1) We have audited the attached Balance Sheet of Provestment Services
 Limited as at 31st March 2012, and also the Profit and loss Account 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.
 
 2) We conducted our audit in accordance with the 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 the 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 (Auditors'' Report) Order, 2003 issued
 by the Central Government of India in terms of sub section (4A) of
 section 227 of the Companies Act, 1956, we enclose in the Annexure a
 statement on the matters specified in paragraphs 4 & 5 of the said
 order.
 
 4) Further to our comments in the Annexure referred to 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 accounts as required by law have
 been kept by the company so far as appears from our examination of
 those books.
 
 c) The balance sheet, profit and loss account and cash flow statement
 dealt with by this report are in agreement with the books of account.
 
 d) In our opinion, the accounts comply with the accounting standards
 referred to in section 211 3C of Companies Act, 1956.
 
 e) 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;
 
 f) In our opinion and to the best of our information and according to
 the explanation given to us, they said Balance Sheet and Profit and
 Loss Account, together with notes thereon, 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:
 
 In the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March 2012.
 
 I) In the case of the Profit & Loss Account, of the profit for the year
 ended on that day.
 
 II) In the case of the Cash Flow Statements, of the cash flows for the
 year ended on that date.
 
 PROVESTMENT SERVICES LIMITED
 
 Annexure to the Auditors'' Report (Year 2011-2012)
 
 1.  (a) The Company has maintained proper records showing full
 particulars including quantitative details and situation of fixed
 assets.
 
 (b) All the assets have been physically verified by the management
 during the year.  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) During the year, the company has not disposed off any Fixed Assets
 during the year.
 
 2.  (a) The inventory of Foreign Currencies, Shares and Securities has
 been physically verified at reasonable intervals by the management.
 
 (b) 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.
 
 (c) On the basis of our examination of the records of inventory, we are
 of the opinion that the company is maintaining reasonable proper
 records of inventory. The discrepancies noticed on verification between
 the physical stocks and the book records were not material.
 
 3.  i) According to information and explanation given to us, during the
 year the company has not granted any loans, secured or unsecured to
 firms or other parties covered in the register maintained under Section
 301 of the Companies Act, 1956. However, during the year the company
 has applied shares worth Rs 777.66 lacs in three companies covered in
 the register maintained under section 301 of the Companies Act 1956.
 Due to non allotment of shares, the company received refund of share
 application money amounting Rs. 857.51 lacs. During the year, the
 Company has advanced Rs. 300 lacs to one of the Party covered in the
 register maintained under section 301 for Joint Venture in Real Estate
 Business.
 
 ii) According to information and explanation given to us, the company
 has not taken any loans, secured or unsecured from companies, firms or
 other parties covered in the register maintained under Section 301 of
 the Companies Act, 1956.
 
 4.  In our opinion and according to the information and explanation
 given to us, there are adequate internal control system commensurate
 with the size of the company and the nature of its business with regard
 to purchases of inventory (currency, shares & securities), fixed assets
 and with regard to the sale of inventory (currency, shares &
 securities). During the course of our audit, no major weakness has been
 noticed in the internal controls.
 
 5.  (a) Based on the audit procedures applied by us and according to
 the information and explanation provided by the management, we are of
 the opinion that the particulars of contracts or arrangements that need
 to be entered into the register maintained under Section 301 have been
 so entered.
 
 (b) According to the information and explanation given to us, the
 transactions made in pursuance of contracts or arrangements entered in
 the registers maintained under Section 301 and exceeding the value of
 five lac rupees in respect of any party during the year have been made
 at prices which are reasonable having regard to prevailing market
 prices at the relevant time.
 
 6.  According to the information and explanation given to us, the
 company has not accepted deposits from the public during the year
 covered by our audit report in respect to provisions of sections 58A,
 58AA or any other relevant provisions of the Companies Act, 1956 and
 the Companies (Acceptance of Deposits) Rules, 1975.
 
 7.  In our opinion, the company has an internal audit system
 commensurate with the size of the company and nature of its business.
 
 8.  The rules made by the Central Government for the maintenance of
 cost records under Section 209(1)(d) of the Companies Act, 1956 not
 applicable to the Company.
 
 9.  According to the information and explanation given to us, no
 undisputed amounts payable in respect of income tax, sales tax, wealth
 tax, service tax, custom duty, excise duty, cess were outstanding, as
 at 31st March, 2012 for a period of more than six months from the date
 they become payable.
 
 10.  The Company does not have any accumulated losses. The Company has
 not incurred any cash losses during the financial year covered by our
 audit and the immediately preceding financial year.
 
 11.  According to the information and explanation given to us by the
 management, we are of the opinion that the company has not defaulted in
 repayment of dues to a financial institution, bank or debenture
 holders.
 
 12.  According to the information and explanation given to us, the
 company has not granted 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 /mutual benefit fund /
 society, therefore, the clause 4 (xiii) of the Order is not applicable
 to the company.
 
 14.  The Company is maintaining reasonable proper records of the
 transactions and contracts for dealing or trading in Shares, Securities
 or Debentures and other investments. As per information and
 explanations given to us, the Shares, Securities or Debentures and
 other instruments have been held by the Company in its own name.
 
 15.  According to the information and explanation given to us, the
 company has not given any guarantee for loans taken by others from bank
 or financial institutions.
 
 16.  The company has taken ODP limit against assets of the company from
 Punjab & Sind Bank.  The opening and closing balances outstanding
 amounting Rs. 3.13 crores and Rs. 4.77 crores respectively.
 
 17.  In our opinion and according to the information and explanation
 given to us, the funds raised on short-term basis have not been used
 for long-term investments and vice versa.
 
 18.  We are informed that 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.
 
 19.  The company has not issued debentures and hence requirement of
 reporting regarding creation of securities or charges in respect of
 debentures issued does not arise.
 
 20.  During the financial year covered by our audit, the company has
 not raised any money by way of public issue.
 
 21.  Based upon the audit procedures performed and as per information
 and explanation given by the management, we report that no fraud on or
 by the company has been noticed or reported during the course of our
 audit.
 
 Place: New Delhi 
 
 Date: 14/08/2012
 
                                                        (CA. Arun Ahuja)
  
                                                                 Partner 
 
                                                    For Ahuja Arun & Co.
 
                                                   Chartered Accountants 
 
                                                M No.089709, FRN-012985N