We have audited the Balance Sheet of Yamini Investments Company Limited
 as at 31st March, 2012 and also the Profit and Loss Statement and the
 Cash Flow Statement 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.
 
 1 We conducted our audit in accordance with auditing standards
 generally accepted in India which requires 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, and also includes assessing
 the accounting principles used and significant estimates mace by
 management, as well as evaluating the overall financial statement
 presentation. We believe that our audit provides a reasonable basis for
 our opinion.
 
 2.  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 and on the basis of such
 checks of books and records of the Company as considered appropriate
 and as per the information and explanations given to us we enclose in
 the Annexure a statement on the matters specified in paragraphs 4 and 5
 o the said order.
 
 3.  Further to our comments in the Annexure referred to above, we
 report that.
 
 a) 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.
 
 b) 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;
 
 c) The Balance Sheet, Profit and Loss Statement and Cash Flow Statement
 dealt with by this report are in agreement with the books of account of
 the Company.
 
 d) in our opinion, the Bo, once Sheet. Profit and Loss Statement 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:
 
 e) On the basis of written representations received from the Directors
 of the company taken on record by the Board of Directors, we
 report that none of the Directors are disqualified as on 31st March.
 2012 from being appointed as a Director in terms of Section 274 {1) (g)
 of the Companies Act, 1956;
 
 f) Though the accounts for the year have been prepared on the
 assumption of going '' concern basis, the company''s ability to continue
 as a going concern, however is dependent upon restructuring of
 operations by considering appropriate business strategies and financial
 viabilities.
 
 g) Subject to the foregoing, in our opinion and to the best of
 our and according to the explanations given to us. the said
 accounts read with the notes thereon given the information required by
 the Companies Act. 1956, ,n 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, 2012;
 
 (ii) In the case of the Profit and Loss Statement, of the profit for
 the year ended on that date; and
 
 (iii) In the case of Cash Flow Statement, of the cash flows for the
 year ended on that date.
 
 As required by the Companies (Auditor''s report) Order, 2003 issued by
 the central Government of India in terms of section 227(4-Aj of the
 Companies Act, 1956, we report that:
 
 1 In respect of fixed assets:
 
 (A) The company has maintained proper records showing full particulars,
 including quantitative details and situation of fixed assets on the
 basis of available information.
 
 (B) As explained to us. all the fixed assets have been physically
 verified by the management during the year at reasonable intervals,
 which in our opinion, is reasonable having regard to the size of the
 company and the nature of assets. No material discrepancies were
 noticed on such physical verification.
 
 (C) ir our opinion the Company has not disposed off any
 substantial/major pan of fixed assets during the year and the going
 concern status of the company is not affected.
 
 2 In respect of its inventories:
 
 (A) The Company has Closing Inventories of Rs.2,412 during the previous
 year.
 
 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) The company has not granted any Loan from Directors during the
 previous year.
 
 (B) In our opinion and according to the information and explanations
 given to us, the rate of interest, wherever applicable and other the
 terms and conditions are not prima-facie prejudicial to the interest of
 the company.
 
 (C) Since the loans taken by the company are repayable on demand, no
 question of overdue amounts arises.
 
 4 In our opinion and according to the information and explanations
 given to us, there are adequate internal contra: procedures
 commensurate with the size of the company and nature of its business.
 During the course of audit, no major weakness has been noticed in the
 internal control
 
 5 In respect of contracts or arrangements entered in the register
 maintained in pursuance of Section 301 of the Companies Act, 1956.  
 
 (A) in our opinion and according to the information and explanation
 given to us. the transistors made in pursuance of contracts or
 arrangements that needed to be entered in the register maintained under
 section 301 of the Companies Ac4 1956 have been so entered''.
 
 (B) in our opinion and explanation given to us, the transactions
 exceeding The value of 5 lakh in respect of any party during the year
 have been made at prices which are prima-facie reasonable having regard
 to prevailing Market prices at the relevant time where such prices
 are available.
 
 6 In our opinion and according to the information and explanations
 given to us, the Company has not accepted deposits from the public and
 therefore, the provisions of Section 53A end 58AA of the Companies Act,
 1956 and Rules made there under are not applicable to the Company.
 
 7 In Our opinion, the company has an internal audit system commensurate
 with its size and nature of its business.
 
 8 Tc the best of our knowledge the Central Government has not
 prescribed the maintenance of cost records U/s 209(1) (d) of the
 company act, 1956 for any of the products of the company.
 
 9 in respect of statutory'' dues:
 
 (A) According to the information and explanations given to us, the
 company was generally regular in depositing dues in respect of Income
 Tax and other statutory dues with the appropriate authority during the
 year.
 
 (B) According to the records examined by us and the information and
 explanations given to us, there are no disputed amounts due in respect
 of income tax and other statutory dues at the end of the year.
 
 10 The Company has accumulated profit amounting to Rs. 217,411 as at
 the end of tr e year out the Company has not incurred any cash losses
 during current immediately preceding financial year.
 
 11 Based on our audit procedures and on the basis of information and
 explanations given by the management, the Company is not required for
 any repayment of dues to Banks, Financial Institutions and Debentures
 holders during the year. 
 
 12 In our opinion and according to information and explanation given to
 us, no loans and advances have been granted by the company on the basis
 of security by way of pledge o; shares, debentures and other security.
 
 13 In our opinion the company is rot a Chit Fund, Nidhi or Mutual
 Benefit rural/Society. Therefore the provisions of clause 4(XIII) of
 the CARO, 2003 are not applicable to the company.
 
 14 The company has key adequate records of its transaction and
 contracts and i .  Time v'' entries of transactions are made in their
 former in respect of shares.  securities and other investments dealt
 with or traded by the Company.
 
 15 In Our opinion, the company no not given any guarantees for loans
 taken by other from banks end fir ,one al institutions.
 
 16 In our opinion arid according to information and explanation given
 to us, the Company has not availed of any term loans during the year.
 There were no term loans outstanding at the beginning and as at end
 of the year.
 
 17 According to the information and explanations given to us and on
 examination of balance sheet, funds raised on short term basis have,
 prima facie not been used Curing the year for long term investment and
 vice versa.
 
 18 The company has no; made by preferential allotment to parties and
 companies covered under register maintained under Section 301 of the
 Companies Act, 1956. during the year.
 
 19 The Cause 13 of the aider is not applicable, as the company has not
 issued and debentures during tie year.
 
 20 The Company has not is sea money by any public issues during the
 year and here the question of d closure are verification of end use
 of such money does not arise.
 
 21 in our opinion and according to the information and explanations
 given to us no fraud or by the Company has been noticed or reported
 during the year that causes the financed statements to be materially
 misstated.  
 
                                              For KVSRY & ASSOCIATES
 
                                               CHARTERED ACCOUNTANTS   
 
                                       Firm Registration No. 008169S
 
                                                  CA.K.VENKATESWARLU
 
                                                             PARTNER
 
                                                        M No. 207068
 
 
 Place: Hyderabad
 
 Date: 2. 05. 2012