We have audited the attached Balance Sheet of SAVEN TECHNOLOGIES
 LIMITED, HYDERABAD, as at 31st March, 2011 and the Profit and Loss
 Account for the year ended on that date annexed thereto and Cash Flow
 Statement for the year ended on that date which we signed in reference
 to this Report. 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 from 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.
 
 1.  As required by the Companies (Auditor''s 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 and 5 of the said
 Order.
 
 2.  Further to our comments in the annexure referred to in paragraph 1
 above, we report that :
 
 i) 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.
 
 ii) 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.
 
 iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement
 dealt with by this Report are in agreement with the books of account.
 
 iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
 Flow Statement dealt with by this Report comply with the Accounting
 Standards referred to in sub-section (3C) of Section 211 of the
 Companies Act, 1956.
 
 v) In our opinion and based on written representations received from
 Directors, and taken on record by the Board of Directors, none of the
 Directors is disqualified as on 31st March, 2011 from being appointed
 as a Director in terms of clause (g) of sub-section (1) of Section 274
 of the Companies Act, 1956;
 
 vi) In our opinion and to the best of our information and according to
 the explanations given to us, the said accounts read with significant
 accounting policies and other 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:
 
 a) in so far as it relates to Balance Sheet, of the state of affairs of
 the Company as at 31st March, 2011;
 
 b) in so far as it relates to Profit and Loss Account, of the profit of
 the Company for the year ended on that date; and
 
 c) in so far as it relates to Cash Flow Statement, of the cash flows of
 the Company for the year ended on that date.
 
 Annexure to the Auditors'' Report:
 Referred to as in paragraph 1 of our Report of even date.
 
 1.  In respect of its Fixed Assets:
 
 (a) The Company has maintained proper records showing full particulars
 including details and situation of Fixed Assets.
 
 (b) As explained to us, all the Fixed Assets have not been physically
 verified by the Management during the year but there is a program of
 verification in phased periodical manner at regular intervals, 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 physical verification.
 
 (c) During the year, the Company has not disposed off substantial part
 of the assets. According to the information and explanations given to
 us, we are of the opinion that no transactions are affected involving
 disposal of assets so as to affect going concern status of the Company.
 
 2.  In respect of its Inventories:
 
 As explained to us, the Company does not hold any inventories and,
 hence, the question of physical verification, procedures followed for
 verification and discrepancies thereof does not arise.
 
 3.  In respect of loans secured or unsecured, granted or taken by the
 Company to / from companies, firms or other parties covered in the
 Register maintained under Section 301 of the Companies Act, 1956:
 
 (a) During the year, the Company has not taken / granted loans from /
 to parties covered in the Register maintained under Section 301 of the
 Companies Act 1956 and accordingly paragraph 4(iii)(b)(c) and (d) of
 the order does not arise.
 
 4.  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, for purchase of fixed assets, office equipment and for
 rendering of services. During the course of our audit, based on our
 audit procedures applied, we have not observed any continuing failure
 to correct major weaknesses in internal controls.
 
 5.  In respect of transactions covered under Section 301 of the
 Companies Act, 1956:
 
 (a) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements, that needed to be entered into the Register maintained
 under Section 301 of the Companies Act, 1956 have been so entered.
 
 (b) In our opinion and according to the information and explanations
 given to us, the transactions made in pursuance of contracts or
 arrangements entered in the register maintained under section 301 of
 the Companies Act, 1956 and exceeding the value of Rs. 5,00,000 with
 parties covered above, during the year have been made at prices which
 are reasonable having regard to prevailing market prices at the
 relevant time.
 
 6.  In our opinion and according to the information and explanations
 given to us, the Company has not accepted any Deposits from public to
 which the directives issued by the Reserve Bank of India and the
 provisions of Sections 58A and 58AA of the Companies Act, 1956 and the
 Companies (Acceptance of Deposits) Rules, 1975 framed there under
 apply.
 
 7.  In our opinion, the Company has an independent internal audit
 system commensurate with its size and the nature of its business.
 
 8.  We are informed and according to the information and explanations
 given to us, that the Central Government has not prescribed maintenance
 of cost records under Section 209(1 )(d) of the Companies Act, 1956,
 for the activities of the Company.
 
 9.  In respect of statutory dues:
 
 (a) According to the records of the Company and as per the information
 and explanations given to us, the Company is generally regular in
 depositing with appropriate authorities undisputed statutory dues
 including provident fund, Employees state insurance, Income tax,
 investor education and protection fund, Sales Tax, Wealth Tax, Customs
 Duty, Excise Duty, Cess and other material statutory dues applicable to
 it.
 
 (b) According to the information and explanations given to us, no
 disputed amounts payable in respect of Wealth tax, Income tax, Sales
 tax, Customs duty, Excise duty and Cess were outstanding,as at 31st
 March, 2011 for a period of more than six months from the date they
 became payable.
 
 (c) According to the information and explanations given to us, there
 are no dues of sales tax, income tax, Customs duty, Wealth tax, Excise
 duty and Cess, which have not been deposited on account of any dispute.
 
 10.  In our opinion, the Company has accumulated losses at the end of
 the year and has not incurred cash losses during the financial year
 covered by our audit and in the immediately preceding financial year.
 
 11.  As per the records of the Company and according to the information
 and explanations given to us, we are of the opinion that the Company
 has not defaulted in repayment of dues to financial institutions, banks
 or debenture holders.
 
 12.  According to the information and explanations given to us, the
 Company has not given any loans and advances on the basis of security
 by way of pledge of shares, debentures and other securities.
 
 13.  In our opinion, the Company is not a chit fund or a nidhi / mutual
 benefit fund / society. Accordingly, the provisions of clause 4(xiii)
 of the Companies (Auditor''s Report) Order, 2003 are not applicable to
 the Company.
 
 14.  In our opinion, the Company is not dealing in or trading in
 shares, securities and 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 guarantees for loans taken by
 others from banks or financial institutions.
 
 16.  In our opinion, during the year, the Company has not taken any
 fresh term loans.
 
 17.  In our opinion, according to the information and explanations
 given to us and on an overall examination of statements and records of
 the Company, that the funds raised on short-term basis have, prima
 facie, not been used during the year for long-term investment.
 
 18.  In our opinion and according to the information and explanations
 given to us, the Company has not issued debentures during the year.
 
 19.  In our opinion, the Company has not raised money by way of public
 issue for any specific purpose during the year.
 
 20.  In our opinion, the Company has not made any preferential
 allotment of shares/securities during the year to parties and companies
 covered in the register maintained under section 301 of the Companies
 Act, 1956.
 
 21.  In our opinion, the Company is not required to create / register /
 modify any security (Charge) as the Company is not holding / issued any
 debentures.
 
 22.  According to the information and explanations given to us and
 based on audit procedures performed, no fraud on or by the Company has
 been noticed during the year.
 
 
                                                   For RAMBABU & CO.,
                                                Chartered Accountants
                                                Firm Reg. No: 002976S
 
                                                         RAVI RAMBABU
                                                              Partner
                                                           M.No. 18541
 
 Place: Hyderabad 
 Date : August 11, 2011