We have audited the attached Balance Sheet of M/s DESH RAKSHAK
 AUSHDHALAYA LIMITED, HARIDWAR as at 31st March 2012 and the relative
 manufacturing, Trading, Profit & Loss Account & Cash & Fund Flow
 Statement for the year ended on 31.3.2012 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 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.  .
 
 As required by the companies (Auditor''s report) order 2003, issued by
 the Central Govt, of India in terms of sub-section (4A) of section 227
 of the Companies Act, 1956 we enclose in the annexure hereto a
 statement on the matters specified in paragraph 4 & 5 of the said
 order.
 
 Further to our comments in the Annexure referred to above, we report
 that;
 
 (i) We have obtained all the information and explanations which is to
 the best of our knowledge and belief were necessary for the purpose 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 , Statement of Profit & Loss Account and
 Cash Flow Statement dealt with by this report are in agreement with the
 books of accounts.
 
 (iv) In our opinion, the Balance Sheet, Statement of Profit & Loss
 Account and Cash Flow Statement dealt with by this report are in
 compliance 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 March 31, 2012 and taken on record by the Board of Directors, we
 report that none of the Director is disqualified as on March 31, 2012
 from being appointed as Director in term 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''s 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 Balance Sheet of the state of affairs of the company
 as at 31st March 2012.
 
 b.  In the case of Statement of Profit & Loss account of the profit for
 the year ended 31.3.2012.
 
 c.  In the case of the cash flow statement, of the cash flow for the
 year ended on that date.
 
 M/S DESH RAKSHAKAUSHDHALAYA LIMITED, HARIDWAR (ANNEXURE TO AUDITOR''S
 REPORT
 
 Referred to in paragraph 3 of our report of even date;
 
 1 .a The company has maintained proper records to show full particulars
 including quantitative details and situations of its fixed assets.
 
 b.  As explained to us, the fixed assets have been physically verified
 by the management during the year in a phased periodical manner, 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 of 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''s 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 the inventories. As
 explained to us, there were no material discrepancies noticed on
 physical verification of inventory as compared to the book records.
 
 3.  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 had taken the Unsecured loans covered in the register
 maintained under section 301 of the Companies Act, 1956 & already
 returned the Secured loans of Banks etc. Some Unsecured loans has been
 regrouped.  The maximum amount involved during the year aggregating to
 Rs. 62.83 lacs at the beginning of the year and the year end balance of
 loans taken from such parties was Rs. 41.01 lacs. The Company has not
 granted loans to the parties during the year.
 
 b.  In our opinion, the rate of interest and other terms and conditions
 on which loans secured or unsecured have been taken from/granted to
 companies, firms or other parties listed in the registers maintained
 under section 301 are not, prima facie, prejudicial to the interest of
 the company. However, no interest has been charged on the loans given
 /granted to the parties.
 
 c.  The company is regular in repaying the principal amounts as
 stipulated and also regular in the payment of interest.
 
 d.  There are overdue amount of loans taken from or granted to
 companies, firms or other parties listed in the registers maintained
 under section 301 of the Companies Act, 1956.
 
 4.  In our opinion and according to the information''s and explanations
 given to us, there are adequate internal control procedures
 commensurate with the size of the company and the nature of its
 business with regard to purchases of inventory, fixed assets and with
 regard to the sale of goods. During the course of our audit, no major
 weakness has been noticed in the internal controls,
 
 5.  No transactions covered under Section 301 of the Companies Act,
 1956.
 
 6.  In our opinion and according to the information and explanations
 given to us, there are no transactions in pursuance of contracts or
 arrangements entered in the register maintained under Section 301 of
 the Companies Act, 1956 aggregating during the year to Rs. 500000/-
 (Rs. five lacs only) or more in respect of any party.
 
 7.  The company has not accepted any deposits from the public during
 the year.
 
 8.  In our opinion the company has an interna! audit system
 commensurate with the size and nature of its business.
 
 9.  We have broadly reviewed the books of accounts relating to
 materials, labour and other items of cost maintained by the company
 pursuant to the Rules made by the Central Government for the
 maintenance of cost records under section 209 (1)(d) of the Companies
 Act, 1956 and we are of the opinion that prima facie the prescribed
 accounts and records have been made and maintained. We have not,
 however, made a detailed examination cf the same.
 
 10.  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 employees'' state insurance, income tax, sales tax, excise
 duty and other statutory dues applicable to it. The company has
 deposited PF up to November 2012 only.
 
 b.  According to the information''s and explanations given to us, no
 undisputed amount payable in respect of income tax, wealth tax, sales
 tax and excise duty were outstanding as at 31st March, 2012 for a
 period of more than six months from the date they became payable.
 
 c.  According to the records of the company, there are no dues of sales
 tax, income tax, excise duty which have not been deposited on account
 of any dispute.
 
 11.  The company has accumulated losses and there is no any cash loss
 during the financial year covered by our audit.
 
 12.  Based on our audit procedures and according to the information and
 explanation given by the management, we are of the opinion that the
 company is not defaulted in repayment of dues of the banks.
 
 13.  In our opinion and according to the information and explanations
 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. In our opinion, the company is not a chit fund or a
 nidhi/mutual benefit fund/society. Therefore, clause 4(xiii) of the
 Companies (Auditor''s Report) Order 2003 is not applicable to the
 company.
 
 14.  Based on our examination of the records and evaluation of the
 related internal controls, we are of the opinion that proper records
 have been maintained of the transaction and contracts and timely
 entries have been made in those records.  We also report that the
 company has invested in the shares only and nothing has been invested
 in securities and debentures.
 
 15.  The company has not given any guarantee for loans taken by others
 from bank or financial institutions.
 
 16.  The company has not raised any new term loans during the year. The
 loans outstanding Were applied for the purposes for which they were
 raised.
 
 17.  According to the information and explanations given to us and on
 an overall examination of the Balance Sheet of the company, we report
 that no funds raised on short term basis have been used for long term
 investment. No long term funds have been used to finance short term
 assets except working capital.
 
 18.  During the year, the company has not made any 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 created securities in respect of debentures
 issued.
 
 20.  The Company has not raised any money by way of public issue during
 the year.
 
 21.  In our opinion and according to the information''s and explanations
 given to us by the management no fraud on or by the company has been
 noticed or reported during the course of our audit.
 
                                                   FOR AND ON BEHALF OF 
                                                     M/S ANIL JAIN & CO.
 
                                                  CHARTERED ACCOUNTANTS.
 
 PLACE: HARDWAR                                       (ANIL KUMAR JAIN )
                                           DATED: 28.5.2012 PROPRIETOR  
                                                  MEMBERSHIP N0.070253