We have audited the accompanying financial statements of GALAXY AGRICO
 EXPORTS LIMITED, which comprise the Balance Sheet as at 31st March
 2012, the Statement of Profit and Loss and the Cash Flow Statement for
 the year then ended and a summary of the significant accounting
 policies and other explanatory information. 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 and as
 amended by Companies (Auditor''s Report) (Amendment) Order, 2005 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.
 
 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 account as required by law have
 been kept by the company so far as appears from our examination of
 those books;
 
 (c) The Balance Sheet, Statement of Profit & Loss and Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 (d) In our opinion, the Balance Sheet, Statement of Profit & Loss 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 31st March, 2012, and taken on records by the Board of
 Directors, we report that none of the director is disqualified as on
 31st March, 2012 from being appointed as a 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 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 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 31st March, 2012;
 
 (b) In the case of the Statement of Profit and Loss, of the Profit for
 the year ended on that date; and
 
 (c) In the case of Cash Flow Statement, of the cash flows for the year
 ended on that date.
 
 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 assets have not been physically verified by the management
 during the year but there is a regular programme 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) Some of the fixed assets have been disposed during the year,
 however based on the information and explanation given by the
 management and on the basis of audit procedures performed by us; we are
 of the opinion that the sale of the said assets has not affected the
 going concern status of the Company.
 
 (ii) (a) As explained to us, the inventory has been physically verified
 during the year by the management. In our opinion, the frequency of
 verification is reasonable.
 
 (b) In our opinion and according to the information & 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 inventory. As
 explained to us, there was no material discrepancy noticed on physical
 verification of inventory as compared to the book records.
 
 (iii) The Company has not granted or taken any loans, secured or
 unsecured, to or 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 systems 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 and services. 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 there were no transactions that were required to be
 entered in the register maintained under section 301 of the Companies
 Act, 1956.
 
 (vi) The Company has not accepted any deposits from the Public.
 
 (vii) The Company does not have a formal internal audit system.
 However, according to the information and explanations given to us,
 operating control systems are commensurate with the size of the Company
 and nature of its business.
 
 (viii) The Central Government has prescribed the maintenance of cost
 records under section 209(1)(d) of the Companies Act, 1956 in respect
 of goods manufactured by the Company. We have broadly reviewed the
 accounts and records of the Company in this connection and are of the
 opinion, that prima facie, the prescribed accounts and records have
 been made and maintained. However, we have not made a detailed
 examination of the same.
 
 (ix) In respect of Statutory dues;
 
 (a) According to the information and explanations given to us, the
 Company is regular in depositing with appropriate authorities
 undisputed statutory dues including provident fund, income tax, value
 added tax, service tax, excise duty, cess and other material statutory
 dues applicable to it.
 
 (b) According to the information and explanations given to us, no
 undisputed amounts payable in respect of provident fund, income tax,
 value added tax, service tax, excise duty, cess and other material
 statutory dues were in arrears, as at 31st March, 2012 for a period of
 more than six months from the date they became payable.
 
 (c) According to the information and explanations given to us, there
 are no dues in respect of income tax, wealth tax, service tax, sales
 tax, value added tax, customs duty, excise duty and cess that have not
 been deposited with the appropriate authorities on account of any
 dispute except as given below:
 
 Name of the     Nature of the     Amount    Period to which    Pending
 statue             dues                     the amount         before
                                             relates
 
 Income Tax      Income Tax       33,240    Financial Year  Commissioner
                                                                of
 Act, 1961                                  2006 -07        Income Tax
                                                            (Appeal), 
                                                            Rajkot
 
 (x) The company has no accumulated losses at the end of the financial
 year and it has not incurred cash losses during the financial year
 covered by our audit. Also no cash loss was incurred 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.
 
 (xii) In our opinion and according to the information & explanations
 given to us, no loans and advances have been granted 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 a nidhi mutual
 benefit fund/ society.  Accordingly, the provisions of Clause 4(xiii)
 of the Order 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 Order are not applicable to the
 Company.
 
 (xv) According to the information and explanations given to us, in our
 opinion, the Company has not given guarantees for loans taken by others
 from banks or financial institutions. Accordingly, the provisions of
 clause 4(xv) of the Order are not applicable to the Company.
 
 (xvi) In our opinion, and according to the information and explanation
 given to us and on an overall examination, the term loans have been
 applied for the purpose for which they were raised.
 
 (xvii) According to the information and explanations given to us, and
 on an overall examination of the balance sheet of the Company, we
 report that funds raised on short-term basis to the extent of
 approximately Rs.22 lakhs have been used for long-term investment.
 
 (xviii) The Company has not made any preferential allotment of shares
 to parties covered in the register maintained under section 301 of the
 Companies Act, 1956. Accordingly, the provisions of clause 4 (xviii) of
 the Order are not applicable to the Company.
 
 (xix) The Company has not issued any debentures. Accordingly, the
 provisions of clause 4(xix) of the Order are not applicable to the
 Company.
 
 (xx) The Company has not raised any money by public issues during the
 year. Accordingly, the provisions of clause 4(xx) of the Order 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 ARUN M. KOTHARI,
 Chartered Accountant
 
 s/d
 ARUN M. KOTHARI
 Proprietor
 Membership No. 108669
 Ahmedabad, Dated 4th August, 2012