We have audited the attached Balance Sheet of SVC Resources Limited as
 at 31st March 2011 and also the Profit & Loss Account for the year
 ended on that day annexed hereto. 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 have conducted our audit in accordance with auditing standards
 generally accepted in India. Those standards required that we plan &
 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 included
 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.
 
 a.  As required by the Companies (Auditors'' Report) Order, 2003 issued
 by the Department of the Company Affairs in terms of section 227 (4A)
 of the Companies Act 1956, we enclose in the Annexure, a statement on
 the matter specified in the said order to the extent applicable;
 
 b.  Further to our comments in the annexure referred to in paragraph 1
 above -
 
 (a).  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; 
 
 (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 & Loss Account and the Cash Flow
 Statement dealt with by this report are in agreement with the books of
 accounts;
 
 (d).  In our opinion, the Balance Sheet, Profit & Loss Account and Cash
 Flow Statement together with notes of accounts dealt with by this
 report comply with the accounting standards referred to in sub-section
 (3C) of section 211 of the Companies Act 1956.
 
 (e).  On the basis of written representations received from the
 directors, as on 31st March 2011, and taken on record by the Board of
 Directors, we report that 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.  
 
 (f).  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, and give a true and
 fair view in conformity with the accounting principles generally
 accepted in India :-
 
 1.  in the case of the Balance Sheet, of the state of affairs of the
 Company as at 31st March 2011;
 
 2.  in the case of the Profit and Loss Account, of the profit for the
 year ended on that date;
 
 3.  in the case of Cash Flow Statement, of the cash flows for the year
 ended on that date.
 
                                                  For Prem Mishra & Co
 
                                                 Chartered Accountants
 
                                                      Prem Lata Mishra
 
 Place: Mumbai Partner
 
 Date: September 2, 2011                           Membership No.92733
 
 
 
 
 
 
 
 ANNEXURE TO THE AUDITOR''S REPORT
 
 (Referred to in paragraph 1 of our report of even date)
 
 1.  (a) The Company has maintained proper books of records showing full
 particulars including quantitative details and situations of fixed
 assets.
 
 (b) As per the information and explanations given to us, the Company
 has carried out physical verification of fixed assets during the year.
 In our opinion, the frequency of such verification is reasonable.
 
 (c) None of the fixed assets have been revalued during the year.
 
 2.  (a) As per the information and explanations given to us, the
 company has carried out physical verification of Inventories during the
 year. In our opinion, the frequency of such verification is reasonable.
 
 (b) In our opinion, and according to the information and explanation
 given to us, the procedure of physical verification of stock followed
 by the management is reasonable and adequate in relation to the size of
 the company and nature of its business.
 
 (c) As per information and explanation given to us, no material
 discrepancies have been noticed on physical verification of stock as
 compared to the records.
 
 (d) In our opinion and on the basis of our examination, the valuation
 of the stock is fair and proper in accordance with the normally
 accepted accounting principles.
 
 3.  (a) According to the information and explanation given to us and on
 the basis of records furnished before us, the Company has not granted
 any loans, secured or unsecured to companies, firms or other parties
 covered in the register maintained under section 301 of the Companies
 Act, 1956.
 
 (b) In view of above, clause 4(iii) (a), (b), (c) and (d) of Companies
 (Auditors Report) Order, 2003 are not applicable.
 
 (c) According to the information and explanation given to us and on the
 basis of records furnished before us for verification, 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 Act.
 
 (d) In the view of above, clause 4(iii)(e), (f) and (g) of Companies
 (Auditors Report) Order, 2003 are not applicable.
 
 4.  In our opinion and according the information & explanations given
 to us, there are adequate internal control procedures commensurate with
 the size of the company and nature of business with regard to purchase
 and sales. During the course of Audit, we have not observed any
 continuing failure to correct major weakness of internal audit.
 
