We have audited the attached Balance sheet of M/S. NECTAR LIFESCIENCES
 LIMITED as at 31st March, 2011 and also the Profit and Loss Account and
 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.
 
 1.  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
 
 2.  As required by the Companies (Auditor''s Report) Order, 2003 issued
 by the Ministry of Corporate Affairs 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 & 5 of said order:
 
 3.  Further to our comments in the annexure referred to in paragraph
 (1) above, we report that: -
 
 a) We have obtained all the information and explanation 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 the
 books.
 
 c) The Balance Sheet, Profit and Loss Account and the Cash Flow
 Statement dealt with by this report are in agreement with the books of
 accounts.
 
 d) In our opinion, the balance sheet, the profit and loss account and
 the Cash Flow Statement comply with the Accounting Standards referred
 to in sub section (3C) of section 211 of the companies Act, 1956,
 subject to Notes on Accounts forming part of Balance Sheet.
 
 e) On the basis of written representations received from the directors,
 and taken on record by the Board of Directors, we report that none of
 the directors of the company is disqualified from being appointed as a
 Director in terms of clause (g) of subsection (1) of section 274 of the
 Companies Act, 1956.
 
 f) 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.
 
 i) In the case of the Balance Sheet, of the State of affairs of the
 company as at 31st March, 2011 and
 
 ii) In the case of the Profit and Loss account, of the Profit of the
 company for the year ended on that date.
 
 iii) In case of Cash Flow Statement, of the Cash Flows of the Company
 for the year ended on that date.
 
 Annexure to the Auditors'' Report
 
 ANNEXURE A REFERRED TO IN PARAGRAPH 2 OF OUR REPORT TO THE MEMBERS OF
 M/S. NECTAR LIFESCIENCES LIMITED FOR THE YEAR ENDED 31st MARCH 2011.
 
 1 In respect of its fixed assets :
 
 (a) The company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets.
 
 (b) The fixed assets were physically verified during the year by the
 Management in accordance with a regular programme of verification
 which, in our opinion, provides for physical verification of all fixed
 assets at reasonable intervals. According to the information and
 explanations given to us, no material discrepancies were noticed on
 such verification.
 
 (c) The fixed assets disposed off during the year, in our opinion, do
 not constitute a substantial part of the fixed assets of the Company
 and such disposal has, in our opinion, not affected the going concern
 status of the Company.
 
 2 In respect of its inventory:
 
 (a) As explained to us, the inventories were physically verified during
 the year by the Management at reasonable intervals.
 
 (b) In our opinion and according to information and explanations given
 to us, the procedures of physical verification of inventory followed by
 the Management were reasonable and adequate in relation to the size of
 the Company and the nature of its business.
 
 (c) In our opinion and according to the information and explanations
 given to us, the Company has maintained proper records of its
 inventories and no material discrepancies were noticed on physical
 verification.
 
 3.  According to the information and explanations given to us the
 Company has during the year neither granted nor taken any loans,
 secured or unsecured, to/from Companies, Firms or other Parties 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 is an adequate internal control system commensurate
 with the size of the company and the nature of its business with regard
 to the purchase of inventory and fixed assets and the sale of goods and
 to purchase inventory and fixed assets and the sale of goods and
 services. During the course of our audit, we have not observed any
 major weakness in such internal control system.
 
 5 (a) In our opinion and according to the information and explanation
 given to us, the particulars of contracts or arrangements referred to
 in Section 301 of the Companies Act, 1956 have been entered in the
 register required to be maintained under that section.
 
 (b) In our opinion and according to the information and explanation
 given to us, the transactions made in pursuance of contracts and
 arrangements referred to in point (a) above and exceeding the value of
 Rs.5 lakh with any party during the year, have been made at prices
 which are reasonable having regard to the prevailing market prices at
 the relevant time except for the purchases of certain items of
 inventories which are for Company''s specialized requirements and
 similarly for sale of certain goods for the specialized requirements of
 the buyers and for which suitable alternative sources are not available
 to obtain comparable quotations.  However, on the basis of information
 and explanations provided, the same appear reasonable.
 
 6.  In our opinion and according to the information and explanations
 given to us, the company has not invited any deposits from public
 attracting the provisions of sections 58A and 58AA or any other
 relevant provisions of the Companies Act, 1956 and the Companies
 (Acceptance of Deposits) Rules,1975.
 
