To
The Shareholders

We have audited the attached Balance Sheet of G.V.FILMS LIMITED as at 31st March 2006 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the company 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 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit also includes examining, on 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.

1. As required by the Companies (Auditor's Report) Order, 2003 (Caro 2003) issued by the Company Law Board in terms of Section 227(4A) 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.

2. Further to our comments in the Annexure referred to in paragraph 1 above, we state that:

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 account as required by law have been kept by the Company so far as appears from our examination of such books.
c) The Balance Sheet and Profit & Loss Account referred to in this report are in agreement with the books of account.
d) In our opinion, the profit and loss account and the balance sheet comply with the Accounting Standards referred to in Subsection (3C) of section 211 of the Companies Act, 1956.
e) As per the information and explanations given to us, none of the directors of the company are disqualified from being appointed as a director under clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and according to the explanations given to us, the said Balance Sheet and the Profit & Loss Account 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 subject to note nos. 1( b, d and e), 3, 4 and 6 in the notes on accounts. i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2006 and ii) in the case of the Profit and Loss Account of the Profit of the Company for the year ended on that date.