1.  We have audited the attached Balance Sheet of SECUNDERABAD HEALTH
 CARE LIMITED as at 31st March, 2010 and also the Profit & Loss Account
 and the Cash Flow Statement for the year ended on the date annexed
 thereto. These financial statements are the responsibility of the
 Companys Management. Our responsibility is to express an opinion on
 these financial state- ments based on our audit.
 
 2.  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 exam- ining, on a test basis, evidence supporting the amounts
 and disclosures in the financial state- ment. An audit also includes
 assessing the accounting principles used and significant estimates made
 by management, as well as evaluating the overall statement
 presentation. We believe that our audit provides a reasonable basis of
 our opinion .
 
 3.  As required by the Companies (Auditors Report) order 2003 and as
 amended by the Companies (Auditors ReportXAmendment) Order 2004,
 issued by the Central Government of India in terms of the
 sub-section(4A) of section 227 of the Companies Act, 1956, we enclose
 in the annex- ure a statement on the matters specified in paragraphs 4
 and 5 of the said order.
 
 4.  Further to our comments in the Annexure referred to 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 purposes 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 financial statements dealt with by this report are in
 agreement with the books of account ;
 
 (iv) In our opinion, the financial statements dealt with by this report
 comply with the Accounting standards referred to in sub-section (3C) of 
 Section 211 of Companies Act, 1956 ;
 
 (v) On the basis of written representations received from the
 Directors, as on 31 st March ,2010 and taken on record by the Board of
 Directors, we report that none of the Directors is disquali- fied as on 
 31st March , 2010 from being appointed Director in terms of clause(g) of 
 sub-section(l) 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 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 31st March , 2010;
 
 (b) In the case of the Profit & Loss Account, of the Profit for the
 period ended on that date; and © the Cash Flow Statement, of the cash
 flows for the year ended on that date.
 
 ANNEXURE TO THE AUDITORS REPORT
 
 I.  (a)The Company has maintained proper records showing full
 particulars induing quantitative details and situation of Fixed Assets.  
 
 (b)As explained to us, the fixed assets have been physically verified by 
 the management at reasonable intervals and no material discrepancies 
 between the book records and the physical inventory have been noticed on 
 such verification.
 
 (c)The Company has not disposed off substantial part of the Fixed
 Assets during the year.
 
 II.  (a)The Inventory has been physically verified during the year and
 in our opinion, the frequency of verifications is reasonable (b) In our 
 opinion, the procedures of the physical verification of inventory followed 
 by the Management are reasonable and adequate in relation of the size of 
 the Company and the nature of its business.  (c)The Company is maintaining
 proper records of inventory and as explained to us, there were no
 material discrepancies noticed on such verification of stocks as
 compared to book records.
 
 III.  (a)The Company has not granted any loans, secured or unsecured to
 Companies, Firms or other Parties covered in the register maintained U/s.
 301 of the Companies Act, 1956.
 
 (b)As the Company has not granted any loans ,the clause of whether the
 rate of interest & other terms and conditions on which loans have been
 granted to parties listed in the register maintained under section 301
 is prejudicial to the interest of company, is not applicable.
 
 (c)As no loans are granted by company, the clause of receipt of
 interest & principal amount from parties , is not applicable to the
 company.
 
 (d) No loans have been granted to Companies, Firms & other parties
 listed in the register U/s.301 of the Companies Act, 1956 , hence
 overdue amount of more than rupees one lac does not arise and the
 clause is not applicable.
 
 (e)The Company has not taken any loans, secured or unsecured from
 Companies, Firms or other Parties covered in the register maintained
 U/s.301 of the Companies Act, 1956.
 
 (f)As the Company has not taken any loans, the clause of whether the
 rate of interest & other terms and conditions on which loans have been
 taken from parties listed in the register maintained under section 301
 is prejudicial to the interest of company, is not applicable.
 
 (g)As no loans are taken by the company, the clause of repayment of
 interest & principal amount to parties, is not applicable to the
 company.
 
 IV.  In our opinion and according to the information and explanations
 given to us, there are generally adequate internal control systems
 commensurate with the size of the company and the nature of its
 business with regard to purchase of inventory and fixed assets and for
 sale of goods and services. There is no continuing failure by the
 company to correct any major weaknesses in internal control.
 
