We have audited the attached Balance Sheet of LYNX MACHINERY AND
 COMMERCIALS LIMITED as at 31st March, 2012 and also the Statement of
 Profit and Loss Account and the Cash Flow Statement for the year ended
 on that date 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 Govern- ment of India in terms of sub-section (4A) of
 section 227 of the Companies Act, 1956, we report that
 
 1.  The company is maintaining proper records showing full particulars,
 including quantitative details and situation of fixed assets. These
 fixed assets have been physically verified by the Management at
 reasonable intervals and no material discrepancies were noticed on such
 verification. In our opinion and according to the information and
 explanations given to us, a substantial part of fixed assets has not
 been disposed of by the company during the year.
 
 2.  The inventory has been physically verified by the Management at
 reasonable intervals. In our opinion, the procedures of physical
 verification of above followed by the Management are reasonable and
 adequate in relation to the size of the Company and nature of its
 business.  In our opinion, the company is maintaining proper records of
 inventory and no material discrepancy was noticed on physical
 verification.
 
 3.  The company has not taken any loan, secured or unsecured, from
 companies, firms or other parties covered in the Register maintained
 under section 301 of the Act.
 
 The company has not granted any loan or Advances in the nature of Loans
 to companies, firms or other parties covered in the Register maintained
 under section 301 of the Act.
 
 4.  In our opinion, the Company has an adequate internal control
 procedure commensurate with the size of the Company and nature of its
 business for the purchase of inventory and fixed assets and for sale of
 goods and services. Further on the basis of our examination of the
 Books and records of the company, and according to the information and
 explanations given to us, we have neither come across nor have been
 informed of any continuing failures to correct major weaknesses in the
 aforesaid internal control procedures.
 
 5.  As explained to us, there has not been any transaction during the
 year that need to be entered in the Register required to be maintained
 under section 301 of the Companies Act, 1956, and exceeding during the
 year to Rs five lacs or more in respect of each such party.
 
 6.  The Company has not accepted deposit from public during the year
 within the meaning of section 58A and section 58AA of the Companies
 Act, 1956 and the rules framed thereunder, as applicable.
 
 7.  The company has an internal audit system commensurate with its size
 and nature of its business.
 
 8.  As explained to us, the Central Government has not prescribed
 maintenance of cost records under section 209(1 )(d) of the Companies
 Act, 1956 in respect of the activities carried on by the company.
 
 9.  According to the information and explanations given to us and
 according to the records of the company, the company is regular in
 depositing statutory dues, including provident fund, employees'' state
 insurance, income tax, and other material statutory dues as applicable,
 with the appropriate authorities during the year. There were no amounts
 outstanding as at 31 st March, 2012 in respect of undisputed
 sales-tax/income-tax etc. which were due for more than six months from
 the date they became payable. According to information and explanations
 given to us there are no cases of dues of sales tax/income tax/customs
 duty/wealth tax etc.  which have not been deposited on account of any
 dispute.
 
 10.  The company does not have accumulated losses at the end of this
 financial year. The company has not incurred cash losses in this
 financial year and also in the immediately preceding financial year.
 
 11.  The company has not obtained any loans from financial institutions
 or bank or debenture holders, and hence the question of default does
 not arise.
 
 12.  The company has not granted loans or advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 
 13.  The provisions of special statute applicable to chit fund and
 nidhi / mutual benefit fund / society are not applicable to the
 company.
 
 14.  In our opinion, the company has maintained adequate records of its
 transactions and con- tracts in shares, securities, debentures and
 other investments, and timely entries have been made therein. The
 shares, securities, debentures and other investments have been held by
 the company in its own name, except to the extent of exemption granted
 under section 49 of the Companies Act, 1956.
 
 15.  The company has not given any guarantee for loans taken by others
 from a bank or financial institutions.
 
 16.  The company has not obtained any term loan during the year.
 
 17.  On the basis of overall examination of the Balance Sheet and Cash
 Flow Statement of the Company, and according to the information and
 explanations given to us, in our opinion, funds raised on a short term
 basis have not been used for long term investment.
 
 18.  According to the information and explanations given to us, no
 preferential allotment of shares has been made by the company to
 companies, firms or other parties listed in the Register maintained
 under section 301 of the Companies Act, 1956.
 
 19.  The company has not issued any debentures.
 
 20.  The company has not raised any money by way of public issue during
 the year.
 
 21.  During the course of our examination of the books and records of
 the Company, carried out in accordance with the generally accepted
 auditing practices in India, and according to the information and
 explanations given to us, we have neither come across any instance of
 fraud on or by the company, noticed or reported during the year, nor
 have we been informed of such case by the management.
 
 Further to our comments above, we report that:
 
 (i) We have obtained all the information and explanations, which to the
 best of our knowl- edge and belief were necessary for the purposes of
 our audit;
 
 (ii) In pur 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;
 
 (iii) The Balance Sheet and the Statement of Profit and Loss Account
 dealt with by this report are in agreement with the books of account;
 
 (iv) 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;
 
 (v) In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts, subject to
 non-provision for trade-receivables which are under litigation, comply
 with the accounting standards referred to in sub-section (3C) of
 section 211 of the Companies Act, 1956; and 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 31 st March, 2012;
 
 (b) in the case of the Statement of Profit and Loss Account, of the
 profit for the year ended on that date, and
 
 (c) in the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
                                             FOR K. L. SINGHEE & CO.
 
                                               Chartered Accountants
 
                                       Firm Registration No.: 303121E
 15 India Exchange Place        
                                                          K L SINGHEE
 
 Kolkata - 700 001                                            partner
 
 The 13th day of August, 2012                   Membership No. 004964