I have audited the attached Balance Sheet of M/S GAMMA INFOWAYS EXUALT
 LIMITED as on 31st March, 2011 and also the Profit and Loss Account for
 the period ended on that date.  These financial statements are the
 responsibility of the Company''s management. My responsibility is to
 express an opinion on these financial statements based on my audit.
 
 I conducted my audit in accordance with the auditing standards accepted
 in India . Those standards require that I plan and perform the audit to
 obtain reasonable assurance as to whether the financial statements are
 free of material misstatement. An audit includes examination on a test
 basis, evidence supporting the amount and disclosures in the financial
 statements. My audit also includes assessing the accounting principles
 used and significant estimates made by the management, as well as
 evaluating the overall financial statement presentation. I believe that
 the audit provides a reasonable basis for my opinion.  
 
 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, I have enclosed in the annexure a
 statement on the matters specified in the said order.
 
 Further to my comments 4n the annexure referred to above, I report
 that: -
 
 a.  I have obtained all the information and explanations, which is to
 the best of my Knowledge and belief were necessary for the purpose of
 audit.
 
 b.  In my opinion, proper books of Accounts as required by law have
 been kept by the Company so far as appears from my examination of those
 books.
 
 c.  The Balance Sheet and Profit and Loss Account dealt with by this
 report are in agreement with books of accounts.
 
 d.  In my opinion , the Balance Sheet and Profit and Loss Account 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 the written representations received from the
 directors as on 31st March, 2011, and taken on record by the Board of
 Directors, I report that none of the directors is disqualified as on
 31st March, 2011 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 my opinion and to the best of my information and according to
 the explanation given to me, the said accounts give 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:
 
 (i) in case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March, 2011 and
 
 (ii) in case of the Profit and Loss Account, of the Net Profit for the
 year ended on that date.
 
 Annexure referred to in paragraph 3 of the Audit Report of even date of
 the Auditor of M/S GAMMA
 
 INFOWAYS EXUALT LIMITED on the Accounts for the year ended 31st March.
 2011 .
 
 (i) a) The company is maintaining proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 b) These fixed assets have been physically verified by the management
 at reasonable intervals, whether any material discrepancies were
 noticed on such verification and if so, the same have been properly
 dealt with in the books of accounts.
 
 c) The company has not disposed off any of the fixed assets during the
 year and the financial effects thereof have been taken into
 consideration while preparing the accounts.
 
 (ii) a) Physical verification of inventory has been conducted at
 reasonable intervals by the management.
 
 b) The procedure of physical verification of inventory followed by the
 management is reasonable and adequate in relation to the size of the
 company and nature of its business.
 
 c) The company is maintaining proper records of inventory and no
 material discrepancies were noticed on physical verification.
 
 (iii) a) The company has not taken any unsecured loans ( previous year:
 Rs. Nil).
 
 b) The rate of interest and other terms and conditions of loans given
 or taken by the company, secured or unsecured are not prima facie
 prejudicial to the interests of the company.  
 
 c) The payment of principal amount'' and interest are regular.
 
 d) The company has taken reasonable steps for the payment of
 outstanding unsecured loans.
 
 (iv) There is an adequate internal procedure commensurate with the size
 of the company and nature of its business, for purchase of inventory and 
 fixed assets and for sale of goods. The company has taken reasonable 
 steps to correct the weakness in internal control.
 
 (v) The company has not entered into any transactions that needs to be
 entered into a register pursuance of section 301 of the Act.
 
 (vi) Since the company is a private limited company, it has not
 accepted deposits from the public.
 
 (vii) Since the company is not a listed one and also not having paid-up
 capital and reserves exceeding Rs. 50 lacs as at the commencement of the
 financial year or having annual turnover exceeding five crores for a
 period of three consecutive years immediately preceding the financial
 year concerned, the company is not required to have an internal audit
 system considering the size of the company and the nature of business
 of the company.
 
 (viii) 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 company is observed to be regular in depositing undisputed
 statutory dues including Provident Fund, Investor Education and
 Protection Fund, Employees State Insurance, Income Tax, Sales Tax,
 Wealth Tax, Customs duty, Excise duty, cess.
 
 (b) No amount that has remained unpaid on account of Sales Tax/ Income
 Tax/ Wealth Tax/ Excise duty/ Cess due to any dispute with the
 authorities concerned.
 
 (x) The company has not defaulted in repayment of dues to a financial
 institution or bank or debenture holders.
 
 (xi) The company has not granted any loans or advances on the basis of
 any security by way of pledge of shares, debentures and other
 securities.
 
 (xii) Since the company is not carrying on the business of chit fund,
 the provisions of the special statute are not applicable to the
 company.
 
 (xiii) The company is not dealing or trading in shares and that the
 securities owned by the company are held by the ( company in its own
 name.
 
 (xiv) The company has not given any guarantee for loans taken by others
 from banks or financial institutions.
 
 (xv) Term loans were applied for the purpose for which the loans were
 obtained. 
 
 (xvi) The company has not used funds raised on short-term basis for
 long term investments and vice versa.
 
 (xvii) The company has not made any preferential allotment of shares to
 parties or companies covered in the register maintained u/s 309 of the
 Act.  
 
 (xviii) Since the company is a private one, no debentures are issued by
 the company and/hence no securities have been created in respect
 thereof.
 
 (xix) Since the company is a private one, there was no public issue
 during the year under audit.
 
 (xx) No fraud on or by the company has been noticed or reported
 during the year.
 
 Date: 09h July, 2011
 
 Place: Pune
 
                                      SANJAY GONDALIA AND ASSOCIATES
 
                                               Chartered Accountants