1.  We have audited the attached Balance Sheet of EURO ASIA EXPORTS
 LTD. as at 31st March, 2012 together with the Profit & Loss Account of
 the company for the year ending 31st March, 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.
 
 2.  We have conducted our audit in accordance with auditing standards
 generally accepted in India. Those stan- dards 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.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003 issued
 by the Central Government of India, 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 Annexure referred to in paragraph
 (3) above, we report that:-
 
 4.1 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;
 
 4.2 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;
 
 4.3 The Balance Sheet and Profit & Loss Account dealt with by this
 report are in agreement with the books of account;
 
 4.4 In our opinion, the Balance Sheet and Profit & 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;
 
 4.5 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 clause
 (g) of sub section (1) of Section 274 of the Companies Act, 1956;
 
 4.6 In our opinion, and to the best of our information and according to
 the explanations given to us, the said accounts read with the
 accounting policies, and the notes appearing thereon and attached
 thereto 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:-
 
 i) in the case of the Balance Sheet of the state of affairs of the
 Company, as at 31st March, 2012, and 
 
 ii) in the case of the Profit & Loss Account, of the Loss of the
 Company for the year ended on that date .
 
                                         
 ANNEXURE TO THE AUDITORS REPORT OF EURO ASIA EXPORTS LTD. FOR THE YEAR
 ENDED 31.03.2012
 
 (REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE)
 
 1.  (a) The Company has maintained proper records showing full
 particulars, including quantitative details and situation of its 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) No substantial parts of fixed assets have been disposed off during
 the year.
 
 2.  (a) The inventory has been physically verified during the year by
 the management. In our opinion, the frequency of verification is
 reasonable.
 
 (b) The procedure of physical verification of inventories followed by
 the management are reasonable and adequate in relation to the size and
 nature of the business of the company.
 
 (c) The company is maintaining proper records of inventory. The
 discrepancies noticed on verification between the physical stocks and
 the book records were not material.
 
 3.  (a) The company has not granted any loans secured or unsecured to
 companies, firms or other parties covered in the register maintained
 under section-301 of the Companies Act, 1956.
 
 (b) The company has not taken any loan, secured or unsecured from
 company, firm or other parties required to be listed in the register
 maintained under Section 301 of the Companies Act, 1956.
 
 4.  In our opinion and according to the information and explanations
 given to us, there are adequate internal control procedure commensurate
 with the size of the company and the nature of its business with regard
 to sale of goods. During the course of our audit, we have not observed
 any continuing failure to correct major weakness in internal control
 system of the company.
 
 5.  (a) According to the information and explanations given to us, we
 are of the opinion that the particulars of all contracts or
 arrangements that need to be entered into the register maintained under
 section 301 of the Companies Act, 1956 have been so entered.
 
 (b) The company has not made any transaction with firms, companies or
 other parties in which the Directors are interested exceeding Rs.
 5,00,000/- in value as listed in the register maintained under section
 301 of the Act.
 
 6.  According to the information and explanations given to us, the
 company has not accepted any deposits from the public during the year
 under review within the meaning of the directives issued by the Reserve
 Bank of India and provisions of Section 58A of the Companies Act,1956.
 
 7.  The company has an Internal Audit system commensurate with the size
 of the company and nature of its business.
 
 8.  The maintenance of cost records has not been prescribed by the
 Central Government under Clause-(d) of Sub Clause-(1) of Sec-209..
 
 9.  (a) According to the records of the company, the company has been
 regular in depositing undisputed statutory dues including Income - tax
 and any other statutory dues with the appropriate authorities.
 
 (b) According to the information and explanations given to us, no
 undisputed amounts payable in respect of Income Tax and any other
 statutory dues were in arrears, as at 31st March, 2012 for a period of
 more than six months from the date they become payable.
 
 10.  The accumulated losses of the company as at 31st March, 2012 are
 more than 50% of its net worth and the company has incurred cash loss
 during the financial year under review against cash profit for the
 immediately preceding year.
 
 11.  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 and banks.
 
 12.  The Company has not granted any Loans or Advances on the basis of
 securities by way of pledge of shares, debentures and other securities.
 
 13.  In our opinion, the company is not a chit fund or nidhi/mutual
 benefit/society Therefore, the provisions of clause 4(xiv) of The
 Companies (Auditor''s Report) Order, 2003 are not applicable to the
 company.
 
 14.  In our opinion, proper records of the trading of securities and
 other investments have been maintained by the company and timely
 entries have been made therein . The investments are held by the
 company in its own name except to the extent of exemption granted under
 section 49 of Companies Act, 1956.
 
 15.  According to the information and explanations given to us, the
 company has not given any guarantee for loans taken by others from
 banks or financial institutions.
 
 16.  The company has not obtained any term loan and accordingly no
 comment has been made in respect of matters specified under clause(XVI)
 of The Companies (Auditor''s Report) Order 2003.
 
 17.  According to the information and explanations given to us and on
 overall examination of the balance sheet of the company, we report that
 the no funds raised on short - term basis have been used for long term
 investment.
 
 18.  According to the information and explanations given to us, the
 company has not made any preferential allotment of shares to parties
 covered in the register maintained under section 301 of the Act.
 
 19.  Since the company has not issued any debenture and accordingly
 there is no question of creation of any securities in respect of
 debentures issued.
 
 20.  Company has not raised any money by way of public issue.
 
 21.  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 audit.
 
 
                                         For Rajesh Mani & Associates 
                                                Chartered Accountants
                                                       Firm Regd. No.
 
                                                         Rajesh Kumar
                                                           Proprietor
                                                               M. No.
 
 Place : Delhi
 Date : 30.05.2012