1.  We have audited the attached Balance Sheet of Yash Trading and
 Finance Limited as at 31st March 2011, and the Profit and Loss account
 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.
 
 2.  We have conducted our audit in accordance with the Auditing
 Standards generally accepted in India. These 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 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.
 
 3.  As required by the Companies (Auditor''s Report) Order, 2003 as
 amended 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.
 
 4.  Further to our comments in the annexure referred to in paragraph 3
 above, we report that
 
 a.  We have obtained all the information and explanation, 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 maintained by the Company so far as appears from our examination
 of those books;
 
 c.  The Balance Sheet, Profit and Loss account and the Cash Flow
 Statement dealt with by this report are in agreement with the books of
 account;
 
 d.  In our opinion, the Balance Sheet, Profit and Loss account dealt
 with by this report comply with the Accounting Standards referred to in
 sub-section (3c) of Section 211 of the Companies Act, 1956.
 
 5.  On the basis of the 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.
 
 6.  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 2011;
 
 b.  In the case of the Profit and Loss account of the profit for the
 year ended on that date; and
 
 c.  In the case of the Cash Flow Statement, of the cash flows for the
 year ended on that date
 
 Annexure to the Auditors'' Report of Yash Trading and Finance Limited
 for the year ended 31st March, 2011
 
 (referred to in paragraph (3) thereof)
 
 (i) The company does not have any fixed assets
 
 (ii) The company does not have any inventory
 
 (iii) (a) has the company not granted any loans, secured or unsecured
 to companies, firms or other parties covered in the register maintained
 under section 301 of the Act. Number of parties – Nil, Amount involved
 in the transactions - Nil
 
 (b) The rate of interest and other terms and conditions of loans given
 by the company, secured or unsecured, are prima facie not prejudicial
 to the interest of the company
 
 (c) The receipt of the principal amount and interest are also regular
 
 (d) Where overdue amount is more than rupees one lakh, reasonable steps
 have been taken by the company for recovery of the principal and
 interest
 
 (e) 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. Number of parties - Nil, Amount involved
 in the transactions - Nil
 
 (f) The rate of interest and other terms and conditions of loans taken
 by the company, secured or unsecured, are prima facie not prejudicial
 to the interest of the company
 
 (g) Payment of the principal amount and interest are regular
 
 (iv) There an adequate internal control system commensurate with the
 size of the company and the nature of its business, for the purchase of
 inventory and fixed assets and for the sale of goods and services.
 There is no continuing failure to correct major weaknesses in internal
 control system
 
 (v) (a) The particulars of contracts or arrangements referred to in
 section 301 of the Act have been entered in the register required to be
 maintained under that section
 
 (b) The transactions made in pursuance of such contracts or
 arrangements have been made at prices which are reasonable having
 regard to the prevailing market prices at the relevant time
 
 (vi) The company has not accepted deposits from the public. No order
 has been passed by Company Law Board or National Company Law Tribunal
 or Reserve Bank of India or any Court or any other Tribunal
 
 (vii) The company has an internal audit system commensurate with its
 size and nature of its business
 
 (viii) No maintenance of cost records has been prescribed by the
 Central Government under clause (d) of sub-section (1) of section 209
 of the Act
 
 (ix) (a) The company is regular in depositing undisputed statutory dues
 including Provident Fund, Investor Education and Protection Fund,
 Employees'' State Insurance, Income-tax, Sales-tax, Wealth tax, Service
 tax, Custom Duty, Excise Duty, cess and any other statutory dues with
 the appropriate authorities. There are no arrears of outstanding
 statutory dues as at the last day of the financial year concerned for a
 period of more than six months from the date they became payable
 
 (b) There are no dues of Income tax/ Sales tax Wealth tax/ Service tax/
 Custom duty/Excise duty/ cess which have not been deposited on account
 of any dispute
 
 (x) The company does not have any accumulated losses at the end of the
 financial year
 
 (xi) The company has not defaulted in repayment of dues to a financial
 institution or bank or debenture holders
 
 (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) No provisions of any special statute applicable to chit fund is
 applicable to the company. The company is not a nidhi/ mutual benefit
 fund/society
 
 (xiv) The company is dealing/ trading in shares, securities, debentures
 and other investments. Proper records have been maintained of the
 transactions and contracts. Timely entries have been made therein. The
 shares, securities, debentures and other investments have been held by
 the company, in its own name.
 
 (xv) The company has not given any guarantee for loans taken by others
 from bank or financial institutions
 
 (xvi) No term loans have been obtained by the company
 
 (xvii) Funds raised on short-term basis have not been used for long
 term investment
 
 (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 Act
 
 (xix) No debentures have been issued by the company
 
 (xx) No money has been raised by public issues by the company during
 the year
 
 (xxi) No fraud on or by the company has been noticed or reported during
 the year
 
 For Mohanlal Jain & Co.
 
 Chartered Accountants
 
 Firm Registration Number 106532W
 
 Sd/-
 
 Mohanlal Jain
 
 Proprietor
 
 M. No. 036824
 
 Place: Mumbai, September 1 2011