinion the provisions of the Clause VII of the CAR
 (Amendment) Order 2005, are applicable to the Company, but as per the
 information and explanations given to us, the acute paucity of funds
 prevented Company to arrange for the Internal Audit, which shall be
 complied with on priority basis as and when the situation improves.
 
 viii. In our opinion and according to the information and explanations
 given to us, the provisions for maintenances of Cost Records in terms
 of Sec. 209 (1) (d) of the Companies Act 1956 are not applicable to
 this Company.
 
 ix.
 
 a) According to the information and explanations given to us in course
 of the Audit, in our opinion the Company was not regular in payment of
 statutory obligations viz. in respect of E.S.I, contributions. Whereas
 the PF contributions had been deposited with the authorities concerned
 up to the date. The Company continues to be liable for the Interest and
 damages applicable.
 
 b) As regard the liabilities under dispute, there were no amounts in
 arrears payable to any of the Statutory Authorities e.g. under Income
 tax, Sales Tax, Service Tax, Customs and Excise Duties / Cess as at the
 year end expert an amount of damages imposed by the PF authorities Rs.
 12,50,404/- (Previous year Rs. 12,50,404/- )for a period prior to
 incorporation of the Company, pending before the Hon''ble Tribunal of PF
 at New Delhi for necessary adjudication.
 
 x.  In our opinion and as per the information and explanations given to
 us, the accumulated losses incurred by the Company has exceeded 50 % of
 its net worth, and has not incurred cash loss for the year under
 review.
 
 xi.  The Company has not granted any loans and advances against any
 securities placed to it and as such maintenance of any records in the
 context does not apply.
 
 xix) of the order are not applicable to this Company.
 
 xx. According to the information and explanation given to us, the
 Company has not raised any money through a public issue during the
 report during course our .  
 
                                                 GUHA & SONS
 
                                           Chartered Accountants
 
 
                                                 K.Guptha 
 Place: Kolkata                                 Proprietor 
 Dated: 13th August,2011                 Membership No. - F/8256