1.  We have examined the attached Balance Sheet of Yuvraaj Hygiene
 Products Limited., (formerly Intensive Air Systems Ltd) as at March
 31, 2012 and also the Profit and Loss account and Cash flow statement
 for the year ended on that date. These financial statements are the
 responsibility of the Management. Our responsibility is to express an
 opinion on these financial statements based on our audit.
 
 2.  We conducted our audit in accordance with auditing standards
 generally accepted in India. These 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 amount and
 the 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 statements
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003 (CARO)
 issued by the Central Government in terms of Section 227(4A) 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 Annexures, we report as follows:
 
 (a) We have obtained all the information and explanations which to the
 best of our knowledge and belief were necessary for the purposes of our
 audit;
 
 (b) In our opinion, proper books of accounts as required by law have
 been kept by the Company so far as it appears from our examination of
 those books;
 
 (c) the Balance Sheet, the Statement of Profit and Loss and the Cash
 Flow Statement dealt with by this report are in agreement with the
 books of account;
 
 (d) In our opinion, the Balance Sheet, the Statement of Profit and Loss
 and the Cash flow statement dealt with by this report are in compliance
 with the Accounting Standards referred to in Section 211(3C) of the
 Companies Act, 1956;
 
 (e) Subject to Non-Availability of entire set of documents which were
 destroyed in the fire in the factory, in respect of the period from
 01/04/2011 to date of fire on 29/05/2011, on the basis of the
 information and explanation given to us, in our opinion, the accounts
 give a true and 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 at March 31, 2012.
 
 ii.  in the case of Statement of Profit and Loss, of the loss of the
 Company for the year ended on that date; and
 
 iii. in the case of the Cash flow statement of the cash flows of the
 group for the year ended on that date.
 
 5 On the basis of written representations received from the Directors
 as on 31st March, 2012, and taken on record by the Board of Directors,
 we report that none of the Directors is disqualified as on 31st March,
 2012 from being appointed as a director in terms of Section 274(l)(g)
 of the Companies Act, 1956.
 
 ANNEXURE TO THE AUDITORS REPORT 
 
 (Referred to in paragraph 4 of our Report of even date on the Accounts
 for the year ended on Marcfh 31, 2012 of Yuvraaj
 
 Hygiene Products Limited)
 
 i.   In respects of fixed assets:
 
 (a) The Company has maintained proper records showing full particulars,
 including quantitative details and situation of fixed assets.
 
 (b) A substantial portion of the fixed assets have been physically
 verified by the management during the year and in our opinion the
 frequency of such verification is reasonable having regard to the size
 of the Company and the nature of its assets. No material discrepancies
 were noticed on such physical verification.
 
 (c) Fixed assets were destroyed by fire during the year as the factory
 caught fire on 29/05/2011 and insurance claim had been filed. According
 to the information and explanations given to us, we are of the opinion
 that the impairment of fixed assets has not affected the going concern
 status of the Company.
 
 ii.  In respect of inventory:
 
 i.  The inventories have been physically verified during the year by
 the management, after taking into consideration the stock destroyed by
 fire during the relevant period. In our opinion the frequency of
 verification is reasonable.
 
 ii.  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.  
 
 iii. In our opinion and according to the information and explanation
 given to us, the Company is maintaining proper records of inventory.
 The discrepancies noticed on verification between physical stocks and
 the book records were not material and have been properly dealt with in
 the books of account.
 
 iii. The Company has not granted unsecured loans and inter-corporate
 deposits to companies covered in the Register maintained under Section
 301 of the Act. Hence the provisions of clause (iii)(b),(c) (d) of
 paragraph 4 are not applicable to the Company.  
 
 (a) The Company has taken unsecured loans from directors and relatives
 thereon. TherroSximum amount involved in the current year amounted to Rs.
 11.27 lakhs ji -
 
 iv.  In our opinion and according to the information and explanations
 given to us, there is an adequate internal control system commensurate
 with the size of the Company and the nature of its business, for
 purchase of inventory and fixed assets and for the Work Done. During
 the course of our audit, we have not observed any major weakness in
 internal control system
 
 v.  Subject to non-applicability of sub-clause(b) of clause (v),we
 report that Based on the audit procedures applied by us and according
 to the information and explanations provided by the management, we are
 of the opinion that the particulars of contracts or arrangements
 referred to in Section 301 of the Act have been entered in the register
 required to be maintained under that section.
 
 vi.  The Company has not accepted any deposits from the public within
 the meaning of Sections 58A and 58AA of the Act and the rules framed
 there under. Therefore, the provisions of Section 58A, 58AA and any
 other relevant provisions of the Companies Act, 1956 and the rules
 framed there under with regard to deposits accepted from the public are
 not applicable to the Company.
 
 vii. The Company does not have an internal audit system commensurate
 with the size and nature of its business.
 
 viii.  The maintenance of cost records as required by rules made by the
 Central Government of India, under clause (d) of subsection (1) of
 Section 209 of the Act are not applicable to the Company.
 
 ix.  Subject to non-applicability of sub-clause(b) of clause (v),we
 report that According to the records of the Company, Income Tax, Sales
 Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other
 material statutory dues applicable to it have been generally regularly
 deposited during the year with the appropriate authorities. According
 to the information and explanations given to us, no undisputed amounts
 payable in respect of above were in arrears, as at March 31, 2012 for a
 period of more than six months from the date on which they became
 payable.
 
 x.  The Company does have accumulated losses at the end of the
 financial year. The Company has incurred cash loss during the financial
 year covered by our audit. The Company has incurred cash loss during
 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
 Financial Institutions & Banks.
 
 xii. Based on our examination of the records and the information and
 explanations given to us, the Company has not granted any loans and
 advances 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. Therefore the provisions of clause
 4(xiii) of the Companies (Auditor''s Report) (Amendment) Order, 2004 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 Companies (Auditor''s Report)
 (Amendment) Order, 2004 are not applicable to the Company
 
 xv.  In our opinion, the terms and conditions on which the Company has
 not given guarantees for loans taken by others from banks or financial
 institutions, the terms and conditions, whereof in our opinion, are
 prejudicial to the interest of the Company.
 
 xvi. In our opinion, 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 no short-term funds have been used for long-term investments.
 
 xviii.  According to the information and explanations given to us, 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.
 
 xix. The Company has not created any security / charge in-respect of
 secured debentures issued and outstanding at the year end.
 
 xx.  The Company has not raised any money by way of public issue during
 the year.
 
 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 P.P.Jayaraman & Co.,                             For GMK Associates
 
 Chartered Accountants                             Chartered Accountants
 
 (FRN: 104139W)                                           (FRN: 006945S)
 
 P. P. Jayaraman                                 G. Satyanarayana Murty
 
 Proprietor                                                     Partner
 
 M. No. 041354                                            M. No. 029919
 
 Place: Thane                                           Place:Hyderabad
 
 Date: 28th May 2012                                Date: 28th May 2012