We have audited the attached Balance Sheet of MESSRS. PERK
 PHARMACEUTICALS LIMITED, MEERUT as on 31st March 2011, and Profit &
 Loss Account of the company for the year ended on that date annexed
 there to & report that :-
 
 1.  As required by the Manufacturing and Other Companies (Auditor''s
 Report) Order, 1988 (revised) issued by the Company law Board in terms
 of Section 227 (4-A) of the Companies Act, 1956, & on the basis of such
 checks of books & records of the company as we considered appropriate &
 information and explanation given to us during the course of audit, we
 give in the Annexure a statement on the matters specified in paragraph
 4 and 5 of the said Order to the extent applicable to the Company.
 
 2.  Further to our comments referred to in paragraph (1) above, we
 report that :-
 
 (a) 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.
 
 (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 those
 books.
 
 (c) The Balance Sheet and Profit & Loss Account dealt with by this
 report are in agreement with the books of account.
 
 (d) In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts read together with
 Significant Account Policies and other notes thereon as per Schedule -
 18”, give the information required by The Companies Act, 1956, in the
 manner so required & give true and fair view :
 
 (e) On the basis of written representation received from the Directors
 as on 31.03.2011and taken on record by the Board of Directors, we
 report that none of the directors disqualified as on 31.03.2011 from
 being appointed as director in term of Section 274(1) (g) of the
 Companies Act, 1956.
 
 i. In the case of Balance Sheet, of the state of affairs of the Company
 as at 31st March, 2011, and ii. In the case of Profit & Loss Account,
 of the profit for the year ended as on that date.
 
 To The Members M/S PERK PHARMACEUTICALS LIMITED
 (Referred to in paragraph 1 of our report of even date)
 
 1.  The company has maintained proper records showing full particulars
 including quantitative details and situation of fixed assets.  All
 assets have not been physically verified by the management during the
 year but there is a regular program 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 with respect to book
 records were noticed on such verification.
 
 2.  None of the fixed assets of the company have been revalued during
 the year.
 
 3.  The stock of finished goods, stores and raw materials of the
 Company have been physically verified by the management during the
 year. In our opinion, the frequency of verification is reasonable.
 
 4.  In our opinion the procedure of physical verification of stocks
 followed by the management are reasonable and adequate in relation to
 the size of the Company and the same have been properly dealt with in
 the books of accounts.
 
 5.  The discrepancies noticed on physical verification of stocks as
 compared to book records were not material in relation to the
 operations of the Company and the same have been properly dealt with in
 the books of accounts.
 
 6.  In our opinion the valuation of stocks is fair and proper in
 accordance with the normally accepted accounting principles and is on
 the same basis as in previous year.
 
 7.  The Company has not taken any loans secured or unsecured from
 Companies , Firms or other parties listed in the register maintained
 under section 301 of the Companies Act, 1956, As explained to us ,
 there are no Companies under the same management as defined under
 section 370(1B) of the Companies Act, 1956.
 
 8.  The Company has not granted any loans secured or unsecured to
 Companies , firms or other parties listed in register maintained under
 section 301 of Companies Act, 1956.
 
 9.  The Company has not given advances in the nature of loans to
 employees and others.
 
 10.  In our opinion and according to the information and explanations
 given to us, there are adequate internal control procedures
 commensurate with the size of the company and the nature of its
 business with regard to purchase of stores, raw materials including
 components , plant and machinery, equipment & other similar assets and
 for the sale of goods.
 
 11.  The Company has made sale of goods and materials in aggregate in
 excess of Rs. 50,000/- in pursuance of contracts or arrangements
 entered with a firm listed in the register maintained u/s 301 of the
 Companies Act,1956. In our opinion the rates terms and conditions of
 such contracts / arrangements, sales are in normal business and prima
 facie not prejudicial to the interest of the Company.
 
 12.  As explained to us the Company has a regular procedure for the
 determination of unserviceable or damaged raw materials and finished
 goods .
 
 13.  The Company has not accepted any deposits from the public during
 the year, hence the provision of section 58A of the Companies Act, 1956
 and the rules framed thereunder are not applicable to the company.
 
 14. We are informed that there is no by-product.
 
 15.  The paid up Share Capital of the Company at the commencement of
 financial year is more than Rs. 25 Lacs and the Company has an internal
 audit system commensurate with its size and nature of its business.
 
 16.  Cost Records as required to be maintained under section 209 (1)
 (d) of the Companies Act, 1956, have prima facie been made and
 maintained by the company.
 
 17.  The Company has been regular in depositing Provident Fund and the
 Employee State Insurance dues with the appropriate authorities.
 
 18.  We are informed that there are no disputed amounts payable in
 respect of Income Tax, Sales Tax, Custom Duty and Excise Duty
 outstanding as at 31st March, 2011 for a period of more than six months
 from the date they became payable.
 
 19.  During the course of our examination of books of account carried
 out in accordance with the generally accepted auditing practices, we
 have not come across any personal expenses, which have been charged to
 revenue account.
 
 20.  The Company is not a sick industrial Company within the meaning of
 section 3(1)(o) of the Sick Industrial Companies (Special Provisions)
 Act, 1985 (1 of 1986).
 
                                          for JYOTSNA MADAN & ASSOCIATES 
                                                   Chartered Accountants
  
                                                          (YOTSNA MADAN)
 PLACE :Meerut                                            B.Com., F.C.A.
 
                                                    Chartered Accountant
 DATED : This 11th day of July, 2011