1.  I have audited the attached Balance Sheet of SINNAR BIDI UDYOG
 LIMITED as at 31st March, 2011, the related Profit and Loss Account 
 and the Cash Flow Statement of the company for the year ended on that 
 date annexed thereto.  These financial statements are the responsibility 
 of the Company''s Management. My responsibility is to express an opinion 
 on these financial statements based on my audit.
 
 2.  I conducted my audit in accordance with auditing standards
 generally accepted in India. Those standards require that I 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. I believe that my audit provides a reasonable basis for
 my opinion.
 
 3.  I have obtained all the information and explanations which to the
 best of my knowledge and belief, were necessary for the purpose of my
 audit.
 
 4.  In my opinion, proper books of account as required by law have been
 kept by the company so far as appears from my examination of those
 books and proper returns adequate for the purpose of my audit have been
 received from branches notvisitedbyme.
 
 5.  In my opinion, the Profit and Loss Account, the Balance Sheet & the
 Cash Flow Statement dealt with by this report subject to notes thereon
 comply with the Accounting Standards referred to in sub- section (3C)
 of the Section 211 of the Companies Act, 1956 except for Accounting
 Standard - 15 (Revised) as referred to in Note No.2 in Schedule 6.
 
 6.  The Balance Sheet, Profit and Loss Account & the Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account.
 
 7.  On the basis of written representations received from the
 directors, as on March 31, 2011 and taken on record by the Board of
 Directors , I report that none of the directors is disqualified from
 being appointed as a director in terms of clause (g) of sub-section (1)
 of section 274 of the Companies Act, 1956.
 
 8.  In my opinion and to the best of my information and according to
 the explanations given to me, the said accounts, read together with the
 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:
 
 i) In the case of Balance-Sheet, of the State of Affairs of the company
 as at 31 st March,201 land
 
 ii) In the case of the Profit and Loss Account, of the Profit for the
 year ended on that date.
 
 iii) In the case of the Cash Flow Statement, of the Cash Flows for the
 year ended on that date.
 
 9.  As required by the Companies (Auditors'' Report) Order,2003 issued
 by the Central Government of India in terms of Section 227 (4A)ofthe
 Companies Act, 1956, and on the basis of checks of books and records
 considered appropriate and the information and explanations given to me
 during the course of the audit, I further report that:
 
 I) (a) The company has maintained proper records showing full
 particulars, including quantitative details and situation of fixed
 assets.
 
 (b) The fixed assets have been physically verified by the management at
 reasonable intervals and no material discrepancies were noticed on such
 verification.
 
 (c) Fixed assets disposed-off during the year were not substantial, and
 therefore it has not affected the going concern status.
 
 II) (a) Physical verification of inventory has been conducted at
 reasonable intervals by the management.
 
 (b) In my opinion and according to the information and explanations
 given to me, the procedures of physical verification of inventory
 followed by the management are reasonable and adequate in relation to
 the size of the company and the nature of its business.
 
 (c) The company is maintaining proper records of inventory. The
 discrepancies noticed on physical verification of inventory as compared
 to the book records were not material and have been properly dealt with
 in the books of account.
 
 III) The company has not granted/taken any secured or unsecured loans
 to/from companies, firms or other parties covered in the register
 maintained under section 301 oftheAct.
 
 IV) In my opinion and according to the information and explanations
 given to me, there are adequate internal control procedures
 commensurate with the size of the company and the nature of its
 business, for the purchase of inventory and fixed asset and for the
 sale of goods and services. Further, on the basis of my examination and
 according to information and explanations given to me, I have neither
 come across nor have I been informed of any instance of major
 weaknesses in the aforesaid internal control procedures.
 
 V) According to information and explanation given to me, there were no
 any transactions, contract or arrangements referred to section 301 of
 the Act, which were required to be entered in the register maintained
 under that section.
 
 VI) In my opinion and according to the information and explanations
 given to me, the company has complied with the directives issued by the
 Reserve Bank of India and the provisions of Section of 58A and 58AA of
 the Companies Act, 1956 and the Companies (Acceptance of Deposits)
 Rules,1975,with regard to the deposits accepted from the public. No
 order has been passed on the company by the Company Law Board or
 National Company Law Tribunal or Reserve Bank of India or any Court or
 any other Tribunal in this regard.
 
 VII)The company has an internal audit system, which, in my opinion, is
 commensurate with the size and nature of its business.
 
 Vlll)lt is informed that maintenance of cost records has not been
 prescribed by the Central Government under clause (d) of sub section
 (1) of section 209 of the Companies Act, 1956.
 
 IX) (a) The company is generally regular in depositing undisputed
 statutory dues including Provident Fund, Investor Education and
 Protection Fund, ESIC, Income Tax, Sales Tax / VAT, Cess and other
 statutory dues with the appropriate authorities. There are no arrears
 of outstanding statutory dues as at the last day of financial year for
 a period of more than six months from the date those became payable.
 
 (b) According to information and explanations given to me there are no
 disputed amounts outstanding in respect of Sales Tax/VAT and Cess as at
 the last day of financial year. As regards the dispute of Income Tax
 the details are given in Schedule 6, Note 4.  ( Tax liability / demand
 involved Rs. Nil).
 
 c) According to information and explanations given to me Wealth Tax,
 Service Tax, Customs Duty and Excise Duty are not applicable to the
 company.
 
 X) There are no accumulated losses. The company has not incurred cash
 loss in the current financial year and in the immediately preceding
 financial year.
 
 XI) The company has not defaulted in repayment of dues to any financial
 institution or bank. The company has not issued any debentures.
 
 XII) The company has not granted loans and advances on the basis of
 security by way of pledge of shares, debentures and other securities.
 
 XIII) The provisions of any special statute applicable to chit fund /
 nidhi/ mutual benefit fund / societies are not applicable to the
 company.
 
 XIV) In my opinion and according to information and explanations given
 to me, the company is not a dealer or trader in
 shares,securities,debentures and other investments.
 
 XV) According to information and explanations given to me the company
 has not given any guarantee for loan taken by others from bank or
 financial institutions.
 
 XVI) No any fresh term loan has been obtained by the company during the
 year
 
 XVII) On the basis of an overall examination of the Balance-Sheet of
 the company, in my opinion and according to the information and
 explanations given to me, there are no funds raised on short- term
 basis, which have been used for long term investments.
 
 XVIII) The company has not made any preferential allotment of shares to
 parties and companies covered in the register maintained under section
 301 of the CompaniesAct, 1956 during the year.
 
 XIX) The company has not issued any debentures.
 
 XX) The company has not raised any money by public issue during the
 year.
 
 XXI) During the course of my 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 me, I have neither come across any instance of
 material fraud on or by the company, noticed or reported during the
 year nor have I been informed of such case by the management.
 
 Place : Nashik                                      ANAND S. DAGA.
 
 Date : 27th May 2011.                        Chartered Accountant