 5.  (a) In our opinion and according to the information and
 explanations given to us, the particulars of contract or arrangements
 that were required to be entered in the register maintained under
 section 301 of the Companies Act, 1956 have been so entered in the said
 register.  (b) In respect of transactions entered exceeding the value
 of five lacs in the register maintained in pursuance of section 301 of
 the Companies Act 1956, according to information and explanation given
 to us, the transactions made pursuance of such contracts or
 arrangements have been made at prices which are prima-facie reasonable
 having regard to prevailing market prices at the relevant time.
 
 6.  The company has not accepted any deposits from the public hence
 clause 4(vi) of Companies (Auditors Report) Order 2003 is not
 applicable.
 
 7.  The company has adequate Internal Control System, on broadly
 reviewing the same and information and explanation given to us by the
 management, we are of the opinion that the internal audit is
 commensurate with the size of the Company and the nature of business.
 
 8.  We are informed that the Central Government has not prescribed
 maintenance of cost records under section 209(1) (d) of the Companies
 Act 1956 in respect to products dealt with by the company.
 
 9.  (a) In our opinion and according to the information and
 explanations given to us, undisputed statutory dues including Provident
 Fund, Investors Education & Protection Fund, Employees State Insurance
 Scheme, Income Tax, Sales Tax, Wealth Tax, Custom Duty, Excise Duty,
 Cess and any other statutory dues have been regularly deposited in time
 during the year with appropriate authorities and there are no
 undisputed statutory dues payable for a period of six months from the
 date they became payable as at 31st March 2011.
 
 (b) According to the information and explanation given to us there are
 no disputes pending before the authorities in respect of Sales Tax,
 Income Tax, Custom Duty and CESS.
 
 10.  The Company does not have any accumulated losses as at the end of
 financial year and has not incurred cash losses in the current
 financial year and in the immediate preceding financial year.
 
 11.  According to the records made available to us and the information
 and explanation given to us by the management, the Company has not
 defaulted in repayment of any dues to financial institutions or banks.
 
 12.  According to the information and explanation given to us, the
 Company has not granted any loans & advances on the basis of security
 by the way of pledge of shares, debentures and other securities.
 
 13.  In our opinion, the Company is not chit fund, nidhi, mutual fund
 and societies and accordingly clause 4 (xiii) of companies (Auditors
 Report) order, 2003 is not applicable.
 
 14.  In our opinion and according to the information and explanation
 given to us, the Company has kept adequate records of its transactions
 and contracts in shares, securities, debentures and other investments
 are held in the name of the company.
 
 15.  In our opinion and according to the information and explanation
 given to us, the Company has not given guarantees for loans taken by
 others from banks & financial institutions. Accordingly clause 4 (xv)
 of the Companies (Auditors'' Report) Order, 2003 is not applicable.
 
 16.  In our opinion and according to the information and explanation
 given to us, the Company has not obtained any term loan, accordingly
 clause 4 (xvi) of Companies (Auditors'' Report) Order, 2003 is not
 applicable.
 
 17.  According to the information and explanation given to us and on
 the basis of and overall examination of the Balance Sheet of the
 Company, no funds raised on short term basis have been utilized for
 long term investment and vice versa.
 
 18.  During the period, the company has not issued any debentures.
 Accordingly clause 4 (xix) of Companies (Auditors'' Report) Order, 2003
 is not applicable.
 
 19.  The Company has not raised any money through a Public Issue during
 the year under audit. Accordingly clause 4 (xx) of Companies (Auditors''
 Report) Order, 2003 is not applicable.
 
 20. During the course of examination of the books and records of the
 Company, carried out in accordance with generally accepted auditing
 practices in India, and according to the information and explanation
 given to us, we have neither come across any instance of fraud on or by
 the Company noticed or reported during the period nor we have been
 informed of any such instances by the management.
 
                                                    For Prem Mishra & Co
 
                                                   Chartered Accountants
 
                                                        Prem Lata Mishra
 
 Place: Mumbai                                                   Partner
 
 Date: September 2, 2011                             Membership No.92733