 V.  (a)In our opinion and according to the information and explanation
 given to us, the contracts or arrangements referred to in section 301 of 
 the Companies Act, 1956 have been made by the company in respect of the
 financial year, are entered in register U/s 301 of the Companies Act,
 1956 does not arise.
 
 (b) According to the information and explanations given to us, as no
 such contracts or arrangements made by the company, the applicability
 of the clause of charging the reasonable price having regards to the
 prevailing market prices at the relevant time does not arise.
 
 VI.  The Company has not accepted any deposits from the public and
 hence the applicability of the clause of directives issued by the
 Reserve Bank of India and provisions of section 58A,58AA or any other
 relevant provisions of the Act and the rules framed there under does
 not arise. As per information and explanations given to us the order
 from the Company Law Board or National Company Law Tribunal or Reserve
 Bank of India or any Court or any other Tribunal has not been received 
 by the Company.
 
 VII.  In our opinion, the Company has an internal audit system
 commensurate with its size and the nature of its business.
 
 VIII.  In respect of the Company, the Central Government has not
 prescribed maintenance of cost records under section 209 (1) (d) of the
 Companies Act, 1956.
 
 IX.  a) The Company is regular in depositing undisputed statutory dues
 including Income
 
 Tax, Cess and any other statutory dues with the appropriate authorities
 and at the last of the financial year there were no amounts outstanding
 which were due for more than 6 months from the date they became
 payable.
 
 b)According to the information and explanations given to us, no
 undisputed amounts are payable in respect of Income Tax, Cess and any
 other statutory dues as at the end of the period, for a period more
 than six months from the date they became payable.
 
 X.  The Company has been registered for a period of not less than 5
 years, and the Company has no accumulated losses at the end of the
 financial year and the company has not incurred cash losses in this
 financial year and the immediately preceding financial year.
 
 XI.  According to information and explanations given to us, the Company
 has not taken any loans from Banks or Financial Institutions. Hence
 this clause of repayment of dues to Financial Institutions or Banks or
 debenture holders and the defaulted payment therein is not applicable
 to the Company.
 
 XII.  According to the information and explanations given to us, the
 Company has not granted any loans or advances on the basis of security
 by way of pledge of shares, debentures and other securities and hence
 the applicability of the clause regarding maintenance of adequate
 documents in respect of loans does not arise.
 
 XIII.  This clause is not applicable to this Company as the Company is
 not covered by the pro visions of special statute applicable to Chit
 Fund in respect of Nidhi/Mutual Benefit Fund/ Societies.
 
 XIV.  According to the information and explanations given to us, the
 company is not dealing
 
 or trading in shares, securities, Debentures and other investments and
 hence the provisions of clause 4(xiv) of the Companies (Auditors
 Report) Order 2003, are not applicable to the Company.
 
 XV.  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, and hence the applicability of this
 clause regarding terms and conditions which are prejudicial
 
 to the interest of the company does not arise.
 
 XVI.  According to the information and explanations given to us, the
 Company has not obtained any Term Loans, hence this clause is not
 applicable.
 
 XVII.  According to the information and explanations given to us, no
 funds are raised by the Company on short-term basis. Hence the clause
 of short term funds being used for long-term investment does not arise.
 
 XVIII.  According to the information and explanations given to us, 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 and hence the applicability of the clause
 regarding the price at which shares have been issued and whether the
 same is prejudicial to the interest of the Company does not arise.
 
 XIX.  According to the information and explanations given to us, the
 company does not have any debentures and hence the applicability of the
 clause regarding the creation of security or charge in respect of
 debentures issued does not arise.
 
 XX.  According to information and explanations given to us, the company
 has not raised money by way of public issues during the year, hence the
 clause regarding the disclosure by the management on the end use of
 money raised by Public Issue is not applicable.
 
 XXI.  According to the information and explanations given to us, no
 fraud on or by the Company has been noticed or reported during the year
 under audit.
 
 
 
                                                 For P.MURAL1 & CO.
   
                                             CHARTERED ACCOUNTANTS 
 
                                                 FRN: 007257S
 
 PLACE : Hyderabad                            P.MURALI MOHANA RAO
 
 DATE : 12-08-2010                                  PARTNER
 
                                             Membership No. 23412