Arihant Avenues and Credit Ltd.

We have audited the accompanying financial statements of ARIHANT AVENUES AND CREDIT LIMITED which comprise the Balance Sheet as at March 31, 2015, and the Statement of Profit and Loss and for the year then ended, and a summary of significant accounting policies and other explanatory information. The company''s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting principles generally accepted in India, including the Accountant Standards referred to in section 133 of the Companies Act, 2013 (the Act) read with rule 7 of the Companies Accounts Rules 2014. This responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies, making judgements and estimates that are reasonable and prudent, and design, implementation and maintenance of adequate internal financial control that we are operating effectively for ensuring the accuracy and completeness of accounting records relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India and specified u/s 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act 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 March 31,2015; 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. 1. As required by the Companies (Auditor''s Report) Order, 2015 (the Order) issued by the Central Government of India in terms of sub-section 11 of section 143 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order. 2. As required by section 143(3)ofthe Act, 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, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account. d) in our opinion, the financial statements comply with the Accounting Standards referred to in section 133 of the Companies Act, 2013 read with rule 7 of Companies Accounts Rules 2014 e) on the basis of written representations received from the directors as on March 31, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2015, from being appointed as a director in terms of section 164(2) of the Companies Act, 2013. f) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit & Auditors) Rules 2014, in our opinion and to the best of our information and according to explanations given to us by the management, the requirements of the same are duly complied with as under: 1. The company has disclosed the impact of pending litigations on its financial position in its financial statements 2. In our opinion and as per the information and explanation given to us, the company has not entered into any long term contracts including derivative contracts, requiring provision under applicable laws or accounting standards, formaterial foreseeable losses, and 3. There has not been an occasion in case of the company during the year under the report to transfer any sums to the Investor Education and Protection Fund, hence the question of delay in transferring such sums does not arise. ANNNEXURE TO THE AUDITORS'' REPORT The Annexure referred to in our report to the members of the above company for the year Ended on 31/03/2015. We report that: S. No. Particulars Auditors Remark (i) (a) whether the company is maintaining Not applicable as proper records showing full no fixed assets particulars, including quantitative details and situation of fixed assets; (b) whether these fixed assets have Not applicable been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account; (ii)(a) whether physical verification of yes inventory has been conducted at reasonable intervals by the management; (b) are the procedures of physical Yes, they are verification of inventory followed reasonable and by the management reasonable and adequate adequate in relation to the size of the company and the nature of its business. If not, the inadequacies in such procedures should be reported; (c) whether the company is maintaining Yes, no material proper records of inventory and discrepancies whether any material discrepancies were noticed were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account; (iii) whether the company has granted any No loans given to loans, secured or unsecured to parties covered companies, firms or other parties in the register covered in the register maintained maintained under under section 189 of the Companies section 189 Act. If so, (a) whether receipt of the principal Not Applicable amount and interest arc also regular; and (b) if overdue amount is more than rupees Not Applicable one lakh, whether reasonable steps have been taken by the company for recovery of the principal and interest; (iv) is there an adequate internal control yes no system commensurate with the size of continuing failure the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system. (v) in case the company has accepted Not applicable as deposits, whether the directives no fixed assets issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under, where applicable, have been complied with? II not, the nature of contraventions should be stated; If an 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, whether the same has been complied with or not? (vi) where maintenance of cost records has Not applicable been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, whether such accounts and records have been made and maintained; (vii)(a) is the company regular in depositing The company is undisputed statutory dues including regular provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and if not, the extent of the 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, shall be indicated by the auditor. (b) in case dues of income tax or sales No such dues tax or wealth tax or service tax or Pending duty of customs or duty of excise or value added tax or cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute). (c) whether the amount required to be Not applicable transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time. (viii) whether in case of a company which No accumulated has been registered for a period not losses less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year; (ix) whether the company has defaulted in No Such default repayment of dues to a financial institution or bank or debenture holders? If yes, the period and amount of default to be reported; (x) whether the company has given any No such guarantee guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company; (xi) whether term loans were applied for Not applicable the purpose for which the loans were obtained; (xii) whether any fraud on or by the No such instance company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated. Place : Ahmedabad V. K Moondra & Co. Date : 28/05/2015 CHARTERED ACCOUNTANTS FRN : 106563W PROPRIETOR