 7 In our opinion and according to the information and explanations
 given to us, the company has an internal audit system commensurate with
 the size and nature of its business.
 
 8 We have broadly reviewed books of accounts maintained by the Company,
 pursuant to the rules made by the Central Government for the
 maintenance of cost records U/s 209(1) (d) of the Companies Act, 1956
 and are of the opinion that prima facie the prescribed accounts and
 records have been made and maintained.  We have not, however, made a
 detailed examination of the records with a view to determine whether
 they are accurate or complete.  9 According to the information and
 explanations given to us in respect of statutory dues :
 
 (a) The Company has been 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, service tax, excise duty, cess and other material statutory dues
 as applicable with the appropriate authorities in India and has
 generally been regular in depositing undisputed statutory dues
 including tax deducted at source with the appropriate authorities. We
 are informed that there are no undisputed statutory dues as at the end
 outstanding for a period of more than six months from the date they
 became payable.
 
 (b) According to the information and explanation given to us and
 records of the company examined by us, there are no dues of Service
 Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty, which are
 outstanding as at 31st March, 2011, which have not been deposited on
 account of any dispute. The particulars of dues of income tax as at
 31st March, 2011 which have not been deposited on account of a dispute
 are as follows:-
 
 Statute  Nature of the   Amount  Period to which  Forum where dispute is
          Dues            Rs. In  the amount       pending
                        Millions. relates
 
 Income 
 Tax      Income Tax       3.41   Assessment       Income Tax Appellate
 Act, 1961                        Year 2001-02     Tribunal, Delhi
 
 Income 
 Tax      Income Tax       0.19   Assessment       Income Tax Appellate
 Act, 1961                        Year 2004-05     Tribunal, Delhi
 
 Income 
 Tax      Income Tax       2.34   Assessment       Commissioner of
 Act, 1961                        Year 2001-02     Income Tax Appeal,
                                                   Delhi
 
 Income 
 Tax      Income Tax       0.03   Assessment       Income Tax Appellate
 Act, 1961                        Year 2003-04     Tribunal, Delhi
 
 Income 
 Tax      Income Tax      20.62   Assessment       Commissioner of
 Act, 1961                        Year 2005-06     Income Tax Appeal,
                                                   Delhi
 
 10 The company does not have accumulated losses as at 31st March, 2011
 and it has not incurred cash losses during the financial year ended on
 that date or in the immediately preceding financial year.
 
 11 According to the records of the company examined by us and the
 information and explanations given to us, the company has not defaulted
 in repayment of dues to any financial institution or bank or debenture
 holders as at the balance sheet date.
 
 12 The company has not granted any loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 
 13 The company is not a chit fund or a nidhi or a mutual benefit
 fund/society. Therefore the provisions of clause 4(xiii) of the
 Companies (Auditor''s Report) Order 2003 are not applicable to the
 company.
 
 14 In our opinion and according to the information and explanations
 given to us the company is not dealing or trading in shares,
 securities, debentures and other investments. Accordingly the
 provisions of clause 4 (xiv) of the Companies (Auditor''s Report) Order
 2003 are not applicable to the company.
 
 15 In our opinion and 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 during the year.
 
 16 In our opinion and according to the information and explanations
 given to us, on an overall basis, the term loans have been applied for
 the purposes for which they were obtained.
 
 17 According to the information and explanation given to us and based
 on overall examination of the balance sheet and cash flow statement of
 the Company, we report that no funds raised on short-term basis have
 been used for long term investment other than temporary deployment
 pending application.
 
 18 During the year the company has not made any preferential allotment
 of shares to parties, firms and companies covered in the register
 maintained under section 301 of the Companies Act, 1956.
 
 19 The company has not issued any debentures during the year and there
 are no debentures outstanding as at the year end.
 
 20 We have verified the end-use of money raised by public issues as
 disclosed in the notes to the financial statements (Refer Note No. A 7)
 
 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.
 
 
                                               For Datta Singla & Co.
 
                                               Chartered Accountants
 
                                              Firm Regn. No. 006185N
 
                                                        Yogesh Monga
 
 Place : Chandigarh                                          Partner
 
 Date : 12.08.2011                             Membership No. 099813