Shriram City Union Finance Limited - Karvy

PIJUSH GUPTA & COC H A R T E R E D A C C O U N T A N T SP-199, C.I.T.ROAD, SCHEME IV-M, KOLKATA – 700 010TEL (033) 2353-6859, (0) 98311 91779 MAIL: pijushgupta.ca@gmail.comAuditors' ReportToThe Board of DirectorsShriram City Union Finance Limited221, Royapettah High Road,Mylapore, ChennaiDear Sirs,1. We, Pijush Gupta & Co., have examined the attached Reformatted unconsolidated financial informationcomprising of Balance Sheet, Profit and Loss Accounts, Cash Flows and notes thereon of Shriram City UnionFinance Limited, ("Company" or “Issuer”) as at and for the years ended March 31, 2011, 2010, 2009, 2008 and2007, approved by the board of directors of the Company and as prepared by the Company in accordance withthe requirements of:a. paragraph B(1) of Part II of Schedule II to the Companies Act, 1956 ('the Act') andb. the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008,("Regulations"), issued by the Securities and Exchange Board of India, ("SEBI"), as amended from timeto time in pursuance of Section 11 of the Securities and Exchange Board of India Act, 1992 ("SEBIAct").Pijush Gupta & Co. is referred to as the "Auditors" and the references to the Auditors as "we", "us" or "our", inthis letter, shall be construed accordingly.2. We have examined such reformatted unconsolidated financial information taking into consideration:a. The terms of reference dated June 26, 2011 received from the Company and engagement letter ofauditors dated June 26, 2011 requesting us to carry out the assignment, in connection with the DraftProspectus/Prospectus (collectively referred to as “Offer Document”) being issued by the Company forits proposed public issue of secured non-convertible debentures ("NCDs"), having a face value ofRs.1000 each (referred to as the "Issue") andb. The ‘(Revised) Guidance Note on Reports in Company Prospectuses’ issued by the Institute of CharteredAccountants of India.Reformatted Unconsolidated Financial information as per audited unconsolidated financial statements:3. The reformatted unconsolidated financial information of the Company has been extracted by the managementfrom:a. the Unconsolidated balance sheet as at March 31, 2011, 2010, 2009, 2008 and 2007 and the relatedUnconsolidated profit and loss account and Unconsolidated cash flow statement for the year endedMarch 31, 2011, 2010, 2009, 2008 and 2007 (collectively referred to as the " Unconsolidated FinancialStatements") audited by us;b. In the course of our aforesaid audit we relied upon audit reports received from Branch Auditors who hadconducted audit of business regions of the company.These Audited Unconsolidated Financial Statements have been approved by the Board of Directors.F-1